Author | Gao Linglang | Editor | Wang Gefa

On July 18, the official website of the China Securities Regulatory Commission (CSRC) disclosed the listing coaching registration report of Hangzhou Unitree Technology Co., Ltd. (hereinafter referred to as "Unitree Technology"). This company, renowned for its robot dances on the Spring Festival Gala stage, has officially embarked on the Initial Public Offering (IPO) process.

CITIC Securities serves as the listing coaching institution, and the two parties signed an agreement on July 7. According to the plan, the assessment of listing conditions will be completed in October this year. Wang Xingxing, the founder of Unitree Technology, controls 34.76% of the company's equity through direct and indirect means, ensuring a stable governance structure for the IPO journey.

The timing of this move is strategically astute. Recently, Zhiyuan Robotics, another player in the humanoid robot space, announced the acquisition of a controlling stake in Shanghai SVW New Materials Co., Ltd., a STAR Market-listed company, for 2.1 billion yuan, aiming to secure the position of "the first A-share humanoid robot company" through capital operations. The near-simultaneous capitalization processes of these two leading enterprises have intensified competition.

Unlike many robot enterprises still grappling with losses, Unitree Technology has achieved an annual revenue exceeding 1 billion yuan and maintains consistent profitability. From Wang Xingxing's solo entrepreneurship in 2016 to today's large-scale enterprise with approximately 1,000 employees, Unitree Technology has taken nine years to validate the feasibility of robot commercialization.

As the humanoid robot industry edges closer to an explosion period, this IPO is not merely about the development of Unitree Technology itself but could also become a bellwether for the entire industry.

Unitree Technology's preparations for listing have already commenced quietly. At the end of May this year, the company completed its restructuring from a limited liability company to a joint-stock company, with its registered capital soaring from less than 3 million yuan to 364 million yuan, marking an increase of over 120 times and clearing institutional hurdles for subsequent listing procedures.

Wang Xingxing's arrangement of control rights in the company underscores his long-term vision. In addition to directly holding 23.82% of the equity, he also controls another 10.94% through Shanghai Yuyi Enterprise Management Consulting Partnership. This structure not only ensures decision-making efficiency but also leaves room for introducing more investors.

It's worth noting that Unitree Technology did not initially target the humanoid robot market. When the company was founded in 2016, it focused on the research, development, and production of quadruped robots. From the early XDog to the subsequent Laikago, A1, and Go1 series, Unitree Technology gradually established technological and market dominance in this niche segment.

Data from the GGII Research Institute confirms this achievement: In 2023, Unitree Technology accounted for 69.75% of sales share in the global quadruped robot dog market.

The transition to humanoid robots became a pivotal strategic turning point for Unitree Technology. The H1 humanoid robot, launched in 2023 with a price tag of $90,000, garnered global attention. An even more significant breakthrough came with the G1 model released in May 2024, priced at 99,000 yuan, making humanoid robots accessible to the consumer market for the first time. This product not only shone on the Spring Festival Gala stage but also sold out quickly after its launch earlier this year.

Data disclosed by Wang Qixin, a director of Unitree Technology, in February this year revealed that the company's humanoid robot shipments have ranked first globally. This accomplishment is attributed to Unitree Technology's continuous investment in core technologies.

Unitree Technology's unique position in the industry stems from its ability to independently develop key components such as motors, reducers, controllers, and lidar. Additionally, the company has amassed profound technical reserves in the fields of perception and motion control algorithms.

To date, Unitree Technology has submitted over 200 patent applications, with over 180 obtaining authorization.

Financial performance is one of Unitree Technology's core competitive advantages. Wang Xingxing has publicly stated that the company's current annual revenue exceeds 1 billion yuan. More importantly, according to Zhao Nan, an early investor, Unitree Technology has been profitable every year since 2020. This sustained profitability is particularly noteworthy in the robot sector, where capital expenditure is typically high.

On July 11, information released by the China Mobile Procurement and Bidding Network indicated that Unitree Technology and Zhiyuan Robotics jointly won the bidding for the humanoid bipedal robot OEM service project of China Mobile Hangzhou Company, with a total order value of 124 million yuan, setting a domestic record for single-purchase in the humanoid robot field.

This order not only brings direct revenue but also validates the market competitiveness of Unitree Technology's products.

Reflecting on Wang Xingxing's entrepreneurial journey, it has not been smooth sailing. In the early days, when he presented the robot dog products to seek investment, most institutions rejected him, citing it as "too early." Even at a symposium in Wuzhen in 2017, Wang Xingxing demonstrated the robot dog in front of tycoons like Lei Jun and Wang Xing, but the product stumbled and crashed, creating an awkward moment. This underscores the challenges of technology entrepreneurship; without funding, development is non-viable.

2020 marked a turning point for Unitree Technology, as the entry of Sequoia China Seed Fund opened doors to well-known investment institutions. Sequoia China deemed Wang Xingxing an "outlier" - recognizing him as an entrepreneur without a prominent background but capable of winning in competition. Since then, institutions such as Decent Capital, Vertex Ventures, Shunwei Capital, and others have followed suit.

The Series B round of financing starting in 2022 signified Unitree Technology's entry into the core circle sought after by capital. Institutions such as Matrix Partners China, Meituan, CICC Capital, Source Code Capital, Shenzhen Capital Group, and Beijing Robotics Industry Investment Fund have entered the scene successively. According to Tianyancha data, Unitree Technology has completed a total of 10 rounds of financing, with a total amount exceeding 1.5 billion yuan.

The latest Series C round of financing boasts an even more impressive lineup. Industry giants such as funds under China Mobile, Tencent, Alibaba, Ant Group, and Geely Capital jointly led the investment, with the pre-money valuation exceeding 10 billion yuan. This valuation level reflects the capital market's high optimism about the humanoid robot sector.

Nevertheless, the competitive pressure faced by Unitree Technology is intensifying. Zhiyuan Robotics is attempting to gain an edge by acquiring Shanghai SVW New Materials, and if successful, this move will enable Zhiyuan Robotics to secure the status of an A-share listed company first. The competition between these two enterprises in the capital market is essentially a battle for the title of "the first humanoid robot stock."

According to a Morgan Stanley research report, the size of the Chinese robot market reached $47 billion in 2024 and is projected to increase to $108 billion by 2028, with a compound annual growth rate of 23%. Under such market expectations, enterprises that successfully complete the IPO will gain a first-mover advantage in subsequent competition.

For Unitree Technology, a successful listing means securing more robust financial support for capacity expansion, technological research and development, and global market expansion. More importantly, amidst an upcoming industry reshuffle, entering the capital market will provide the company with enhanced anti-risk capabilities and greater strategic flexibility.

At the press conference hosted by the State Council Information Office, Wang Xingxing reiterated that the application of humanoid robots will accelerate in the next 3-5 years. This prediction provides strong justification for the timing of Unitree Technology's IPO.

Disclaimer: The content of this article is for reference purposes only. The information or opinions expressed herein do not constitute any investment advice. Readers are advised to make investment decisions cautiously.