Summary of Key Points
YusTree Technology, known as the "first stock in the A-share market for humanoid robots," has successfully gone public with a market value exceeding 60 billion yuan. The enthusiasm among retail investors for subscribing to its shares set a new record for the A-share market this year. The company relies on its quadrupedal robots (machine dogs) as its main source of revenue, and although it leads the world in the production of humanoid robots, these are primarily sold to research institutions. Currently, the company is profitable, but its growth rate has slowed down this year due to significant investments in developing advanced "brain" technologies (embodied intelligence models). Chinese robotics companies have taken a leading position globally in both quadrupedal and humanoid robot fields, with a complete industrial chain being their core strength. However, there is still a gap before humanoid robots can be widely used in industrial applications.
I. The Hype Around the Public Offering: Retail Investors Flocking to Buy
At the time of its public offering, the number of retail investor subscriptions was 5,500 times the amount of shares issued, with a subscription amount of 8.1 trillion yuan—higher than the 7.1 trillion yuan for ChangXin Storage's offering earlier this year, making it the most expensive and sought-after new stock in the A-share market. Why is there such excitement?
- The Market Is Focusing on the Future: YusTree's current price-to-earnings ratio is 219 times (the industry average is only 38 times), meaning it would take 219 years to break even based on current profits. However, investors are betting on its potential in the field of "embodied intelligence" (equipping robots with cognitive capabilities). This is similar to how people invested in Tesla back then, not focusing on its immediate profitability but on the future prospects of electric vehicles.
- Industry Signals: The public offering coincided with the World Robot Conference, where YusTree and other companies were showcased, indicating that humanoid robots have moved from being a concept to a stage where performance becomes key—revenue and profits will now be the decisive factors.
II. Revenue Comes from "Machine Dogs," While Humanoid Robots Are Still in the Learning Phase
Where does YusTree's revenue come from?
- Quadrupedal Robots Are the Foundation: Although humanoid robots will account for more than 50% of revenue by 2025, the majority of sales (over 33,000 units) still come from quadrupedal robots. The company gained fame thanks to the robot that performed the Yangko dance during the Spring Festival Gala, but its strength lies in the product quality accumulated over a decade of manufacturing these robots.
- Humanoid Robots Are Not Yet Used in Industrial Settings: Of the 5,500 humanoid robots sold in 2025, 73.6% were purchased by universities and research institutions for testing purposes, with only 9% going into industrial applications. This means humanoid robots are still in the "learning" phase and have not yet reached the stage where they can generate substantial revenue.
- Cost Control Through Self-R&D: YusTree has a self-developed component ratio of over 90%, resulting in a gross margin of more than 60%, allowing it to outperform its competitors. Essentially, it is still a company that specializes in manufacturing high-end hardware.
III. Slowing Growth Is Not a Bad Thing: It's About Investing in the "Brain"
YusTree's growth rate has slowed down this year—revenue grew by 68% in the first quarter of 2026 (compared to 332% in the same period last year), and net profit after deducting non-recurring items decreased by 52%. This is not due to a lack of profitability but rather a deliberate investment strategy:
- Investment in Research and Sales: The company has increased its expenses significantly, with 85% of the funds raised from the IPO (6.1 billion yuan) being used for research and development, particularly in developing embodied intelligence models.
- Collaborating to Overcome Weaknesses: YusTree collaborates with AI companies like DeepSeek to enhance its "brain" capabilities, including strategic investments that lock in shares for 36 months.
IV. China's Leading Position in Robotics: Dominance in Quadrupedal Robots, Humanoid Robots Account for 70%
What is China's position in the global robotics market?
- Quadrupedal Robots: China almost monopolizes this segment, with 65,000 out of 82,000 units sold globally in 2025 (accounting for 80% of the total).
- Humanoid Robots: In the first half of 2026, 19,100 humanoid robots were sold globally, with ZhiYuan (8,400 units) and YusTree (5,900 units) together accounting for 75%—three out of every four humanoid robots produced are Chinese-made.
- A Complete Industrial Chain: China has the most comprehensive robotics industrial chain, from basic components to advanced application scenarios. This combination of being a major manufacturing country with a large consumer market, along with policy and capital support (such as the rapid listing on the STAR Market), has contributed to the success of companies like YusTree.
V. The Challenges Ahead: From Laboratory to Industrial Application
The future of YusTree and Chinese robotics lies in overcoming the following challenges:
- Moving from Research to Industry: Current humanoid robots are mainly used in laboratories, which limits their impact. To expand, they need to enter industrial and household settings to solve practical problems (such as lifting and assembling tasks).
- **Developing Advanced "Brains”: Without advanced cognitive capabilities, robots can only perform simple actions. YusTree's investment in large-scale models aims to address this issue, but the effectiveness remains to be seen.
- Scalability: Goldman Sachs predicts that widespread adoption of humanoid robots may not occur until 2027-2029. Whether YusTree can capture the next decade's market depends on its ability to transform robots from "laboratory prototypes" into practical industrial solutions.
In summary, YusTree's public offering reflects the current state of China's robotics industry: it has a strong foundation (a complete industrial chain and high production volumes), but it also faces limitations (weaknesses in cognitive technologies and limited application scenarios). Its future is also a reflection of the Chinese robotics industry's potential—whether it can evolve from a manufacturing powerhouse to an intelligent one.