XianGong Intelligence: Balancing High Growth and Persistent Losses Behind Its Global Sales Leadership

ZC Asia has learnt that, according to disclosures by the Hong Kong Stock Exchange, Shanghai XianGong Intelligent Technology Co., Ltd. (hereinafter referred to as ‘XianGong Intelligent’) has recently resubmitted its application for a Main Board listing, with China International Capital Corporation Limited acting as the sole sponsor. This technology enterprise, whose core product is robotic controllers, achieved the highest global sales in this category for two consecutive years in 2023 and 2024, with a market share reaching 23.6% in 2024.

XianGong AI's capital market activities epitomise the wave of robotics companies going public in 2025. As of November this year, nearly 30 enterprises across the robotics industry chain have submitted listing applications to the Hong Kong Stock Exchange, forming a notable wave of industry capitalisation.

Founded in 2020, the company's products now serve over 1,600 clients across more than 35 countries and regions, with applications spanning over 20 specialised sectors including 3C electronics, automotive manufacturing, and new energy. The company's revenue is primarily driven by two core product lines. In the first half of 2025, total revenue reached approximately RMB 158 million.

Robotics operations contributed RMB 110 million in revenue, accounting for 69.1% of total income, while robot controllers generated RMB 29 million, representing 18.3%. These two pillars collectively accounted for nearly 90% of the company's revenue.

The company adopts a dual-pronged strategy of ‘technology + platform’. On one hand, its AI robot brain technology lowers the barriers to robot development and deployment; on the other, platform-based deployment enables cross-industry economies of scale.

A Rapidly Expanding Market

XianGong Intelligence operates within a sector experiencing rapid growth. The global industrial intelligent robotics market is projected to expand from RMB 22 billion in 2024 to RMB 115 billion by 2029, representing a compound annual growth rate (CAGR) of 35.5%.

The more specialised robot controller market exhibits equally impressive growth. Suppliers specialising in standalone controllers are projected to increase their supply volume from 31,000 units in 2024 to 231,100 units by 2029, representing a remarkable 43% CAGR.

Within this highly fragmented competitive landscape, XianGong Intelligent leverages its leading position in the controller sector. Based on 2024 industrial robot sales volume, it holds a 6.5% market share, ranking third globally.

Financial pressures behind the growth

Despite sustained revenue growth, XianGong Intelligent remains unable to escape its loss-making status. In the first half of 2025, the company recorded a net loss of approximately RMB 50.592 million, with a net loss ratio of 32.1%, narrowing compared to the same period last year.

From a longer-term perspective, the company's cumulative net loss attributable to shareholders reached RMB 173.5 million between 2022 and the first half of 2025. This reflects the company's ongoing phase of substantial investment and market expansion.

Despite these losses, the company's gross profit margin remained relatively stable at 45.4% in the first half of 2025, representing a 2.9 percentage point increase year-on-year. Cost control efforts also yielded some results, with both the sales expense ratio and R&D expense ratio declining during the period.

To maintain market leadership and sustain business expansion, XianGong Intelligence requires continuous capital investment. As of 30 June 2025, the company's debt-to-asset ratio stood at 68.25%, with interest-bearing debt accounting for 25.36% of total liabilities.

The company held cash and cash equivalents of RMB 162 million, while short-term interest-bearing debt reached RMB 77 million. Given the company remains in a phase of rapid growth with substantial working capital requirements, existing cash reserves may prove insufficient to sustain its expansion trajectory over the long term.

This likely constitutes a key factor driving the company's urgent pursuit of public listing financing. Accessing capital markets would enable the company to replenish working capital, support R&D investment and market expansion, and optimise its capital structure.

Valuation Considerations and Future Challenges

In the primary market, Xiangong Intelligence's valuation has experienced significant growth over recent years. Following its Series A financing in 2020, the company was valued at merely RMB 300 million; by its Series C financing in 2025, its post-investment valuation had reached RMB 3.27 billion – a nearly tenfold increase in under five years.

Based on the post-investment valuation of the Series C round, the company's price-to-sales ratio stands at approximately 9.4 times, while its price-to-book ratio reaches as high as 24.6 times. This valuation level may already be relatively elevated compared to peer companies in the secondary market.

Early investors, such as Series A and B shareholders, have already secured substantial paper gains. This could potentially lead to pressure from early investors to reduce their holdings post-listing, thereby exerting a potential influence on the share price.

With the global industrial intelligent robot market projected to achieve a compound annual growth rate of 35.5%, XianGong Intelligence holds a first-mover advantage through its 23.6% market share in the controller segment.

On the other side of the profit-loss balance, the company remains mired in losses, with a net loss ratio of 32.1% in the first half of 2025 and a debt-to-asset ratio reaching 68.25%. Listing for capital raising has become a crucial means to sustain its expansion. Meanwhile, the substantial returns potentially available to early investors introduce uncertainty regarding the post-listing share price.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.