(Yicai) Sept. 11 -- The founder of Chinese industrial robotics listing company Mech-Mind Robotics has criticized robotics companies for allegedly fabricating revenue to accelerate listing. In the comments below the post, he mentioned Galbot as an example of such practice.

Many embodied intelligence companies extensively use “data acquisition centers” and related transactions with local governments, investors, and suppliers to create false and unsustainable income, Shao Tianlan, who is also Mech-Mind’s chairman and chief executive officer, said in a WeChat Moments post yesterday. “This practice is illegal, unethical, and unwise.”

Shao explained that this approach lets companies go public quickly, but it harms most investors. Moreover, he complained that these firms claim to have government support, even though no official has ever publicly confirmed it.

Then, in a comment below the post, Shao cited Galbot as an example of this practice, without specifying the details.

Afterward, Galbot released a statement saying it does not engage in “meaningless verbal battles” and will not be disturbed by “short-term noise,” adding that it only aims to improve its products, solidify its applications, and deepen its technology.

Galbot was established in 2023 and has completed several financing rounds at a valuation of over CNY20 billion (USD3 billion), according to data from corporate information platform Qichacha. Its investors include local capital, industrial capital, and venture capital firms.

Galbot’s products have been implemented in multiple industries, achieving scalable deployment in the industrial sector, retail, and pharmacies, and have completed two years of normalized operational verification, according to reports.

Yicai reached out to both Mech-Mind and Galbot for comment, but neither has responded.

Shao has voiced his opinion about the initial public offering frenzy in the robotics industry several times. Except for a few special cases, most firms should demonstrate product-market fit, have a genuine, sustainable business of a certain scale, and possess an adequate governance structure before considering an IPO, he believes.

Founded in 2016, Mech-Mind is a supplier of intelligent robot components, offering smart robot guidance products, intelligent detection, measurement products, and next-generation cornerstone components. It went public on the Hong Kong Stock Exchange on Sept. 1.

MEch-Mind’s shares [HGK: 9615] were trading up 7 percent at HKD95.70 (USD12.20) as of 1.40 p.m. today, giving it a market capitalization of nearly HKD12 billion (USD1.5 billion).

Of the companies pursuing Hong Kong IPOs, 10 robotics firms have already gone public in the first half of the year, and 16 others are pending regulatory approval, according to data from Choice.

The embodied intelligence sector is still in the early stages of development, with many companies attempting to explore and implement real-world applications, industry insiders told Yicai. But only a few companies in the industry have achieved profitability.

Moreover, some investors noted that the valuation system for embodied intelligence companies relies more on the "price-to-dream ratio" rather than on commercial fundamentals.

Editor: Futura Costaglione