On January 30, 2026, YESMRO Holdings Limited submitted a listing application to the Main Board of the Hong Kong Stock Exchange, with ABCI acting as the sole sponsor.
The domestic market for automation components is characterized by low entry barriers, a high number of small-scale manufacturers, and intense competition. By adding the term "digital" to its description, YESMRO claims to be the leading domestic player in its niche. However, in terms of revenue, YIHEDA reported sales of RMB 2.504 billion in 2024, nearly four times that of YESMRO. Notably, when ranking industry players, YESMRO counted only about RMB 500 million of YIHEDA's total revenue.
Additionally, YESMRO's founder, Zhu Hongtao, holds only 15.5% of the company's shares, a stake very close to that of the second-largest shareholder, MPC. Through a weighted voting rights structure, Zhu controls approximately 62.28% of the voting power. If YESMRO were to abolish this structure to meet listing requirements, it could raise questions about the stability of corporate control.
Can adding a descriptive term make a company a segment leader? YESMRO describes itself in its prospectus as China's leading provider of digital FA factory automation parts, emphasizing supply chain integration and data-driven services. Its core business is the MRO industrial goods e-commerce platform "Yimaigongpin," similar to platforms like Ruigu Mall. Founded in April 2016, Yimaigongpin focuses on supplying FA components to small and medium-sized enterprises.
According to the prospectus, YESMRO has completed four funding rounds, raising a total of $82.7665 million, with a post-investment valuation of $251 million. Its website, however, mentions seven funding rounds amounting to billions of yuan, with backing from prominent investors such as Qiming Venture Partners and Gaorong Capital.
It is noteworthy that YESMRO's prospectus does not prominently feature Yimaigongpin, instead emphasizing the "digital FA" concept. In simple terms, FA components include standardized parts used in automation equipment. By adding "digital," YESMRO positions itself uniquely.
The automation components industry is highly fragmented, with products that are diverse and difficult to standardize. Companies like MISUMI addressed this by offering one-stop supply early on, establishing a global presence. YIHEDA, a direct competitor to YESMRO, also provides one-stop FA parts supply and went public in July 2021.
According to industry consultant Zhuo Shi, YESMRO leads China's digital FA procurement services market with an 8.5% share based on 2024 revenue. However, YIHEDA's revenue was RMB 2.504 billion, dwarfing YESMRO's RMB 637 million, yet its market share was calculated at only 6.6%—1.9 percentage points lower—due to YESMRO's selective revenue accounting method. This approach has raised concerns about potential investor misinformation.
On January 30, 2026, Hong Kong's Securities and Futures Commission issued a circular expressing concern over issues observed during the surge of new listing applications in 2025, including deficiencies in prospectus preparation and sponsor misconduct. Despite prior warnings, some irregularities appear to persist.
Could the dual-class share structure impede the listing? One day before submitting its application, YESMRO repurchased 3.3467 million Series C preferred shares at $3.26 per share, totaling $10.9032 million. As of the application date, founder Zhu Hongtao held 15.5% of shares via Better Man Holdings but controlled about 62.28% of votes through a structure granting nine votes per B-share.
HKEX rules for weighted voting rights companies require a minimum market cap of HK$10 billion (or HK$40 billion with annual revenue of HK$1 billion), among other criteria. As YESMRO is not profitable, its valuation is estimated using a price-to-sales ratio. Based on YIHEDA's 7.45x P/S ratio and YESMRO's RMB 637 million revenue, YESMRO's estimated market cap is around RMB 4.75 billion. Given its lower gross margin of 7.3% and net loss of RMB 701 million in 2024, a more conservative valuation might be under RMB 4 billion.
Furthermore, HKEX guidelines stipulate that applicants must qualify as innovative companies. YESMRO's business model—MRO e-commerce—faces stiff competition from established players, and its R&D investment of RMB 35.729 million over the reporting period is relatively low, with a declining R&D-to-sales ratio. Its intellectual property consists of only seven utility model patents, raising doubts about its innovative status.
If YESMRO insists on retaining its dual-class structure, it may face listing obstacles. Abolishing it, however, could reduce Zhu's voting power to 15.5%, nearly equal to MPC's 15.19%, potentially leading to a balanced power struggle or management instability if MPC aligns with other shareholders.