Summary of Key Points
MoJia Robotics, a subsidiary of Chery, was established less than two years ago (in January 2025) and has already reached a valuation of 2.5 billion yuan. The company is preparing for an IPO, with plans to deliver 10,000 units by 2027 and aiming to join the global top tier of manufacturers. It started with applications in the police robotics sector and Chery's overseas 4S stores. However, its current revenue is low (3.02 million yuan in the first three quarters of 2025) and it is still in the red (a loss of 5.1 million yuan). Its overseas customers rely on Chery's distribution network. The robotics industry is becoming increasingly competitive, with nearly 20 automakers entering the market, and a reshuffle is expected in the next 18 to 24 months. MoJia aims to use the IPO to quickly raise funds to capture the market, but it still needs 2 to 3 more rounds of financing before the IPO. Additionally, it must address issues such as scenario validation and lack of independence.
Detailed Analysis
1. Why the rush to go public in less than two years? – Seizing the window period in the industry is crucial
The main reasons for MoJia's early preparation for an IPO are twofold:
- Imminent industry reshuffle: The robotics industry is similar to the electric vehicle sector in the 2010s, with many automakers (such as Tesla, BYD, Xpeng, etc.) and capital flowing in. Experts predict that the market will become extremely competitive in the next 18 to 24 months. Failing to raise funds to expand quickly could lead to elimination. An IPO is the fastest way to obtain substantial capital, which can be used for both technological development and company restructuring.
- Chery's experience in spin-offs: Chery has successfully spun off its component company, BERTL, and its robotics company, EFT, for public listing. MoJia intends to follow this path, leveraging Chery's resources to incubate its business before going independent.
However, MoJia has not yet announced the specific timing and location of its IPO, indicating that it is still in the exploration phase.
2. Is a valuation of 2.5 billion yuan high? – High for an early-stage company, but more funding is needed
MoJia's valuation of 2.5 billion yuan after its angel round of financing is considered high compared to other early-stage humanoid robotics projects. The reasons include:
- Low external shareholder participation: External investors (such as IDG Capital and Zhiyuan Robotics) only hold a 4% stake, suggesting that they are making small, exploratory investments.
- More funding required: To achieve production of 10,000 units, MoJia needs to build capacity, conduct research and development, and expand into new markets. Experts estimate that it will need at least 2 to 3 more rounds of financing (Series A and Series B). This will dilute Chery's current 76.8% stake, but it is a necessary step.
In short, the 2.5 billion yuan valuation is more of a theoretical figure, and actual funding will be needed to support the company's growth.
3. Is delivering 10,000 units by 2027 achievable? – Hurdles lie in scenario validation
MoJia has only delivered 3,000 units so far (2,000 overseas). The biggest obstacle is not production capacity (it has already built a production line capable of producing 15,000 units), but rather the ability to generate revenue from these scenarios:
- Vicious cycle: Entering new markets (such as police and medical applications) requires extensive data to optimize algorithms. However, limited production leads to insufficient data, which in turn results in poor algorithms and slow market adoption, creating a vicious cycle.
- Narrow market focus: MoJia's current revenue mainly comes from police robotics (1,030 units contracted) and Chery 4S stores. These markets are either government-led or dependent on Chery, and it has not yet established an independent commercial presence.
- Poor financial performance: With revenue of only 3.02 million yuan and a loss of 5.1 million yuan in the first three quarters, MoJia has not yet found a stable profit model.
Experts suggest that production capacity is not the main issue; the key is to find customers willing to pay for its products.
4. Is MoJia's overseas business merely benefiting from Chery's reputation? – Independence is a significant challenge
MoJia's overseas business accounts for two-thirds of its revenue, but these orders are mostly from Chery's 4S stores. This model relies on Chery's existing resources, such as after-sales networks and spare parts facilities, which reduce costs. However, these customers (such as mall managers and hospital administrators) are not independent businesses. Additionally, the funding for robotics may be tied to Chery's overall vehicle sales, meaning that any decline in vehicle sales could affect robotics orders.
5. How competitive is the robotics industry? – Automakers are entering in droves, and MoJia faces both opportunities and risks
The robotics industry is highly competitive, with nearly 20 major automakers (including Tesla, Xpeng, NIO, and Leapmotor) investing heavily. MoJia's advantages include access to Chery's manufacturing, supply chain, and distribution networks, which lower its costs compared to startups. It also has a proven track record in the police robotics sector. However, its independence is limited, and its financial performance is weak. If it delays its IPO, it may fall behind other competitors.
Experts warn that MoJia must raise funds before the industry's competitive landscape closes.
Conclusion
MoJia Robotics is a promising company incubated by Chery, but to go public independently and become a leader in the industry, it must address three key issues: securing sufficient funding, stabilizing its business models, and establishing a independent customer base. Otherwise, it may be eliminated during the upcoming industry reshuffle.
(End of analysis)