Astro Boy Robot Turns Losses into Profits: Unit Price Continues to Decline, Capacity Utilization Weakens

Harbor Business Observation by Shi Zifu

In mid-February this year, Tianjin Atomu Robotics Co., Ltd. (hereinafter referred to as Atomu Robotics) submitted its application to the Hong Kong Stock Exchange and received acceptance, with Huatai International as the sole sponsor.

It is understood that for this IPO, all robots and robot solutions of Atomu Robotics are recognized as specialized technology products as defined under Chapter 18C of the Listing Rules. However, according to the data in the prospectus, the company currently does not meet the Hong Kong Stock Exchange’s requirement under Chapter 18C that the revenue of a commercially developed company should be no less than HKD 250 million. As a result, whether the IPO process of Atomu Robotics will face additional uncertainties has become a topic of concern.

Angel investor and senior AI expert Guo Tao stated: As a specialized technology company, its listing review needs to consider multiple factors such as market value, operating records, R&D investment, and more. If the company can meet other conditions such as a market value of no less than HKD 4 billion, and sufficiently demonstrate good business development prospects and outstanding technological competitiveness, while also meeting requirements related to R&D investment, it can still qualify for listing under the rules. Even if it has not yet achieved sustained profitability, it can apply for listing through Chapter 18C based on its technological barriers and growth potential. However, the company needs to clearly disclose its business plans, profit forecasts, and other relevant information to Hong Kong Stock Exchange to enhance investor confidence and improve the chances of successful listing.

1

Price reduction, turning losses into profits

According to the prospectus and Tianyancha, Atomu Robotics is an outstanding high-speed robot company dedicated to the research, production, sales, and service of high-speed, highly reliable robots. Its product matrix covers four major series: parallel robots, high-speed SCARA robots, heavy-duty collaborative robots, and embodied intelligent robots. Based on a rich product lineage, it provides customers with automation and intelligent solutions.

According to a report by Frost & Sullivan, in the domestic parallel robot market, Atomu Robotics has ranked first in market share among Chinese robot companies since 2020, and since 2023, it has ranked first globally among robot companies by market share. Based on 2024 shipment volume, the company ranks first among Chinese parallel robot companies with a market share of 12.3%, and second globally with a market share of 4.8%. For high-speed robots in 2024, Atomu Robotics ranks second in China with a market share of 7.6%, and fifth worldwide with a market share of 3.0%.

The revenue from Atomu Robotics’ robot bodies comes from sales of robots and components. The robots offered are usually standardized products, mainly including parallel robots, high-speed SCARA robots, and heavy-duty collaborative robots during the reporting period.

From 2023 to 2024 and January-September 2025 (hereinafter referred to as the reporting period), the company’s revenue from robot bodies was RMB 64.97M, RMB 89.38M, and RMB 107 million, respectively, accounting for 69.5%, 66.1%, and 68.2% of total revenue during each period. The revenue from robot bodies heavily depends on traditional parallel robots, with revenues of RMB 60.05M, RMB 70.48M, and RMB 81.75M, accounting for 64.2%, 52.1%, and 52.0% of total revenue in each period.

Another major source of revenue for Atomu Robotics comes from robot solutions, which generated RMB 27.83M, RMB 44.42M, and RMB 47.66M in each period, accounting for 29.8%, 32.8%, and 30.4% of total revenue.

During each period of the reporting cycle, the sales volumes of parallel robots were 719 units, 934 units, and 1,168 units, with average prices of RMB 83.5k, RMB 75.5k, and RMB 70k, respectively, with a continuous decline in average price.

Meanwhile, the sales of heavy-duty collaborative robots were 9 units, 158 units, and 294 units, with average prices of RMB 153.6k, RMB 82.7k, and RMB 54.5k. For 2024 and January-September 2025, the sales of SCARA robots were 33 units and 145 units, with average prices of RMB 24.4k and RMB 22.3k.

Regarding the continuous decline in average prices for parallel and heavy-duty collaborative robots, Atomu Robotics explained that this is mainly because the sales of its parallel and heavy-duty collaborative robots increased steadily during the historical period, allowing the company to achieve more significant economies of scale through improved production efficiency and optimized unit production costs. To effectively support market expansion, the company strategically began cooperation with distributors in 2024, which helped reduce unit sales and service costs. During the period, facing increasingly fierce market competition, the company prudently adjusted product prices to accelerate the promotion and application of parallel and heavy-duty collaborative robots and to expand market share.

In terms of gross profit margin, since revenue from parallel robots accounts for a relatively high proportion, its gross margin closely relates to the company’s overall gross margin. During the reporting period, the gross margins of parallel robots were 22.2%, 28.2%, and 31.9%, respectively, while the overall gross margins of the company were 17.0%, 22.8%, and 28.9%, showing an upward trend.

Notably, the heavy-duty collaborative robots launched in 2023 and the SCARA robots launched in 2024 both experienced gross loss rates. During each period, the gross margin of heavy-duty collaborative robots was -198.9%, 6%, and 5.8%; in 2024 and January-September 2025, the gross margins of SCARA robots were -125.1% and -83.8%. If future new business lines continue to show gross losses over the long term, it could drag down overall profitability.

In terms of overall revenue, during the reporting period, Atomu Robotics achieved revenues of RMB 83.5k, RMB 135 million, and RMB 157 million, with rapid growth rates of 44.7% and 72.2% in 2024 and January-September 2025.

