Humanoid Robot Investment Boom: Capital Bets on the Future While Mass Production Challenges Remain

According to Cailian Press on July 26, a veteran investor remarked that despite conventional wisdom advising against investing in overheated sectors, the current momentum in robotics makes it imperative to act, noting, "If we don't invest in robots now, we will miss the opportunity." This sentiment aligns with the recent surge in capital inflows into China's humanoid robotics sector.

Leading firms have secured significant investments, and listed companies are actively entering the space, surpassing the enthusiasm seen during the first half of the year’s new product launches.
Digital China’s public relations director Wu Wei reported that the company currently holds orders exceeding RMB 400 million. On the other hand, Zhiping Vice President Dr. Mo Lei acknowledged that the commercial development of embodied robots remains in its early stages. Between the excitement of capital and the pactical challenges of industrial implementation, the humanoid robot industry is navigating a complex dual reality.

The capital market’s enthusiasm for humanoid robots has been particularly notable this year. Over the past week alone, several major companies in the sector have announced large-scale financing, leading to rising valuations for top firms. Unitree Robotics (02432.HK), a domestic leader in collaborative robotics, completed a private placement raising HKD 1.037 billion, with net proceeds of HKD 1.022 billion. The funds will be used for intelligent robot R&D, investments across the value chain, and global expansion. In June, Unitree began volume deliveries of its humanoid robot Atom and introduced a globally pioneering embodied intelligent platform integrating robotic arms, humanoid robots, and six-legged robotic dogs.

Zonqing Robotics disclosed on July 21 that it had completed both Pre-A++ and A1 financing rounds totaling nearly RMB 1 billion. The Pre-A++ round was backed by XPeng’s Star Navigation Capital, while JD.com led the A1 round. Other notable investors included CATL’s Puquan Capital, Intime Group, Huakong Fund, GAC Capital’s Guochen Fund, and Huangpu River Capital. Early investors such as Middle East Capital, Guoxiang Capital, and Honghui Fund also chose to increase their stakes. The funds will support mass production, product portfolio expansion, and implementation of embodied intelligence applications.

According to IT Juzi data, the humanoid robot sector in China has seen 99 investment and financing events so far this year, already surpassing last year’s total of 67. B-Shan Capital Chairman Dai Fuquan told Cailian Press that investors prioritize teams with strong capabilities in software control—particularly in embodied intelligence and motion control. He noted a preference for vertical application models suited to specific scenarios, as well as the importance of controlling hardware costs. He believes that humanoid designs incorporating robotic upper limbs and non-legged platforms could emerge as leaders in niche markets within the next three to five years, potentially creating companies with valuations in the hundreds of billions.

Traditional listed firms have also demonstrated strong interest in the humanoid robot sector. Zhaowei Electromechanical (003021.SZ), which focuses on electric motors, has announced plans to issue H-shares and stated its commitment to developing dexterous hand products and key components to integrate further into the humanoid robotics value chain. Seres (601127.SH), a new energy vehicle manufacturer, has registered the trademark ROBOREX and released recruitment information related to embodied intelligence and humanoid robots. Dongfang Precision (002611.SZ), which specializes in intelligent packaging equipment, has signed a strategic cooperation agreement with Leju Robotics to jointly develop embodied intelligent robots.

Policy support, technological advancement, and a trillion-dollar market outlook have fueled the sector’s rapid rise. According to analyst Qiao Anran from TrendForce, frequent policy initiatives are a major catalyst. The Ministry of Industry and Information Technology issued guidelines proposing the formation of a globally competitive industrial ecosystem for humanoid robots by 2027. Local governments have followed suit by offering incentives and establishing industry funds to promote the implementation of humanoid robotics applications.

For example, the Beijing Municipal Development and Reform Commission’s "2025-2027 Action Plan for Embodied Intelligence Technology Innovation and Industrial Development" aims to nurture at least 50 core enterprises along the industrial chain, develop at least 50 mass-produced products, and achieve over 100 large-scale applications, with mass production volumes surpassing 10,000 units and creating an industry cluster worth hundreds of billions.

Dai also pointed out that breakthroughs in AI—especially embodied large models—have significantly enhanced robotic decision-making, driving listed companies to accelerate their entry. Dr. Mo Lei emphasized that the current wave of technological change centers on large-scale embodied models, which are critical to the industry’s advancement.

Market projections have further intensified investor interest. Industry research institutions predict the humanoid robotics market could reach a trillion-dollar scale. Morgan Stanley estimates the global humanoid robotics market will exceed USD 5 trillion by 2050, with China alone potentially deploying 302.3 million units. The primary commercial application scenarios are in manufacturing, services, and logistics, where demand is pronounced. Recently, Zhiyuan Robotics and Yushu Technology won a bid for a humanoid biped robot contract service project from China Mobile (600941.SH), valued at RMB 124 million.

Despite the capital rush, commercialization challenges persist. Mass production is the primary bottleneck. Wu Wei noted that while creating a demo is relatively simple, scaling production is highly complex. An industry insider explained that delivering only the hardware is manageable, but integrated systems with embodied intelligence pose significant challenges. Delivering just a few hundred units with true embodied models is already a major milestone. Wu also disclosed that most production lines still rely on manual assembly by R&D staff. Small-scale production is feasible, but large-scale manufacturing encounters numerous obstacles.

Currently, "mass production" in the sector typically refers to batches of a few hundred units, while "thousand-unit delivery" has become a stated goal for many companies. Key components such as planetary roller screws face production bottlenecks due to technical complexity and limited suppliers, making it difficult to scale output quickly. Qiao Anran noted that high unit manufacturing costs remain a key constraint.

Tesla CEO Elon Musk recently announced during an earnings call that a third-generation prototype of the humanoid robot Optimus will be launched by year-end, with mass production expected to begin in 2026 and a goal of reaching 1 million units annually within five years. This may signal a turning point for the industry.

Meanwhile, industry players differ on the most viable application scenarios. Tesla and UBTECH (09880.HK) are targeting industrial use cases. UBTECH has tested its industrial humanoid robots in several automotive plants this year. Dr. Mo Lei said Zhiping is first focusing on semi-structured environments before moving into unstructured ones, with current collaborations involving top-tier carmakers, semiconductor firms, and biotech companies.

Some companies believe consumer-facing interaction is the better entry point. A representative from a Shenzhen-based humanoid robot firm said the manufacturing sector has higher technical requirements and lower fault tolerance, whereas consumer-facing robots are more forgiving and suitable for interactive scenarios.

However, large-scale deployment in consumer settings remains distant. Duan Zhiqiang, Head of the Wanchuang Investment Research Institute, categorizes use cases into "contact" and "non-contact" types. He believes the most mature "contact" application so far is performance, such as Yushu Robotics' appearance at the Spring Festival Gala, which serves more as a visual spectacle than practical commercial value. Functional humanoid robots for caregiving have strong potential but are currently limited by technical, application, and economic factors. Qiao Anran also noted that consumer scenarios demand diverse functions and robust data processing, requiring coordinated efforts across policy, regulation, and technology.

Nevertheless, Morgan Stanley remains highly optimistic, predicting widespread adoption of humanoid robots in China in the second half of 2025. The firm believes China will continue to expand its lead over other countries. Morgan Stanley analysts emphasized that downstream applications will be the focus for the rest of the year, with real-world deployments generating valuable data and fostering a virtuous cycle of development and application.