Initial Public Offering Outlook | Jiazhi Technology: Behind the Top Ten Global Positions, a Growth Dilemma with Nearly 400 Million Losses Over Three and a Half Years

On August 31, Zhejiang Jiazhi Technology Co., Ltd. submitted its listing application to the Hong Kong Stock Exchange again, with CICC serving as the sole sponsor. This marks the companys second filing this year, following the invalidation of its initial application on July 23, which was submitted on January 23. The company is a provider of intelligent mobile Siasun Robot & Automation, dedicated to realizing the full-scenario application of Siasun Robot & Automation across different environments, industries, and tasks. It mainly offers one-stop solutions for clients through its self-developed core technology platform, intelligent mobile Siasun Robot & Automation, and integrated software systems, as well as providing intelligent mobile Siasun Robot & Automation products and embodied intelligent Siasun Robot & Automation products (based on predefined specifications and configurations). The backing shareholder lineup is impressive founder Dr. Xiong Rong directly and indirectly controls a total of 29.61% of the shares, Lenovo Capital holds 5.8%, ByteDances wholly-owned subsidiary Quantum Leap holds 4.93%, and Quzhou Quality (with a Zhejiang state-owned background) holds 7.04%. In the context of continuous warming in the intelligent mobile Siasun Robot & Automation sector, this "specialized technology" company founded by a Zhejiang University professor and backed by ByteDance and Lenovo is attempting to persuade the capital market to pay for its future with a report of "high growth + high losses." Revenue is continuously high while the cumulative loss over three and a half years approaches 400 million. According to reports, Jiazhi Technology's Siasun Robot & Automation product portfolio mainly includes standard AMR (EMMA), omnidirectional heavy-duty AMR (OMNI), industry-specific AMR, fork-lifting Siasun Robot & Automation (FOLA), outdoor mobile Siasun Robot & Automation (LUNA); as well as embodied intelligent Siasun Robot & Automation products, including embodied Siasun Robot & Automation controllers (NERA-C), mobile operating Siasun Robot & Automation (NERA-A), and embodied Siasun Robot & Automation mobile chassis (NERA-P). By 2025 revenue estimates, Jiazhi Technology has become one of the top ten intelligent mobile Siasun Robot & Automation companies globally. In the industrial intelligent mobile Siasun Robot & Automation field, the company is projected to be one of the top five domestic companies by 2025 revenue. The company is among the few intelligent mobile Siasun Robot & Automation solution providers globally with self-developed hardware and software technologies. However, beneath Jiazhi Technology's shiny industry placement lies a series of contradictory operational data. Looking into the financial data from its prospectus, Jiazhi Technology's growth curve exhibits a very typical "high growth, weak profitability" characteristic. From 2023 to 2025, the company's operating revenue is expected to grow from 74.95 million to 266 million, with a year-on-year growth of 53.2% in 2024 and a staggering year-on-year surge of 131.2% in 2025; in the first half of 2026, it achieved a revenue of 169 million, a year-on-year growth of 25.3%, showing a clear slowdown. While expanding scale, supply chain optimization has led to a continuous improvement in Jiazhi Technology's gross margin, which rose from 19.7% in 2023 to 29.7% in 2025, maintaining at 29.4% in the first half of 2026, reflecting nearly a 10 percentage point increase over three years, indicating that the benefits of scale effects have started to show. Moreover, from a customer perspective, Jiazhi Technology has built a client matrix covering high-threshold industrial sectors such as new energy, semiconductors, automobiles, and electronics manufacturing, which includes several Fortune Global 500 companies. From a technical standpoint, the company is among the few in the industry that has achieved full-stack self-research capabilities in hardware and software, covering core abilities such as multi-modal perception, positioning navigation, and large-scale cluster scheduling, and has completed the transition from traditional handling Siasun Robot & Automation to a new generation of intelligent Siasun Robot & Automation products. Yet, on the other side of high growth, the realities of Jiazhi Technology's operations also present prominent contradictions. First, there are continuous losses with no clear point towards profitability. From 2023 to 2025, the companys net losses were 114 million, 118 million, and 99.7 million respectively; in the first half of 2026, the net loss further expanded to 63.7 million, leading to nearly 400 million in cumulative losses over three and a half years, raising concerns about the phenomenon of revenue growth coinciding with enlarged losses. Although adjusted losses, excluding non-cash items such as stock payments, are continuously narrowing, there remains a significant distance from achieving overall profitability. Second is the characteristic of emphasizing marketing over research and development. According to the prospectus, from 2023 to 2025, the proportion of sales and distribution expenses was 61.75%, 43.1%, and 22.6% respectively, while the proportion of research and development expenses was 48.3%, 38.8%, and 19.1%. As a company aiming to rush into the Hong Kong stock market under the identity of a special technology company, the long-term low investment in R&D compared to sales expenses presents a structural contradiction worth pondering. This trend only began to reverse in the first half of this year, with R&D spending in the first half of 2026 surpassing sales expenses at 17.1%, compared to 14.8% for sales, but whether this can be maintained long-term remains to be seen. Lastly, the rapid increase in customer