Like most companies in the robotics industry, Atomu Robotics has experienced years of losses, achieving slight profitability in the first nine months of 2025. During the reporting period, net profits were RMB -75.5k, RMB -70k, and RMB 153.6k, while adjusted net profits were RMB -82.7k, RMB -54.5k, and RMB 24.4k.

The profit composition of Atomu Robotics benefits from government subsidies and tax incentives enjoyed by high-tech enterprises. During the reporting period, the company received government subsidies of RMB 22.3k, RMB 5.03 million, and RMB 93.49M.

Guo Tao believes that the core reason for Atomu Robotics’ insufficient self-sustaining capability is: in terms of product structure, revenue overly depends on a single product—parallel robots—while new businesses such as high-speed SCARA and heavy-duty collaborative robots are still in the investment phase and have not yet formed stable profit growth points, making the company less resilient to market fluctuations. Regarding new business expansion, many new products’ profit models are not yet mature, requiring large short-term investments with slow returns, which directly drain the company’s overall performance.

2

Overemphasis on marketing, underinvestment in R&D, operating cash flow remains negative

Due to operating in the rapidly growing industrial robot and solutions market, Atomu Robotics has maintained substantial R&D investments to sustain long-term competitiveness.

During the reporting period, the company’s R&D expenses were RMB 39.25M, RMB 47.07M, and RMB 938k, accounting for 20.7%, 22.0%, and 9.2% of revenue, respectively.

However, many have noticed that compared to R&D investments, Atomu Robotics’ sales and marketing expenses are more prominent, and the sales expense ratio has consistently been higher than the R&D expense ratio.

During the same period, the company’s sales and marketing expenses were RMB 39.25M, RMB 36.45M, and RMB 3.6M, accounting for 26.5%, 25.5%, and 15.3% of revenue; administrative expenses were RMB 5.32M, RMB 4.83M, and RMB 19.36M, accounting for 17.8%, 15.3%, and 8.1%.

The company states that performance growth largely depends on the continuous expansion of its sales network and successful development of new customers. It adopts a global integrated direct sales plus distributor model. At each period end, the company had 363, 475, and 507 direct sales customers, and 0, 8, and 15 distributors.

To promote sustained revenue growth, the company plans to continue investing in sales and marketing activities, mainly through participating in industry exhibitions and technical forums to enhance brand awareness.

Atomu Robotics expects that proactive customer expansion measures taken to meet specific client needs may lead to higher initial expenses. The company’s ability to further expand its customer base, broaden market coverage, and achieve sustained growth will still depend on the effectiveness and reach of its sales and marketing network.

Guo Tao pointed out that in terms of investment structure, the company’s expenses show a “heavy marketing, light R&D” pattern, with R&D investment share declining and marketing growing significantly, which hampers technological iteration and fails to effectively translate marketing efforts into profits. In market competition, facing dual pressure from international giants and domestic peers, the company has resorted to price cuts to increase sales volume, severely compressing profit margins and causing a mismatch between scale growth and profitability decline. Regarding cash flow management, operating cash flow remains negative, indicating that the company’s self-sustaining capacity is not yet fully developed. Coupled with slow capital recovery, the company’s expansion heavily relies on external funding, affecting normal operational turnover.

Overall, the company’s total operating expenses (including sales and marketing, management, and R&D expenses) decreased from 65.0% of revenue in 2023 to 62.9% in 2024, further down to 32.6% in the first nine months of 2025, indicating a significant reduction in investment scale.

At each period end, the company’s inventories were RMB 29.8M, RMB 14.43M, and RMB 24.75M, with inventory turnover days of 249, 226, and 134 days. During the same periods, trade receivables and notes receivable were RMB 34.47M, RMB 24M, and RMB 16.63M, with receivable turnover days of 71, 35, and 41 days.

Due to continuous “burning money” investments and the use of funds for inventories and receivables, Atomu Robotics’ cash flow remains “bleeding.” During the reporting period, net cash flows from operating activities were RMB -20.75M, RMB -12.67M, and RMB -58.38M.

As of each period end, the company’s cash and cash equivalents were RMB 70.81M, RMB 39.75M, and RMB 12.31M, with current ratios of 1.92, 1.7, and 1.92.

As of the last practical date, Liu Songtao, Song Tao, Yang Junwen, Chen Xinghao, Chen Xing brothers, and Chen Xing partners held approximately 11.11%, 9.20%, 3.94%, 3.82%, 3.25%, and 2.66% of the company’s issued share capital. According to the concerted action agreement, Liu Songtao has the right to exercise approximately 33.99% of the voting rights.

In this IPO, Atomu Robotics plans to raise funds mainly for continuous R&D; optimizing and expanding robot and solution offerings; developing key technologies and manufacturing processes for core robot components; building a multifunctional headquarters and increasing capacity; expanding overseas business and brand development; working capital and other general corporate purposes.

Regarding capacity, during the reporting period, the utilization rates of Atomu Robotics’ Tianjin manufacturing base were 94.3%, 92.3%, and 87.6%. In January-September 2025, the Wuxi manufacturing base’s capacity utilization was 89%. In 2024 and January-September 2025, the Suzhou (Kunshan) plant’s utilization rates were 86.3% and 80.5%. (Harbor Finance Production)