Introduction: This announcement comes at the perfect time.
On October 19, the stock price of Unitree surged by 16.15%; on October 20, it rose by another 6.07%, closing at CNY 526.03, with the total market capitalization returning above CNY 210 billion. In just a few trading days, market sentiment has heated up rapidly.
Meanwhile, the company also explicitly stated that its operations are normal and there is no material information that should be disclosed but remains undisclosed.
On one hand, there is the capital market's enthusiasm for humanoid robots; on the other, the company's prudent reminder regarding the pace of commercialization. These two attitudes are not contradictory, yet they reveal the most debatable issue in the industry right now: robots can already perform increasingly complex movements, but how far are we from turning this into a highly profitable business at scale?
Unitree's risk warning is worth a serious look by the entire industry.
What Exactly is the Market Betting On?
The stock price trend of Unitree has undergone a drastic shift in expectations.
On August 19, 2026, Unitree debuted on the SSE STAR Market at an issue price of CNY 150.80 per share, with the stock price once surging to CNY 1,100 on the first day of listing. Since then, the stock price has continued to fall back, hitting an intraday low of CNY 404.03 on October 15. By October 19, the stock price suddenly surged by 16.15%, and continued to rise on October 20, reclaiming a market capitalization of CNY 210 billion.
From the first-day high of CNY 1,100 to the period low on October 15, the stock price retraced by over 60%; subsequently, the cumulative deviation ratio of the price increase over the next three trading days exceeded 30%.
This trend reflects two pricing approaches the market uses for the humanoid robot industry.
The first pricing approach focuses on the company's current operational performance. Metrics such as revenue growth, profit margins, target customers, and whether clients continue to procure determine the current operational quality of the enterprise.
The second pricing approach focuses on future industry space. If humanoid robots can enter factories, warehouses, commercial services, and even households, the market scale could far exceed today's levels. Enterprises equipped with capabilities in motion control, hardware R&D, mass production, and cost control have the opportunity to grow from robot manufacturers into general-purpose robot platform companies.
Unitree evidently possesses both layers of value. The company has already achieved scaled sales and profitability, established product and cost advantages in the quadruped robot field, and seen rapid growth in its humanoid robot business. It is not hard to understand why the capital market is willing to pay a premium for these capabilities.
The question is, how large is the future market space exactly, and how much time will the enterprise need to turn it into revenue and profit?
As of October 20, the trailing P/E ratio of Unitree was 388.25 times, while the average trailing P/E ratio of the general equipment manufacturing industry over the past month was 39.51 times. Given the differences in growth stages and business structures between the two, the P/E multiple alone cannot determine whether the stock price is reasonable. However, these figures at least indicate that the current stock price already incorporates quite high growth expectations.
If the humanoid robot market expands rapidly in the coming years, and Unitree can steadily increase shipments, broaden its customer base, and maintain profitability, then today's high valuation will have the opportunity to be gradually digested through performance growth.
Conversely, if the commercialization pace is slower than expected, even if the company maintains its technological lead, the stock price may face pressure ahead of the operational fundamentals.
The market trades on the future, yet financial reports test whether that future will arrive on time. This is precisely the core of Unitree's risk warning this time.
Who Are the Main Buyers?
When discussing the commercialization of humanoid robots, two issues must first be separated: whether the robots have sales volume, and what kind of demand drives those sales.
In terms of revenue scale, Unitree has already moved past the stage of relying solely on technology demonstrations.
According to data disclosed in the company's prospectus, from 2023 to 2025, the company's operating revenue was approximately CNY 159 million, CNY 393 million, and CNY 1.699 billion, respectively, with the net profit attributable to the parent company reaching about CNY 278 million in 2025. The company's revenue scale has expanded rapidly, and it has also established a foundation for profitability.
Humanoid robots are a noteworthy business segment in this round of growth.
From January to September 2025, Unitree's humanoid robot revenue was approximately CNY 595 million, accounting for 51.53% of the company's operating revenue in the same period. This marked the first time it surpassed quadruped robots, becoming one of the primary sources of revenue.
However, further breaking down customer usage reveals a different picture.
Scientific research and education contributed over 70% of humanoid robot revenue. This type of demand has its rationale: universities, research institutions, and developers need hardware platforms to conduct motion control, embodied intelligence, and algorithm training. Robots that can be delivered quickly and at relatively controllable prices naturally hold appeal.
These customers are also driving industry progress. Once robots enter the laboratory, developers can accumulate motion data, develop applications, and steadily refine control algorithms, laying the groundwork for more complex scenarios in the future.
However, procurement for scientific research and education and large-scale enterprise deployment follow two different sets of business logic.
The former values hardware performance, development convenience, and experimental value; the latter also examines whether the robot can continuously complete work tasks, integrate into existing production processes, and whether the return on investment is worthwhile.
For example, when a factory procures robots, it typically calculates comprehensive costs including equipment procurement, system integration, maintenance, and downtime losses, and compares them with the costs of manual labor or traditional automated equipment. There is still a long way to go between a robot completing a single demonstration or executing a standardized movement and stably completing production tasks for consecutive months.
