Shao Tianlan, founder of Mech-Mind—a company that has been listed on the Hong Kong Stock Exchange for a mere 10 days—took to his WeChat Moments to openly criticize the practices within the embodied AI sector. He alleged that numerous firms in the industry are fabricating revenue figures through related-party transactions and are hastily pursuing initial public offerings (IPOs) without having achieved product-market fit (PMF). Shao specifically singled out Galaxy General, a company currently in the process of advancing its IPO. Initially, Galaxy General refrained from engaging in a public dispute, but later issued a formal statement to refute the allegations and lodged a complaint with the relevant authorities. To add to the complexity, an unsigned PDF document circulating online also made accusations against Galaxy General.

Shao Tianlan insists that companies should only be considered eligible for listing if they can demonstrate authentic, sustainable, and scalable business operations, along with having achieved PMF. His stance comes amidst a backdrop where regulatory authorities have been raising the bar for IPOs, particularly for humanoid robot companies. At present, the embodied AI industry is witnessing a surge in financing valuations, with over 40 companies vying to go public. Notably, some of these firms, established just two or three years ago and having only reached the Series A+ funding stage, are eager to list. This trend has raised concerns about the authenticity of commercialization within the industry, as evidenced by the sharp decline in the stock price of Unitree Robotics, which is already publicly traded.