Summary of Key Points
Beite Technology, a traditional automotive parts company, has been hyped by the market as a “robot concept stock” due to the listing of Yushu Robotics. However, it has not yet made any money from its robotics business. Instead, it has invested a massive 1.85 billion yuan (equivalent to 15 times its projected net profit for 2025) in planetary roller screws, which are key components for robots. This decision was led by the 68-year-old founder, Jin Kun, who believes that “robots will become the next major growth opportunity in the automotive industry.” Nevertheless, many companies have already invested heavily in this field, and the commercialization of robots is progressing much more slowly than the expansion of upstream production capacity, posing significant uncertainties for Beite’s gamble.
Detailed Analysis
1. An Automotive Parts Company Becoming a Robot Concept Stock?
Beite Technology has been producing automotive parts (such as steering rack racks and shock absorber piston rods) for over 20 years. These products may not seem directly related to robots, but the core technologies it possesses—metal material processing, precision manufacturing, heat treatment, precision control, and mass production—are essential for creating the “planetary roller screws” required in robot joints. In simple terms, screw rods act as the “joint transmission axes” of robots; they enable robots to perform precise movements (such as lifting hands or bending) by transferring power from motors to the joints, ensuring stability, accuracy, and strength. By applying its expertise in automotive parts to the production of screw rods, Beite has entered the robotics industry chain and been labeled a concept stock by the market.
2. The 68-Year-Old Founder’s Bold Bet
Beite’s projected net profit for 2025 is only 120 million yuan, yet it has invested 1.85 billion yuan in building screw rod production facilities (with a total capacity of 3.4 million units in Kunshan and Thailand). This investment represents more than a decade’s worth of profits. The risk is even greater considering that:
- It is currently only providing prototype development for Yushu Robotics and has not received any official orders;
- Founder Jin Kun, at the age of 68, could have retired comfortably from his automotive business, but he believes in robots as the next major growth market—just as he invested in the automotive industry back in 2002 (when China’s annual vehicle sales were less than 4 million units, which later rose to 24 million units). He hopes to replicate this success again.
3. The Fierce Competition in the Screw Rod Market
Not only Beite but also A-share companies like Hengli Hydraulics and Wuzhou Xinchun are competing in the screw rod industry, with leading firms having invested over 6 billion yuan. However, the demand for robots downstream has not kept up:
- IDC data shows that global shipments of humanoid robots will only reach 18,000 units by 2025, which is considered a “starting point for scaled production”;
- Applications are still largely limited to niche areas such as entertainment and education, with industrial applications (manufacturing, logistics) yet to see significant growth. This creates a mismatch: while millions of screw rods may be produced upstream, the downstream market may only be able to absorb a few thousand units, posing a significant risk for overcapacity.
4. Market Hype vs. Lack of Profit
Beite’s stock price has soared due to Yushu’s listing, but its financial performance has not improved:
- The 2025 annual report shows that 98% of its revenue comes from automotive parts (chassis, air conditioning compressors, etc.);
- The company itself acknowledges that the screw rod business has “not yet had a significant impact on its performance.” In other words, Yushu’s success has merely increased Beite’s visibility, but the robotics business has not yet generated substantial profits.
5. The Transition of Generations
Beite’s management is undergoing a generational shift: Jin Kun’s son, Jin Xiaotang, has joined the core management team (currently serving as director and general manager), and together they hold 38.87% of the company’s shares.
Jin Kun led Beite through its golden years in the automotive industry and helped it become a listed company. Now, Jin Xiaotang aims to turn robotics into another source of growth for the company. This bold bet represents the combined vision of two generations regarding future industry trends.
Conclusion
Beite’s story illustrates the “risky leap” taken by traditional manufacturing companies facing new opportunities. By leveraging their expertise in automotive parts and betting everything on the potential of robotics, they are confronting challenges from both competitive peers and insufficient downstream demand. The market’s enthusiasm contrasts with the company’s lukewarm financial results. Whether this gamble will be successful depends on the pace of robot industry development and Beite’s ability to transform its technology into profitable products.