Economist Fu Peng recently stirred discussion by pointing out that Unitree Technology's research and development expenditure lags behind the investment made by Muyuan Foods Group Co.,Ltd. in its pig farming operations, a comparison that has drawn mixed reactions from online commentators.

Speaking in an interview covered by financial media, Fu remarked that as a benchmark in the humanoid robotics sector, Unitree Technology should be channeling its IPO proceeds into R&D. However, a review of its financial statements reveals that its research budget is even smaller than what Muyuan Foods Group Co.,Ltd. allocates to R&D in its hog breeding business—a clear sign that the industry is still in its infancy.

According to Unitree Technology's prospectus, its R&D expenses stood at RMB 49.95 million in 2023, RMB 70.02 million in 2024, and RMB 145 million in 2025, bringing the cumulative total to RMB 265 million. In contrast, Muyuan Foods Group Co.,Ltd. spent RMB 1.648 billion on R&D for its pig farming operations in 2025 alone. While Unitree Technology's absolute R&D figure is only about one-eleventh of Muyuan Foods Group Co.,Ltd.'s, its R&D expenditure as a share of total revenue is more than seven times higher than the latter's.

Addressing the volatile share price of Unitree Technology since its listing as the so-called "first humanoid robot stock," Fu said the company's pre-IPO valuation had already exceeded broad market consensus. The post-listing price surge and subsequent swings have been dramatic. In his view, the robotics sector remains at a very early stage, and despite the completed IPO, the investment essentially carries the risk profile of venture capital in a primary market.

Fu added that amid fervent expectations of a tech浪潮, the company does not yet qualify as a long-term value or growth investment. While retail investors may use a small portion of their capital to speculate on its future potential, it is not suitable for those seeking stable investment returns.

He also highlighted several realities reflected in Unitree Technology's financials. First, its end customers are primarily academic and research institutions, with procurement largely funded by research grants that conclude once the purchase is completed. Second, similar robot assembly businesses have become increasingly common in the Shenzhen area, intensifying competitive pressure on the industry leader.

The comments sparked heated debate online, with many netizens arguing that directly comparing R&D expenses in absolute terms across two entirely different sectors is unfair. Since Muyuan Foods Group Co.,Ltd.'s annual revenue is dozens of times larger than Unitree Technology's, the scale gap makes such a comparison of limited reference value. Many suggested that a more reasonable metric for assessing a tech company's R&D intensity would be the ratio of R&D spending to total revenue, rather than cross-industry absolute figures.

Currently, Unitree Technology's R&D investment as a percentage of revenue far exceeds that of traditional manufacturing firms. The relatively low absolute numbers simply reflect that the industry has not yet reached a stage of large-scale revenue generation. Observers argue that a balanced approach—neither ignoring the growth potential of early-stage tech firms nor inflating valuations detached from fundamental data—is the sensible way to view the entire humanoid robotics sector.

On the first day of trading, Unitree Technology's shares spiked to RMB 1,100 per share at the open, corresponding to a total market capitalization of RMB 444.9 billion, setting a record for IPO openings under the registration system. A single lot yielded a maximum paper gain of nearly RMB 475,000. However, the stock has since fallen sharply from that peak, experiencing multiple consecutive sessions of decline.

The wild price swings reflect several underlying factors. The trading float structure was the immediate technical driver behind the distorted first-day surge. At listing, only 7.44% of total shares were freely tradable, and with such limited supply meeting fervent market demand for the humanoid robotics theme, short-term prices were easily bid up. The peak market cap of RMB 444.9 billion was more a liquidity-driven trading illusion than a commonly accepted fair value estimate.

Another factor is slowing earnings growth. According to the prospectus, Unitree Technology posted a net profit attributable to shareholders of RMB 278 million and revenue of RMB 1.699 billion in 2025, following years of explosive multi-fold growth. But in 2026, the trajectory shifted. In the first half, revenue rose 48.54% year-on-year to RMB 1.152 billion, yet non-GAAP net profit fell 19.34% to RMB 244 million, signaling a trend of rising revenue without corresponding profit gains.

Some analysts had already cautioned during the IPO phase that the offering price implied a price-to-earnings ratio of 219 times, based on assumptions of sustained ultra-high growth for years to come. If growth decelerates, the elevated valuation would be difficult to justify through earnings. As of today's close, Unitree Technology's A-shares settled at RMB 615.03, up 3.97% on the day, with a total market value of RMB 248.8 billion.