Ladung Robotics continues to incur losses with significant fluctuations in gross profit margin, and operating cash flow is under pressure.

Ask AI · Behind the Fluctuation in Gross Margin: How Has the Business Structure Evolved?

Harbor Business Observation — Shi Zifu

On December 1, 2025, Shenzhen Leteng Robotics Co., Ltd. (hereinafter, “Leteng Robotics”) submitted its listing application to the Hong Kong Stock Exchange. Haitong International and Guotai Junan International are the joint sponsors.

This is not Leteng Robotics’ first listing submission. On May 30, 2025, Leteng Robotics had previously submitted its initial listing application to the Hong Kong Stock Exchange. However, because the application failed to pass the hearing after the filing, the application materials automatically lapsed six months later.

In August 2025, the China Securities Regulatory Commission (CSRC) issued overseas listing filing feedback opinions, requiring the company to provide supplementary explanations and issue clear legal opinions in five key areas: foreign investment entry, equity holding on behalf of others, equity incentives, data security, and “full circulation” shares.

On March 6 of this year, the CSRC’s International Cooperation Department issued a notice on the “full circulation” filing for overseas issuance and listing and onshore unlisted shares of Shenzhen Leteng Robotics Co., Ltd. The company plans to issue no more than 86.25 million shares of overseas listed ordinary shares and list them on the Hong Kong Stock Exchange. The company’s 25 shareholders plan to convert a total of 300 million shares of onshore unlisted shares into overseas listed shares and make them available for trading on the Hong Kong Stock Exchange.

1

Overseas business share rises; gross margin falls first then rebounds

Tianyancha shows that Leteng Robotics was founded in 2017. According to data from Analysys Consulting, Leteng Robotics is a global leading full-stack intelligent robotics company based on perception intelligence. The company builds intelligent robot infrastructure centered on visual perception and empowers various robot application scenarios, while also offering visual perception products and complete intelligent robot products suitable for emerging scenarios.

According to Analysys Consulting data, based on 2024 revenue, Leteng Robotics is the world’s largest intelligent robotics company centered on visual perception technology.

During the period covered in the performance record, Leteng Robotics’ revenue mainly came from sales of visual perception products and lawn-mowing robots.

From 2022 to 2024 and from January to June 2025 (hereinafter, the “reporting period”), the company’s sales revenue from visual perception products was RMB 229 million, RMB 274 million, RMB 439 million, and RMB 307 million respectively, accounting for 97.8%, 99.1%, 94.0%, and 79.4% of total revenue for the respective period.

Visual perception products are subdivided into sensors and algorithm modules. During this period, sensor revenue was RMB 104 million, RMB 167 million, RMB 341 million, and RMB 228 million respectively, representing 44.3%, 60.5%, 72.9%, and 59.1%; algorithm module revenue was RMB 125 million, RMB 107 million, RMB 98.71M, and RMB 78.44M respectively, representing 53.5%, 8.6%, 21.1%, and 20.3%.

From 2022 to 2024, the revenue share from sensor sales increased steadily, while the revenue contribution from algorithm modules kept declining, mainly because although the order volume of algorithm modules increased, their unit prices continued to fall during the same period, resulting in an overall decline in revenue from this business.

By application scenario, visual perception products are mainly used in home scenarios. During the reporting period, revenue from home scenarios was RMB 219 million, RMB 269 million, RMB 434 million, and RMB 297 million respectively.

Leteng Robotics also has some revenue from selling lawn-mowing robots. In 2023, 2024, and January to June 2025, revenue from this business was RMB 0.063 million, RMB 63k, and RMB 23.27M respectively. Among them, in 2024 and January to June 2025, lawn-mowing robot business accounted for 5.0% and 20.0% of Leteng Robotics’ total revenue for the respective period, with a clear increase in sales.

Due to mass production and sales of lawn-mowing robot products in international markets, starting from 2024, the proportion of the company’s revenue from overseas has increased.

During the reporting period, the proportion of sales revenue from Mainland China was 97.9%, 99.7%, 96.0%, and 83.9% respectively, while overseas regions accounted for 2.1%, 0.3%, 4.0%, and 16.1% respectively.

With business expansion, the company’s product shipment volume increased, driving a corresponding increase in overall revenue. During the reporting period, Leteng Robotics achieved revenue of RMB 234 million, RMB 277 million, RMB 467 million, and RMB 386 million respectively, with gross profit of RMB 77.46M, RMB 71.11M, RMB 91.32M, and RMB 98.28M respectively.

Due to different business characteristics, the sensors, algorithm modules, and lawn-mowing robot products show different gross margin rates, leading to significant fluctuations in the company’s overall gross margin.

During the reporting period, sensor gross margins were 18.6%, 18.5%, 15.2%, and 19.5% respectively; algorithm module gross margins were 35.2%, 37.4%, 31.3%, and 23.0% respectively. The company’s overall gross margins were 27.3%, 25.7%, 19.5%, and 25.4% respectively. From 2022 to 2024, Leteng Robotics’ gross margin experienced a back-to-back decline, with a combined drop of 7.8 percentage points over three years. In the first half of 2025, the company’s gross margin rebounded again.

