New stock information | Haizhou Innovation submits application to Hong Kong Stock Exchange to become the world's largest ACR solution provider.

On February 13th, Shenzhen Hairuo Innovative Smart Technology Group Co., Ltd. (referred to as "Hairuo Innovation") submitted an application for listing on the main board of the Hong Kong Stock Exchange, with Goldman Sachs and CITIC SEC as joint sponsors. The prospectus shows that Hairuo Innovation is a global leader in the field of warehouse automation, focusing on the automation of picking - picking is the most labor-intensive and time-consuming activity in warehouses. According to the data from ZhiShi Consultancy, by 2024, Hairuo Innovation will be the world's largest provider of ACR solutions, with a market share of over 30% in terms of revenue and shipment volume. Company Introduction According to the prospectus, Hairuo Innovation has invented an integrated automated box storage solution called Siasun Robot & Automation (ACR), used for automated picking and transporting individual boxes in warehouses. Through this solution, Hairuo Innovation can help customers increase storage density, improve operational efficiency, accelerate order fulfillment, and reduce labor costs. Hairuo Innovation provides fully integrated solutions for enterprise customers, combining Siasun Robot & Automation with related hardware, software, and a full range of support and services. Hairuo Innovation offers a range of advanced ACR solutions, providing flexibility, efficiency, reliability, and cost-effectiveness for various sectors such as logistics and manufacturing. In 2025, Hairuo Innovation launched HaiPick Climb, becoming the world's first commercially available single-sided climbing ACR solution. According to ZhiShi Consultancy, HaiPick Climb supports storage heights of up to 15 meters in both new and renovated warehouse facilities, the highest among similar products. Hairuo Innovation's solutions also include the HaiPick Systems series, designed to address three key tasks: high-density storage, temporary storage and consolidation of orders, and full-box handling. These solutions are selectively deployed in industries where these tasks are most common. Hairuo Innovation launched its first ACR solution, HaiPick System 1, in 2017, laying the foundation for the company's ACR product line. Hairuo Innovation offers HaiPick System 2, which integrates tray movement and box picking, specializing in handling mixed types and irregularly sized items. The company further simplifies warehouse workflows through HaiPick System 3, a high-density solution that achieves increased storage density using hook-based technology. Hairuo Innovation also provides integrated solutions for electronic manufacturing warehouse, designed for factories and warehouses with complex, multi-zone workflows, enabling the coordinated operation of different types of Siasun Robot & Automation (including ACR and stealth Siasun Robot & Automation) in a unified environment. Hairuo Innovation's business footprint extends to more than 40 countries and regions in mainland China and overseas markets (including the Americas, EMEA, Japan, and other Asia-Pacific regions). As of September 30, 2025, orders from markets outside mainland China accounted for more than 50% of the company's total orders. In 2023, 2024, and the nine months ended September 30, 2025, revenue from markets outside mainland China accounted for 24.2%, 38.1%, and 39.6% of the company's total revenue for the respective periods. Hairuo Innovation's ACR solutions are deployed in warehouses operated by various businesses, including warehouse operators, logistics service providers, retail groups, and manufacturing companies, covering major verticals such as apparel and fashion, e-commerce and retail, food and beverages, third-party logistics, pharmaceuticals, 3C electronics, and automotive industries. As of September 30, 2025, the company has signed contracts with over 800 customers (including direct customers and channel partners) to deploy ACR solutions. Financial Information Revenue In the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company achieved revenues of approximately RMB 807 million, RMB 1.36 billion, and RMB 1.263 billion, respectively. Annual/Period Loss In the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company's annual/period losses were approximately RMB 1.009 billion, RMB 1.256 billion, and RMB 589 million, respectively. Gross Profit Margin In the fiscal years 2023, 2024, and the nine months ended September 30, 2025, the company's corresponding gross profit margins were 16%, 26.3%, and 28.9%, respectively. Industry Overview The global market for warehouse picking automation solutions increased from RMB 91.1 billion in 2020 to RMB 171.2 billion in 2024, and is expected to reach RMB 400.6 billion by 2030, primarily driven by efficient emerging solutions such as ACR. The market share of global warehouse picking automation solutions in the global picking market (measured by global spending on warehouse picking) increased from 12.6% in 2020 to 17.3% in 2024, and is expected to further increase to 26.1% by 2030. Since the commercialization of ACR solutions began in 2017, the industry is still in the early stages of market penetration. In 2024, the global ACR solutions market was valued at RMB 4.4 billion. With the growing demand for high-throughput, high-density storage scenarios, the market is expected to soar to RMB 91 billion by 2030, with a compound annual growth rate of 65.7% from 2024 to 2030. Given the stronger automated picking capabilities and technical advantages of ACR technology, the ACR solutions market is the fastest-growing segment in the global warehouse picking automation solutions market, with the penetration rate of ACR in this market expected to increase from 2.6% in 2024 to 22.7% by 2030. As the demand for high-throughput, high-density storage solutions continues to grow, ACR solutions are expected to become an indispensable part of warehouse automation. Board of Directors Information Following the compilation, the board of directors will consist of nine directors, including four executive directors, two non-executive directors, and three independent non-executive directors. According to the articles of association, the directors serve a term of three years and can be re-elected. The board of directors is responsible for managing and conducting the business of the company and has full authority over it. Equity Structure Mr. Chen Yuqi, Mr. Xu Shengdong, and Mr. Fang Bing (different beneficiaries of voting rights) signed a concerted action agreement in January 2018 (revised in November 2025), under which Mr. Xu and Mr. Fang agreed to act in concert with Mr. Chen. Following the compilation, different beneficiaries of voting rights and Hairuo Zheng will together constitute a group of controlling shareholders of the company. Hairuo Zheng is an employee incentive platform controlled by Mr. Chen. 5Y Capital is a venture capital firm focused on nurturing excellent companies in the technology, life sciences, and consumer innovation sectors. 5Y Capital is committed to being the preferred, long-term, and most influential investment partner for top entrepreneurs. In addition to the company, 5Y Capital has also invested in several technology companies. As of the last practicable date, the total value of funds managed by 5Y Capital denominated in US dollars exceeded approximately RMB 5 billion. Intermediary Team Joint Sponsors: Goldman Sachs (Asia) Limited, CITIC SEC (Hong Kong) Limited Company Legal Advisors: Davis Polk & Wardwell, JunHe LLP, Morgan Lewis & Bockius LLP Joint Sponsors Legal Advisors: Cooley LLP, King & Wood Mallesons Auditors and Reporting Accountants: Ernst & Young Industry Consultant: ZhiShi Enterprise Management Consulting (Shanghai) Co., Ltd. Compliance Consultant: Houbo Capital Limited