In-Depth Analysis of the “First Year of Mass Production of Humanoid Robots”: How China Wins by Selling Well, Rather than Just Talking Well
Hello everyone, I’m your financial journalist. Today, we’re going to discuss a significant event that’s already happening, but many people may not have fully realized it yet: humanoid robots are truly starting to be sold in large quantities.
In the past, we viewed humanoid robots as something we saw in science fiction movies or at technology exhibitions—where we cheered for the ones that could do the most impressive stunts or dance the best. But in 2026, the rules have changed. The Ministry of Industry and Information Technology has announced that China’s production of humanoid robots is set to exceed 100,000 units this year. What does that mean? Last year, only 18,000 units were sold globally. This signifies that the industry has transformed from being a “toy in the lab” into a “worker in the factory.”
In this shift from being about “showing off capabilities” to being about “getting work done,” Chinese companies are outperforming their European and American counterparts in a very practical and down-to-earth manner. Today, we’ll break down this news in simple terms so everyone can understand.
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1. The Trend Has Changed: From “Who’s the Coolest” to “Who’s the Most Reliable”
First, we need to understand a key shift in logic.
Before 2025, the humanoid robot industry was about parameters and demonstration videos: The robot that ran the fastest, jumped the highest, or moved the most like a human was considered the star. People were interested in whether it could live like a human.
But in 2026, the focus has shifted to delivery and quality of production.
- Previous question: “Can this robot do a backflip?”
- Current question: “Can this robot run continuously for 2000 hours in a factory without crashing? Is it expensive to repair if it breaks? Can I buy it in bulk at a lower price?”
This shift hits right at what Chinese manufacturing does best: its ability to manage supply chains, implement engineering solutions efficiently, reduce costs, and produce in large quantities.
It’s like comparing who has the best-sounding sports car engines; now, people are more interested in who makes taxis that are durable, fuel-efficient, and affordable. In this new race, the “smartest” robot may not be the first to make money. Instead, the “most reliable, affordable, and easy to repair” robot is likely to establish a viable business model first.
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2. The Duopoly of Yuzhu and Zhiyuan: Two Different Paths to Profit
Currently, the Chinese humanoid robot market is dominated by two companies: Yuzhu Technology and Zhiyuan Robotics, which together account for nearly 75% of global shipments. Although both sell robots, their approaches are completely different.
1. Yuzhu Technology: The King of Extreme Cost-Effectiveness, Like Xiaomi
Yuzhu is the “big brother” in this industry and the first humanoid robot company to go public on the A-share market (on the Science and Technology Innovation Board).
- Its strength: Yuzhu started with robotic dogs and became famous by making them affordable for consumers. This focus on cost-effectiveness has carried over to its humanoid robots.
- Advantages: It develops over 90% of its core components in-house, including motors, reducers, and controllers, which keeps costs low.
- Performance: In 2025, it had revenue of 1.7 billion yuan and a net profit of nearly 600 million yuan, with a high gross margin of 60%. Half of its orders came from overseas, indicating its global competitiveness.
- In simple terms: Yuzhu is like Xiaomi in the smartphone market. It doesn’t aim for the most luxurious experience but offers the same functionality at half the price, with reliable quality and easy repair. It relies on “motion control and extreme cost-effectiveness” to make its robots standard products.
2. Zhiyuan Robotics: The Data-Driven Player, Like Tesla
Zhiyuan is the fastest-growing company in the industry, with the highest shipments in the first half of 2026 (about 9,700 units).
- Strength: Zhiyuan emphasizes “embodied intelligence,” focusing on making robots smarter through data in real-world tasks.
- Advantages: It has strong capabilities for implementing robots in industrial scenarios, such as in 3C electronics and automotive parts manufacturing, and collaborates with large companies like Longqi Technology and Junseng Electronics.
- Ambition: Zhiyuan is aiming for a Hong Kong stock market listing, with a target valuation of 40-50 billion Hong Kong dollars. Its strategy is to deploy robots in factories, where tasks are more standardized, and customers are willing to pay for reliability.
