Core Viewpoint - Efort Intelligent Robot Co., Ltd. continues to report losses, with expectations of ongoing losses through 2025, despite a growing demand for industrial robots in China [1][2] Financial Performance - In the first three quarters of 2024, Efort achieved revenue of 1.018 billion yuan, which decreased to 702 million yuan in the same period of 2025, representing a decline of over 30% [2] - The net loss for the same periods increased from 105 million yuan to 200 million yuan, nearly doubling the loss [2] - Revenue from non-strategic system integration business fell by 57.26%, contributing significantly to the overall revenue decline [2][3] Market Dynamics - The industrial robot market in China saw a production increase of 29.8% year-on-year in the first three quarters of 2025, with strong demand for smart manufacturing [1] - Despite the growth in production and sales, Efort's revenue from robot business decreased by 17.05% due to ongoing price competition [3][4] Cost and Profitability Issues - Efort's gross profit margin has significantly declined, from 17.20% in 2024 to 7.55% in the first three quarters of 2025, a drop of nearly 55.90 percentage points [3][6] - The company reported a negative cash flow from operating activities of -211.05 million yuan for the first three quarters of 2025, worsening from -487.71 thousand yuan in the same period of 2024 [6][7] R&D Investment - Efort has significantly increased its R&D investment, with expenditures rising by 86.29% year-on-year in the first three quarters of 2025, accounting for 20.64% of revenue [7][8] - The company’s focus on R&D is aimed at enhancing its robot business, although this high level of investment is squeezing profit margins [8] Strategic Initiatives - Efort is investing approximately 1.893 billion yuan in a new super factory in Wuhu, which is expected to produce 100,000 high-performance industrial robots annually once fully operational [9][10] - The super factory project is part of Efort's strategy to capitalize on the growing opportunities in the robotics sector [9]