The Hype Around Humanoid Robot IPOs Has Cooled Down? A Layman's Explanation of the Tighter IPO Review Process
Hello everyone, I'm your financial journalist. Recently, there's been a lot of talk in the industry about how it's becoming harder for humanoid robot companies to go public (IPO), with higher barriers and stricter reviews. Many non-professionals might wonder, "Aren't robots the big trend? Why are they suddenly being rejected from going public?"
In reality, it's not that they're being banned from going public, but rather that the process has become more selective. Today, we'll break down this news in simple terms and explain what's happening from five different perspectives, as well as what it means for the industry.
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Summary: From a Rush to Go Public to Stricter Oversight
In one sentence: The regulatory authorities haven't specifically targeted humanoid robots; rather, in the context of overall stricter reviews for unprofitable companies going public, humanoid robots, due to their lower level of commercialization and widespread losses, have become a focus of scrutiny.
Key Changes:
1. Stricter review criteria: Previously, the focus was on concepts and stories. Now, the emphasis is on actual, recurring revenue, whether losses are shrinking, or whether there are solid technical barriers.
2. Pressure on unprofitable companies: As long as a company isn't making a profit, whether it's in the robotics industry or another, the difficulty of going public has increased. Regulators require sponsors (the firms that help companies go public) to screen companies more carefully to prevent them from presenting poor-quality offerings to investors.
3. The market speaks for itself: YuShu Technology's stock price plummeted on its first day of trading, serving as a warning to other companies in line for an IPO. The capital market no longer buys into mere concepts but seeks certainty.
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Why the Tighter Review Process?
1. Regulatory Logic: Not Just about Robots, but About Profitability
Many investment bankers have clarified that this tightening is not aimed at humanoid robots specifically but at all unprofitable companies.
- Layman's explanation: In the past, the A-share market was relatively lenient with unprofitable companies, believing that as long as there was potential for future profitability, it was acceptable. However, now regulators argue that if a company hasn't even figured out its business model or how it will make money, rushing to raise funds is unfair to investors.
- Core requirement: Regulators need to determine whether a company has a profit-making prospect at the application stage. If this isn't clear, the application will be rejected. Sponsors (the firms recommending the companies) also face greater responsibility; if they recommend unqualified projects, they may be held accountable.
2. Industry Challenges: Humanoid Robots Still Not in the Commercialization Phase
Why are humanoid robots getting extra attention? Because most of the projects are still in the laboratory or demonstration stage, not in the actual market where sales generate revenue.
- Comparison: Companies making industrial robots (e.g., robotic arms, welding robots) have clear customers and a measurable return on investment, making their business models more straightforward.
- The Dilemma for Humanoid Robots: Humanoid robots rely mainly on government orders, research collaborations, or a small number of high-end customizations, lacking a large, sustainable civilian market. Regulators worry: "If you go public and raise funds, will you use them for research and development or to maintain your stock price? If you can't make a profit, who will bear the cost in the long run?"
3. The Lessons from YuShu Technology's Stock Price Crash
YuShu Technology, as the first humanoid robot company to go public, had a dramatic stock price drop, which impacted subsequent companies.
- Data speaks for itself: Its stock opened at 1,100 yuan and closed at 845 yuan, then fell to 465 yuan, a decrease of over 57%.
- Significance: This shows that the market is very cautious about the valuation of humanoid robots. If subsequent companies go public with high valuations, they are likely to face similar outcomes. The tighter reviews are also a way to protect investors from a bubble bursting.
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Current Situation of Companies in Line for IPOs
The financial health of the companies waiting for review or guidance varies significantly, affecting their chances of going public.
1. YunShu Technology: The Only Profitable Company, but Under Pressure
- Status: Under inquiry, with stalled progress.
- Financial highlights: It expects to be profitable in 2025 (net profit of 28.68 million yuan), with revenue growing from 50 million yuan in 2023 to 337 million yuan in 2025.
- Potential risks: Although it's profitable, its gross margin decreased in the first half of 2026. The company also acknowledges that future product prices may need to be lowered.
