Under the grand narrative of the global manufacturing industry accelerating its transformation towards intelligence and electrification, China’s electric drive solutions market is experiencing explosive growth.
According to data from CIC Consulting, China’s electric drive solutions market size has reached 257.1 billion yuan (RMB, the same below) in 2025, and is expected to further approach the 500 billion yuan mark in 2030.
On this golden track, as the third-ranked supplier of dedicated electric drive solutions in the field of industrial control, Ningbo Feish Technology Co., Ltd. (hereinafter referred to as “Fish Technology”) once again submitted a listing application to the main board of the Hong Kong Stock Exchange.
From deeply cultivating high-precision industrial servo systems to actively deploying cutting-edge fields such as embodied robots and low-altitude economy, Feish Technology attempts to rely on its deep accumulation in the field of motion control to tell a growth story about high-end manufacturing upgrades in the capital market.
However, facing the attractive prospect of a market worth hundreds of billions, can this second-time reporting company truly realize its performance potential?
Looking at the financial statements of Feisheng Technology, the most intuitive feeling is the strong contrast between the resilience of its revenue growth and the lag in profit realization.
According to the prospectus data, the company will achieve revenue of approximately 1.243 billion yuan, 1.500 billion yuan, and 1.625 billion yuan in 2023, 2024, and 2025 respectively. The compound annual growth rate during the period reached 14.3%, showing good growth resilience.
This growth is mainly due to the rapid expansion of the new energy vehicle business, with the revenue share of this segment jumping from 30.1% in 2023 to 50.7% in 2025, becoming the company’s largest source of revenue.
In terms of profitability, FIS Technology has shown positive signs of improvement, but has still not crossed the break-even line.
During the reporting period, the company’s gross profit margins were 14.3%, 16.1% and 16.8% respectively, showing a steady upward trend.
This improvement is mainly due to the optimization of product structure and the increase in the proportion of high value-added products.
However, the improvement in gross profit margin did not fully cover the expenses during the period.
During the reporting period, the company’s losses during the year were 112 million yuan, 177 million yuan and 62 million yuan respectively.
It is worth noting that the loss will expand in 2024, mainly due to the company’s aggressive investment in research and development and market expansion.
It was not until 2025 that losses narrowed significantly.
This shows that Feisheng Technology is still in the growth stage of “investment in exchange for market, R&D in exchange for technology” and has not yet established a solid profit model.
Especially R&D investment, R&D costs will surge to 87.69 million yuan in 2025, and the expense rate will increase to 5.4%. This will suppress profit performance in the short term, but it is the only way to maintain its technology moat.
It is worth noting that the cash flow situation of Feishi Technology is also not optimistic.
In 2024, the company’s operating activities experienced a net cash outflow of over 100 million yuan.
Although positive operating cash flow will be achieved in 2025 as collections improve, large accounts receivable and inventory still occupy a large amount of working capital.
As of the end of 2025, the company’s total trade receivables and notes receivable were huge, and there was a precedent for full impairment provision due to the deterioration of individual customers’ financial conditions.
This fragile capital chain not only limits the company’s ability to expand, but also creates hidden dangers for future operating stability.
For investors, how to find a balance between revenue growth expectations and the company’s current lack of hematopoietic capabilities is a core issue that must be faced when evaluating the investment value of Feish Technology.
Flex Technology’s business layout spans the two golden tracks of industrial automation and new energy vehicles, which is not only the support point of its valuation, but also the birthplace of risks.
In the field of industrial automation, as the global manufacturing industry transforms towards intelligence, the size of the servo system market continues to expand.
As one of the earliest domestic companies to master the core technologies of servo motors, drives and control systems, Feish Technology has a certain brand accumulation.
Data from the prospectus show that the company occupies an important position in specific segments such as the high-power wind power converter market. It is expected that the global market share will reach 28.5% in 2025, demonstrating its competitiveness in high-end application scenarios.
However, the competition on this track is extremely cruel. It not only has to face the suppression of international giants such as Siemens, Yaskawa, and Mitsubishi, but also the fierce squeeze of domestic leaders such as Innovative Technology.
The new energy vehicle business has been the main engine of growth for Fisch Technology in recent years, but this track is also full of variables.
The company’s layout in the field of new energy vehicle drive motors and control systems has successfully entered the supply chain of some mainstream car companies.
However, OEMs are in a strong position and parts companies are facing continued price reduction pressure.
During the reporting period, the revenue generated by the company’s top five customers accounted for 46.2%, 55.3% and 56.4% of the total revenue for the period respectively, and customer concentration increased year by year.
This business model, which is highly dependent on large customers, ensures the stability of orders, but also greatly weakens the company’s bargaining power.
Once the operating conditions of core customers fluctuate, or supplier qualifications change, it will have a devastating blow to the company’s performance.
In addition, geopolitical risks are also the Sword of Damocles hanging over the company’s head.
Feish Technology has a R&D center and sales representative office in Italy, and its overseas market revenue will account for 17.4% in 2025.
As the trade friction between China and the United States intensifies, the tariffs imposed by the United States on Chinese imported goods have increased significantly. Although the company’s exports to the United States account for less than 5%, the rise of global trade protectionism may still be indirectly transmitted to the company through supply chain costs or customer demand.
In addition, the company has had limited transactions with sanctioned entities in the past. Although it has strengthened internal controls and ceased related business, in the current geopolitical environment, compliance risks are always the sword of Damocles hanging high.
Looking forward to the future, the purpose of Feish Technology’s listing of funds will directly determine whether it can overcome the current bottleneck period.
The funds will focus on R&D capability improvement, production capacity expansion and potential strategic acquisitions.
This shows the clear logic of the company trying to break involution through technological iteration and reduce costs through scale effects.
The capital market’s patience for loss-making companies is limited. Feish Technology needs to prove to investors as soon as possible after listing that its high R&D investment can be converted into real technical barriers and market share, and that its two-wheel drive business model can achieve sustained profit reversal in fierce market competition.
For investors, this is not only a review of financial statements, but also a long-term bet on whether China’s high-end manufacturing companies can break through in their transformation and upgrading.
