China’s Top Humanoid Robot Maker Unitree Launches IPO Amid U.S. Restrictions, Bets on Tech Independence

Unitree, China’s top humanoid robot company by market share, will begin its public offering subscription for retail investors on the Shanghai Stock Exchange’s STAR Market on the 10th. The move comes immediately after the United States effectively banned the import of foreign-manufactured robots, and is interpreted as a strategy to accelerate technological independence through large-scale fundraising via the listing.

According to Hong Kong’s South China Morning Post (SCMP) and Caixin on the 31st, Unitree announced the previous day that it had officially commenced the IPO process. The company will issue approximately 40.45 million new shares, representing 10% of the total listed shares. After conducting institutional demand forecasting on the 5th and finalizing the offering price on the 6th, online and offline subscriptions will take place on the 10th. The listing date has not yet been confirmed.

Unitree plans to raise approximately CNY 4.2 billion (approximately $623.1 million) through this IPO. The funds raised will be concentrated on research into artificial intelligence (AI) models for robots, development of next-generation products, and expansion of production facilities.

Unitree’s entry onto the STAR Market comes as a result of an ultra-fast review process, just over 100 days after submitting its listing application in March. China’s securities regulator approved the listing earlier this month, positioning Unitree to secure the title of the first humanoid robot company listed in the history of China’s stock market. After the listing, founder and Chairman Wang Xingxing and related entities will hold 31.29% of total equity and 65.31% of voting rights, maintaining firm control over the company.

The market’s high interest stems from Unitree’s differentiated profitability. While most of the global humanoid robot industry struggles with losses due to massive R&D expenditures, Unitree is one of the few companies generating profits from actual product sales. Last year, revenue surged 335% year-on-year to CNY 1.7 billion (approximately $252.2 million), and net profit jumped 204% to CNY 87.6 million (approximately $13.0 million). During the same period, Unitree shipped over 5,500 humanoid robots globally, capturing the top market share at 32.4%.

This performance stands in contrast to competitors. UBTech, which listed on the Hong Kong Stock Exchange in late 2023, posted higher revenue of CNY 2 billion (approximately $296.7 million) last year but recorded a net loss of CNY 700 million (approximately $103.8 million), revealing a weakness in profitability.

Another factor fueling expectations for Unitree is the recent record-breaking debut of CXMT on the STAR Market, often dubbed China’s Nasdaq. CXMT’s stock price surged over 465% above its offering price on the first day of trading. There is speculation that the phenomenon of massive liquidity concentrating on leading companies in strategic industries driving China’s technological independence could be replicated with Unitree.

However, variables that will determine the company’s valuation after listing are also clear. First, declining product prices could be a stumbling block. Unitree’s average selling price for humanoid robots was CNY 167,600 (approximately $24,860) per unit in the January-September period last year, down about 36% year-on-year. Revenue growth in the first quarter of this year also slowed sharply to 68.49%, compared to 332.64% during the same period last year, due to base effects. Concerns are rising that intensifying price competition in the robot market could mean increased shipment volumes do not directly translate into profit growth.

U.S. regulatory risk is another potential pitfall. The U.S. Federal Communications Commission (FCC) has decided to restrict the import of new models of advanced robots and inverters manufactured overseas, citing national security and critical infrastructure protection. Unitree stated in its IPO disclosure documents, “Existing humanoid and quadrupedal robots have received approval, but future models may face restrictions on U.S. sales, and additional tariffs or sanctions could impact growth in overseas markets.”

Meanwhile, Unitree’s IPO is expected to be the starting gun for a wave of Chinese robot companies entering the stock market. Agibot, which drew attention for having LG Electronics as a strategic investor, is preparing for a Hong Kong listing. Deep Robotics is pursuing a listing on the STAR Market, while Leju Robot is aiming for the Shenzhen Stock Exchange’s ChiNext board.