Direct Drive Technology Lists on HKEX Amid Losses

Recap

Source: 로봇신문, report of Oct. 2, 2026

According to the report, Direct Drive Technology (本末科技) has officially listed on the Hong Kong Stock Exchange, marking a milestone as the first company in the direct-drive module sector to achieve public status. The company, which develops robot power modules and finished robots using direct-drive technology that eliminates the need for reducers, saw its stock rise by 7.41% on its first day of trading before experiencing a sharp decline on the second day.

Financial data disclosed in the report shows that while the company's revenue grew from 17.54 million yuan in 2023 to 282 million yuan in 2025, its losses expanded significantly over the same period. Losses increased from 75.58 million yuan in 2023 to 93.73 million yuan in 2024, and further to 881 million yuan in 2025. The report attributes these financial challenges to the company's small market share and its heavy reliance on customers in the cleaning robot sector.

In response to these limitations, the company is expanding its application areas from consumer products to industrial and commercial sectors. However, the report notes that the technology is currently considered difficult to apply to the hip and knee joints of humanoid robots. The company is also noted as being supported by Li Zexiang, a mentor to DJI founder Zhang Di, who holds a 3.39% stake through Songshan Lake Robotics Research Institute and Yunhe Investment, with Lenovo listed as a major shareholder.

Context

Direct-drive technology is a significant alternative to traditional harmonic or planetary gears in robotics, offering higher precision and efficiency by having the motor drive the load directly. This approach is particularly relevant in the rapidly growing humanoid robot industry, where joint actuation is a critical component. While the technology has gained traction in consumer electronics and drones, its penetration into the broader robotics market, especially for high-torque applications like humanoid limbs, remains limited. The listing of Direct Drive Technology highlights the growing investment interest in specialized robotics components in China, even as the sector faces challenges in scaling and profitability.

Robot's take

The listing of Direct Drive Technology is a notable event for the robotics component market, signaling investor confidence in specialized drive technologies. However, the company's financial trajectory, characterized by growing losses and a narrow customer base, raises questions about its long-term sustainability. The expansion into industrial and commercial sectors is a logical step, but the difficulty in applying the technology to humanoid robot joints suggests that it may not be a direct competitor to other actuation methods in that specific niche. Investors and industry observers should watch how the company diversifies its customer base and whether it can achieve profitability as it scales its operations.