With embodied intelligence shipments exceeding RMB 40 million in the first half of the year, why has Yuejiang (02432.HK) declined instead of rising?

On July 8, Yuejiang, known as 'China’s first collaborative robotics stock,'$DOBOT (02432.HK)$> Disclosed operational data for the first half of 2026, with its embodied intelligence business delivering an impressive performance.

According to the announcement, as of June 30, 2026, DG Robotics had expanded its embodied intelligence customer base to 231 clients, demonstrating a robust pipeline that fully spans all commercialization stages—from order signing and sample validation to small-scale deliveries and large-scale deployments. In the first half of this year, the company’s embodied intelligence product shipments exceeded RMB 40 million (all figures in RMB unless otherwise stated), maintaining rapid year-over-year growth. Among these clients, nearly 100 are from industrial manufacturing, making DG Robotics one of the most widely adopted solutions providers in the industry for industrial applications, with numerous real-world production line implementations and leading commercialization progress.

However, this strong performance failed to reverse the stock's prolonged downtrend.On July 8, DG Robotics’ share price weakened further, closing at HK$26, down slightly by 0.99%, reflecting persistently cautious market sentiment.

Looking back, since hitting a record high of HK$83.8 in March 2025, the stock has been on a volatile downward trajectory, accumulating a decline of 68.97% to date. Despite multiple positive catalysts for the AI robotics sector during this period, none succeeded in reversing the downward trend. The slight drop following this positive news release directly reflects weak market confidence.

As a leading domestic player in collaborative robotics, DG Robotics offers products deployed across diverse sectors including manufacturing, retail, healthcare, education, and automotive, operating in a market with substantial long-term growth potential.

Yet the continued sell-off by capital markets stems primarily from two key valuation constraints:

First, ongoing losses have created persistent earnings pressure and funding concerns.The company remains in the early stages of commercial expansion, with limited revenue scale and an inability to achieve profitability to date.

From 2022 to 2025, the company’s revenue grew steadily from RMB 241 million to RMB 492 million, yet net profit attributable to shareholders remained negative for four consecutive years, resulting in cumulative losses exceeding RMB 330 million. Coupled with the sector’s inherently high R&D intensity and capital-burning nature, the company’s weak internal cash generation continues to exert pressure on working capital, dampening investor risk appetite.

Second, industry competition continues to intensify, as more players flood into the collaborative robotics segment, market competition is becoming increasingly fierce, raising concerns about potential price wars. This has introduced significant uncertainty regarding both the timing and extent of the company’s profit realization, prompting investors to remain cautious.

In the long run, the rapid growth of its embodied intelligence business has indeed opened a second growth curve for DG. With sustained demand for industrial automation and steady expansion into overseas markets, the company still holds considerable long-term potential.

It is also worth noting that DG previously won the 'Annual Rising Star in Technological Innovation' award at the 12th HK Top 100 Awards. The 13th edition of the HK Top 100 Awards is now being actively prepared, and with its recent commercial breakthroughs in embodied intelligence, it remains to be seen whether DG will make the list again.

8389 Views