Yuejiang Technology Plans A-Share IPO Amidst 2.8 Billion Yuan Losses in Robotics Sector

Yuejiang Technology is set to return to the A-share market! The company, which focuses on the robotics sector, has reported a cumulative loss of approximately 280 million yuan over the past three years. Recently, Shenzhen Yuejiang Technology Co., Ltd. (referred to as “Yuejiang Technology”) submitted its prospectus to the Shenzhen Stock Exchange, aiming for an initial public offering (IPO) on the ChiNext board, with Guotai Junan Securities as the sponsor. Yuejiang Technology becomes one of the few unprofitable firms to receive approval for an IPO on ChiNext, following Dapuwei and Guangdong Semiconductor. As the “H to A” process advances, this could add a new example to the “H-share to Shenzhen A-share” transition.

In June 2025, the government’s document titled “Opinions on Deepening Reform and Innovation in the Comprehensive Reform Pilot of Shenzhen” indicated that companies listed on the Hong Kong Stock Exchange in the Guangdong-Hong Kong-Macao Greater Bay Area can apply to list on the Shenzhen Stock Exchange under certain regulations. Yuejiang Technology was previously listed on the Hong Kong Stock Exchange in December 2024, with an issuance price of 18.8 HKD per share, raising approximately 831 million HKD. As of the close on April 30, the stock price was 31.7 HKD, giving it a market capitalization of about 14 billion HKD.

The company primarily engages in the research, production, and sales of collaborative robots and embodied intelligent robots. So, how is the robotics market performing? Let’s take a closer look through the lens of Yuejiang Technology.

01 Over 80% of Revenue from Collaborative Robots, Significant Customer Changes

Yuejiang Technology’s main products include collaborative robots, composite robots, and embodied intelligent products. Collaborative robots represent an innovative branch of industrial robotics, allowing for close human interaction in shared workspaces. Their collaborative robot offerings include four-axis and six-axis models. By the end of 2025, the company plans to have over 30 collaborative robot products, with sales projected to be the highest globally in 2025.

The company has developed integrated industry solutions that encompass mobile composite robots and collaborative robot workstations. The mobile composite robots combine autonomous mobile platforms, collaborative robotic arms, and visual perception systems to achieve integrated flexible operations. The collaborative robot workstations integrate robotic systems, end-effectors, perception modules, and operational equipment, allowing for the completion of specific tasks independently through customized working logic.

Starting in 2024, Yuejiang Technology has expanded into the field of embodied intelligence, launching a range of products including the Atom bipedal humanoid robot, AtomW wheeled humanoid robot, Hexplorer hexapod robot, RoverX1 quadruped robot, and X-Trainer dual-arm robot. The company is among the first in China to enter mass production of humanoid robots.

Regarding revenue composition, collaborative robots accounted for over 80% of Yuejiang Technology’s earnings in 2023, 2024, and 2025. Revenue from composite robots decreased from 17.05% to 13.8%, while embodied intelligent products began generating revenue in 2024, albeit at a low percentage. The upstream supply chain for collaborative robots includes servo drive systems, control systems, interaction and perception systems, and end-effectors, with key players such as Yaskawa, Mitsubishi, Omron, Schunk, Harmonic Drive, and others.

The midstream includes the manufacturing of collaborative robots and related equipment integration, with competitors like Universal Robots, FANUC, ABB, KUKA, Denso, and others. Downstream applications span various scenarios such as painting, welding, assembly, screw fastening, handling, palletizing, and unordered sorting, serving industries like automotive, 3C, renewable energy, food and beverage, healthcare, retail, and education.

The main raw materials for production include metal machining components, electrical components, harmonic reducers, electronics, standard purchased parts, and motors, with suppliers such as Harmonic Drive, Baolong Motor, and Kento Intelligent. During the reporting period, purchases from the top five suppliers accounted for 38.81%, 38.66%, and 34.32% of total raw material procurement.

Clients include Lingyi Group, Yuanlin Intelligent, Yuli Industrial, TechShare Inc., and Xi’an University of Science and Technology. Throughout the reporting period, the company increased its market promotion efforts and expanded its business areas, resulting in a dynamic customer structure with low concentration and significant shifts among major clients. If the company fails to continuously acquire new customers, its operational stability may be affected.

