Summary in Plain Language
Shao Tianlan, the founder of Meikamand, an industrial robotics vision company that went public on the Hong Kong Stock Exchange just over 10 days ago, publicly criticized a group of companies in the embodied intelligence sector for generating “fake revenue” through related-party transactions with local governments and data collection centers. This move has put Galaxy General, a leading humanoid robotics company that has been around for three years, appeared on the Spring Festival Gala, and is valued at 20 billion yuan, in the spotlight. This incident coincides with market rumors that regulatory authorities are considering raising the IPO requirements for humanoid robots, bringing to the fore long-hidden issues within the industry such as inflated revenue, speculative commercialization, and competition among new and established players for market access. Although there is no concrete evidence yet and no final decision from the regulators, the valuation logic of the entire embodied intelligence industry is about to change.
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5 Key Points to Understand the Industry
1. The Nature of the Conflict: Newcomers Setting Rules for Those Still Seeking to Enter the Market
Shao Tianlan is bold enough to criticize his peers because he has already secured a spot in the capital market and has a strong track record in commercialization. His company has been in the robotics vision component business for nearly 10 years, with revenue approaching 400 million yuan in 2025, half of which comes from real industrial clients in the automotive and logistics sectors, not relying on government subsidies. However, his stock price dropped by 20% in the first four days after the company’s listing, indicating that the market is highly skeptical about the commercial viability of embodied intelligence companies. If more companies that rely on fake revenue manage to go public, the valuation of the entire sector could plummet, affecting even those who are already listed. His urgency to establish clear standards is a attempt to protect the industry’s “listing valuation benefits” from being squandered by later entrants.
2. How the “Data Collection Center” Cycle Creates Fake Revenue
Many people don’t understand how “data collection centers” can generate millions of yuan in revenue from just one yuan. The logic is simple: Humanoid robots need extensive training data to develop their capabilities, similar to how people need to practice thousands of questions to score well on exams. Companies often can’t afford to hire staff to collect such data on their own. Local governments, eager to capitalize on the robotics industry, fund the establishment of “public data collection centers.” The cycle works like this: The government’s industrial fund invests 10 million yuan in a robotics company, which then uses this money to buy data and services from a government-affiliated platform. The platform, in turn, purchases 10 humanoid robots from the robotics company under the guise of a government procurement project. As a result, the robotics company’s revenue increases by 10 million yuan without any actual expenditure, allowing it to claim high demand and successful commercialization. However, this revenue comes from internal government funds, creating an illusion of prosperity.
3. The Industry’s Illusory Success: Robots on the Spring Festival Gala, but No Real Profit
The dilemma of the embodied intelligence industry is that it excels in performance but fails to generate real profits. In 2025, only 20,000 humanoid robots were sold globally, with more than 150 companies in China, meaning each company likely receives fewer than 150 units per year. In the first half of 2026, domestic government procurement for humanoid robots amounted to $230 million, nearly 40 times the amount in 2024. This indicates that most robot purchases are for government demonstration projects, with few ordinary businesses or consumers willing to pay for them. For example, Galaxy General claims its robots have a 95% success rate in pharmacy tasks, but the cost of a robot is hundreds of thousands of yuan, and the labor cost for a pharmacy staff member is only a few thousand yuan per month. It would take a pharmacy ten years to recoup the investment, making such purchases impractical. The industry’s focus is no longer on who makes the best robots but on who can secure more government orders to boost their valuation and go public first.
4. No One Is Pure: The Line Between Legitimate Support and Fraud
Don’t think Shao Tianlan hasn’t benefited from government support. In 2024, he moved his global headquarters to Xiongan, receiving talent subsidies, free office space, and industrial resources from the local government. This mutual support is normal and not shameful. It’s easy to distinguish between legitimate support and fraud based on three criteria: First, are the related-party transactions clearly disclosed? Second, are the prices the same as those charged to external customers? Third, do new, unrelated customers continue to do business with the company after the initial transaction? If all revenue comes from one-time government projects, there’s a high likelihood of fraud.
5. A Warning for Investors: Stop Being Misled by Promises of Robotics
Embodied intelligence was once a hot topic in the A-share and Hong Kong stock markets. Meikamand’s initial public offering saw over 3,800 times more subscriptions than available shares, but its stock price dropped immediately after listing. This shows that investors were speculating on the potential of robots to change the world, not on their actual commercial performance. When it comes to evaluating robotics companies, don’t trust their promotional videos or claims of high valuations. Check the financial reports: What percentage of revenue comes from government platforms, from external customers, and what is the customer retention rate? If all revenue comes from government projects with no repeat business, the company’s valuation is likely to be unsustainable.
In summary, the embodied intelligence industry’s success is largely based on government support and speculative activities, rather than genuine commercial performance. Investors should be cautious and base their decisions on real financial indicators rather than hype.