Good News | Frost & Sullivan Assists Fenggang Technology (Shenzhen) Co., Ltd. in Successful Listing on the Hong Kong Stock Exchange (1304.HK)

Feng'Ang Technology (Shenzhen) Co., Ltd. (hereinafter referred to as 'Feng'Ang Technology') successfully went public on July 9, 2025. This issuance involved 16,299,500 shares, with the highest issue price at HK$120.50 per share, raising a maximum of HK$1.964 billion.

During the process of listing in Hong Kong this time, Frost & Sullivan mainly undertook the following tasks: helping the issuer accurately and objectively understand its positioning in the target market, using objective market data to discover, support, and highlight the issuer's competitive advantages, assisting the issuer, investment banks, and other intermediaries in completing the writing of relevant parts of the prospectus (such as the overview, competitive advantages and strategy, industry overview, business, and other important chapters), helping the issuer communicate with the Hong Kong Stock Exchange and investors, assisting investors in quickly understanding the market ecosystem and competitive landscape, and assisting the issuer in completing feedback on various industry-related issues from the Hong Kong Stock Exchange, etc.

Frost & Sullivan has always been a leader in helping companies go public in Hong Kong. According to LiveReport's big data (statistical data as of June 30, 2025), from January to June 2025, as well as during the past 12 and 36 months, Frost & Sullivan provided listing industry advisory services for 29 (market share 71%), 52 (market share 64%) and 161 (market share 69%) Hong Kong-listed IPOs respectively, ranking first in terms of number. It has a rich accumulation of industry experience and communication skills with regulatory authorities, exchanges, investment and financing institutions, and various related agencies.

• The company is a leader in motor-driven control technology, with independent R&D capabilities;

   

• The company has the capability to provide system-level services;

   

• The company's products possess the capability for rapid iteration, extension into multiple application domains, and large-scale industrialization;

   

• The company serves high-quality end customers extensively, building highly sticky cooperative relationships;

   

• The company has a composite team with profound experience in chip R&D.

According to the Frost & Sullivan report, calculated based on revenue from BLDC motor main control and drive chips in 2023, the company:

• Ranked sixth in the Chinese market (including domestic and overseas manufacturers), with a market share of 4.8%, it is the largest local company in the Chinese market.

A motor refers to a device that uses the principle of electromagnetic induction to achieve the conversion of electrical energy into mechanical energy, which can be classified into DC motors and AC motors. DC motors can be further divided into brushless DC (BLDC) motors and brushed DC (BDC) motors, while AC motors can be subdivided into synchronous motors and asynchronous motors.

Compared to other types of motors, BLDC motors have several advantages, including higher output power, higher efficiency, longer lifespan, lower power consumption, and easier maintenance. However, their disadvantages include relatively higher R&D costs, more complex control, and higher algorithm requirements.

Source: Frost & Sullivan report

The BLDC motor drive control product market includes main control chips, driver chips, power devices, IPMs, and sensors. Benefiting from multiple driving factors such as technological innovation, growing downstream demand, and favorable policy environment, the BLDC motor drive control product market shows broad development prospects globally. The global BLDC motor drive control product market is growing rapidly, increasing from RMB 342 billion in 2019 to RMB 783 billion in 2023, with a compound annual growth rate of 23.0%. It is expected to further increase from RMB 934 billion in 2024 to RMB 1902 billion in 2028, with a compound annual growth rate of 19.5%. In 2023, power devices and main control and driver chips accounted for 50.8% and 33.6% of the global BLDC motor drive control product market respectively.

Source: Frost & Sullivan report

The market for BLDC motor drive control products in China increased from RMB 8.6 billion in 2019 to RMB 25.3 billion in 2023, with a compound annual growth rate of 30.8%. It is expected to further grow from RMB 33.1 billion in 2024 to RMB 80.8 billion in 2028, with a compound annual growth rate of 25.0%. Power devices and main control and drive chips occupy the largest market share. In 2023, power devices and main control and drive chips accounted for 53.8% and 30.6% of the Chinese BLDC drive control product market respectively.

Source: Frost & Sullivan report

In January 2024, the Ministry of Industry and Information Technology of China and other departments issued the 'Implementation Opinions on Promoting the Innovative Development of Future Industries', aiming to enable industrial end products to adapt to the trend of intelligence. Due to government policy support and technological innovation by domestic companies within the industry, the market share of domestic enterprises has gradually increased. In 2023, the localization rate of BLDC motor main control and drive chips in China was 23.1%, up from 9.2% in 2019. During the forecast period, with technological progress and continuous growth in market demand, the localization rate is expected to further rise to 48.2% by 2028.

As the performance requirements of the motor drive control terminal market continue to rise, BLDC motor main controllers and driver chips are developing towards higher integration and performance. High-integration chip designs can integrate more devices and functions onto a single chip, greatly simplifying peripheral circuits, reducing the number of peripheral devices, and lowering the overall size and cost of the drive control system. By reducing the number of interfaces between system components, the stability and reliability of the system will be greatly improved. In addition, high-integration solutions can also effectively reduce the difficulty of designing application programs for subsequent chip products. Moreover, due to their advantages of high efficiency, low vibration, low noise, and fast response, sensorless FOC control algorithms have been widely adopted, especially in the fields of white goods, smart small appliances, and industrial automation.

With the continuous development of artificial intelligence technology, new intelligent functions such as intelligent algorithms and adaptive control are being applied in the BLDC motor industry. BLDC motors are accelerating their penetration into multiple emerging application fields (such as smart homes, electric vehicles, industrial automation, etc.). These fields have put forward higher requirements for motor performance, efficiency, and intelligent level. By introducing artificial intelligence and intelligent algorithm technologies, BLDC motors can achieve more effective energy management, more precise position control, and more intelligent fault diagnosis.

As downstream end customers increasingly demand diversity and complexity in BLDC motor drive control systems, suppliers that only offer BLDC motor chips can no longer meet their needs. Therefore, it will become an industry trend for BLDC motor main control and drive chip companies to provide system-level motor drive control services, which will include not only chip design but also motor drive architecture algorithms and motor technology. Companies with this comprehensive system-level service capability are expected to gain a competitive advantage in the market.

According to the revenue from BLDC motor main control and drive chips in 2023, Fengying Technology ranks sixth in the Chinese market (including domestic and overseas manufacturers), with a market share of 4.8%. Fengying Technology is also the largest domestic company in terms of revenue from BLDC motor main control and drive chips in the Chinese market for the year 2023.

Data source: Public materials of listed companies, Frost & Sullivan analysis