Robotics Companies Face Mass Exits Amid Cash Flow Crises

Recent reports indicate that numerous robotics firms, including Yinghe Robotics and Shenlan Robotics, have entered bankruptcy or liquidation procedures in China over the past two years. Despite earlier high valuations and significant investment from major institutions, many companies struggled to convert technical capabilities into profitable products due to long development cycles, high customization costs, delivery challenges, and an inability to secure stable paying customers. The article notes that while some firms like Wangyuan Technology achieved profitability in 2025 with revenue of 812 million yuan, others faced severe debt issues or operational shutdowns, highlighting a sharp industry divergence driven by unsustainable expansion models and weak cash flow conversion.