A Critical Look Behind the "Hype" of Embodied Intelligence: The Survival Challenge for Robotics Companies Going Public
These days, the embodied intelligence industry (often referred to as "humanoid robots" or "intelligent robots") has been incredibly bustling. On one hand, robots are setting new records in sports competitions; on the other hand, several companies that have been in the industry for years are lining up to go public, which seems like good news.
However, beneath the excitement lies a profound question about the sustainability of these companies. Shao Tianlan, the founder of Meikamand, has publicly questioned her peers for generating revenue through fake transactions or related-party deals. The China Securities Regulatory Commission (CSRC) has also signaled to investment banks that if a company wants to go public, the barriers must be raised, and it must prove its ability to generate consistent profits and that its technology is truly innovative.
Considering the stock performance of companies like Yushu Technology and Meikamand after their listings, we can draw a very realistic conclusion: Just having a compelling story and revenue is not enough; you need to show that the business can thrive in the long term and be profitable.
Below, I will break down this news into five key points and explain the implications in plain language.
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1. Regulatory "Cold Water": Don't Think You Can Get Away with Fake Transactions
In the past, many tech companies going public would tell a grand story, such as predicting a trillion-dollar market in the future. Even if they weren't making a profit yet, or if their revenue sources were somewhat questionable (for example, by transferring money internally or buying products from related companies), they could still get a high valuation.
But the tide has turned:
- CSRC's Attitude: According to media reports, the CSRC has recently provided guidance to investment banks, indicating that the requirements for humanoid robot startups looking to go public have been tightened. The focus is on three key aspects:
1. Can they generate revenue consistently? (Not just from one-time sales, but from customers who are willing to pay repeatedly.)
2. Can they reduce losses? (The pace of spending money must slow down, and they must be getting closer to profitability.)
3. Is the technology truly innovative? (Not just the technology described in a PowerPoint presentation, but something that can be practically applied.)
- Industry Controversy: Shao Tianlan has directly accused some companies of creating a false sense of prosperity through data collection centers and leasing arrangements. While this doesn't necessarily prove guilt, it does expose the fact that many companies' revenues may not be as clean or sustainable as they appear.
In plain language: In the past, you could go public with a promising story; now, you need to prove the feasibility of your business.
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2. Yushu Technology: Profits, but a 50% Stock Drop Says Something
Yushu Technology was one of the main topics of discussion. It went public on August 19th with an issue price of 150.8 yuan and its stock price soared to 1100 yuan on the first day, reaching a market value of 444.9 billion yuan. By September 10th, however, the stock price had dropped to 498.55 yuan, a 55% decrease.
Many people thought the stock drop meant Yushu was no longer valuable, but this view is too simplistic:
- Stock Price Fluctuations ≠ Poor Business: When the company went public, there were few shares available, so prices were inflated. Institutions like CCB International and Nomura gave a more realistic valuation of around 100 billion yuan, far lower than the opening price. The current drop is more about deflating the bubble and returning to reality.
- The Real Concern: Revenue has increased, but profits have not. Yushu's revenue grew by 48.54% in the first half of the year, but its net profit after deducting expenses such as research and development (R&D) and sales decreased by 19.34%.
- Why? This is because making robots more practical has increased the technical complexity. Current embodied intelligence models (the “brains” of robots) are still not mature enough and lack generalization capabilities (they may not function well in different environments).
- The Cost: To make robots smarter, more money needs to be invested in R&D; to sell them, more needs to be invested in marketing. These expenses have increased, but the cost savings from higher sales have not kept up.
- Buffett's Warning: Growth can also undermine value. If the money spent on growth exceeds the potential future profits, that growth is actually detrimental.
In plain language: Yushu is a capable and profitable company, but it is in a phase of burning money to invest in the future. Investors are concerned about whether the more it sells, the more it loses.
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3. Meikamand: Repeated Purchases from Old Customers, Yet Losses
Meikamand specializes in providing robots with perception, planning, and operational capabilities (similar to giving robots eyes and brains).
