With the popularity of the theme, the capitalization process of robotics companies has accelerated significantly. Recently, Shenzhen Le Dong Robot Co., Ltd. (hereinafter referred to as “Le Dong Robot”) submitted an IPO application to the Hong Kong Stock Exchange. Le Dong Robot focuses on visual perception products such as LiDAR, generating revenue of 341 million yuan in 2024, accounting for over 70% of its total income. Based on 2024 revenue, Le Dong Robot is already the world’s largest intelligent robotics company centered on visual perception technology. In the same year, the number of intelligent robots equipped with its visual perception technology exceeded 6 million units.
Even so, compared to the gross profit margin of over 60% often seen in A-share visual perception company Orbbec (688322.SH), Le Dong Robot’s gross profit margin is less than one-third of the former. In response, Le Dong Robot is strengthening its side business—intelligent robotic lawn mowers. So far in 2025, sales of Le Dong Robot’s intelligent robotic lawn mowers have exceeded 15,000 units, surpassing the total sales for 2024. However, with many domestic brands entering the robotic lawn mower market, whether Le Dong Robot’s products are sufficiently competitive remains to be verified.
The figures are over 20 percentage points higher than those of Le Dong Robot. This discrepancy may be related to differences in service sectors. Companies like Opt and Orbbec primarily serve both consumer and industrial-grade product fields, whereas Le Dong Robot’s sensors are mainly concentrated in consumer-grade service robots, such as sweeping robots and restaurant service robots.
Amid low gross profit margins, Le Dong Robot acknowledges that it has implemented price reductions on its products to maintain its market share in household robots. However, the strategy of compensating for lower prices with higher volume also exposes its lack of bargaining power and influence within the industrial chain to some extent. The algorithm modules of Le Dong Robot achieve relatively higher gross profit margins. These modules primarily involve various algorithms like SLAM, providing spatial perception functions for intelligent robots. In 2024, the gross profit margin for this segment could reach 31.3%, over 16 percentage points higher than that of sensors. However, revenue from this segment is showing a shrinking trend. In 2024, algorithm module revenue, accounting for 20% of the total, was 99 million yuan, a decline of over 20% compared to 2022. This is also a result of price reductions. Although order volume for algorithm modules has increased, continuously falling prices have had a negative impact. Perhaps a more critical variable is that more end-market robot companies are increasing their investment in in-house algorithm R&D. Le Dong Robot’s algorithm modules include SLAM, path planning and autonomous navigation, AI object recognition and obstacle avoidance, aiming to provide spatial awareness and mobility for robots in complex environments. However, after prolonged in-house development, smart terminal companies like Dreame and Roborock (688169. SH) are maturing similar algorithmic capabilities. As early as 2021, Dreame established a team specifically to develop SLAM algorithm technology for rapid mapping, now applied across its range of sweeping robot products. Roborock’s self-developed ‘LDS LiDAR + SLAM’ algorithms collectively form simultaneous localization and mapping technology, effectively planning paths. The contraction of the algorithm module business is compressing Le Dong Robot’s gross profit space. In 2024, Le Dong Robot’s overall gross profit margin was 19.5%, nearly 8 percentage points lower than in 2022. Whether the flagship sensor business will follow the same path as the algorithm modules is perhaps the challenge Le Dong Robot currently faces. Entering the Lawn Mower Market Facing potential challenges in its B2B business, Le Dong Robot’s strategy is to directly access the end market by manufacturing robots itself. The first pain point it is addressing is the widespread need for lawn mowing in household garden care in mature market regions. Le Dong Robot believes there is significant growth potential for robotic lawn mowers in Europe, North America, and Australia, but current products suffer from insufficient innovation, inadequate perception capabilities in complex environments, and low cost-effectiveness.In 2024, Le Dong Robot launched and mass-produced its first-generation intelligent robotic lawn mower, generating revenue of 23 million yuan from sales exceeding 10,000 units that year. Sales of intelligent mowers have continued to grow, with over 15,000 units sold from the beginning of 2025 to date, surpassing the total sales of the previous full year.
This business segment possesses higher added value. Its gross profit margin of 33.6% in 2024 helped stabilize the overall gross margin trend. The market prospects for intelligent robotic lawn mowers are indeed vast. In 2024, global sales and market size for intelligent mowers were 383,500 units and 6.1 billion yuan, respectively, with a penetration rate of less than 2% in the global lawn machinery market. CIC predicts that the penetration rate for intelligent robotic lawn mowers will reach 17% by 2029, with a corresponding market size of approximately 47.6 billion yuan. However, competition is equally intense, with domestic companies having set their sights on this market early. Ninebot (689009.SH) is the world’s first boundary-free robotic mower brand with 100,000 household users, achieving revenue of 861 million yuan from its robotic mowers in 2024. Last year, Ninebot released the Segway Navimow intelligent robotic mower X3 series, capable of covering mowing areas up to 10,000 square meters, suitable for larger garden scenarios such as estates, castles, and hotels. In February 2025, Dreame announced that its robotic mower shipments had exceeded 100,000 units. More players have entered the market this year. In January, Roborock launched its first robotic mower product, officially entering the yard robot market. Simultaneously, Ubtech (9880.HK) announced the launch of the intelligent mower M10 in collaboration with Qualcomm, supporting extensive signal coverage over 138,000 square meters. This likely brings greater competitive pressure to Le Dong Robot. Compared to some profitable competitors, Le Dong Robot remains mired in losses, with a net loss of 56 million yuan in 2024. However, this IPO is expected to “replenish ammunition” for the company. One of the fundraising purposes is to upgrade existing intelligent robotic mower products to enhance their technological capabilities and market competitiveness. Le Dong Robot plans to upgrade its robots, transitioning from providing a single mowing function to a full-scenario intelligent garden maintenance system. Whether it can achieve a remarkable transformation through its robotic mowers is something the market is watching closely. Risk Warning and Disclaimer: The market carries risks, and investment requires caution. This article does not constitute personal investment advice, nor does it consider individual users’ specific investment objectives, financial situations, or needs. Users should consider whether any opinions, views, or conclusions in this article suit their particular circumstances.Invest accordingly at your own risk.
