On March 12, Zhejiang Fenglong Electric Co., Ltd. (Stock Code: 002931.SZ) announced that the share transfer agreement for its controlling shareholder has been completed. UBTECH ROBOTICS (Stock Code: 09880.HK) has officially become the controlling shareholder, with Zhou Jian now the actual controller.
The core component of the share transfer via agreement has been successfully concluded. According to the confirmation issued on March 12, 2026, the transfer was finalized on March 11, 2026. UBTECH acquired 65,529,906 unrestricted shares, representing 29.99% of Fenglong's total shares, at a price of 17.72 yuan per share. Following the transaction, the ownership and voting rights structure of Fenglong has changed significantly. The combined stake of the former controlling shareholder and its parties acting in concert dropped from 52.0046% to 22.0146%. Under a voting rights abandonment arrangement, they have irrevocably relinquished voting rights for 28,427,612 shares involved in this transaction, reducing their total voting rights to 9.0046%. Consequently, UBTECH, holding 65,529,906 shares with 29.99% voting rights, is now the new controlling shareholder, and the actual controller has changed from Dong Jiangang to Zhou Jian.
This transaction is not a simple agreement-based transfer but a comprehensive arrangement involving the agreement transfer, a mandatory offer, and the voting rights abandonment. The announcement specified that after the agreement transfer, UBTECH will launch a partial offer to acquire an additional 28,450,000 shares, representing 13.02% of the total shares, also at 17.72 yuan per share. The former shareholders have committed to tender their shares towards this offer.
As the acquirer, UBTECH has made several long-term commitments to ensure stable corporate governance. These include not transferring or reducing the acquired shares, nor pledging them, for 36 months from the completion date. UBTECH will maintain its controlling shareholder status for 60 months, compliantly, and has no plan to inject its own assets into Fenglong within 36 months post-acquisition. Zhou Jian, as the new actual controller, has similarly committed to maintaining his status for 36 months. The former shareholders have also agreed to restrictions on further share reductions for 18 months.
Fenglong specializes in precision components, focusing on R&D, production, and sales of parts for garden machinery, automotive applications, and hydraulic systems. Its net profit attributable to shareholders was 4.5929 million yuan in 2024. The announcement clarified that Fenglong is not currently involved in humanoid robot business and will continue to focus on its core operations post-transaction, maintaining operational and technical independence from UBTECH.
Founded in 2012 and led by Zhou Jian, UBTECH is a listed foreign-invested enterprise focused on intelligent robots and AI algorithms. Its business spans R&D, production, and sales of smart robots, with additional ventures into medical devices and smart home systems.
UBTECH's acquisition of control over Fenglong represents a significant strategic move within the high-end manufacturing sector, highlighting new trends in industrial integration. While both companies will initially operate independently, significant synergies exist. UBTECH brings technological R&D strengths in smart robotics, whereas Fenglong offers established capabilities in precision mechanical component manufacturing and supply chain management. Its expertise in hydraulic components and structural parts for garden machinery aligns naturally with the manufacturing needs of core robot components, suggesting potential for future complementary collaboration under compliant frameworks.
This transaction reflects broader integration trends in high-end manufacturing. Domestically, the hydraulic and precision machinery sectors face intense competition and upgrading pressures, with foreign firms dominating the high-end market. Meanwhile, emerging industries like smart robotics are at a critical stage of commercialization, requiring robust manufacturing support. UBTECH's strategic acquisition provides a new pathway for integrating smart robotics with traditional precision manufacturing, potentially encouraging further collaboration between technology and manufacturing firms.
Market attention will now focus on how Fenglong enhances its operational capabilities under UBTECH's control while staying true to its core business, and how both entities explore synergistic value compliantly. This change in control opens new developmental avenues for both companies and adds fresh possibilities for integration and upgrading within the high-end manufacturing industry.