Summary of Key Points
Yuejiang Technology, a leading collaborative robotics company that recently went public on the Hong Kong Stock Exchange and is aiming for an IPO on the Growth Enterprise Market (GEM), was reported by its former co-founder and COO, Song Tao, under his real name just a few days before the review by the listing committee (on July 17). The core issues involved the non-fulfillment of equity commitments and the concealment of disputes in the prospectus. This incident occurred at a critical juncture when the company was the first enterprise in the Greater Bay Area to complete an "H-to-A" return from the Hong Kong stock market to the Chinese mainland stock market, with a lightning-fast approval process taking only 86 days. Although the report caused the company's stock price to drop by 13% on that day, the Shenzhen Stock Exchange stated in its response that the allegation would not affect the review process.
I. The Core of the Allegation: Where Did All Those Shares Go?
Song Tao's accusation is straightforward: "The shares I was entitled to have been secretly reduced, and the company lied in the prospectus."
- His Background: He claims to be the "second co-founder" of Yuejiang, joining the company in 2015 and playing a key role in building its core business and team. In 2017, he signed an agreement to receive 3.8% of the total shares, to be delivered in three installments.
- The Gap Between Promises and Reality: In January 2023, Yuejiang's partnership (the company's shareholding platform) issued a document with its official seal, stating that his shareholding had increased to 69.7%. However, the IPO prospectus listed his share as only 22.45% of the total shares (equivalent to 0.64% of the company's total capital).
- The Misleading Prospectus: The prospectus claimed that the ownership of the shares was clear and without any disputes. It also mentioned that Yuejiang had sued Song Tao in 2023 to recover the 22.46% shareholding, citing a court ruling that the case was not within their jurisdiction, and then asserted that there were no pending lawsuits. Song Tao argues that the court only ruled that the case was not under their jurisdiction; the dispute over the 47% of shares remains unresolved, which he considers a "significant omission and false statement."
II. Yuejiang's IPO Journey: The First "H-to-A" Case in the Greater Bay Area, with an Approval in 86 Days
Yuejiang Technology's listing process was remarkably fast:
- Hong Kong Stock Market Listing: In December 2024, it became the first company in its field to be listed on the Hong Kong Stock Exchange. As of July 17, its stock price had risen by 22% since listing, with a market value of approximately HK$10.1 billion.
- GEM IPO Efforts: On April 27 this year, its application for an IPO on the GEM was accepted, and it was scheduled to go through the review process on July 22, completing the entire process in just 86 days. This made it the first company in the Greater Bay Area to return from the Hong Kong stock market to the Chinese mainland stock market since the comprehensive reform pilot program was launched.
- Fundraising Intent: The company plans to raise HK$1.2 billion, which will mainly be used for the research and development and mass production of humanoid and multi-legged robots, focusing on creating robots that can move like humans or animals.
III. What Is Yuejiang Technology's Actual Strength?
The company has a strong position in its industry:
- Business Scope: It specializes in collaborative robots (such as those used in factories for screwing and moving objects, working alongside humans) and humanoid intelligent robots (including hexapod and quadruped models). Its products are sold to over 100 countries, with clients including top global companies like BYD, Mercedes-Benz, and CATL.
- Market Position: Based on sales in 2025, it holds the leading position in the global collaborative robotics market, accounting for 13.2% of the market share.
- Financial Performance: Revenue increased from HK$287 million to HK$493 million between 2023 and 2025 (a compound annual growth rate of 31%), although it has incurred a cumulative loss of HK$282 million over these three years. However, the loss is decreasing. More importantly, if the R&D investment of HK$40 million for humanoid robots is excluded, the core business would be nearly profitable (non-GAAP earnings show a loss of HK$49 million, with HK$40 million being for R&D).
IV. The Impact of the Allegation
The stock price dropped significantly after the allegation, but the Shenzhen Stock Exchange stated that it would not affect the review process:
- Stock Price Reaction: On July 17, the company's stock price fell by 13.36% during midday trading in the Hong Kong market, but overall, it has still risen by 22% since listing, indicating that market sentiment is not completely negative.
- Shenzhen Stock Exchange's Position: The exchange previously confirmed that intermediary institutions had verified the information, and the shares registered with the commercial authorities were clear, with no disputes over ownership.
- Company Response: The company's board acknowledged the equity dispute but stated that officials are investigating the details and that the official statement will prevail.
- Song Tao's Next Steps: He does not accept the Shenzhen Stock Exchange's response and plans to continue gathering evidence for further complaints, as well as initiating arbitration, as the agreement from 2017 stipulates that disputes should be resolved by the Shenzhen Arbitration Commission.
Conclusion
Yuejiang Technology's "A+H" listing process has been delayed due to this allegation. However, the Shenzhen Stock Exchange's stance is clear: the allegations will not affect the current review process. Whether the subsequent resolution of the equity dispute (such as the arbitration outcome) will impact the company's listing remains to be seen. For ordinary investors, the company's business prospects are promising, but the equity dispute represents a potential risk that should be monitored closely.