- Stock drops on debut despite strong investor demand
- Humanoid robot boom fuels demand for precision gearboxes
Laifual Harmonic Drive (来福谐波), a manufacturer of harmonic drive reducers for robotics and other industrial applications, fell 14.6% on its trading debut in Hong Kong on June 30.
The decline came despite strong investor demand in its initial public offering, underscoring investor concerns over the profitability of robotics hardware makers.
The company, which bills itself as Hong Kong’s first listed harmonic drive manufacturer, closed at HK$73 ($9.3), down 14.62% from its IPO price of HK$85.50, giving it a market capitalization of about HK$7.55 billion.
Laifual sold about 13.44 million H shares in its global offering at the top end of its indicated price range, raising net proceeds of about HK$1.07 billion.
Oversubscribed
Hong Kong’s retail tranche was oversubscribed 4,571.99 times, while the international offering was covered 7.89 times.
Ten cornerstone investors participated in the deal, including Oaktree Capital Management, CDH Investments, E Fund Management, Harvest Fund Management and Hong Kong’s Alphahill Capital.
The company chose to list on June 30 ahead of Hong Kong’s July 1 public holiday to mark the handover of the former British colony to Chinese control in 1997, allowing the offering to complete before the market closure.
Ranking 2nd in China
Founded in 2013 and headquartered in Shengzhou, a county-level city governed by Zhejiang’s Shaoxing, Laifual develops and manufactures harmonic drives, joint modules and robotic arms, supplying precision motion components for industrial and humanoid robots.
According to China Insights Consultancy, the company ranked second in China’s robot harmonic drive market in 2025 with a 21.4% share by shipment volume.
It is also one of only two domestic manufacturers to have achieved mass production and commercial deliveries of harmonic drives for humanoid robots.
Uncertain prospects
Its customers include major humanoid robot developers such as Agibot (智元机器人), Ubtech (优必选) and Beijing Humanoid Robot Innovation Center (北京人形机器人中心).
Revenue rose from 95 million yuan in 2023 to 261 million yuan in 2025, though the company remained lossmaking throughout the period, posting annual net losses of more than 160 million yuan each year.
Analysts said harmonic drives, a key component enabling precise robot joint movement, stand to benefit from the commercialization of humanoid robots, although sustained losses remain a key challenge for the company.