- Positive Aspect: Its revenue increased from 181 million yuan in 2023 to 389 million yuan in 2025, and its gross margin rose from 39% to 64.6%. More importantly, 78% of its revenue in 2025 came from repeat customers, indicating that its products are effective and customers are willing to buy them repeatedly.
- Negative Aspect: The numbers don't add up:
- The gross margin in 2025 was about 251 million yuan.
- However, the sales expense ratio was as high as 43% (a lot of money was spent on sales), and the R&D expense was around 113 million yuan.
- These two expenses totaled about 280 million yuan, exceeding the gross margin, resulting in a loss of 109 million yuan.
- Progress and Hope: Although it is still losing money, its sales expense ratio has decreased from 103% in 2023 to 43% in 2025, indicating that the cost of sales is being reduced as revenue grows.
In plain language: Meikamand's products have been validated by the market, and customers are satisfied. But it's like a hardworking employee who hasn't saved much money. It has generated a lot of revenue, but the costs of sales and R&D are too high. The next challenge is whether higher revenue can cover these fixed expenses and lead to profitability.
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4. Industry Capital Enters the Scene: What Does SF Express' Lead Investment Mean?
In addition to going public, financing is also a hot topic. Xingdong Jiyuan received a $200 million investment led by SF Express Group.
- Why SF Express' Investment Matters: SF Express is a logistics giant that understands the labor-intensive and automated needs in warehouses. Many robotics companies used to develop products in isolation, without considering real-world factory conditions. Now, industry players like SF Express are investing directly, meaning robot development must align with actual business needs. This cooperation ensures more stable revenue because SF Express genuinely needs these robots for practical use, not just for show.
- Benefits: This partnership makes revenue more secure, as SF Express has a real use case for the robots. As robots are adopted in more logistics centers, the repeat purchase rate and revenue growth will be more solid.
In plain language: In the past, technology sought a market; now, the market is seeking the right technology. Investment from industry experts like SF Express is more reliable because it shows that the products can actually solve real problems.
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5. Upstream Suppliers and Home Robots: Who Is Really Making Money?
Let's look at other parts of the industry chain:
- Upstream Suppliers (e.g., Green Harmonic): They provide key components like joints for robots.
- Advantage: No matter which robotics company succeeds, they will need to buy these components. This gives them a stable source of revenue.
- Risk: If robot production doesn't increase or if there's fierce price competition, component manufacturers' profits may be squeezed. If production expands without enough orders, the equipment may sit idle.
- Home Robots (e.g., Moqi Intelligence, 1X): This is the future battleground. Current attempts focus on “home-like” scenarios (such as in hotels) or subscription services (like 1X's NEO, priced at $499 per month).
- Logic: Home robots are like new household appliances. Users don't need to own them; they just pay monthly to have them tidy up their homes.
- Prospect: This direction is promising because it solves common daily problems. However, the R&D cycle is long, and it will take time to prove whether users will pay regularly.
In plain language: Upstream suppliers are betting on volume, while home robot companies are betting on creating a habit. For consumers, home robots will only become popular if they can truly solve practical problems, similar to how vacuum cleaners have become commonplace.
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Conclusion: Back to the Essence of Business
The current debate and stock fluctuations are essentially a major reshuffle of the industry.
In the past, embodied intelligence companies could get high valuations based on their futuristic appeal and grand narratives. Now, the market demands a return to basic business logic:
1. Who will continue to pay for the products? (Do customers really need them and will they keep buying?)
2. How will revenue grow? (Through fake transactions or through product quality?)
3. How much profit will be left after growth? (Can scale bring about profitability?)
For investors and consumers, remember this: Don't just focus on whether the robots can move; focus on whether they can solve real problems and whether the company can make a profit. Only when these economic aspects are clear will capital be genuinely interested, and the stock price in the secondary market will be supported.