- Layman's interpretation: YunShu is currently the safest candidate because it has proven its profitability. However, regulators will closely monitor its gross margin to see if it's sustained by high prices and low volumes.
2. YueJiang Technology: High Revenue Growth, but Increasing Losses
- Status: Approved for review, awaiting registration.
- Financial details: Revenue is growing (493 million yuan in 2025), but it's still losing money. More importantly, losses are expected to increase significantly in the first half of 2026 (90-120 million yuan).
- Reasons for losses: Increased research and development, expansion of the sales team, exchange rate fluctuations, and share-based compensation expenses.
- Layman's interpretation: YueJiang Technology is "burning money" to gain market share. While its revenue is growing, its expenses are increasing faster. Regulators will question whether it can stop this trend and ensure future dividends and returns.
3. LeJu Intelligence: Increasing Losses Despite Small Revenue
- Status: Under inquiry, with stalled progress.
- Financial details: Revenue is low (258 million yuan in 2025), and losses are increasing (from -41.11 million yuan to -69.77 million yuan).
- Layman's interpretation: LeJu Intelligence is in a difficult position. Its revenue isn't growing, and its losses are worsening. With stricter reviews, it will face challenges unless it can show a breakthrough technology that can reverse this trend.
4. Other Companies in Guidance
- Chuan Robot: Losses increased by 74.91%, and the loss gap hasn't narrowed.
- FaO Robot: Just started guidance, focusing on collaborative humanoid robots.
- Trend: These companies are still in the early stages, and losses are common. With the current review environment, their IPO paths will likely be longer and more complicated.
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Implications for the Industry and Investors
1. Accelerated Industry Consolidation: Moving from Conceptual to Profitable Models
The tighter IPO process signals a shift from a capital-driven to a profit-driven industry.
- Positive impact: Companies with real technology, orders, and cost control will attract more capital.
- Negative impact: Those that rely on PPTs for financing and conceptual hype will be eliminated, leading to greater industry concentration and a stronger leading position for top players.
2. Revaluing the Industry
YuShu Technology's stock price drop indicates that the valuation bubble in the humanoid robot sector is bursting.
- Future expectations: Subsequent humanoid robot companies will likely not enjoy the high P/E multiples seen in the early days of AI and renewable energy. The market will demand lower valuations and clearer cash flows.
- Investor strategy: Investors should not blindly chase robot concepts. Instead, they should look at companies' gross margins, net profit margins, and cash flows, not just the number of “brains” or “small brains” (referring to advanced technologies).
3. Increased Responsibility for Sponsors
The news highlights the increased responsibility of sponsors. They must provide a solid assessment of companies' profit prospects when recommending them for public listing.
- Consequences: Poor-quality projects will be rejected, while high-quality ones may face longer review processes due to more detailed evaluations.
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Future Prospects
Can humanoid robots still go public?
The answer is yes, but it will be harder and more selective.
1. Companies that can go public: Those that are already profitable or close to profitability, like YunShu, have a chance, as long as they can prove sustainability.
2. Companies with improving losses: Those with temporary or strategic losses and high revenue growth may still have a chance, but their valuations will be lower.
3. Companies with unique technologies: Those with irreplaceable technologies (e.g., core joint modules, AI algorithms) and clear commercialization paths may still succeed, even if they're currently losing money.
Time Frame
- Short-term: The number of humanoid robot IPOs may decrease, and review times will lengthen.
- Long-term: As the industry matures and more companies become profitable, the path to public listing will reopen, but with higher standards.
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Conclusion
The tighter review process for humanoid robot IPOs is not a winter for the industry but a rite of passage. It marks the transition from the hype of adolescence to the rationality of adulthood.
For the general public, this means:
- Don't blindly believe in the aura of being the “first humanoid robot company to go public.”
- Focus on a company's actual profitability, not just on conceptual hype.
- The industry is undergoing consolidation, and the future belongs to companies that can deliver real value and generate profits.
This tightening of the review process will direct capital towards more quality companies, promoting healthier industry development. Although it may be painful, in the long run, it's a positive development.