2

Sustained losses of RMB 200 million; tight operating cash flow and balance-sheet funds

During the performance record period, Leteng Robotics’ customers covered seven of the top ten global home service robotics companies and all of the top five global commercial service robotics companies.

At the end of each period in the reporting period, the total revenue from the company’s five largest customers was RMB 158 million, RMB 180 million, RMB 254 million, and RMB 203 million, respectively, accounting for 67.4%, 65.1%, 54.3%, and 52.6% of total revenue for the respective period.

In 2023, 2024, and January to June 2025, Leteng Robotics’ customer retention rates were approximately 84.0%, 90.0%, and 94.0% respectively. In addition, during the same periods, the company’s customer net revenue retention rates were approximately 113.0%, 145.0%, and 169.0% respectively.

Like most of the robotics industry, Leteng Robotics is also experiencing sustained losses.

During the reporting period, the company’s net profits were RMB -73.13M, RMB -68.49M, RMB -56.48M, and RMB -13.78M, respectively. After adjustment, net profits were RMB -61.82M, RMB -55.78M, RMB -44.68M, and RMB 2.18M respectively. Net profit margins were -31.3%, -24.8%, -12.1%, and -3.6% respectively; adjusted net profit margins were -26.4%, -20.2%, -9.6%, and 0.6% respectively. Over three and a half years, Leteng Robotics’ cumulative losses exceeded RMB 212 million.

The company stated that the losses were mainly due to the company’s strong push for product innovation, technological advancement, expanding production capacity, and establishing new marketing production lines. Meanwhile, because lawn-mowing robots were designated as the company’s second major growth driver, Leteng Robotics has also continuously shifted its R&D focus toward this product.

Operating in a rapidly developing intelligent robotics industry, Leteng Robotics also places great importance on its own R&D investment.

During the reporting period, the company’s sales and marketing expenses were RMB 13.91M, RMB 21.27M, RMB 31.43M, and RMB 36.16M respectively, accounting for 5.9%, 7.7%, 6.7%, and 9.4% of revenue for the respective period. Administrative expenses were RMB 45.66M, RMB 40.83M, RMB 36.92M, and RMB 33.44M respectively, accounting for 19.5%, 14.8%, 7.9%, and 8.7% of revenue respectively. R&D expenses were RMB 96.7M, RMB 95.94M, RMB 94.86M, and RMB 51M respectively, accounting for 41.4%, 34.7%, 20.3%, and 13.2% of revenue respectively.

Leteng Robotics said: the company’s R&D expense ratio has continued to decline, mainly attributable to the company’s rapid revenue growth and rapid improvement in R&D efficiency. In the first half of 2025, sales and marketing expenses increased, mainly due to marketing activities related to lawn-mowing robots and an increase in employee benefits expenses.

Zhang Xiaorong, president of DeepTech Research Institute, believes that robotics enterprises generally experience sustained losses. The core reasons are high R&D investment, fewer market application scenarios, and intense market competition. Companies need to continuously invest funds in technical R&D and innovation, but intense industry competition also forces product prices to keep falling. At the same time, the actual demand in many application scenarios and the replacement effect on labor costs may not meet expectations, making it difficult for companies’ revenue to cover costs, so they are generally in a stage of strategic losses.

With sustained losses, Leteng Robotics’ cash flow has also been under pressure.

At the end of each period in the reporting period, the company’s net cash flow generated from operating activities was RMB -40.65M, RMB -49.15M, RMB -29.1M, and RMB -105.0 million respectively, representing ongoing net cash outflows. Cash and cash equivalents at the end of each period were RMB 242.0 million, RMB 27.59M, RMB 46.95M, and RMB 60.74M respectively.

External parties are also paying attention to the surge in Leteng Robotics’ payables to suppliers. At the end of each period in the reporting period, the company’s trade payables and bills payable were RMB 44.77M, RMB 96.1M, RMB 193 million, and RMB 316 million respectively.

Regarding debt-paying ability, as of the end of each period in the reporting period, Leteng Robotics’ asset-liability ratio was 16.4%, 24.6%, 37.6%, and 49.4% respectively, indicating a relatively rapid increase in the asset-liability ratio.

As of the latest date on which it is actually feasible, Zhou Wei, Guo Gaihua, Zhou Wei’s spouse Wang Mingyue, and the entity Photon Space controlled by Zhou Wei, which are the persons acting in concert, together directly hold 31.96% of the company’s equity interests.

In this IPO, Leteng Robotics plans to use the proceeds primarily to strengthen R&D of intelligent robot visual perception technology; brand building and international expansion; optimize production capacity and expand production capacity; explore potential investment and acquisition opportunities; as well as working capital and general corporate purposes. (Produced by Harbor Finance)