Therefore, the fact that humanoid robot revenue accounts for over half of Unitree's total is a significant commercial milestone; the fact that scientific research and education still hold the major share also indicates that there is considerable room for expansion in industrial applications.
More importantly, whether revenue growth can gradually extend from hardware sales to stable scenario delivery and continuous procurement.
Entering Another Phase of Competition
There is another easily overlooked issue in the humanoid robot industry: products are becoming increasingly affordable, which could both drive market expansion and alter the profit structure of enterprises.
Data disclosed in Unitree's prospectus shows that from January to September 2025, the gross profit margin of the company's humanoid robots was 62.91%, lower than the 68.44% in 2024. During the same period, the proportion of the lower-priced G1 model in the company's humanoid robot sales increased significantly.
A decline in gross profit margin does not necessarily mean operational deterioration. More cost-effective products may cover a broader customer base, and expanded sales volume also presents the opportunity to bring about economies of scale.
However, these figures reveal a change that requires continuous observation: as robots gradually transition from high-priced R&D equipment to larger-scale sales, enterprises need to simultaneously address the three issues of cost, performance, and profit.
If the price drop mainly stems from reduced component costs, improved manufacturing efficiency, and scaled production, enterprises still have the opportunity to maintain strong profitability.
If the pace of price reduction exceeds the rate of cost decline, or if the enterprise needs to continuously invest in R&D and service resources to maintain competitiveness, then sales growth may not necessarily bring about a proportional increase in profit.
Disclosures from other companies in the industry can also help in understanding the stage of commercialization.
Take Yunshenchu as an example. The company's updated prospectus shows that in the first half of 2026, it sold a total of 6 humanoid robots, generating revenue of CNY 2.79 million, accounting for 1.08% of the operating revenue in the same period. Yunshenchu also stated that its humanoid robot business is still in the initial stage of commercialization, with a significant gap in shipment volume compared to companies like Unitree.
The product positioning and customer structure of Yunshenchu are not entirely the same as those of Unitree, so the sales volume of this single company cannot be used to infer the state of the entire industry. However, this case at least illustrates that humanoid robots still account for a relatively small proportion in the revenue structure of some enterprises, and there is a clear time lag between technological R&D and commercialization.
Placed in the broader context of industry competition, the thresholds enterprises must cross also include:
Stability. Whether the robot can work continuously in complex environments and recover quickly after a failure.
Task completion rate. In real-world scenarios, whether the robot can reliably complete an entire workflow rather than just a single movement.
Comprehensive cost. Whether the sum of equipment, software, deployment, maintenance, and downtime losses is superior to existing solutions.
Customer repurchase. After the delivery of the first batch of equipment, whether customers are willing to expand procurement and whether the enterprise can secure sustainable orders.
These metrics determine whether robots can move from pilot projects to scaled deployment, and also whether hardware sales can further drive software, system integration, and service revenue.
For Unitree, existing product sales, manufacturing capabilities, and profitability foundation provide competitive advantages. Moving forward, whether revenue from industrial applications can increase, product costs can continue to drop, and customer demand can shift from one-time procurement to continuous deployment will better reflect its commercialization progress.
The Bubble is Being Slowly Squeezed Out by Financial Reports
Unitree's announcement this time provides the market with an opportunity to re-examine the investment logic for humanoid robots.
In the past, the industry's focus was concentrated on technological breakthroughs, motion capabilities, and product launches. As more and more enterprises enter this field, competition will gradually shift towards product delivery, scenario adaptation, and operational efficiency.
For investors, at least four sets of data are worth tracking moving forward.
First, revenue structure. Beyond the growth in humanoid robot revenue, it is also necessary to observe changes in the proportion of scientific research and education, commercial consumption, and industrial applications. A steady increase in revenue from industrial applications can help determine whether products are entering more real-world business processes.
Second, shipment volume and customer quality. Shipment volume reflects market acceptance, while customer repurchases, order continuity, and actual usage help gauge the stability of demand.
Third, gross profit margin and costs. If, alongside increased sales volume, the rate of cost reduction can keep pace with price changes, the enterprise has the opportunity to translate scale advantages into profitability. Conversely, merely pursuing shipment volume may increase operational pressure.
Fourth, R&D investment and cash flow. Embodied intelligence is still in a stage of rapid iteration, requiring enterprises to continuously invest in hardware, algorithms, and software. Whether R&D expenditures translate into product competitiveness, and whether operating cash flow can support expansion, will affect the quality of the enterprise's long-term development.
These metrics are more indicative of commercialization progress than a single demonstration effect or short-term stock price performance.
Humanoid robots still possess vast potential for application. As hardware costs decline, model capabilities advance, and development tools improve, robots are expected to enter more scenarios that were previously difficult to automate. Unitree has already proven that Chinese enterprises can establish competitive advantages in robot hardware R&D, product iteration, and scaled sales.
The next test is to translate this advantage into repeatable and scalable commercial returns.
Unitree has not denied the industrial prospects of humanoid robots. It reminds the market that technological maturity, demand formation, and large-scale commercialization each require their own timelines.
While stock prices can trade on future growth potential in advance, enterprises still need to prove through every financial report that this growth expectation is turning into reality.