After 16 trading days since its debut on the market, shares of the mainland robot company Yushu Technology have dropped by 53% from their initial high point. There are reports indicating that the Chinese regulatory authorities are tightening the approval process for the initial public offerings (IPOs) of humanoid robot startups.
According to the American technology media outlet The Information on September 8, the China Securities Regulatory Commission has informally issued “window guidance” to some investment banks and institutions to raise the approval threshold for the IPOs of humanoid robot startups.
Companies applying for listing must demonstrate the ability to sustain revenue, show narrowing losses, or possess genuine technological innovation in order for their IPO applications to be considered.
Reuters reported that the shift in the Chinese regulatory attitude is related to this year’s private fundraising frenzy, a large number of robot companies lining up for IPOs, and the sharp decline in Yushu’s stock price after its listing. The report noted that the significant drop in Yushu’s stock price has raised doubts in the market about bubbles, retail investor losses, and the IPO review system.
The Chinese financial regulatory authorities did not respond to Reuters’ request for comment. Reuters stated that the above information has not been independently verified.
Yushu Technology went public on the Shanghai Sci-Tech Innovation Board on August 19 at an IPO price of 150.80 yuan per share. The opening price on the first day of trading surged to 1100 yuan, a 629% increase from the IPO price, before closing at 845 yuan.
As of September 9, market data shows that Yushu’s stock closed at 513.93 yuan, hitting a low of 508.88 yuan during the trading session. Based on the closing price, the stock has dropped by 53.28% from its initial high point on the first day of listing, reducing its total market value from around 444.9 billion yuan to approximately 207.9 billion yuan, a decrease of about 237 billion yuan.
Currently, the stock price remains about 241% higher than the IPO price. However, investors who bought in at the high of 1100 yuan on the first day of trading have already incurred losses exceeding half of their investment.
Yushu’s market capitalization reached 444.9 billion yuan on its debut day. An analysis report released by Guoxin Securities before the listing indicated that its price-earnings ratio was over 200 times, meaning the company would need to maintain growth well above the industry average in the coming years to justify the current valuation.
The unaudited financial data disclosed in Yushu’s IPO prospectus showed that the company generated 1.152 billion yuan in revenue in the first half of this year, representing a 48.54% year-on-year increase; however, the net profit after deducting non-recurring gains and losses decreased by 19.34% to 244 million yuan.
In response to inquiries from the Shanghai Stock Exchange, Yushu revealed that in the first three quarters of 2025, 73.6% of its humanoid robot revenue came from the scientific research and education sector, while industry applications accounted for 9.01%; of which, income from specific industrial scenarios such as smart manufacturing and intelligent inspection only represented about 2.6% of humanoid robot revenue.
Yushu’s founder, Wang Xingxing, acknowledged on August 20 that even though robots can perform some simple tasks, their efficiency is still lower than human labor. Success rates can approach 100% after extensive training in fixed scenarios, but once the operation item is changed or the environment is altered, the success rate will drop significantly.
Wang Xingxing stated that due to the current insufficient efficiency and adaptability to different scenarios, Yushu has not yet conducted large-scale promotions. The company also admitted in its prospectus that there are uncertainties surrounding the large-scale commercial deployment of humanoid robots, including risks such as technological progress falling short of expectations and insufficient market demand.