Key Takeaways:
- Zhiyuan Group spins off its quadruped robot unit, Zhiyuan Kuotuo.
- The new company targets 500 million yuan in revenue by 2026.
- Upcoming D2 Max robot to feature L3 intelligent all-terrain navigation.
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Zhiyuan Kuotuo targets 500 million yuan revenue by 2026
Zhiyuan Group’s new subsidiary is targeting the industrial robotics market with a focus on AGI, claiming current quadruped robots from competitors like Unitree and DeepRobotics are “brainless.” Zhiyuan Kuotuo, spun out from the group’s Lingxi product line, is aiming for 500 million yuan in revenue by 2026 and 10 billion by 2030.
"There is no competition in making quadruped robots right now," Qiu Heng, COO of Zhiyuan Kuotuo, said at a media event in Shanghai. Qiu stated that the market is buying intelligence, not just hardware, adding that a customer "won't buy a second silly dog."
The company’s aggressive financial goals are backed by strong early performance. In the first quarter of 2024, Zhiyuan Kuotuo surpassed its entire revenue for the previous year, with overseas orders accounting for over 40 percent of sales. Demand for its medium-sized quadruped robots has been so high that the company’s warehouse is empty, requiring it to recall demonstration units for an upcoming partner conference.
This move signals a potential disruption in the industrial robotics sector, where Zhiyuan aims to leverage its AGI research and shared supply chains from its humanoid robot division to gain an edge. The company believes its upcoming D2 Max robot, touted as the first to feature L3 intelligent driving for all-terrain environments, will be a key differentiator, with the market inflection point expected in 2026.
D2 Max and L3 Navigation
Zhiyuan Kuotuo's upcoming D2 Max will be its key product for differentiation. The company claims it will be the first quadruped robot with L3 intelligent driving capabilities, allowing it to navigate complex, all-terrain environments autonomously. Unlike automotive L3, which operates on relatively flat surfaces, the robot's "3D intelligent driving" is designed for uneven ground, slopes, and obstacles found in industrial sites. "A normal person sees a pit and either goes around it or jumps over it, they don't step into it," Qiu explained, contrasting his company's "eyes-open" approach with what he describes as the "eyes-closed" method of current robots that rely on reinforcement learning after a misstep.
Competitive and Market Strategy
While competitors like Unitree and DeepRobotics have larger shipment volumes, Qiu argued that Zhiyuan Kuotuo's scale should be viewed in terms of shared components with its parent's humanoid robots. The total number of robotic joints across both divisions, he says, gives Zhiyuan a significant advantage in supply chain negotiations, which will help drive costs down.
For now, the company is focusing exclusively on the business-to-business market, targeting sectors such as power grid inspection, mining, security, and logistics. "We want to make productivity tools," Qiu said, ruling out a consumer-facing product in the near term. The company also has no immediate plans for external financing, with leadership stating the market is too valuable to dilute ownership at this early stage.
This article is for informational purposes only and does not constitute investment advice.
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