Yushu knocks on the door of IPO

Author | Chai Xuchen

Editor | Zhou Zhiyu

On July 18, the official website of the China Securities Regulatory Commission (CSRC) showed that Yushu Technology has completed the counseling filing with the Zhejiang Securities Regulatory Bureau and disclosed the counseling filing report for its initial public offering (IPO) and listing, with CITIC Securities Co., Ltd. serving as the counseling institution. According to the plan, the counseling institution will conduct a comprehensive assessment of whether Yushu meets the conditions for issuance and listing as early as October this year and assist in preparing for the IPO.

This means that Yushu—this highly anticipated embodied intelligence unicorn—has officially begun its listing process.

In fact, Yushu has long been quietly paving the way for its IPO. Before starting the listing counseling, Yushu completed its name change on May 29, and its founder Wang Xingxing also completed business registration in multiple roles, including CEO, CTO, director, and financial officer.

A month ago, Yushu announced that it had completed the C round financing that began at the end of last year, with its valuation rising to 12 billion, nearly doubling compared to the previous round. At the same time, Yushu is also engaging in capital operations before the listing.

According to relevant listing rules, converting capital reserves into share capital is a preparatory work that serves multiple purposes before going public. It is not only a "must-do" to meet regulatory requirements but also an "extra point" to optimize the issuance plan and enhance the company's attractiveness, marking an important step for the company from private ownership to public.

Yushu's IPO seems to be all set except for the right timing, and it has indeed reached a critical turning point in its fate.

Earlier this year, Yushu Robotics appeared on the CCTV Spring Festival Gala, gaining a wave of national popularity. Major internet companies like Meituan, JD.com, and Alibaba have become the main investors in humanoid robots, with shares of "Yushus" being fiercely contested by these giants, and shareholders viewing it as the next "DJI." The "Yushu concept stocks" in the capital market have subsequently soared, and the embodied intelligence sector is ushering in a wave of IPOs.

Just two weeks ago, on the evening of July 8, Zhiyuan Robotics announced a tender offer to acquire 63.62% of the shares of Shangwei New Materials. Following this, Shangwei New Materials saw its stock price rise for eight consecutive trading days, with an increase of over three times.

Coincidentally, companies like Ledong Robotics, Xiangong Intelligent, Woan Robotics, and Yunjike Technology have all submitted IPO prospectuses for listing in Hong Kong this year; Youdi Robotics, Jieke Robotics, and Aobo Robotics have also been reported to be waiting for IPO news, while Hanyang Technology and Yunjing Intelligent have announced that they have initiated Pre-IPO financing rounds.

Industry insiders believe that the capital market's enthusiasm for the robotics sector may stem from a FOMO (fear of missing out) strategy, but the influx of hot money indicates that investors are beginning to double down on their quality targets, initiating a competitive race in the industry.

Yushu and Zhiyuan understand that in the early stages of the commercialization of embodied intelligence, whoever secures more resources first will have a better chance of locking in the final victory.

Leveraging capital to achieve leapfrog development is the only way to stay at the final table. The IPO is a crucial battle for their future positioning With strong support from its "circle of friends," the IPO prospects of Yushu are generally optimistic in the market. Since the Series B financing began in 2022, leading funds and major companies have been placing heavy bets on Yushu. The top investment institutions backing it include Sequoia, Matrix Partners, Rongyi Investment, as well as state-owned entities like Zhongwangtou, Zhongguancun Science City, Beijing Robotics Industry Investment Fund, Shanghai Science and Technology Innovation Fund, and CITIC Securities Co., Ltd. Major companies like Meituan and Lei Jun's Shunwei Capital have also made multiple investments.

The attention from numerous institutions indicates that Yushu possesses unique capabilities. "Yushu is the best in the industry in core areas such as joint modules and main control boards," a person from an institution told Wall Street News, adding that its outstanding cost advantage is also a key attraction for investors.

According to a research report from Industrial Securities, based on the cost estimation of various components, the total hardware cost of Yushu's humanoid robot G1 is approximately 86,000 yuan, while the advanced version's total hardware cost is about 190,000 yuan, significantly lower than Tesla's Optimus, which has a total hardware cost of around 368,000 yuan.

Investors believe that Yushu's advantage lies in its backing from the systematic opportunities of the Chinese industrial chain, enabling it to become a representative of embodied intelligence in China. Indeed, with the support of technological first-mover advantages, Yushu has seen explosive sales during this wave of robot enthusiasm and has become one of the few players in the industry that can truly make a profit.

Recently, Wang Xing stated at the Summer Davos Forum that its annual revenue has exceeded 1 billion yuan. A shareholder of Yushu revealed to Wall Street News that since 2020, Yushu's financial statements have maintained profitability every year, with last year's net profit approaching 100 million yuan.

On one side is a popular target for embodied intelligence, and on the other side are investors holding hot money; a capital feast of mutual pursuit is about to arrive.

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