Smart Robot's acquisition of Upwind New Materials positions it strategically in the A-share market, enhancing its growth potential and establishing a leading role in embodied intelligence.

Information on the Target

Smart Robot (智元机器人), a newly established company in February 2023, specializes in the development of general-purpose embodied robots and their applications. Founded by former Huawei Vice President Deng Taihua and renowned tech influencer Peng Zhihui, the company has attracted investments from major firms including Tencent, JD.com, Hillhouse Capital, and Sequoia Capital. Meanwhile, Upwind New Materials (上纬新材), the target of the acquisition, is a publicly listed enterprise on the Star Market since 2020. The company focuses on environmentally friendly high-performance corrosion-resistant materials used in wind power blade manufacturing, among other new materials. For the fiscal year ending 2024, Upwind reported revenues of approximately CNY 1.494 billion and a net profit of CNY 88.68 million.

The acquisition, which is expected to total around CNY 2.1 billion, will allow Smart Robot to take control of Upwind, obtaining at least 63.62% of its shares. After the transaction, Upwind will be under the control of Shanghai Zhiyuan Hengyue Technology Partnership, with Deng Taihua serving as the actual controller. This strategic move positions Smart Robot to potentially become the first listed company in the Star Market focused on the embodiment intelligence concept, an area expected to fuel growth beyond its competitors.

Industry Overview in the Target’s Specific Country

The digital economy sector in China remains vibrant, although a reduction in merger and acquisition activity was observed in July, which saw a 20.18% decline compared to June. The number of disclosed M&A transactions decreased from 91 to 404.65 billion yuan, reflecting a significant contraction of 40.99%. Despit