Chinese Humanoid Robot Maker Unitree Sees Shares Surge in Shanghai Debut

Shares of Unitree Robotics soared up to 629 percent during its debut on the Shanghai STAR Market on Wednesday, with the stock eventually closing up 460 percent at 845 yuan. The initial public offering price was 150.8 yuan, and the company's market valuation reached as high as 66 billion dollars before settling around 50 billion dollars. The listing occurred alongside the opening of the World Robot Conference in Beijing, where the Chinese government is promoting robotics to address labor shortages caused by a demographic crisis.

Unitree is recognized as one of the world's largest producers of humanoid and quadruped robots, known for machines that can dance and perform martial arts. The company reported shipping over 5,500 humanoid robots last year and is noted for being profitable, unlike many of its competitors. Its primary rivals include Tesla and Boston Dynamics. The company is backed by state firms and private technology giants such as Alibaba and Tencent.

The debut took place amid intensifying technological competition between the United States and China. In July, the US Federal Communications Commission banned imports of future foreign made humanoid and quadruped robots, including those from Unitree, citing national security risks. Additionally, the Pentagon added Unitree to a list of Chinese military companies, describing it as a contributor to the Chinese defense industrial base, although Unitree has stated its robots are for civilian use. Some reports indicate that Unitree based its successful robot dog designs on research funded by the US military that was published openly.

Market analysts and experts expressed varying views on the company's valuation. Some investors suggest the price is driven by political and economic considerations rather than traditional valuation models. Others caution that many of the company's sales are one off transactions to research institutions and universities rather than widespread commercial applications. Retail investor demand was exceptionally high, with some reports stating the retail tranche was oversubscribed by over 5,000 times.