Yu Shu's IPO approval: Wang Xingxing's wealth may exceed 14 billion yuan

Summary of Key Points

Yushu Technology has successfully passed the review for the STAR Market, potentially becoming the first humanoid robotics company listed on the A-share market. Founded ten years ago, the company started with quadruped robots (holding nearly 70% of the global market share) and entered the humanoid robotics sector in 2023. It achieved explosive growth thanks to its appearance on the 2025 Spring Festival Gala, with revenues of 1.699 billion yuan and a net profit of 278 million yuan that year. The company plans to raise 4.2 billion yuan (half of which will be used for the development of embodied intelligence models), and its valuation is estimated at around 42 billion yuan, suggesting that founder Wang Xingxing's wealth could exceed 14 billion yuan. However, it also faces challenges: revenue growth slowed in the first quarter of 2026, profits declined, and competition in the industry has intensified (with over 140 domestic companies involved, as well as automotive manufacturers entering the market, and overseas players like Tesla). Additionally, there is still room for improvement in embodied intelligence technology.

I. Yushu's Approval: Is the First A-share Humanoid Robotics Company Within Reach?

Yushu Technology's approval on June 1 means it is just one step away from going public. The process from the IPO application acceptance on March 20 to the approval took only 73 days, which is half as fast as Changxin Technology's 148 days, indicating a very efficient progress.

• Use of Raised Funds: The company plans to raise 4.202 billion yuan, with half (2.1 billion) allocated to the development of embodied intelligence models and the remainder for robot body research and development and production base construction.
• Valuation and Wealth: Based on the raised funds and a 10% public offering ratio, the initial market value is set at 42 billion yuan. Founder Wang Xingxing directly and indirectly holds 33.36% of the shares, valued at approximately 14 billion yuan.
• Significance: If successful, Yushu will become the first humanoid robotics company listed on the A-share market, marking a transition from the concept stage to mass production and profitability in this industry.

II. Wang Xingxing's Entrepreneurial Journey: A Zhejiang-born Businessman Who Chose the Right Track at the Right Time

Wang Xingxing's entrepreneurial approach is a prime example of doing the right thing at the right moment:

• Wisdom in Choosing the Track: He resigned from DJI in 2016 to start his business, avoiding the mature automotive industry and focusing on the then-nascent quadruped robotics sector (“less competition in an emerging field, giving young people more opportunities”). The prototype XDog he developed during graduate studies and the 80,000 yuan prize money served as the startup capital.
• Key Moments:
• At the 2017 Wuzhen Internet Conference, his robot dog stumbled and crashed, failing to attract investment from investors like Lei Jun; it was not until 2021 that he received funding from Shunwei Capital (led by Lei Jun), with Meituan becoming the largest external shareholder (holding 9.65% of the shares).
• In 2024, his collaboration with Zhang Yimou for the movie “Macau 2049” featuring dancing robots caught the attention of the Spring Festival Gala production team. The “Yangbot” robot performed well at the 2025 gala, significantly boosting sales to 5,500 units (the highest in the world that year).
• Zhejiang Background: Wang Xingxing emphasizes the business mindset prevalent in Ningbo, believing that businesses need to be profitable from the start and not just rely on investor funds—this helped Yushu achieve profitability as early as 2025 with a net profit of 278 million yuan.

III. Performance: Explosive Growth in 2025, but Slowing Growth in 2026

Yushu had impressive results in 2025, but revenue growth slowed in the first quarter of 2026:

• 2025 Success: Revenues reached 1.699 billion yuan (a 333% increase), with a net profit of 278 million yuan (a 192% increase). The company led the world in humanoid robot shipments, achieving a gross margin of 62.91%.
• 2026Q1 Challenges: Revenues were 420 million yuan (a 68% increase, but up from 332% in the same period last year), and net profit dropped to 50.01 million yuan (a 47% decrease).
• The higher revenue base led to a natural slowdown in growth.
• Intense industry competition made it harder to achieve additional sales.
• Increased expenses: Research and development costs rose by 38.32 million yuan, and marketing expenses, including those for the Spring Festival Gala, also increased (“the exposure from the gala brought more traffic but also higher costs”).

IV. Intense Competition: Domestic Competitors, Automotive Manufacturers, and Overseas Giants Are All Entering

The humanoid robotics market is becoming highly competitive:

• Domestic Competitors: Zhiyuan Robotics began mass production of 10,000 units in March 2026 (rising from 5,000 units in just three months), with the founder aiming for tens of thousands of units this year and billions in revenue next year. There are over 140 companies in this field, more than a dozen of which have valuations exceeding 10 billion yuan.
• Automotive Manufacturers Entering: Xiaomi, Li Auto, and Xpeng are investing in robotics technology. Three robots appeared on the 2026 Spring Festival Gala, reducing Yushu's impact from its appearance there.
• Overseas Rivals: Tesla’s third-generation Optimus will be mass-produced in the summer of 2026, posing a direct threat to Yushu, as 40% of its revenue comes from overseas markets.

V. Overcoming Weaknesses: From Hardware to “Brain”—Yushu Needs to Improve Embodied Intelligence

While Yushu excels in hardware production, its embodied intelligence is a weakness:

• Current Situation: The company’s R&D expense ratio was 8.53% in 2025, compared to 23-26% for competitors like YoubiXuan, which previously restrained their AI investments due to concerns about high costs. However, companies with higher valuations in the industry have made breakthroughs in embodied intelligence models (allowing robots to make autonomous decisions without remote control).
• Actions to Improve: Half of the raised funds will be used for embodied intelligence model development.
• The WVLA2.0 model has been released, enabling robots to autonomously organize and store items without remote control.
• Wang Xingxing believes that “the company that develops the most advanced large models for robots will be the most powerful,” with the goal of achieving AGI (general artificial intelligence).

However, there is still a long way to go before robots become a common part of daily life—this is both Yushu’s ultimate challenge and its dream.

In Conclusion: Yushu’s approval is a milestone, but going public is just the beginning. The company must overcome the weakness in embodied intelligence to maintain its leading position in the humanoid robotics sector. Whether Wang Xingxing’s strategy of choosing the right timing will continue to be successful depends on whether he can seize the right opportunities in the development of embodied intelligence technology.

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