Breaking Down Shenzhen Zhaowei Machinery & Electronic Co., Ltd. Financial Health: Key Insights for Investors

From a 2001 Shenzhen startup with a registered capital of 171.301664 million RMB to a publicly traded technology leader (listed on Shenzhen Stock Exchange on December 4, 2020 - 003021.SZ), Shenzhen Zhaowei Machinery & Electronic Co., Ltd. has driven rapid expansion-pioneering China's first 3.4mm planetary gearbox in 2005, broadening into automotive and medical drive systems in 2017, and building a Dongguan micro-drive base in 2022; the company, which filed for a Main Board Hong Kong listing in June 2025 with China Merchants and Deutsche Bank as joint sponsors, reported 2024 revenue of 1.525 billion yuan (+26.4% YoY) and net profit of 225 million yuan (+25.1%), holds 382 relevant patents (as of March 31, 2025) and ranks first in China and fourth globally in integrated micro-drive and control systems-positioning itself within a domestic market that grew from 20.3 billion to 33.2 billion yuan between 2020 and 2024 (CAGR 13.0%) and monetizes its expertise via custom transmission design, mold and part production, assembly services, and proprietary servo and roller motor products for smart automobiles, robotics, medical tech and advanced manufacturing

Shenzhen Zhaowei Machinery & Electronic Co., Ltd. (003021.SZ): Intro

• 2001 - Company established in Shenzhen, Guangdong Province; registered capital: 171.301664 million RMB.
• 2005 - Launched first 3.4 mm diameter planetary gearbox, a domestic industry milestone in micro gearboxes.
• 2017 - Expanded product scope to integrated drive system solutions, designing motor-gearbox modules for automotive and medical electronics.
• 2020-12-04 - Listed on the Shenzhen Stock Exchange (stock code: 003021.SZ).
• 2022 - Opened a micro drive system research & manufacturing base in Dongguan to scale R&D and production capacity.
• June 2025 - Submitted main-board listing application to the Hong Kong Stock Exchange; joint sponsors: China Merchants and Deutsche Bank.

• Product sales - precision planetary gearboxes, motor-gearbox modules, integrated micro drive systems sold to OEMs in consumer electronics, medical devices, automotive and industrial automation.
• Contract manufacturing & assembly - volume manufacturing and module assembly for tier-1 customers and contract manufacturers.
• Design & engineering services - customized drive system R&D, prototyping and IP/licensing for specialized applications.
• After-sales & spare parts - recurring revenue from maintenance, parts replacement and upgrade services.

• R&D focus on miniaturization, noise reduction, efficiency and reliability for micro-gear and motor integration.
• Manufacturing footprint includes Shenzhen headquarters and the Dongguan micro drive system base (est. 2022) for scaling production.
• Customer base spans electronics OEMs, medical device manufacturers and automotive suppliers with product qualification processes for volume production.

• Listed on Shenzhen Stock Exchange (003021.SZ) since December 4, 2020, enabling access to capital markets for expansion and R&D investment.
• Strategic move toward Hong Kong Main Board listing (application June 2025) aimed at broadening investor base and international visibility; joint sponsors: China Merchants & Deutsche Bank.

Shenzhen Zhaowei Machinery & Electronic Co., Ltd. (003021.SZ): History

• Founded in Shenzhen, Zhaowei evolved from precision transmission and micro-drive component manufacturing into an integrated micro drive and control system provider focused on automation, robotics, medical devices, consumer electronics and new energy applications.
• Listed on the Shenzhen Stock Exchange under code 003021.SZ; registered capital: 171.301664 million RMB.
• As of June 18, 2025, market capitalization: approximately 24.1 billion yuan.
• In June 2025, Zhaowei submitted a listing application to the Main Board of the Hong Kong Stock Exchange with China Merchants and Deutsche Bank as joint sponsors.

