Key Takeaways:
Yuejiang Technology co-founder Song Tao filed a whistleblower report July 17, alleging the company's A-share IPO prospectus conceals equity disputes worth hundreds of millions of yuan.
"The prospectus is full of false statements and deliberately conceals equity ownership disputes involving hundreds of millions," Song Tao, former co-founder and COO of Yuejiang, said in a public statement.
Song claims his actual 69.7373% stake in Yuejiang Partnership was recorded as 22.455% in the prospectus — a difference of 47.2823%. He said he has submitted all materials to the Shenzhen Stock Exchange, which accepted the complaint. Yuejiang's Hong Kong-listed shares (HK:2432) fell as much as 15% to HK$22.70 on July 17, before paring losses to close at HK$25.22, valuing the company at about HK$110 billion.
The complaint threatens to derail Yuejiang's H-to-A listing, the first such case in the Greater Bay Area since Shenzhen's comprehensive reform pilot. The Shenzhen Stock Exchange is scheduled to review the company's ChiNext IPO application on July 22, just 86 days after accepting it.
Yuejiang, known as the "first collaborative robot stock," listed in Hong Kong in December 2024. It plans to raise about RMB 12 billion ($1.7 billion) from the A-share offering. The company reported preliminary H1 2026 revenue of RMB 3 billion to RMB 3.3 billion, more than double the prior-year period, with a net loss of RMB 90 million to RMB 120 million. Over the five years through 2025, Yuejiang accumulated losses of RMB 376 million, according to its Hong Kong IPO prospectus.
Song, who identified himself as Yuejiang's No. 2 co-founder and former SVP and COO, said he chose to remain silent during the Hong Kong listing to avoid harming the company and its employees. "I can no longer stay silent," he wrote, citing a similar case involving a former Xiaohongshu executive who publicly defended their rights ahead of a company's IPO.
Yuejiang's core business is collaborative robots, serving over 80 Fortune 500 companies across automotive, digital, and healthcare sectors. Its embodied intelligence division develops humanoid robots, multi-legged robots, and dual-arm robots, including the Dobot Atom humanoid robot.
The whistleblower report puts Yuejiang's A-share listing at risk of delay or cancellation. If the allegations are substantiated, the company could face regulatory penalties and litigation, further pressuring its Hong Kong-listed shares, which have already fallen more than 50% from their February 2026 high.
This article is for informational purposes only and does not constitute investment advice.
