{"text":[[{"start":7.94,"text":"This article only represents the author's own views."}],[{"start":11.940000000000001,"text":"China’s robotics industry is increasingly crowded with the spectacle of humanoids — sleek machines performing slickly choreographed dances that capture public imagination. But amid the hype and public delight, many tend to overlook a new generation of more practical autonomous robots that are quietly transforming businesses by automating factories and industrial operations."}],[{"start":38.769999999999996,"text":"A major player in this pragmatic space is Beijing Geekplus Technology Co. Ltd. (2590.HK), which makes autonomous mobile robots (AMRs) that move and handle goods in warehouses. These robots may lack the flashiness of their dancing and back-flipping humanoid peers. But they’re doing something even more important by generating big business for names like Geekplus, a leading company in the sector."}],[{"start":70.39999999999999,"text":"That momentum was on display in Geekplus’ own version of a financial dance last week, as it reported its order intake leaped 31.7% to 4.1 billion yuan ($591 million) in 2025, according to its business update. Management attributed the growth to the company’s move into new industries, strong demand from emerging markets, and repeat orders from existing clients."}],[{"start":99.52999999999999,"text":"Investors were unimpressed with the upbeat report, perhaps expecting even better. The stock fell nearly 9% the day after the announcement. Still, its Monday close of HK$25.16 is up about 50% from its listing price of HK$16.80 – reflecting a recent craze among Hong Kong investors towards robotic stocks."}],[{"start":125.57,"text":"The company enjoys several advantages in investor eyes. Topping that list is its position as a top player in the AMR space. It’s also well diversified geographically, meaning it isn’t overly reliant on any single market. And it has shown an ability to report sustained growth – something that’s often difficult in such a fast-moving industry with many rivals. One critical milestone the company has yet to achieve is profitability – something investors will be watching closely when it announces its official 2025 results in March."}],[{"start":163.06,"text":"We’ll take a look at all those elements shortly, as well as analyze when or whether the company will be able to turn a profit. But first we’ll review the company’s business, including its history."}],[{"start":175.1,"text":"Geekplus was founded by Zheng Yong, now 45, a graduate of Tsinghua University, considered China’s top science school. Before founding Geekplus, Zheng held positions at ABB (ABBN.SW) in robotics and automation solutions operations management, and at Saint-Gobain (SGO.PA) as a factory manager. He set up Geekplus in 2015, and the company listed on the Hong Kong Stock Exchange a decade later in July last year."}],[{"start":210.39,"text":"Path to profit"}],[{"start":212.48,"text":"The warehouse automation solutions that are Geekplus’ bread-and-butter aren’t new — companies like ABB have provided them for years. Instead, Geekplus distinguishes itself through its integration of advanced navigation devices and onboard control systems into its robots, which gives them a high degree of autonomy and mobility."}],[{"start":234.16,"text":"That allows its robots to operate independently in mapped environments and perform multiple complex logistical tasks, including material handling, picking, and sorting. This contrasts with traditional robots that typically perform single functions — for example, AS/RS systems that are designed mainly for storage, and conveyors that are primarily used to move around goods."}],[{"start":260.90999999999997,"text":"Citing third-party research in its 2025 prospectus, Geekplus said AMRs are gaining share in the overall warehouse automation market. The research projects that AMR penetration will reach 20.2% by 2029, when the global warehouse automation market is expected to reach 804 billion yuan ($116 billion), up from 530 billion yuan and a 10.3% penetration rate in 2025."}],[{"start":294.34999999999997,"text":"Geekplus said it is the second-largest player in the growing AMR segment with 6.2% of the global market in 2024. It trails the industry leader, which held 7.2% share. But these relatively small figures reflect the fragmented nature of the young market."}],[{"start":314.04999999999995,"text":"The company's rapid growth is evident in its revenue trajectory. Its revenue reached 2.4 billion yuan in 2024, up 60% from 1.5 billion yuan in 2022. Its revenue in the first half of last year grew 31% to 1 billion yuan, according to its latest financial report, and its latest business update suggests the figure should continue growing at a similar rate for the whole year."}],[{"start":344.84999999999997,"text":"Despite its solid position, Geekplus still faces fierce competition from rivals like Norway's AutoStore (AUTO.OL), Japan's Murata Machinery (6981.T), and America’s Dematic. But the company’s geographic diversity sets it apart from its domestic rivals, and could be a draw for investors. For the first six months of last year, it generated about 80% of its revenue overseas, with China accounting for the rest. Its IPO prospectus shows its revenue was fairly evenly distributed across different regions in 2024."}],[{"start":382.93999999999994,"text":"Markets such as Latin America and Africa offer significant expansion opportunities, as AMR penetration in warehouse automation remains low there. Last week's business update highlighted continued traction in Latin America and Eastern Europe, two regions expected to see increasing AMR adoption with the growing popularity of e-commerce. This suggests the rise of e-commerce in other developing markets could provide similar opportunities."}],[{"start":412.42999999999995,"text":"The company is expected to continue on a growth track this year, with 14 analysts polled by Yahoo Finance projecting the figure will climb by about 34%. If it achieves such growth, there’s hope it could soon turn a profit – or possibly be profitable already. The company has seen its losses narrow significantly, from 550 million yuan in the first six months of 2024 to 48 million yuan in the same period of last year. Morgan Stanley said in an August report that it believes the company reached breakeven in the second half of last year."}],[{"start":449.96999999999997,"text":"Geekplus isn’t immune from all the hype about humanoid robots, and has entered that space in its search for new growth. CEO Zheng Yong announced this month that the company will go \"all in\" on embodied AI, accelerating algorithm development, data collection, and mass applications."}],[{"start":469.66999999999996,"text":"Compared to Chinese peers like Unitree and Agibot that focus specifically on humanoid and other embodied robots like dogs and are preparing for public listings, Geekplus believes it is better positioned to put such robots to practical use beyond performing eye-catching dances. That advantage stems from its experience deploying products in industrial settings using its warehouse automation robots."}],[{"start":497.79999999999995,"text":"Still, the company will need to tread carefully. Heavy investment in new technologies could tip it back into the red, even if it managed to achieve breakeven in the second half of last year. The company’s big challenge will be balancing resources between its core AMR business and prudent spending on its humanoid robot development, a field still searching for commercial applications. How Geekplus manages this transition could determine whether it maintains its momentum or stumbles and falls in its own delicate robotic dance towards profitability."}],[{"start":542.3699999999999,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1770720317_7065.mp3"}