Unitree previews China's bleak robot reality

Ubtech Robotics

11/06/2026 13:00

The author is a Reuters Breakingviews columnist.  The opinions expressed are her own.
By Katrina Hamlin

    HONG KONG, June 11 (Reuters Breakingviews) - Unitree Robotics' upcoming Shanghai IPO is meant to showcase China's pioneering industry. Instead, the company led by Wang Xingxing lays bare the risks facing manufacturers and investors.
Formally known as Yushu Technology, the group was the world's largest humanoid-robot maker by sales last year. Its dancing robots gained nationwide fame after performing at the 2025 Spring Festival television gala, watched by 17 million viewers. Weeks later, the then 34-year-old Wang nabbed a coveted front-row seat at a summit hosted by President Xi Jinping.
The bet is that robots will eventually replace workers in factories, homes and elsewhere. Morgan Stanley analysts forecast China will have around 300 million humanoids in use by 2050. That would require manufacturers like Unitree, which sold just 5,500 machines last year, to vastly boost production.
That helps explain why the decade-old business is aiming for a punchy valuation of $6.2 billion, as reported by IFR. Unitree expects first-half net profit attributable to shareholders of up to 283 million yuan ($42 million), excluding one-offs. On an annualised basis, that implies an eye-raising price-to-earnings multiple of 74 times. Listed rivals like the $7.6 billion UBtech Robotics 9880.HK and smaller Shenzhen Dobot 2432.HK remain in the red.
But for now tech is a hurdle: even relatively sophisticated models lack the necessary dexterity and intelligence for basic tasks outside of controlled environments, like pouring a glass of water or plugging in a cable. Unitree's IPO prospectus readily acknowledges that so far there are limited commercial applications for its four-legged "dogs" and humanoids. Scientific research and education account for the bulk of sales.
Moreover, competition is intensifying. Unitree's first-quarter adjusted net profit tumbled 53%, to 40 million yuan, from a year ago even though sales rose 68% in the same period. The company blames higher research and development costs, which totaled a tenth of revenue, plus price cuts to its models as new rivals crowd in.
Price wars look imminent. There are at least 46 robotics companies in the IPO pipeline for Hong Kong alone, according to Bloomberg. Many more could follow. China has over 450,000 registered companies in the sector, state media reported last year. It’s a pattern that is playing out in other tech-driven industries, from autos to AI. Wang’s robots already face a reckoning.  
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CONTEXT NEWS
Yushu Technology, also known as Unitree Robotics, reported adjusted net profit fell 53% year-on-year to 40 million yuan ($5.9 million) in the first three months of 2026, per a revised initial public offering prospectus published on May 25. Revenue grew 68% to 423 million yuan over the same period.
The company has secured approval to list on the Shanghai Stock Exchange Star bourse, IFR reported on June 1. The deal could raise as much as 4.2 billion yuan valuing the company at $6.2 billion. It will use the proceeds for research and development and to build manufacturing facilities.

(Editing by Robyn Mak; Production by Aditya Srivastav)
((For previous columns by the author, Reuters customers can click on HAMLIN/katrina.hamlin@thomsonreuters.com; Reuters Messaging: katrina.hamlin.thomsonreuters.com@reuters.net))