Hello! I'm your financial analysis assistant. This news article discusses the challenges faced by Yuejiang Technology, a leading company in collaborative robotics, during its attempt to list on the A-share market, as well as the complex financial operations and the current state of the robotics industry.
To help you understand this easily, I will first summarize the key points in one sentence and then break it down in five aspects.
📝 Key Point Summary
Yuejiang Technology has obtained the approval to list on the A-share market (passed the regulatory review), but it has yet to submit the final registration application, which is slower than expected. This is mainly due to the sharp drop in the stock price of its competitor, Yushu Technology, after its listing, which has cooled down the enthusiasm of both regulators and investors in the robotics industry.
Yuejiang Technology is considered a “top student” in the industry, with rapid revenue growth and leading technology, but it is also a “money-burning” company, having suffered losses for three consecutive years with negative cash flows. It raised a large amount of money on the Hong Kong stock market and has mostly invested it in bank deposits earning interest. Now, it plans to raise another 1.2 billion yuan on the A-share market to develop humanoid robots. There are widespread suspicions that its return to the A-share market is not only for research and development but also to enable early investors to cash out smoothly. With the industry's current downturn and the resulting sharp drop in its stock price, investors who bought shares at high prices are in a difficult position, making Yuejiang Technology’s path to the A-share market even more uncertain.
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🔍 In-Depth Analysis: Five Aspects to Understand Yuejiang Technology
1. Why hasn’t it moved forward after getting approval? – The industry’s direction has changed
Simple explanation: It’s like getting a visa; although the consulate has approved it (passed the review), you haven’t yet boarded the plane (submitted the registration). The reason for the delay is that Yushu Technology stumbled shortly after its listing.
- Comparison effect: Yushu Technology went from acceptance to registration in just 104 days, but its stock price plummeted by half after listing. This sends a strong signal to the market that the robotics concept may not be as strong as expected on the A-share market, and there could be a risk of a valuation bubble bursting.
- Regulatory and market caution: In this context, the regulatory authorities (CSRC) and the stock exchange may re-evaluate the合理性 of Yuejiang Technology’s valuation or request additional information to prove its sustainable profitability. Investors are also hesitant, fearing to take on the company’s risks. Therefore, Yuejiang Technology’s slow progress could be either a passive wait for the review process or an active adjustment of its strategy to avoid becoming the next Yushu Technology.
2. How is its profitability? – A typical case of “increasing revenue but not profit”
Simple explanation: Yuejiang Technology is like a restaurant that is getting more and more customers (revenue is growing), but each customer is generating less profit, and it is even losing money.
- Revenue growth, but continuous losses:
- Good news: Revenue increased from 287 million yuan in 2023 to 493 million yuan in 2025, nearly tripling, indicating strong market demand and the company’s competitiveness.
- Bad news: It has lost money for three consecutive years, with a total loss of over 280 million yuan. Worse still, the loss increased significantly in the first half of 2026, with a year-on-year increase of over 150%. This suggests that as the company grew, costs did not decrease effectively, and profits were further squeezed due to increased competition.
- Reason for losses: The company had to lower prices to compete in the market. The price of its main product, a six-axis collaborative robot, dropped from 56,600 yuan to 38,200 yuan, a 32.5% reduction. Although the gross margin remains at 46%-48%, this profit is not enough to cover high research and development and operating expenses.
3. Where has all the money gone? – The contradiction between “bank deposits” and “real R&D”
Simple explanation: The company has 2.4 billion yuan in cash, which seems substantial, but most of it is sitting in banks earning interest. Now it wants to raise another 1.2 billion yuan on the A-share market, raising doubts about whether the money is really needed for R&D or just to raise more capital.
- Money from the Hong Kong IPO: Yuejiang Technology raised approximately 2.474 billion Hong Kong dollars through its IPO and two additional offerings. However, the cash flow statement shows that 2.5 billion yuan was spent on investments in 2025, mainly on fixed deposits. This means that most of the raised funds are not being used for industry acquisitions or core R&D.
- Rationality of the A-share fundraising: The company plans to use 800 million yuan from the A-share fundraising for humanoid and multi-legged robot development and production lines.
- Doubts: The company’s annual R&D investment in the past year was at most over 100 million yuan. Can it handle an additional 800 million yuan for R&D?
- Additional liquidity: With 2.4 billion yuan in cash, raising another 300 million yuan for liquidity seems unnecessary and may be seen by the market as a attempt to raise money.
4. The real motive for returning to the A-share market? – More than just R&D, it’s also a “way out”
Simple explanation: The company says it wants to return to the A-share market for new technologies, but shareholders are thinking: the Hong Kong market is too small, and they want to sell their shares for a higher price in the A-share market, which has more investors and larger capital liquidity.
- Liquidity difference: The Hong Kong market pays less attention to small and medium-sized companies, and trading is less active. Yuejiang Technology’s share volume is small, making it difficult for early investors (VC/PE) to find buyers for a large-scale exit, which could cause the stock price to drop.
- Advantages of the A-share market: The A-share market has more retail investors, larger capital, and better liquidity. Listing on the A-share market would provide better liquidity for early shareholders to sell their shares.
- Valuation arbitrage: Although the Hong Kong stock price has dropped, the A-share market often offers higher valuations for “hard technology” and “robotics” companies. If Yuejiang Technology can issue shares at a higher price-to-earnings ratio on the A-share market, early investors could achieve higher returns. Therefore, “shareholder exit” may be one of the main motivations for returning to the A-share market.
5. How big is the risk? – Swimming naked in a fading industry trend
Simple explanation: Robotics was once a hot topic, and everyone was eager to invest; now that the trend has faded and the company’s fundamentals are questioned, its stock price has plummeted. Investors who bought shares at high prices are in a difficult situation.
- Stock price volatility: The stock price soared from 18.8 Hong Kong dollars at the issuance price in 2025 to 83.8 Hong Kong dollars, more than quadrupling, thanks to the popularity of humanoid intelligence.
- Current situation: With the industry trend fading and increased losses, the stock price has dropped to around 21.3 Hong Kong dollars, a 75% decrease in market value.
- Who is affected?
- Institutions that bought shares at high prices: In July and November 2025, the company raised over a billion Hong Kong dollars through two offerings at high prices. Now that the stock price has dropped to 21 Hong Kong dollars, these institutions are facing significant losses.
- Secondary market investors: Investors who bought shares at high prices are also trapped.
- Impact on the A-share market: Such cases of high-price fundraising followed by a sharp drop in stock price can make A-share investors cautious about Yuejiang Technology. If the A-share offering is priced too high, it could repeat the Hong Kong market’s tragedy; if the price is too low, it may not meet the shareholders’ expectations for a good exit.
💡 Lessons for the general public
1. **Don’t rely solely on “concepts”: Robotics and AI are indeed the future, but for a specific company, you need to see if it is actually profitable or if its losses are at least decreasing. Although Yuejiang Technology’s revenue is growing, its increasing losses indicate fierce competition and a weak competitive advantage.
2. Be wary of frequent fundraising: If a company has plenty of cash but still needs to raise money from the market, especially for “liquidity” or “R&D” (when the R&D expense ratio is not high), be skeptical about the real purpose of the funds.
3. Pay attention to industry cycles: Tech stocks often experience significant fluctuations in valuation. When the trend is strong, valuations can soar; when it fades, they can drop significantly. The cases of Yuejiang Technology and Yushu Technology illustrate this point.