(Yicai) Aug. 10 -- Unitree Robotics has opened subscriptions for its initial public offering on the Shanghai Stock Exchange's science and technology board, marking the Chinese mainland market's "first humanoid robot stock" and setting the first benchmark for secondary market pricing for the embodied intelligence sector.

Late on Aug. 6, Unitree priced its IPO at CNY150.80 (USD22.35) per share, giving it a valuation of about CNY61 billion (USD9 billion). Payment for the subscriptions is due by Aug. 12. The firm has not yet disclosed the date on which the stock will begin trading.

"Given the average premium in the Star Market, Unitree's leading position, and the booming robotics sector, the company might reach a valuation of CNY100 billion (USD14.8 billion) after listing," an industry insider told Yicai.

Unitree reported a net profit, after excluding non-recurring items, of CNY591 million last year, compared with a loss of CNY18 million (USD2.7 million) the previous year. Its revenue surged to CNY1.7 billion (USD251.9 million) from CNY159 million (USD23.6 million) in 2023, or a compound annual growth rate of 227 percent.

However, Unitree may find it difficult to sustain its high growth, with its profit, after excluding non-recurring items, dropping 48 percent to CNY50 million (USD7.4 million) in the first quarter of this year from a year ago. In addition, its revenue rose 69 percent to CNY423 million, a significant decline from the growth in the year-earlier period.

The core reason for the profit decline is Unitree's significant increase in research and development investment and brand promotion efforts to seize the industry window period, an analyst from China Reform Securities pointed out. While the short-term pressure on profits is a strategic choice, whether the firm can maintain high revenue growth while managing cost expansion will be a key market focus, the person added.

Unitree's listing is expected to bring a catalytic effect to the embodied intelligence sector, particularly the humanoid robot supply chain, as well as opportunities for valuation reshaping, industry insiders noted. Regarding the overall tech industry, there has been a continuous rebound after a significant adjustment last month, they said.

The artificial intelligence tech sector is in a phase of valuation digestion and adjustment, with the upward trend remaining clear, analysts from multiple brokerages stressed, noting that the AI industry could strengthen again within this year.

Editors: Tang Shihua, Martin Kadiev