• Ownership structure: publicly traded company; free float determined by Shenzhen exchange listings and institutional/retail holders (detailed shareholder breakdown available in official disclosures).
• Strategic sponsors for HK listing: China Merchants, Deutsche Bank (joint sponsors for Hong Kong Main Board application).

• Mission and strategic focus:
  • Integrate transmission, micro-motors and electronic controls to deliver compact, high-precision drive systems.
  • Target high-growth end markets: industrial automation, robotics, medical equipment, consumer electronics and new energy.

• How it works (core capabilities):
  • '1+1+1' collaborative innovation system aligns mechanical transmission, micro-motor design and electronic control development for turnkey subsystems.
  • R&D and IP: 382 patents (as of 31-Mar-2025) support product differentiation and barriers to entry.
  • Manufacturing: integrated production of precision gears, micro motors and control electronics enabling scale and cost control.

• How Zhaowei makes money:
  • Product sales: integrated micro-drive modules, micro-motors, transmission components and control units sold to OEMs and system integrators.
  • System solutions & customization: higher-margin engineered solutions combining transmission + motor + control for specialty applications.
  • Aftermarket & services: spare parts, upgrades and technical support for industrial and medical customers.

Shenzhen Zhaowei Machinery & Electronic Co., Ltd. (003021.SZ): Ownership Structure

• Mission: Provide precise, micro, and high-torque solutions in micro-drive systems, enabling higher integration, faster response and improved space utilization.
• Values: Continuous innovation, rigorous R&D across transmission, motor, and electronic control domains, and commitment to miniaturization, precision and intelligence in products.
• Innovation model: A '1+1+1' collaborative system - transmission system + micro-motor system + electronic control system - driving integrated product development.
• R&D scope: Transmission principles, materials engineering, motor & molding design, injection and assembly automation, and gear/drive system testing.
• Strategic goal: Advance micro-drive technology through ongoing innovation to meet increasingly stringent market requirements.

• How it makes money:
  • Design and sale of precision micro-drive modules (gears, reducers, micro-motors, integrated assemblies).
  • OEM and system integration contracts for consumer electronics, automotive actuators, robotics, medical devices and industrial automation.
  • Aftermarket services, customization, and long-term supply agreements with device manufacturers.
• Key financial drivers:
  • Product mix toward higher-value integrated modules increases gross margins.
  • Scale in automated injection and assembly reduces unit costs.
  • Continuous R&D enables premium pricing for high-precision, high-torque micro-drive solutions.

• Ownership snapshot (approximate):
  • Top individual/founding shareholders: 22.5%
  • Institutional investors (funds, strategic partners): 18.3%
  • Management and employees (including incentives): 0.0-5% (variable)
  • Public float / retail investors: ~59.2%

Shenzhen Zhaowei Machinery & Electronic Co., Ltd. (003021.SZ): Mission and Values

• Core product families: micro planetary gearboxes, precision reduction gearboxes, integrated precision gear motors, custom modular gearbox solutions.
• Service scope: transmission system design, injection molding and die/mold manufacture, CNC part production, automated assembly, and final testing/validation.
• Innovation model: '1+1+1' collaborative innovation system - transmission system + micro-motor system + electronic control system - enabling cross-disciplinary development and faster system-level integration.

• Requirements & system design: client application analysis → transmission principle selection → motor and electronic control co-design.
• Tooling & part production: in-house mold design and manufacture → precision machining (gears, shafts, housings) → material selection optimized for wear, noise, torque-density.
• Assembly & automation: injection molding → automated gear insertion and motor assembly lines → robotic or semi-automatic assembly for miniaturized modules.
• Testing & validation: gear meshing and backlash measurement, torque/endurance testing, thermal and vibration tests, electronic control integration tests.
• Customization & modularization: modular gearbox platforms allow specification variants (ratio, stages, output types) and bespoke solutions for medical devices, robotics, consumer electronics, automotive actuators and industrial automation.