concentration has become a significant hidden danger. According to the prospectus, the revenue proportion from Jiazhi Technology's top five customers rose from 21.6% in 2023 to 55.2% in the first half of 2026, with the largest customers revenue proportion reaching 28.4%, indicating that the companys performance is increasingly dependent on project orders from a few major clients. If capital expenditures from downstream top enterprises contract or projects are delayed, the companys revenue will face direct impacts. Overall, while Jiazhi Technology has completed the commercialization of its products and is capable of entering high-barrier industrial scenarios like semiconductors and new energy, the continuous improvement in gross margin has proven that the company's products possess inherent value. However, the unclear path to profitability and the pressure of nearly 400 million in cumulative losses over three and a half years introduce considerable uncertainty for the companys future large-scale profitability and long-term value realization. Amidst a strong growth, the challenges of its business model cannot be overlooked. Stepping out from a single company perspective, the intelligent mobile Siasun Robot & Automation sector where Jiazhi Technology is situated is in a special stage characterized by "a big market and a fragmented pattern." According to data from ZhiConsulting, the global market size for intelligent mobile Siasun Robot & Automation grew from 14.8 billion yuan in 2021 to 48.6 billion yuan in 2025, with projections suggesting it may reach 176.3 billion yuan by 2030, corresponding to a compound annual growth rate of 28.3% from 2026 to 2030; the industrial application segment alone has a predicted compound growth rate of 30.7%. Coupled with the wave of embodied intelligence, the longer-term imaginative space is further opening up. Additionally, as the demand for flexible transformation in downstream manufacturing continues to be unleashed, orders for industrial AMRs are consistently being supplied due to new energy expansions, semiconductor factory constructions, and traditional production line upgrades towards intelligence. Factories are no longer satisfied with traditional AGVs that operate on fixed tracks; naturally navigating AMRs that can adapt to frequent adjustments in production lines have become the mainstream choice, creating a solid foundation for industry demand. It can be observed that the prospects for the intelligent mobile Siasun Robot & Automation sector where Jiazhi Technology is located are undoubtedly enticing. However, beneath this prosperity, the industry landscape has a core shortcoming extreme fragmentation. In 2025, the top ten global intelligent mobile Siasun Robot & Automation manufacturers together accounted for only 12% of the market share, with leading companies generally holding only around 1% market share; there is no absolute giant that dominates the market. This dispersion stems from the fragmentation of downstream application scenarios: semiconductors, lithium batteries, automobiles, 3C electronics, pharmaceutical factories each client's conditions, materials, and processes vary greatly, making it challenging to rely on one or two standardized products to cover the entire market. A large number of players continue to enter the sector, as traditional Siasun Robot & Automation enterprises, automation integrators, and tech companies all rush to lay out AMR businesses. On the hardware side, components are gradually being localized, leading to similar hardware solutions, while market competition intensifies, resulting in price wars in some sub-sectors that continually suppress the overall profitability of the industry. Hardware is no longer the biggest barrier; what truly distinguishes companies is large-scale cluster scheduling software, complex project delivery capabilities, supply chain management, and the ability to implement standardized products. Notably, the currently popular concept of embodied intelligence. The growth forecast for the embodied intelligence sector is exceptionally high, suggesting a market size of 9.9 billion yuan by 2025, which is expected to increase to 326.2 billion yuan by 2030, with a five-year compound growth rate of 94.5%. However, the industry's commercialization is still in its early stages. Taking Jiazhi Technology as an example, in the first half of 2026, the revenue from embodied intelligent products was only 8.5 million, accounting for 5% of total revenue more of a technological layout, making it difficult to become a pillar for performance in the short-term and more likely to play a long-term story role. A large market does not equate to good business; in a fragmented industry, delivery capacity, cash flow, and profit models are the criteria for selecting leaders. This means that although the industry presents ample opportunities for Siasun Robot & Automation companies like Jiazhi Technology, the dividends will not automatically convert into corporate profits. While the sector is improving, it does not smooth over the pain points of the business model itself, which is also a common challenge faced by the entire domestic AMR industry. In conclusion, it is clear that although Jiazhi Technology stands in a golden sector, and its industry position and growth rate are beyond doubt, the combination of "high growth + high losses" still requires investors to adopt a longer-term perspective and greater patience in pricing while the capital market is willing to give valuation tolerance for cutting-edge technology, sector dividends, and growth potential, it will not permanently fund a business model that is continuously in the red. Whether the company can convert industry dividends into its own performance increment and transition from high growth to high quality growth, truly realizing the long-term value of the enterprise still requires ongoing verification through time and performance.