Hai Rou Innovation's global market share remains at 30%, yet it still accumulates a loss of 2.9 billion yuan; cash flow is draining, with a redemption debt of 5.07 billion yuan looming overhead.

Ask AI · How does Hairou Innovation address operational risks caused by redemption liabilities from gambling agreements?

Changjiang Business Daily News ● Reporter Zhang Lu

Hairou Innovation, a leading ACR robot company, is officially rushing toward a Hong Kong IPO.

Recently, Shenzhen Hairou Innovation Intelligent Technology Group Co., Ltd. (hereinafter referred to as “Hairou Innovation”) submitted an application for listing on the Main Board of the Hong Kong Stock Exchange, with Goldman Sachs and CITIC Securities serving as joint sponsors.

Founded by three university students, this unicorn enterprise has secured its position as the world’s largest provider of ACR solutions through a decade of technological development and market expansion. In 2024, the company’s global market share exceeds 30%, with cumulative financing surpassing 4.1 billion yuan.

However, despite achieving global leadership, Hairou Innovation’s financial performance and accounting results are under pressure. The prospectus shows that from 2023 to the first three quarters of 2025 (“the reporting period”), the company incurred a total loss of 2.854 billion yuan, and has yet to turn a profit after nearly ten years of operation. The company’s total liabilities far exceed its assets, and multiple rounds of financing come with gambling redemption obligations, which are the core factors pressuring the balance sheet. After completing the Pre-IPO round of financing in January 2026, its redemption liabilities have increased to 5.074 billion yuan.

The Changjiang Business Daily notes that under the weight of huge gambling redemption obligations, the interest on Hairou Innovation’s redemption liabilities exceeds 200 million yuan annually, eroding profits. If the IPO fails, the company will face a liquidity crisis once these large redemption obligations are triggered.

Multiple investors betting on unprofitable company

Data shows that Hairou Innovation was co-founded in 2016 by Chen Yuqi, Xu Shengdong, and Fang Bing, three university students. The company targeted the emerging field of box-type warehouse robots and launched its first ACR solution, HaiPick System 1, in 2017, revolutionizing traditional warehousing logistics with a “cargo box to person” model.

Leveraging technological innovation and first-mover advantages, the company rapidly captured the global market. According to the prospectus citing Zhuoshi Consulting, in 2024, Hairou Innovation was the world’s largest ACR solution provider, with a market share exceeding 30% based on revenue and shipment volume. As of September 30, 2025, it had signed contracts with over 800 customers (including direct clients and channel partners), covering more than 40 countries and regions.

Hurun Research Institute’s “2025 Global Unicorn List” shows that as of January 1, 2025, there are six unicorn companies in the mobile robot sector (industrial and warehousing logistics): Geek+ (GeekPlus), Locus Robotics, Exotec, Dexterity, Hairou Innovation, and KuaiCang Intelligent. Among them, Hairou Innovation is valued at 9 billion yuan, slightly higher than KuaiCang’s 7.3 billion yuan.

In January 2026, Hairou Innovation completed a Pre-IPO+ round of financing, attracting private equity firms such as Atlantic Capital Group, Fong Yuan Capital, and IDG Capital. To date, the company has raised approximately “1.248 billion yuan + 418 million USD,” totaling about 4.133 billion yuan.

Contrasting its high valuation, Hairou Innovation has not yet achieved profitability after nearly ten years. The prospectus shows that from 2023 to the first three quarters of 2025, the company’s revenue was 807 million yuan, 1.36 billion yuan, and 1.263 billion yuan, respectively; net losses for the same periods were 1.009 billion yuan, 1.256 billion yuan, and 589 million yuan, totaling a loss of 2.854 billion yuan over two years and nine months.

The Changjiang Business Daily observes that high R&D investment and expenses are the main factors consuming profits. As a technology-intensive company, Hairou Innovation’s R&D expenses during the reporting period were 309 million yuan, 334 million yuan, and 258 million yuan, totaling 901 million yuan; R&D expense ratios were 38.3%, 24.5%, and 20.4%, respectively—though declining year by year, they remain high in the industry.

Compared to R&D, sales expenses are even more staggering. The prospectus shows that during the reporting period, sales and marketing expenses were 424 million yuan, 489 million yuan, and 386 million yuan, with sales expense ratios of 52.7%, 35.9%, and 30.5%. In 2023, sales expenses directly accounted for over half of revenue.

As of the end of September 2025, Hairou Innovation employed 604 sales and marketing personnel, accounting for 41.7% of total staff, surpassing R&D personnel.

Annual redemption liabilities interest exceeding 200 million yuan erodes profits

Beyond continuous losses, the company’s debt risks also pose significant obstacles to its IPO process.

The Changjiang Business Daily notes that the primary risk stems from increasing dependence on major clients, weakening revenue stability. The prospectus shows that from 2023 to the first three quarters of 2025, the top five customers contributed revenues of 259 million yuan, 498 million yuan, and 608 million yuan, accounting for 32.1%, 36.7%, and 48.2% of total revenue, respectively.

Among these, reliance on the largest customer has surged dramatically. During the reporting period, the largest single customer’s revenue share increased from 15.6% in 2023 to 12.7% in 2024, then sharply rose to 30.4% in the first three quarters of 2025, with a contribution of 384 million yuan—up 169.21% compared to the full year of 2024.

More critically, Hairou Innovation is already in a state of insolvency, with a severely unbalanced asset-liability structure. As of September 30, 2025, total assets were 2.716 billion yuan, but total liabilities reached 6.595 billion yuan, with negative net assets of -3.879 billion yuan, and a debt-to-asset ratio soaring to 242.8%.

Looking at the liability structure, current liabilities are the main pressure. At each reporting period’s end, current liabilities were 4.259 billion yuan, 5.576 billion yuan, and 6.388 billion yuan, rising rapidly. The multi-round financing with gambling redemption obligations is the core reason for the pressure on the balance sheet.

The prospectus shows that at each period’s end, redemption liabilities were 2.886 billion yuan, 3.512 billion yuan, and 3.961 billion yuan, accounting for over 62% of current liabilities. After completing the Pre-IPO round in January 2026, redemption liabilities further increased to 5.074 billion yuan, approaching 5.1 billion yuan—like a “Damocles sword” hanging over the company.

The Changjiang Business Daily notes that in past financings, Hairou Innovation granted investors redemption rights and other special rights. Although these rights were terminated when the company filed for listing, the terms include a “restoration mechanism.” If the company withdraws its listing application, is rejected, or fails to go public within 18 months after submitting the prospectus, these special rights will automatically be restored, potentially forcing the company into large-scale share buybacks and payment risks.

Financial pressure also directly impacts profitability and cash flow. During the reporting period, interest on redemption liabilities was 211 million yuan, 240 million yuan, and 212 million yuan, continuously eroding profits; meanwhile, net cash flow from operating activities was -482 million yuan, -196 million yuan, and -286 million yuan, with a total net outflow of 964 million yuan, indicating ongoing liquidity pressure.

Industry insiders say that if Hairou Innovation successfully lists this time, the raised funds could be used to repay debts, increase working capital, and optimize R&D and sales investments to ease current financial pressures; if the listing fails, triggering large redemption obligations could lead to insolvency and a broken capital chain.