Riding the OpenAI robot trend? Zhongjian Technology's net profit doubles, but excluding non-recurring gains, it declines by 20%

Ask AI · Zhongjian Technology’s net profit growth relies on its 1X investment—how can the main business pivot break through?

Deng Hao, a reporter with the 21st Century Business Herald

The scorching wave of embodied intelligence is sweeping through China’s A-share market, with many companies using it to expand their second growth curve, and Zhongjian Technology is one of them.

On the evening of March 30, Zhongjian Technology disclosed its 2025 financial report, and a set of figures caught considerable attention. Last year, it achieved attributable net profit of RMB 173 million, up 166.85% year over year; however, its non-recurring net profit was only RMB 41 million, down 22.04% year over year.

Behind the seemingly contradictory picture is Zhongjian Technology’s investment in the humanoid robot track several years ago. This company is 1X (OpenAI has also taken part as an investor multiple times) that has been hotly sought after in the primary market. In recent years, it has been extending into home consumer scenarios, with its valuation rising rapidly.

At the open on March 31, Zhongjian Technology surged and then fell back. As of the midday close, it was down 0.41%.

1X’s profit contribution accounts for more than 90%

In March 2024, Zhongjian Technology invested in 1X Holding AS (hereinafter “1X”). This investment is now proving to be an excellent deal.

According to Zhongjian Technology’s 2025 annual financial report, the investment income recognized from 1X amounts to as much as RMB 167 million, accounting for 96.05% of profits. Zhongjian Technology also explained, “(Performance changes) are due to increased investment in the embodied intelligence business leading to significant year-over-year increases in R&D expenses and administrative expenses. The effect of the increase in attributable net profit last year mainly comes from investment income generated by changes in the fair value of its wholly-owned subsidiary TOPSUN USA INC.’s indirectly held portion of equity interests in 1X Holding AS.”

1X is the world’s first general robot manufacturer to achieve commercial use. Its predecessor, Halodi Robotics, was founded in Norway in 2014. In 2020, it successfully received an order for 140 humanoid robots from ADT Security Services, a leading U.S. security services company, and in the global market, it was among the first to achieve commercial implementation.

In August 2024, 1X officially launched a prototype of a biped humanoid robot designed specifically for home use—NEO Beta—marking that NEO is about to transition from concept development to home consumer scenarios.

In March 2025, at NVIDIA’s GTC conference, 1X demonstrated the capability of its humanoid robot Neo Gamma to perform basic tasks in a living room, including vacuum cleaning and watering flowers under partial remote control, among other activities, preparing for entry into households.

Last October, 1X released the home humanoid robot NEO, priced at $20,000 (approximately RMB 140k), and it can also be adopted in a monthly subscription format: $499 per month (approximately RMB 3,542). It is also open for pre-orders, with the first batch of orders expected to be delivered in 2026.

Worth noting is that OpenAI, a leading large-model vendor, has been investing in 1X for two consecutive rounds since 2023.

A research report from Hualong Securities believes that 1X has been so favored by OpenAI because it embeds the concept of embodied learning throughout the R&D process. It requires that robot products can run autonomously without human control and improves the accuracy and safety of motion through a large number of repeated operations—thereby achieving, in essence, the robot’s “human-like” characteristics.

High-intensity R&D and pain from the transformation

In fact, it’s not only 1X—Zhongjian Technology is also rapidly transitioning toward embodied intelligence.

In its latest annual report, Zhongjian Technology clearly stated, “The company mainly engages in R&D, design, production, and sales of landscaping machinery. Recently, the company has focused on building a second core business segment, focusing on the R&D and manufacturing of advanced intelligent robots.”

Within its existing landscaping machinery business, Zhongjian Technology has extended into the market for intelligent lawn-mowing robots. In 2023, it established Shanghai Zhongjian High-Ke Robotics Co., Ltd., formed an R&D team, and specifically developed products for the next generation of lawn-mowing robots. In 2025, its intelligent lawn-mowing robot products have already secured small-batch orders.

In addition, in May 2024, Zhongjian Technology also established a controlling subsidiary: Jiangsu Jiamii Intelligent Robotics Co., Ltd. The first four-legged robot brand it developed, the Lingrui model P1, can be applied to inspections in industrial park management, firefighting and public security, routine power grid and electricity inspections, as well as special work scenarios such as inspections for smelting enterprises and hazardous chemicals.

Zhongjian Technology also participated in cooperation with Huawei. On November 15, 2024, Zhongjian Technology attended the signing ceremony for the enterprise cooperation memorandum at H(Shenzhen) Global Embodied Intelligence Industry Innovation Center, and signed an enterprise cooperation memorandum. Recently, Zhongjian Technology established Shenzhen Huazhi Jian Robotics Technology Co., Ltd., and the cooperation is currently moving toward further matching and advancement.

A deep layout in the embodied intelligence track means that it is necessary to strike some balance between high R&D investment and business revenue, especially when orders have not yet scaled up—this is a major test for operating cash flow.

Since 2023, Zhongjian Technology’s R&D expenses for each year have been RMB 31 million, RMB 73 million, and RMB 122 million, continuing to grow at a high rate. Because embodied intelligence also significantly raises the requirements for talent density, its administrative expenses increased from RMB 62 million in 2023 to RMB 116 million in 2025, with the rapid rise in employee compensation being the biggest driver.

At the same time, Zhongjian Technology’s net cash flow from operating activities from 2023 to 2025 was RMB 11 million, RMB 6 million, and -RMB 49 million, showing signs of cash “bleeding.”

Worth noting is that, to expand financing channels, in August last year Zhongjian Technology announced its plan to issue H shares. According to the HKEX official website, it submitted IPO application documents to the Hong Kong Stock Exchange for the first time in November of that same year.

The robot narrative brought by the trillion-yuan blue ocean of embodied intelligence is indeed quite enticing. But in the capital markets, after the story is told, it ultimately still has to be validated by performance. Whether pigs on the wind can grow wings remains to be seen.