Direct Drive Tech Limited Debuts on Hong Kong Stock Exchange Today

HONG KONG, Sept 29, 2026 - (ACN Newswire) - Direct Drive Tech Limited ("Direct Drive Tech" or the "Company", stock code: 6731) was officially listed on the Main Board of The Stock Exchange of Hong Kong Limited. The Company offered 50,000,000 shares under the Global Offering, of which the Hong Kong Public Offering was approximately 208.56 times subscribed. The final offer price was set at HK$21.60 per share with a board lot of 100 shares, raising gross proceeds of approximately HK$1,080.0 million.

"From day one, Direct Drive Tech has pursued a single goal — using direct drive technology to drive the world," founder Zhang Di said at the listing ceremony. "We remain committed to our mission of bringing robots into every household, and to making robots more efficient, more dexterous and more intelligent." In a letter to staff on the eve of the listing, Zhang likened the industry's shift to the replacement of vacuum tubes by transistors: "This time, the future will not belong to better reducers either." He expects at least 10 billion robots to enter industries and households over the next decade. Direct Drive Tech, he wrote, is not simply a maker of "direct drive joints", but a robotics technology company with direct drive technology at its core and general intelligence connecting everything, with future investment focused on three areas: AI4S (AI for Science), AI4I (AI for Iteration) and AI4R (AI for Robot).

Direct Drive Tech was founded in Dongguan in March 2020, when reducers dominated robot power systems and direct drive — with its high technical barriers — drew little interest. Starting from three core capabilities in direct-drive motor design, thermal management and drive-control integration, the Company built three technology pillars: robotic actuator module technology, wheel-legged robot technology and modular reconfiguration technology, establishing an integrated R&D system spanning core components and robots.

By eliminating reducers and other intermediate transmission components, direct drive couples the motor directly to the payload. The result is a simpler structure, higher positioning accuracy, lower noise and less wear — attributes suited to human-proximate applications such as household cleaning robots, where quietness and compact size matter most. On this differentiated route, the Company has become the world's first and only company to have shipped more than 5 million robotic direct drive actuator modules for consumer robots, according to Frost & Sullivan; by the end of June 2026, its technology had powered more than 7.5 million robots worldwide.

Built on the three pillars, the Company's embodied joint module portfolio covers the mainstream size range from 20 mm to 120 mm, with peak torque outputs of up to 120 Nm. As of the Latest Practicable Date, it held 352 patents in China with 148 applications pending; 94.3% of its 192-member R&D team hold bachelor's degrees or above.

In the consumer segment, the Company works with four of the world's top ten consumer robot providers by 2025 revenue. In embodied intelligence, it supplies embodied joint modules to one of China's top five embodied intelligence robot providers by total value of orders on hand in 2025. For its robot products, the Company has launched four wheel-legged robot models — Diablo, TITA, TITATIT and D1. Diablo robot is the first direct-drive dual-wheel-legged robot commercially introduced in the world; D1 is the first fully modular dual-wheel-legged robot commercially introduced in the world.

The numbers now back the route. Revenue rose from RMB17.5 million in 2023 to RMB281.7 million in 2025, a CAGR of 300.8%, and grew a further 39.7% year on year to about RMB200 million in the first half of 2026. Gross profit margin climbed from 13.5% to 21.5% over the period, while the adjusted net loss margin (non-IFRS measure) narrowed sharply from 349.1% to 15.4% as economies of scale took hold.

The Company plans to deploy about 50% of the net proceeds to R&D in key robotics technologies, including performance upgrades to robotic direct drive actuator modules and advances in robot and modular assembly technology; about 20% to deepen our collaboration with industry partners and wider domestic and overseas sales networks; about 20% to highly automated flexible production lines and process optimisation; and the remaining 10% to working capital and general corporate purposes.

Frost & Sullivan expects the PRC direct drive actuator module market to grow from RMB1.9 billion in 2025 to RMB12.9 billion in 2030, and the country's embodied joint modules market to expand from RMB1.18 billion to RMB14.03 billion over the same period. The Company said it will capture the twin opportunities of direct drive substitution and the industrialisation of embodied intelligence, consolidate its segment leadership and create long-term value for shareholders.