China’s Unitree Robotics Warns of Scams Amid Investor Frenzy
Unitree Robotics, a fast-rising Chinese robotics start-up, has warned investors about scams as interest in acquiring shares of the privately held company surges.
The Hangzhou-based company issued a statement on WeChat on Wednesday, cautioning that all new and existing shares are managed directly by its financing head and communicated only through official email. It emphasised that there are no middlemen, middle shareholders, or intermediary companies involved.
Unitree has become a sought-after investment target after its founder, Wang Xinxing, was seen in the front row at a high-profile business symposium hosted by Chinese President Xi Jinping last week.
Wang, 35, was the youngest among a group of elite tech executives at the event, which included Huawei Technologies founder Ren Zhengfei, 80, and Alibaba Group Holding founder Jack Ma, 60.
Investor enthusiasm for Unitree has intensified following the performance of its H1 humanoid robots during this year’s Spring Festival Gala, China’s most-watched television programme. Stocks linked to the company have surged, with Zhejiang Changsheng Sliding Bearings, a supplier of robot arms to Unitree, seeing its share price more than triple this year.
The company warned that false information about its shares is circulating in the market. "Almost all of it is fake," Unitree stated, urging investors to be cautious to avoid scams.
Beijing-based angel investor Guo Tao, who does not hold a stake in Unitree, estimated that the company’s valuation would reach at least 12 billion yuan (USD 1.6 billion) in its next funding round. He noted that numerous investment institutions are vying for a share.
Chinese tech news site 36Kr reported on Wednesday that three buyers had expressed interest in acquiring Unitree shares. Two of them valued the company at around 10 billion yuan, while one seller was looking to offload its stake in a capital fund that owns shares in the start-up.
Unitree was valued at 8 billion yuan in its previous funding round in September. The growing momentum has also boosted the valuations of other robotics firms.
A Chinese technology investor revealed that his entity had invested in two robotics start-ups after the Lunar New Year, citing a "fear-of-missing-out" mentality despite rising valuations.
Wang founded Unitree in August 2016 after his quadruped robot prototype, XDog, gained media attention, securing an angel investment of 2 million yuan.
Last year, Unitree raised over 1 billion yuan in two funding rounds. Its investors include a Beijing municipal government-backed robotics fund, a Shanghai government technology fund, state-owned venture firm Shenzhen Capital Group, as well as Meituan’s venture capital arm, Xiaomi’s Shunwei Capital, HongShan Capital Group, Matrix Partners, and Source Code Capital.
According to Chinese corporate information tracker Tianyancha, Wang remains the controlling shareholder of Unitree with a 33% stake.
Unitree Robotics warned investors about scams amid rising interest in its shares.
The company stated that all shares are managed directly, with no middlemen involved.
Founder Wang Xinxing attended a high-profile business symposium with President Xi Jinping.
Source: SCMP