Credit: CFP
AsianFin -- When Alibaba Group CEO Eddie Wu's name appeared in the IPO prospectus of LD Robot, it stirred curiosity across China's tech and investment circles. Who is this relatively unknown robotics firm—and why is it attracting such high-profile backing?
Founded eight years ago by Zhou Wei, a 38-year-old serial entrepreneur from Xiangyang, Hubei province, LD Robot has quietly built a business around visual perception technologies for service and commercial robots.
The company holds over 250 patents, was named a national-level "Little Giant" enterprise in 2022, and claims to power more than six million smart robots globally—serving seven of the world's top 10 service robot companies and all five of the leading commercial robot manufacturers.
Yet beneath this gleaming surface lies a more complex story—one marked by near 200 million yuan ($28 million) in cumulative losses over the past three years, a deteriorating gross margin, and growing dependence on low-margin sensor sales. As LD Robot transitions from a parts supplier to a full-fledged device manufacturer, the IPO filing reveals operational challenges and mounting financial pressure.
Zhou's entrepreneurial journey began in the robotics club at Huazhong University of Science and Technology, where he studied mechanical engineering and later pursued a graduate degree in industrial engineering. In 2008, he co-founded Wuhan Robit Robotics, focused on developing special-purpose robots for commercial use.
By 2010, Zhou had partnered with investor Wu Xilong to launch Dongguan Ebot, but the collaboration soured. In 2012, Zhou exited the venture and went on to found Shenzhen-based INMOTION Technologies, which gained recognition in the self-balancing scooter space, attracting major investors such as Tisiwi Capital and Tiantu Capital. Zhou even made Forbes China's "30 Under 30" list in 2015.
However, his earlier partnership came back to haunt him. In 2013, Dongguan Ebot accused Zhou and his team of trade secret infringement, prompting a criminal investigation. Zhou and his co-founders were eventually detained between 2018 and 2019. The case—described by Chinese media as the "biggest legal scandal in the self-balancing scooter industry"—ended in 2019 when prosecutors dropped the charges.
In late 2017, Zhou regrouped with co-founder Guo Gaihua to start LD Robot, aiming to build perception hardware and software for smart machines. The company now also makes consumer-facing lawn-mowing robots—its so-called "second growth curve."
LD Robot's investor roster has steadily grown more prestigious. Its January 2022 Series C round raised 300 million yuan from backers including Yuanjing Capital—founded by Alibaba CEO Eddie Wu—along with China Unicom Capital and Source Code Capital.
As of the IPO filing, Zhou holds a 20.55% stake, while a control group including his wife Wang Mingyue and longtime partner Guo owns nearly 40%. Institutional investors include Tibet Wanqing (14.9%), Hunan Huaye (11.7%), and Yuanjing Capital (4.08%).
But Zhou's path to Hong Kong's stock exchange is clouded by financial warning signs.
LD Robot posted revenue of 467 million yuan in 2024, up 69% from the prior year. Yet the company has been in the red for three straight years, with combined net losses reaching 198 million yuan. Meanwhile, gross margins have slid from 27.3% in 2022 to 19.5% in 2024.
The company's main revenue driver—visual perception products—has tilted toward sensors rather than algorithm modules. Sensor sales grew from ¥104 million in 2022 to 341 million yuan in 2024, now accounting for nearly 73% of total revenue. But their gross margin stands at just 15.2%, compared with 31.3% for the more sophisticated algorithm modules.
The company's signature lawn-mowing robot, introduced in 2023, saw explosive growth in 2024—sales jumped from just 23 units to over 10,000. In the first five months of 2025, LD Robot sold an additional 15,000 units. While this product boasts higher margins, it accounted for only 5% of revenue last year.
Meanwhile, R&D expenses have remained above ¥94 million annually, representing over 20% of revenue in 2024. Coupled with an 83% jump in cost of sales, the company's path to profitability appears uncertain.
Cash flow is another concern. As of April 30, 2025, LD Robot's current liabilities had ballooned to 405 million yuan, far outpacing its cash reserves of just 46.9 million yuan. The company is also owed ¥227 million in accounts receivable, raising concerns over delayed payments from clients.
As LD Robot shifts from supplying sensors and modules to making full devices, it's also wading into competition with some of its own clients. In 2022, its top five customers contributed more than two-thirds of revenue. That figure dropped to 54.3% in 2024, but customer concentration remains a risk.
Three of its former top clients—including its largest from 2022—have since exited the top five, potentially due to competitive conflicts from LD Robot's move into lawn-mowing robots. The company did not respond to requests for comment.
LD Robot is also entering a crowded consumer robotics market. In China, it faces off against powerhouses like Ninebot, Ecovacs, and Dreame, all of which boast strong brands and retail networks. Whether Zhou can build consumer trust and brand recognition remains to be seen.
To broaden its reach, LD Robot is setting up overseas centers in Singapore, Hong Kong, and Germany, aiming to build an international brand for its lawn-mowing robots. Industry data shows global sales of smart lawn robots are set to grow from 38,000 units in 2024 to 3.4 million by 2029, with a 54.7% CAGR.
From escaping legal limbo to courting global markets, Zhou's journey is emblematic of the volatility and resilience found in China's deep tech startup ecosystem.
While LD Robot's IPO is buoyed by star-studded backers and promising technology, its ability to rein in losses, manage client relationships, and build a consumer brand will determine whether it becomes the next robotics success—or cautionary tale.
更多精彩内容，关注钛媒体微信号（ID：taimeiti），或者下载钛媒体App
