UBTech Officially Takes Over Fenglong Holdings as Stock Price Falls Nearly 40% After 18 Consecutive Daily Limits

UBTECH officially takes control of Fenglong Co.

On the evening of March 12, “the first stock in humanoid robots” Shenzhen UBTECH Robotics Co., Ltd. (UBTECH, 09880.HK) announced that all prerequisites for the initial payment of the share transfer agreement have been met. As a result, the company now holds a 29.99% stake in Zhejiang Fenglong Electric Co., Ltd. (Fenglong Co.) and has become its controlling shareholder.

Fenglong Co. also announced that the share transfer agreement has been completed, and the company’s controlling shareholder has changed to UBTECH. The actual controlling person is now Zhou Jian (founder of UBTECH, Chairman of the Board, and CEO).

In the announcement, Fenglong Co. emphasized again that within 36 months after the completion of this acquisition, UBTECH has no plans to inject its assets into the company. As of now, the company is not involved in humanoid robot business; its main operations remain in the research, production, and sales of garden machinery parts, automotive parts, and hydraulic components. Additionally, the company operates independently from UBTECH and its affiliates in terms of production, business, and core technology development. To date, there are no other related-party transactions that need to be disclosed between the company and UBTECH or its affiliates.

According to the official website, Fenglong Co. was established in 2003. The company mainly engages in the research, production, and sales of garden machinery engines and electric complete machines, hydraulic control systems, and automotive parts. Its products are widely used in lawnmowers, chainsaws, hedge trimmers, blowers, and other garden machinery, as well as hydraulic and pneumatic control systems for various engineering, industrial, and semiconductor machinery, and lightweight and new energy vehicle parts.

Since UBTECH announced its plan to “take control” by the end of 2025, Fenglong Co. experienced a surge of 18 consecutive trading days with limit-up, with its stock price more than quadrupling. During this period, the company issued multiple risk warnings and suspended trading for investigation.

On January 23, the Shenzhen Stock Exchange intervened, announcing that Fenglong Co.'s stock price showed severe abnormal fluctuations. The company was suspended for investigation, and multiple risk warning announcements were issued. After resuming trading, the stock price continued to hit the daily limit-up. Some investors engaged in abnormal trading behaviors affecting the normal order of stock trading, and regulatory measures such as trading suspensions were taken against relevant investors.

Subsequently, Fenglong Co. ended its streak of limit-ups, and its stock price, after reaching a new high of 118.1 yuan per share, declined.

As of the close on March 12, Fenglong Co.'s stock price fell 5.04%, closing at 74.16 yuan per share, nearly 40% below its previous peak.

(Source: The Paper)