Unitree's stock halves from debut peak, erasing over 240 billion yuan in market cap

September 21 — Unitree Technology closed at 494.85 yuan, down 3.91%, with a total market capitalization of 200.1 billion yuan. This marks the second time the stock has fallen below 500 yuan since its listing just over a month ago.

From Peak to Decline

On its listing day, August 19, Unitree Technology opened at 1,100 yuan, reaching a market cap of 444.9 billion yuan. However, that peak proved short-lived, followed by a sustained decline. While the stock still trades at more than double its initial public offering (IPO) price of 150 yuan, it has fallen approximately 55% from its peak, with over 240 billion yuan in market value erased.

Why the Correction Was Expected

Given Unitree's exceptionally high IPO price-to-earnings (P/E) ratio, the stock price correction is not surprising. Three key factors are at play:

1. Valuation Overstretched Future Performance

Unitree's IPO P/E ratio stood at 219 times earnings. However, in the first half of this year, the company reported revenue of 1.152 billion yuan and net profit (excluding non-recurring items) of 244 million yuan, a year-on-year decline of 19.34%.

Revenue is rising, but profits are falling. Unitree's market performance cannot support such a high valuation. Short-term investors have taken profits and exited, accelerating the downward spiral and creating a negative feedback loop.

2. Damage to Market Pricing Mechanisms

On its first trading day, Unitree saw an 85.28% turnover rate, indicating that much of the capital involved was speculative rather than long-term investment. When some investors cash out at high prices, others inevitably take the other side of the trade. If the pattern of "surge on listing, then sustained decline" repeats, it becomes difficult to cultivate genuine patient capital.

3. Industry-Wide Consequences

Since the third quarter, the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index have all experienced varying degrees of decline, with adjustments concentrated in the technology sector as capital shifts to dividend-yielding stocks for避险. The CSI Robot Index once fell nearly 30% year-to-date. While Unitree's decline may not be the sole cause of the tech sector correction, a bellwether company peaking on its listing day and then halving in market value undoubtedly reinforces market concerns about overvaluation in the sector.

Industry Reflection and Regulatory Attention

As capital retreats, the industry has begun to publicly reflect.

Recently,邵天兰 (Shao Tianlan), founder of Hong Kong-listed梅卡曼德 (Mech-Mind), published an open letter questioning certain "assembly-type" embodied intelligence companies that allegedly generate虚假 and unsustainable revenue through related-party transactions with data collection centers and leasing companies, bringing the industry's "unspoken rules" into the open.

These reactions from capital markets and within the industry have also caught the attention of regulators.

According to multiple media reports, relevant regulatory authorities have issued informal "window guidance" to some investment banks and institutions: companies must demonstrate their ability to generate recurring revenue, narrow losses, or achieve genuine technological innovation before their listing applications will be considered.

On the policy front, the Shanghai Stock Exchange has revised its listing rules for the STAR Market (科创板), adding robotics and embodied intelligence as key support areas. At the same time, it has clarified stricter entry standards for IPOs, emphasizing financial integrity and preventing "problematic applications" and "herd behavior."

Not a Total Rejection of Unitree or the Industry

Unitree's stock price halving does not mean a complete否定 of the company or the embodied intelligence industry as a whole.

In the first half of this year, Unitree shipped 5,900 robots, accounting for approximately 31% of the global market share, maintaining its position as an industry leader. The company remains competitive in product capability, engineering sophistication, and cost control.

The stock price decline signals that capital is returning to rationality.

Hard tech is a long-cycle endeavor that requires patient capital, not speculative hot money chasing IPO pops. Only by avoiding excessive valuation at the listing stage can capital truly flow into R&D and production lines.

Moreover, moderate泡沫 in the early stages of an industry is not necessarily harmful. While opinions vary on the extent of the bubble, many industry insiders agree that a适度 level of泡沫 can help attract capital, talent, and technological resources.

Goldman Sachs research data suggests that large-scale deployment of humanoid robots may begin between 2027 and 2029, indicating that the embodied intelligence赛道 is long enough. However,泡沫 must ultimately be absorbed by real output. In the first half of this year, over 70% of domestic robot sales came from education, research, and government procurement — still far from large-scale commercial application.

More critically, capital and industry must form a virtuous cycle. Taking Unitree as an example, founder王兴兴 (Wang Xingxing) has acknowledged that the company previously focused more on hardware than software ("重体轻脑"), but is now increasing investment in embodied large models and conducting testing and validation in pilot scenarios such as its own factories.

Conclusion

Overall, the embodied intelligence industry is still in its infancy. Sharp stock price fluctuations and tighter regulatory guidance both point to the same goal: directing capital toward truly innovative companies. For Unitree Technology — and the embodied intelligence industry as a whole — this is ultimately a positive development.

Photo: Unitree robot performing a fully autonomous demonstration at the China-ASEAN Expo on September 19. (Xinhua/Zhang Ailin)