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SHANGHAI: Shares in Unitree, China\u2019s best-known humanoid robot maker, soared more than five-fold in their Shanghai trading \u200bdebut, in a landmark moment for the country\u2019s robotics sector which has become a key battleground in the Sino-U.S. tech war.<\/strong><\/p>\n Unitree, which competes with Tesla and Hyundai Motor Group-owned Boston \u200cDynamics, has drawn global attention for its robots that run, dance and perform martial arts.<\/span><\/p>\n One of the world\u2019s biggest producers of humanoid and quadruped robots, it is a symbol of national pride for China, backed by influential firms, both private-sector tech giants and state-run. It is also, unlike most of its peers, profitable even if few of its robots are used in commercial applications.<\/span><\/p>\n \u201cIt is a top-tier player, and its uniqueness commands premiums,\u201d said Yan Kai, a venture capitalist and partner at Ivy Capital in \u200bShanghai.<\/span><\/p>\n \u201cIts price is dictated by political and economic considerations, rather than valuation models.\u201d<\/span><\/p>\n While it is not the first Chinese humanoid robot maker to go public, its debut is expected to set the \u200btone for a slew of domestic rivals preparing to come to market. That includes Chery Automobile\u2019s 9973.HK robotics division, whose head of business told Reuters on Wednesday \u2060it was in talks over potential listing venues.<\/span><\/p>\n The stock finished at 845 yuan on the tech-focused STAR Market, valuing the company at around $50 billion. Though it lost some steam after starting the day at 1,100, \u200bits close was 460% higher than its IPO price of 150.8 yuan.<\/span><\/p>\n That rise far exceeds the average first-day pop of 279% for new share listings in China for the year thus far. It also contrasts with \u200ba 3% drop for China\u2019s benchmark index on Wednesday, with tech shares tumbling in tandem with peers globally.<\/span><\/p>\n The debut coincides with the opening of the World Robot Conference in Beijing, where hundreds of mostly Chinese companies will be launching new products and demonstrating advancements that the government is betting will help make up for the labour shortfall caused by China\u2019s demographic crisis.<\/span><\/p>\n Unitree\u2019s blockbuster listing will add to its first-mover advantage, helping it survive in an industry where most other firms are losing money, said \u200bWilliam Xin, chairman of Spring Mountain Pu Jiang Investment Management.<\/span><\/p>\n \u201cAt this early stage of competition, whoever gets listed and has visibility can grab the resources and have staying power,\u201d he said.<\/span><\/p>\n While investors in China were quick to jump on the stock, others have cautioned that many of its sales to date have been one-off sales and that few of its robots are being used in commercial settings. Many of \u200cits products are \u2060sold to research institutions and universities.<\/span><\/p>\n Moreover, in July, the U.S. Federal Communications Commission banned imports of future models of foreign-made humanoid and quadruped robots, including those from Unitree, citing national security concerns.<\/span><\/p>\n That cuts off a huge market for Unitree, which has become a case in point of how well China has been able to scale up in new highly strategic industries despite some products being first developed in the United States.<\/span><\/p>\n Unitree based designs for its most successful robot dogs on innovations funded by the U.S. military, a former U.S. defense technology official and three top researchers involved in the project told Reuters.<\/span><\/p>\n The U.S. Army research was published openly to stimulate \u200bprogress in the field, a common practice, and Unitree \u200bdid nothing underhand in using it.<\/span><\/p>\nFIRST-MOVER ADVANTAGE<\/span><\/h2>\n
FUTURE PRODUCTS CUT OFF FROM US \u200bMARKET<\/span><\/h2>\n