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China's Unitree Flags US Sales Risk ahead of Shanghai IPO

  • Unitree is one of China's leading makers of humanoid and quadruped robots
  • Unitree flags U.S. sales risk ahead of Shanghai IPO
  • Robot ​maker to open subscriptions for its IPO on August 10

BEIJING, July 30 (Reuters) - Chinese robotics ‌company Unitree Technology's exposure to the U.S. market could constrain overseas growth if Washington imposes new tariffs and restrictions, it said on Thursday, ahead of its planned listing on Shanghai's STAR Market next month.

Unitree, which makes humanoid and quadruped robots, ​has gained domestic and overseas notoriety through demonstrations of running, dancing and martial arts.

The Federal Communications ​Commission on Tuesday added foreign-made advanced robots to its Covered List, restricting their ⁠ability to obtain the equipment authorisation required for U.S. sales.

The measure applies to new models made outside ​the United States unless they receive an exemption or conditional approval, while already-authorised products can remain on ​the market.

In its IPO filing, Unitree said its existing humanoid and quadruped robots have received FCC certification but future models could be excluded from the U.S. market.

Further policy tightening, including the potential for withdrawal of existing approvals, could also disrupt ​sales of current products, the company added.

The U.S. is a significant market for the Hangzhou-based company. Unitree ​said overseas revenue accounted for more than 40% of the total in each of the three reporting periods disclosed. U.S. ‌sales ⁠represented 18.39%, 19.54% and 13.30%, respectively, over those periods.

U.S. RISK FLAGGED AHEAD OF SHANGHAI IPO

In its August listing, the company plans to issue 40.446 million new A-shares, equivalent to 10% of its enlarged share capital, with no secondary sale by existing shareholders.

Preliminary institutional price inquiries are scheduled for August 5, the offer price ​is due to be ​set on August 6, ⁠and final terms are expected on August 7. Subscriptions are scheduled to open on August 10.

Reuters reported in September that Unitree was considering an IPO valuation ​of up to 50 billion yuan ($7 billion), citing people familiar with the matter.

Its ​March prospectus ⁠sought to raise 4.202 billion yuan ($620 million), implying a valuation of about 42 billion yuan based on the planned 10% sale, though the final figure will depend on the offer price.

Unitree said revenue rose to nearly 1.7 ⁠billion ​yuan in 2025 from 393 million yuan a year earlier.

Founder ​and Chairman Wang Xingxing and an entity he controls are expected to own 31.29% of the company after the IPO while controlling ​65.31% of voting rights through a dual-class structure.

Reporting by Eduardo Baptista; Editing by Susan Fenton and Barbara Lewis

Source: Reuters


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