Changying Precision Swings to Loss as Embodied AI Revenue Jumps 532%

Humanoid-robot enthusiasm has swept China's A-share market, lifting shares of Changying Precision ahead of its third-quarter report. The company's 2026 Q1-Q3 results, disclosed on the evening of Oct. 28, told a different story: revenue kept expanding, but net profit swung to a loss.

Changying Precision reported revenue of RMB 16.453 billion for the first nine months, up 21.78% year on year. Net profit attributable to shareholders was a loss of RMB 66 million, compared with a profit of RMB 468 million a year earlier, a decline of 114.16%; non-GAAP net loss reached RMB 82 million. Third-quarter revenue rose 17.52% to RMB 5.724 billion, while net loss attributable was RMB 84 million, narrower than the RMB 107 million loss in the second quarter.

The loss stemmed mainly from expense pressure rather than deteriorating revenue. Across new-energy precision components, embodied-intelligence and emerging-tech hardware, and consumer electronics, several business lines grew quickly, but higher revenue did not translate into higher profit.

New-energy precision components remained the main growth engine, with revenue of RMB 7.117 billion, up 52.27% year on year, driven by power-battery and energy-storage structural parts; storage projects grew notably, though the company did not disclose the segment's standalone growth rate. Intense competition and strong bargaining power among battery and storage customers continued to squeeze processing margins.

The most closely watched segment, embodied intelligence and emerging-tech hardware, posted revenue of RMB 419 million, up 532.67% year on year. It still accounted for only 2.5% of total revenue. Changying Precision's robot smart-manufacturing park in Shenzhen is in use, with about 60,000 square meters dedicated to humanoid-robot production, and its southwestern embodied-intelligence components base in Yibin has also begun operating, covering mold development through volume production. Capacity is ready, but profit contribution remains limited.

Consumer electronics, the traditional base, showed a structural recovery on AI PCs and new AI wearables, but overall growth elasticity was limited. Rising R&D spending and foreign-exchange swings were the main drags on profit; R&D expenses reached RMB 1.304 billion in the first nine months, up clearly from a year earlier.

On an investor relations platform, Changying Precision said it delivered more than 1.1 million precision components for humanoid robots from January to August 2026. That figure refers to component units, not complete robots, and does not directly equal a profit surge. The company has said orders in the third and fourth quarters are growing faster than in the first half, but converting orders into revenue and then profit takes time.

Unitree Technology, a leading humanoid-robot company, offers a reference. Its third-quarter revenue was RMB 665 million, up 69.93% year on year, and nine-month revenue reached RMB 1.817 billion; nine-month net profit was RMB 387 million. Yet third-quarter net profit nearly halved from the previous quarter, and non-GAAP net profit fell year on year. Surging R&D, expanding sales expenses and a quarter-on-quarter gross-margin decline all weighed on profit.

As an own-brand complete-machine maker, Unitree enjoys gross margins above 50%. Changying Precision sits upstream in parts contract manufacturing, mainly on a processing-fee model, with weaker bargaining power and additional pressure from overseas FX volatility and downstream price cuts.

Spanning consumer electronics, new-energy storage, humanoid robots and AI-computing hardware, Changying Precision must bear large capital expenditure and R&D investment each time it opens a new track. The practical question is whether profit recovery will rely simply on order scale diluting fixed costs, or on moving up to self-developed components with higher value added and escaping pure processing.

Institutions remain optimistic. The top-10 shareholder list shows that National Social Security Fund portfolio 104 substantially increased its stake and returned to the list, while Basic Pension Fund portfolio 1907 and Yongying Advanced Manufacturing Selected Mixed Fund became new top-10 shareholders.

For Changying Precision, RMB exchange-rate volatility, the pace of robot-customer order ramp-up, yield levels on new projects and product pricing will be core variables determining the rhythm of profit recovery in coming quarters.