• Transmission principles and topology optimization for higher precision and lower backlash.
• Material research: high-performance engineering plastics, surface treatments and hardened alloys for gear longevity.
• Micro-motor and molding design tuned for compactness and thermal performance.
• Injection and assembly automation to improve yield and reduce unit labor.
• Comprehensive gear and drive-system testing protocols to meet stricter miniaturization and intelligence requirements.

• Product sales: standardized modules (planetary gearboxes, gear motors) sold to OEMs in consumer electronics, robotics, medical devices and automotive subsystems.
• Customized solutions: higher-margin engineering and bespoke transmission systems developed per client specs (design, tooling, prototyping, small-to-medium volume production).
• Aftermarket and service: spare parts, retrofit modules and technical support contracts.
• Scale and automation: in-house mold and part production reduces per-unit cost and improves margins as volumes scale.

• Rising demand for precision, miniaturization and intelligence in drive systems across robotics, medical devices and automotive ADAS/actuators.
• Competitive advantage from vertically integrated capabilities (design → mold → part → assembly → test) and the 1+1+1 system enabling system-level product offers.
• Ongoing R&D investment to widen high-margin, high-precision product offerings and to support automated manufacturing for cost control.

Shenzhen Zhaowei Machinery & Electronic Co., Ltd. (003021.SZ): How It Works

• Core revenue drivers: customized application projects, self-branded servo and roller motors, dexterous hands, and assembly/part-production services.
• Industry focus: smart EV components, industrial automation, collaborative/humanoid robotics, medical devices (precision motion), and high-end consumer products.
• Value chain control: in-house transmission design, mold making, part fabrication, motor winding, electronic control development and final assembly.

• Project-driven customization: engineering-to-production contracts for OEMs and system integrators-includes feasibility, design, prototyping, tooling and mass production.
• Platform products: modular high-performance servo motors and roller motors that scale from consumer devices to industrial robots.
• Advanced subsystems: dexterous hands and motion-control units targeted at humanoid robotics and precision automated manufacturing.

• '1+1+1' collaborative innovation system: transmission system + micro-motor system + electronic control system-integrated R&D and productization path to shorten time-to-market and improve system efficiency.
• Vertical integration reduces external procurement risk and improves margin capture across components and assembly.

• Customized systems and engineering services: billed as project contracts with margins tied to complexity and IP content.
• Component and module sales: recurring revenue from standardized servo motors, roller motors and control modules sold to OEMs and distributers.
• Proprietary product lines: higher-margin self-owned brand products (servo motors, dexterous hands) targeting robotics and advanced manufacturing.
• After-sales and lifecycle services: maintenance, firmware updates, and spare parts for installed base.

• Targeting partnerships with automotive Tier-1s, robotics integrators and medical device OEMs for co-development and volume orders.
• Leveraging in-house manufacturing capabilities (molds, parts, assembly) to offer faster ramp-up and tighter quality control compared with pure-play component vendors.

Shenzhen Zhaowei Machinery & Electronic Co., Ltd. (003021.SZ): How It Makes Money

• Core revenue drivers: sales of integrated transmission systems, micro-motor systems (high-performance servo motors, roller motors), electronic control units, and complete subsystem integrations for automation and robotics.
• High-value product lines: proprietary dexterous hands and humanoid-robot components sold to strategic OEMs and integrators.
• Service and solutions: engineering customization, turnkey integration, lifecycle maintenance contracts and upgrade services for industrial customers.
• Innovation leverage: joint development and licensing from its '1+1+1' collaborative innovation system (transmission + micro-motor + electronic control) and the 'dual-wheel drive' model combining self-owned brand scaling with contract manufacturing.

• Go-to-market mix: direct sales to OEMs and system integrators, distribution partnerships for regional coverage, export sales to international automation and robotics markets.
• Future revenue levers: penetration into humanoid robotics components, expansion of self-owned brand servo and roller motors, cross-selling integrated subsystems to advanced manufacturing clients.