Summary of Key Points
The IPO of Yushu Technology, the first “humanoid robot company” listed on the A-share market, has sparked tremendous enthusiasm. The winning bid rate for its shares was the lowest in the history of the STAR Market (0.018%), and its valuation reached 219 times its earnings (while the industry average is 5.7 times). Its list of strategic investors includes some of the biggest names in the tech sector. However, on the global scale, numerous small and medium-sized companies in the humanoid robot industry have gone bankrupt due to a lack of funding and unproven business models, creating a stark contrast between the success of leading firms and the failure of many others. Yushu’s success is a testament to the few that have managed to overcome these challenges, but the entire industry still faces three major hurdles: technology, cost, and commercialization.
How Popular Was Yushu’s IPO?
The demand for Yushu Technology’s shares was unprecedented:
- Extreme Low Winning Bid Rate: Out of 9.78 million applicants, only 19,400 were selected, meaning less than 2 out of every 10,000 people won a share (a winning bid rate of 0.018%), which is 26 times lower than that of Changxin Technology’s IPO.
- Exorbitant Valuation: The issue price was set at 150.8 yuan per share, resulting in a price-earnings ratio of 219 times, compared to the industry average of 38.56 times. This means investors are betting on the company’s future potential despite its current annual profit of just 1 yuan.
- Strong Investor Interest: The list of strategic investors includes giants like DeepSeek (a leading AI company), Tencent, social security funds, and state-owned enterprises such as PetroChina and China Southern Power Grid. Strategic investments alone amounted to 1.2 billion yuan, with a lock-up period of up to three years, indicating long-term confidence in the company’s prospects.
- Investor Frenzy: Online discussions were filled with pleas for shares, and some calculated that a 200% increase in the stock price after listing would result in a profit of 150,000 yuan—deterring even those aware of potential risks.
Why Is Yushu Being Highly Valued by Investors?
Yushu’s success is based on tangible achievements rather than just hype:
- Right Business Approach: The company started with four-legged robot dogs, which helped it develop core technologies in motion control and joint motors before moving onto humanoid robots. This strategic approach allowed it to build a solid foundation.
- Exponential Revenue Growth: Revenue soared from 159 million yuan in 2023 to 1.699 billion yuan by 2025, more than a tenfold increase. Net profit also turned from a loss of 18 million yuan to a profit of 591 million yuan.
- Global Leadership: Yushu expects to ship 5,500 humanoid robots in 2025, exceeding the combined output of all other companies in the industry. Revenue from humanoid robots alone will account for 877 million yuan, making them the core business segment.
The Other Side of the Industry
In contrast to Yushu’s success, many promising startups have failed:
- Domestic Cases:
- Dada Robot: With a valuation of over ten billion yuan and 5.4 billion yuan in funding, it collapsed due to cash flow issues, including unpaid wages and supplier debts.
- Yixing Robot: Despite receiving several hundred million yuan in financing from Geely, it shut down shortly after its establishment because its business model was not viable.
- International Cases:
- Cartwheel Robotics: Founded by former Boston Dynamics employees, the company’s prototype attracted attention but ran out of funds after raising a million dollars.
- K-Scale Labs: Established less than a year ago and after three rounds of financing, it only had 400,000 yuan left in its account and had to disband, releasing its open-source technology.
- Even the Pioneer of Vacuum Cleaners Failed: iRobot, which sold 50 million vacuum cleaners, filed for bankruptcy in 2025. Humanoid robots are far more capital-intensive than vacuum cleaners.
The Reason for the Contrast
The reason for this stark contrast lies in the distribution of funding:
- Funding Concentration: In the first half of 2026, the domestic augmented intelligence industry raised 93.5 billion yuan—five times more than in the entire year of 2025—but most of it went to leading companies like Yushu and Zhiyuan. Small and medium-sized firms struggled to even survive.
- High Capital Requirements: Developing humanoid robots requires significant investment in motors, reducers, sensors, and large-scale AI models, often amounting to hundreds of millions of yuan per year. Without continuous funding, these companies cannot sustain their operations.
- Commercialization Challenges: Many companies only have prototypes without actual sales orders (are there real市场需求 for humanoid robots in factories or households?). Yushu’s survival is due to its ability to sell a significant number of units and identify practical use cases, such as industrial inspections and logistics.
The Future Challenges for Yushu
Yushu’s success is just the beginning:
- Production Capacity: Scaling up from 5,500 units per year will require improving supply chains and ensuring quality control to avoid production issues.
- Cost Reduction: Current prices of humanoid robots are too high for most consumers. Lowering costs (e.g., by reducing the cost of joint motors) is essential for market penetration.
- Market Expansion: The company needs to expand into new markets, such as households and the service industry. Without finding more applications, growth will be limited.
In summary, Yushu’s IPO represents a victory for a few companies in the humanoid robot industry. Many others will fail, and only those with core technologies, cost-effective solutions, and clear market opportunities will survive.