Direct Drive Tech launches Hong Kong IPO, testing demand for physical AI hardware

Direct Drive Tech's IPO tests demand for specialized physical AI hardware. The company develops direct drive robot systems, eliminating reducers common in traditional drive systems. This technology promises faster response, greater precision, and reduced energy losses for intelligent equipment. The firm reported revenue of RMB 282 million (USD 42.0 million) in 2025, a 253% year-on-year increase.

The Hong Kong listing offers investors exposure to a niche but growing segment of robotics. Direct Drive Tech's strategy of validating its technology through its own wheeled-legged robots, like the Diablo and Tita models, has driven commercialization. This approach has allowed it to scale module production and lower unit costs, making its complete robots more competitive in China and overseas markets for scientific research and inspection.

The thing to watch is Direct Drive Tech's ability to maintain its market leadership. Frost & Sullivan ranked it first by revenue in China's direct drive power module market for consumer robots. Continued growth depends on scaling module production and expanding its complete robot offerings, particularly against emerging alternatives in embodied intelligence and humanoid robotics.