In a captivating display that captivated billions around the globe, humanoid robots took center stage during the 2025 Spring Festival GalaSixteen humanoid robots, crafted by Yushu Technology, wowed the audience with a flawless performance of a traditional Chinese folk dance known as YangkoTheir synchronized movements, alongside intricate handkerchief manipulation, showcased a remarkable evolution in robotics technologyThis event was not just a performance; it was a landmark moment in the technological revolution surrounding humanoid robots.

The elegance of the performance was underpinned by significant breakthroughs in robotic technologyIt's fascinating to consider that these advanced machines can now "understand" music through AI algorithms, adjusting their movements in real time in response to the melodies they processFurthermore, employing a technique known as 3D Laser SLAM, these robots can accurately detect their environment, enabling them to navigate complex spaces effortlesslyThis innovative capability has set the stage for a bright future in humanoid robotics, coinciding with projected market growth.

Forecasts indicate a booming market for humanoid robots, with estimations suggesting a growth to $15 billion by 2030 and a staggering annual compound growth rate exceeding 56% from 2024 to 2030. This surge reflects an increasing reliance on these robots across various sectors, including logistics, industrial production, and entertainmentCentral to this burgeoning industry is a robust and sophisticated supply chain that supports robotic development.

Examining the robotic industry reveals a comprehensive supply chain structureThe initial phase involves the manufacturing of essential components, where domestic companies have made impressive stridesNotably, companies like Lude Harmony have broken foreign monopolies in the production of reducers, while Keli Sensors’ six-dimensional force sensors have successfully passed Huawei’s stringent testing protocols

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Additionally, HeSai Technology has become a key player, providing crucial laser radar technology for humanoid robots.

The core assembly of these robots rests in the midstream component of the supply chain, where Yushu Technology positions itself as a pivotal manufacturer, integrating AI computational power and focusing on assembly processesMeanwhile, the downstream applications stretch into various fields including industrial manufacturing, warehousing, and the burgeoning area of artistic entertainmentNotably, the upstream component manufacturing is the most technically sophisticated segment, immensely critical to the performance and durability of humanoid robots.

The performance of humanoid robots hinges significantly on the quality of their core components, estimated to comprise nearly 60% of the robots’ total costsConsidering the wide array of over a hundred distinct parts required for these robots, their complexity is substantialKey components include reducers that govern motion accuracy, sensors that provide critical sensory feedback for obstacle avoidance, and bearings that enhance joint longevity and minimize wear.

The most crucial aspect, however, lies within the motor and drive systems providing the necessary power for the robotsWith multiple degrees of freedom in every joint, each movement requires dedicated motors, highlighting the indispensable nature of such components in robot mobility.

As companies like Huichuan Technology, Wolong Electromechanical, Top Group, and Zhongdali utilize the opportunities present in this arena, Wolong Electromechanical stands out due to its unique potential for performance growthTheir extensive experience in the motor and control sectors, coupled with an impressive range of products from mini motors to large industrial motors, positions them advantageously within this competitive market.

Moreover, the company commands a leading role in the domestic industrial and consumer motor market, consistently ranking first in market share for both high and low voltage motors as of 2023. Notably, their servo motor technology, utilized in NC machine tools and automated guided vehicles, aligns closely with the precision requirements of humanoid robot joint motors.

This technological advantage enables the company to swiftly adapt to the demands of humanoid robot functionality

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Additionally, Wolong Electromechanical’s subsidiary, Xiel, a global leader in industrial robot integration, capitalizes on existing technology that can be effectively transferred into the robotics sector.

Wolong Electromechanical has strategically entered the humanoid robotics market by establishing foundations in high-performance joint modules, frameless torque motors, and servo driversSuch ambition reflects the company’s commitment to innovation through persistent research and development investments.

Since 2021, Wolong has consistently reported R&D expenditures exceeding 500 million RMB, with a notable 23.42% increase in R&D costs recorded in the first three quarters of 2024. This emphasis on technological advancement serves to bolster their competitive stance in the industry.

Moreover, this investment is supported by the company’s steadily increasing revenueBetween 2020 and 2023, Wolong Electromechanical saw revenues rise from 12.57 billion to 15.57 billion RMB, with a robust annual compound growth rate of 7.4%. Even in the first three quarters of 2024, the company achieved 12.19 billion RMB in revenue, reflecting a year-over-year increase of 1.06%. However, the net profit has significantly decreased since 2022, particularly dropping 33.73% in 2023 to just 530 million RMB.

This downturn primarily stems from the company accounting for a considerable asset impairment loss amounting to 254 million RMB in 2023, largely linked to long-term equity investments in Hongxiang CompanyAdditionally, rising risks associated with the recovery of receivables led to further credit impairment losses of 90 million RMB, exacerbating net profit issuesContinued impairments have persisted into 2024, with further losses noted.

In light of these financial challenges, Wolong has not curtailed its R&D spending, demonstrating a continued focus on technological enhancement despite the adverse circumstancesNotably, the company's comprehensive assessment of its impairments suggests a lower risk of substantial future charges, pointing towards an imminent recovery in profitability.

Forecasts for 2024 suggest a promising rebound in profit, anticipating a noteworthy year-over-year increase to 800 million RMB, representing a dazzling 51% growth

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