- In simple terms: Zhiyuan is like early Tesla. It’s not just about selling hardware; it uses data from robots in factories to make AI more intelligent, creating a “data-driven cycle.” It sells “labor solutions that can work in factories.”
Together, Yuzhu and Zhiyuan have propelled China to dominate the global humanoid robot market.
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3. The Challenges Faced by Latercomers: UbiSelect and Fourier
Besides the two dominant companies, there are two other notable players: UbiSelect and Fourier.
- UbiSelect: The first humanoid robot company to go public on the Hong Kong stock market, it has a strong brand but has been surpassed in shipments by Yuzhu and Zhiyuan.
- Current situation: In 2025, it had revenue of 2 billion yuan but still lost 790 million yuan. Although the revenue from humanoid robots is increasing, its total shipments are lower.
- Strategy: UbiSelect focuses on setting a benchmark by providing robots for quality inspection and assembly in factories and in government and corporate exhibitions. It’s using years of losses to build brand awareness and a network of channels.
- In simple terms: UbiSelect is like a well-established university graduate with a brand and channels, but it needs to prove that it can turn losses into profits.
- Fourier: Fourier focuses on a more niche market, specifically “rehabilitation and wellness.” It specializes in rehabilitation robots and has experience in hospitals and nursing homes, focusing on safety and comfort during human-robot interactions.
- Strategy: It uses open-source technology to attract developers and targets the rehabilitation sector, avoiding direct price competition.
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4. Why China Is Winning: The Power of the Supply Chain
Many wonder why Chinese companies are outperforming European and American ones. Is it because of their better AI algorithms? Not entirely.
The real secret lies in the supply chain. Here are some key figures from the news:
- The top five Chinese manufacturers account for 86% of global shipments.
- The localization rate of core components (such as harmonic reducers and servo motors) has exceeded 70%.
- A leading contract manufacturer like Lingzhi Manufacturing has orders worth over 1 billion yuan.
What does this mean?
1. Cost reduction: What used to cost hundreds of dollars in imported components now costs just tens of dollars in domestically produced ones, bringing the overall cost down from hundreds of thousands to tens of thousands of yuan.
2. Improved quality: With a mature manufacturing system, the quality of each component can be improved to over 99%, ensuring the reliability of the robots.
3. Fast iteration: Changes in design can be quickly implemented, with samples available the next day. European and American companies, on the other hand, have longer cycles and higher costs due to global supplier searches.
In short, China’s manufacturing advantage lies in its ability to continuously reduce costs once the supply chain is in place. This is why China can produce in large quantities, while European and American companies can only talk about their potential.
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5. The Ultimate Test in 2027: Who Can Prove That Mass Production Leads to Profit?
Finally, let’s consider the challenges ahead. Even with high shipments, it’s still possible to lose money on each unit sold. For humanoid robots to be profitable, three economic hurdles must be overcome:
1. Reliability: Robots must not break frequently.
2. Economic efficiency: The cost of robots must be lower than the annual salary of the workers they replace.
3. Maintenance: Maintenance, upgrades, and data management are significant expenses.
The contrast between China and Europe/America is clear:
- China: It has products, volume, and factories in use, with a more realistic valuation based on actual orders.
- Europe/America: They have exciting stories and high valuations (e.g., Figure’s valuation of $39 billion), but limited shipments (usually in the thousands of units).
The real test in 2027 will be to see which company can prove that mass production leads to profit. Could it be Yuzhu with its cost control? Zhiyuan with its efficiency in industrial applications? Or UbiSelect with its brand and diversified scenarios?
In conclusion: China has taken a lead in the race to deploy robots in factories. But this is just the beginning. The real challenge is to turn the concept into profit between the second half of 2026 and 2027.
For the general public, this means we’ll see more robots in factories, hospitals, and possibly in our homes in the coming years. For investors, it’s important to look at not just the impressive videos but also the growth in shipments and net profits in financial reports. That’s the true value of the “first year of mass production” for humanoid robots.