Ubtech Robotics Forges Ahead with Honda Partnership as Key Acquisition Deadline Looms

Ubtech Robotics partners with Honda Trading China for logistics automation, targets 10,000 humanoid robot deliveries in 2027, and nears a key acquisition to cut costs and localize its supply chain.

Ubtech Robotics is accelerating its push into industrial automation, announcing a strategic partnership with Honda Trading China this week. The agreement, signed by Ubtech's logistics subsidiary UQI, aims to deploy the company's Walker-series humanoid robots within Honda's extensive production network for real-world testing of driverless logistics systems. This move comes at a pivotal moment for the Chinese robotics firm, which is simultaneously navigating the final stages of a major acquisition.

The company's 237 million dollar takeover of precision manufacturer Zhejiang Fenglong Electric is approaching a critical juncture, with the offer period set to expire on April 20. This acquisition is central to Ubtech's strategy of vertical integration. The transaction unfolded in two phases: an initial 29.99% stake secured on March 11, 2026, followed by a public tender offer for an additional 13.02% at 17.72 RMB per share. If fully accepted, Ubtech will hold a 43.01% controlling interest, making Fenglong its first A-share listed subsidiary. Shareholders have already approved the plan with over 98% of votes.

Integrating Fenglong, a supplier of motors and hydraulic components for industrial giants like Caterpillar, Husqvarna, and Bosch Rexroth, is expected to localize roughly 90% of Ubtech's supply chain within China. Management forecasts this will drive annual cost reductions of 20 to 30%, a crucial step toward slashing the price of its flagship Walker S2 robot from $80,000 to under $20,000 by 2027.

This industrial focus is underpinned by a fundamental shift in Ubtech's business model. For the first time in 2025, humanoid robots became its largest revenue segment. Sales of full-sized robots and related services surged to 820 million CNY (approximately 113 million USD), accounting for 41% of total revenue. The company sold 1,079 units last year, a dramatic leap from just three the year prior, marking its entry into industrial-scale production. For 2026, CEO Zhou Jian is targeting deliveries of 5,000 robots, with plans to double that figure to 10,000 units in 2027.

Financially, Ubtech's operational foundation showed marked improvement in 2025. Revenue jumped 53% to 2 billion CNY, while the net loss narrowed by 32% to 789.8 million CNY. The gross margin expanded significantly from 29% to 38%, with management targeting 40-43% for 2026. Despite this growth, challenges remain. The Walker S2's work efficiency currently sits at about 50% of a human worker's, a gap Ubtech aims to close to 80% by 2027. Investors have shown skepticism, with the stock down more than 22% since the start of the year and trading notably below its 50-day moving average. Analysts point to a sales multiple of 22x and outstanding receivables of 1.3 billion RMB as potential headwinds.

The Honda partnership expands Ubtech's impressive roster of industrial collaborators, which already includes BYD, Geely, and Siemens. Data gathered from these pilot projects will feed directly into Ubtech's proprietary AI models to enhance coordination between humanoid robots and smaller autonomous vehicles. This real-world validation is becoming increasingly urgent as competition intensifies. Tesla plans to start production of its Optimus 3 robot in summer 2026, and Chinese rival D-Robotics recently raised 120 million dollars. According to Omdia, Chinese manufacturers accounted for nearly 90% of global humanoid robot shipments recently, a position Ubtech is striving to lock in through its dual strategy of supply chain control and industrial partnership. The weeks following the April 20 deadline will test the company's ability to execute this complex integration.