Summary of Key Points
YusTree Robotics completed its IPO at an issue price of 150.8 yuan, with a market value of 61 billion yuan, becoming the first benchmark in the field of embodied intelligence in the Chinese public market. This has led to a surge of robot companies lining up to go public, yet their business models vary greatly: some generate revenue from quadrupedal/cooperative robots, some produce humanoid robots but have not yet turned a profit, and others focus on AI models without translating that into actual income. YusTree's high valuation serves as both a boost for the industry and a barrier for newcomers—the public market no longer buys into concepts; it now values real revenue, profits, and the ability to fulfill future potential.
Why Are Robot Companies Rushing to Go Public?
In recent months, the number of robot companies waiting to go public has increased significantly: YusTree has already issued shares, YunShenDu and LeJu are under review, ZhiYuan and ZhongQing have secretly submitted their applications, and many more are preparing. Why are they all in such a hurry?
- Running Out of Money: Embodied intelligence is an expensive endeavor—manufacturing robots, developing AI models, building production lines, and setting up use cases all require substantial investment. Even if some companies sell their robots, they may not be profitable (for example, LeJu lost nearly 70 million yuan in 2025). The primary market (VC/PE) cannot sustain funding indefinitely; going public is the only way to access long-term capital.
- Policy Changes: The Growth Enterprise Market (GEM) now allows unprofitable companies to list as long as they meet certain criteria (market value ≥ 3 billion yuan, annual revenue ≥ 200 million yuan, and three-year growth rate ≥ 30%). LeJu is among the first to take advantage of this; the Hong Kong stock market has also relaxed requirements, allowing companies to undergo secret reviews without immediate public disclosure, reducing the cost of making mistakes.
- The YusTree Effect: YusTree's high valuation shows that the public market is willing to pay for robot companies, but it also creates pressure—later entrants must perform as well as YusTree. As a result, leading companies are eager to be among the first to list.
The Business Models of Robot Companies Vary Dramatically
Although they all claim to work in the field of embodied intelligence, their approaches differ significantly:
- YusTree: It has both current revenue and future potential—revenue for 2025 is expected to be 1.7 billion yuan, with a profit of 590 million yuan (actual profits), and it sold 5,215 humanoid robots (outperforming quadrupedal robots in sales). Its valuation is based on both existing profits and cash flow, as well as the potential growth of its humanoid robot business.
- YunShenDu/YueJiang: These companies rely on mature businesses for revenue; humanoid robots are a secondary focus. YunShenDu earned 320 million yuan in 2025 mainly from selling dog-shaped robots for power inspection, while it only sold 4 humanoid robots for less than 2 million yuan. YueJiang's 80% of revenue comes from cooperative robots used in factories, with humanoid robots accounting for just 4% of its business. Their valuations are based on clear criteria, but the success of their humanoid robot initiatives is still uncertain.
- LeJu/ZhiYuan: They focus on mass production speed but have not yet turned a profit. LeJu sold 577 humanoid robots in 2025 for 258 million yuan, while incurring a loss of nearly 70 million yuan. ZhiYuan claims to have achieved mass production, but details about sales volume and customers, as well as the ability to collect payments, are unclear. High production volumes demonstrate manufacturing capability, but they do not necessarily ensure sustainable business success (production does not equate to sales, and sales do not guarantee repeat business).
- ZiYuan/ZhiPingfang: These companies bet on the value of AI models but have not yet converted them into revenue. They emphasize that their AI makes robots smarter, but the public market looks at the actual income generated by these models. Without concrete performance, claiming model leadership is insufficient to achieve a high valuation.
The Implications of YusTree's 61-Billion Yuan Valuation
YusTree's high valuation has two main effects on subsequent companies:
- Positive Impact: It demonstrates that the market is willing to pay premium prices for companies with both substantial revenue and technological potential, attracting more investors to this field.
- Negative Impact: It raises the bar for entry. Companies needing to build capacity (e.g., YunShenDu planning to produce 3,000 humanoid robots but having sold only 4 in the past two years) must provide clear explanations about their customers and production plans. They cannot simply say they are also developing humanoid robots; they need to show why their revenue quality and technical capabilities justify a valuation close to YusTree's.
Even YusTree itself is facing challenges: its first-quarter revenue increased by 68% in 2026, but profits decreased by 52% due to higher research and development and sales expenses. This shows that the contradiction between high growth and high investment will not disappear with a public listing; future financial reports will be subject to scrutiny.
The Public Market Is Not a Safe Haven
Going public is not the end of the journey but the beginning of new responsibilities:
- Disclosure Requirements: Companies must disclose revenue, profits, and cash flow quarterly, and any fluctuations will attract investor attention. For example, if YusTree's profits decline in one quarter, investors will immediately question its financial health.
- Valuation Risk: If commercialization does not keep up with expectations (e.g., if the promised humanoid robot sales targets are not met), stock prices could plummet. The primary market can offer optimism, but in the public market, unmet promises represent real pressure.
- Not All Companies Are Ready: Some companies that have completed restructuring are hesitant to go public due to concerns about meeting the public market's demands. While financing is beneficial, the long-term commitment to regular disclosure and potential fluctuations must be carefully considered.
Conclusion
YusTree has set a benchmark, but each company must establish its own valuation logic:
YusTree's 61-billion yuan market value provides an industry reference, but it does not answer the question of what other companies are worth. Each company must consider:
- How do I generate revenue (through hardware or AI models)?
- Can my current performance support my valuation?
- Will future growth be able to justify my current and potential values?
- Is the public market willing to invest in my present or future prospects?
In the end, no matter how popular a concept is, it ultimately comes down to tangible financial results and the ability to turn vision into reality. YusTree's success is not a replicable formula; it highlights that robot companies must clearly define their business models before seeking public listing.