Chinese Robot Maker Unitree Shares Drop Following Market Debut

Shares of Unitree Robotics, a leading Chinese humanoid robot manufacturer, have fallen more than 45 percent from their peak following a debut on the Shanghai STAR Market on August 19. The stock closed Tuesday at 620.8 yuan per unit. While this price remains approximately 300 percent above the initial public offering price, it represents a significant decline from the 1,100 yuan opening price. This slump has reduced the company's market valuation from over 66 billion dollars to approximately 36.27 billion dollars in less than a week.

Unitree sold 40.4 million shares for about 904 million dollars. The offering saw high investor interest, with demand in the reservation phase exceeding available shares by more than 8,000 times. Despite this, the subsequent price drop has sparked concerns regarding a potential market bubble or the possibility that the technology is not yet mature.

Company founder Wang Xingxing noted that large scale commercialization could take longer than expected because robotic hands currently lack sufficient precision and durability. He predicted that a breakthrough moment for humanoid robots will occur when they can complete 80 percent of tasks in 80 percent of unknown environments, a milestone that may take between two and ten years. Based in Hangzhou and founded in 2016, Unitree produces quadruped and humanoid robots, as well as sensors and collaborative arms. Official reports state that 90 percent of its supply chain is produced locally.