Robotics Firm Luoshi IPO on Hong Kong Stock Exchange with $1.27 Billion Valuation

Luoshi Robotics is set to list on the Hong Kong Stock Exchange, with its IPO priced at HK$38 per share, valuing the company at HK$9.95 billion (approximately $1.27 billion USD). The company raised HK$875 million in its IPO, with 31.4% of shares taken by five cornerstone investors. Luoshi's IPO journey has been complex; it initially signed an A-share listing agreement in December 2024 but voluntarily halted the process in August 2025 to pursue a listing in Hong Kong. Despite its headquarters being in Jining, Shandong, the founding team originated from Beijing.

Luoshi reported revenues of RMB 267 million, RMB 325 million, and RMB 522 million from 2023 to 2025, showing a compound annual growth rate of approximately 39.8%. In 2025, revenue surged by 60.4% year-on-year. The company's revenue streams are divided between robot product sales (78.6% in 2025) and robot solutions (19.2%). Within product sales, industrial robots form the core (43.1%), with lightweight robots being the main driver. Collaborative robots (26.5%) are highlighted as a differentiator, and humanoid robots (9.0%) have shown explosive growth, increasing over 16-fold in two years.

However, the company's gross profit margin was 21.9% in 2025, which is considered moderate for the robotics industry. Industrial robots had a margin of 21.6%, impacted by increased competition and price pressure. Collaborative robots were the most profitable at 34.8%, with a growing trend. Humanoid robots experienced a significant margin drop from 30.6% in 2024 to 10.7% in 2025 due to the high cost of early production for a large order of its AR series force-controlled arms. Overseas markets showed a much higher gross margin of 47.1% in 2025, but accounted for only 8.9% of total revenue.

Luoshi incurred net losses of RMB 157 million, RMB 192 million, and RMB 179 million from 2023 to 2025, totaling over RMB 500 million. A significant portion of these losses were attributed to financial costs, primarily interest from debt redemption. Adjusted net losses, excluding items like debt redemption interest and share-based payments, narrowed from RMB 101 million in 2023 to RMB 41.67 million in 2025, indicating improving operational efficiency. The company extended credit periods to customers, leading to longer accounts receivable turnover days (165 days in 2025), and increased inventory. Despite negative operating cash flow for three consecutive years, the company's cash position at year-end plummeted in 2024 and 2025, largely due to reallocating funds to wealth management products and fixed deposits. However, a substantial portion of these funds is readily accessible, and the company, along with its sponsors, believes its current resources are sufficient for approximately two years, or four years with the IPO proceeds.

Since its angel round in 2015, Luoshi has completed ten financing rounds, raising approximately RMB 1.46 billion. The company's investor base includes significant players like the National Manufacturing Transformation and Upgrade Fund, New Hope Group, and Xiaomi's Shunwei Capital, alongside venture capital firms and local Shandong government-backed funds. The founder, Tuo Hua, a doctoral candidate at Harbin Institute of Technology with extensive experience in robotics control systems, is the sole remaining co-founder from the original three. The current management team includes experienced professionals from Deloitte, Industrial and Commercial Bank of China, and major robotics companies like Fanuc. Luoshi holds the sixth position in China's industrial robot market share at 0.9% and fourth in collaborative robot sales volume. It ranks third in humanoid robot arms by revenue in China and is a key supplier to nearly half of the top ten humanoid robot companies by market capitalization.