Unitree Robotics, a leading Chinese robot manufacturer, saw its stock surge by 629% during its Shanghai IPO, closing at a valuation of approximately $50 billion. The company raised 6.1 billion yuan ($904 million), becoming the first publicly traded maker of humanoid robots on the Chinese mainland. This valuation has sparked debate, as analysts question the sustainability of the business model that underpins the surge.
The circular financing model involves state-backed training centers purchasing robots from manufacturers and then reselling the training data back to them. According to the Financial Times, nearly three-quarters of Unitree's revenue in the first nine months of 2025 came from this ecosystem. Training centers teach robots physical tasks through teleoperation, then sell the collected data to manufacturers. By June 2026, there were over 90 such centers, with training data for a five-minute robot dance costing up to one million yuan ($148,000).
Analysts have raised doubts about the utility of the data and the valuation. Marco Wang of Interact Analysis noted that the data isn't '100 percent useful' since robots don't operate in real-world settings. Only two to three of every eight training hours are considered usable. Bloomberg reported that Unitree's valuation was 35.89 times revenue, significantly higher than the 20 times seen for its Hong Kong rivals. Critics argue there is no fundamental basis for the share price surge, with early-stage investors already seeking exits.
Source: thedecoder