It is noteworthy that the collaborative robot sector is highly competitive. Many international leaders dominate the mid-to-high-end market due to their technological advantages and brand influence, while domestic companies leverage cost advantages and proximity to local services. Some traditional industrial robot manufacturers, key component suppliers, and tech companies are also entering the collaborative robot field, leading to intensifying competition. The embodied intelligence sector is still in the early stages of commercialization and application exploration, with global tech giants and startups accelerating their entry into the market.

02 Cumulative Loss of Approximately 280 Million Over Three Years, Expected to Break Even by 2028

Robots can be categorized into industrial robots, service robots, special robots, and humanoid robots, with collaborative robots falling under the industrial category. According to a report by Zhuoshi Consulting, the global robotics market is projected to grow from 231.11 billion yuan in 2020 to 497.22 billion yuan by 2025, with the collaborative robot market expected to increase from 3.41 billion yuan to 10.66 billion yuan, representing a compound annual growth rate of 25.6%. From 2025 to 2030, global robotics and collaborative robot markets are anticipated to grow at compound rates of 20.9% and 28.8%, respectively.

Despite the continuous growth in the robotics market, Yuejiang Technology has shown increasing revenue over recent years but has not yet achieved profitability. The company anticipates turning a profit by the 2028 fiscal year. Specifically, in 2023, 2024, and 2025, Yuejiang Technology’s revenue is projected to be approximately 287 million yuan, 375 million yuan, and 493 million yuan respectively, with corresponding net losses of around -103 million yuan, -95.36 million yuan, and -84.04 million yuan, resulting in a total loss of approximately 280 million yuan over three years.

The collaborative and embodied intelligent robot sectors are emerging industries characterized by high initial R&D investment, significant market promotion costs, and lengthy industrialization cycles, necessitating continual financial commitment to technology development, product iteration, and market channel establishment. By the end of 2025, Yuejiang Technology’s retained earnings are expected to be -345 million yuan, with substantial accumulated losses.

During the reporting period, the company’s overall gross margin was 48.47%, 47.95%, and 46.49%, comparable to companies like Daming and Jeka, and above the average level of comparable firms, although it has shown a downward trend. The industry is characterized by high technology and talent intensity, integrating cutting-edge disciplines such as motion control, artificial intelligence, and mechanical design, requiring companies to maintain forward-looking technological insight and efficient R&D capabilities.

Yuejiang Technology has invested significantly in R&D, with expenses amounting to 70.53 million yuan, 71.79 million yuan, and 115 million yuan over the reporting period, representing 24.57%, 19.15%, and 23.23% of revenue. These R&D costs primarily consist of employee compensation, material consumption, and share-based payments. In 2023, the company’s R&D expense ratio was notably lower than industry averages, mainly due to the smaller income scale of Huayan; however, in 2024 and 2025, it is expected to align more closely with industry peers.

03 A Robotics IPO Emerges from Nanshan District, Planning to Raise 1.2 Billion Yuan

Yuejiang Technology is registered in the Nanshan District of Shenzhen, and it was established in 2015 as Yuejiang Limited by Liu Peichao, Lang Xulin, Wu Zhiwen, Zhao Xiaodong, Xu Baoteng, and Chen Qingliang, with an initial investment of 5 million yuan, where Liu Peichao holds 75% of the stake. In 2022, Yuejiang Limited transitioned to a joint-stock company. Before this IPO, Liu Peichao was the actual controller of 24.21% of the shares and voting rights, making him the controlling shareholder.

Management includes founder Liu Peichao, born in 1986, who has served as the chairman, executive director, and general manager since July 2015, holding a bachelor’s degree in mechanical design and manufacturing as well as a master’s in mechanical engineering from Shandong University. Wang Yong, the financial director and vice president, born in 1980, has held various roles in accounting and management at several companies and joined Yuejiang Technology in August 2022. Another vice president, Jiang Yu, born in 1984, has extensive experience in engineering roles and has been with Yuejiang since August 2017.

For this A-share IPO, Yuejiang Technology aims to raise 1.2 billion yuan for projects including the development and industrialization of multi-legged robots, enhancements to humanoid robot technology, marketing capability improvements, and to supplement working capital. Overall, riding the high growth wave of the robotics industry, Yuejiang Technology has seen a trend of increasing revenue in recent years, with a narrowing of losses. The company has established a certain market position in the collaborative robot sector, but it faces challenges such as intensified industry competition, declining gross margins, and significant fluctuations in core customers. The future will tell whether the company can solidify its technological edge and achieve profitability.