Huaxiang Industrial signs with Shunde to build a 130-mu robot R&D and intelligent manufacturing headquarters

On October 20, the Shunde District Government of Foshan City and Shanxi Linfen Huaxiang Industrial Co., Ltd. held a signing event for the Huaxiang South China Robot R&D and Intelligent Manufacturing Headquarters project. Shunde Release reported that the project is planned to be located in Daliang Subdistrict, Shunde District, with a planned land area of 130 mu, focusing on robot joint modules, harmonic reducers, and key liquid cooling components, with the goal of building the Huaxiang Group's exclusive South China regional robot R&D and intelligent manufacturing headquarters and a single-champion project as a core component supplier for humanoid robots. If one looks only at this signing, it is easy to assume that Huaxiang is a new player suddenly entering the humanoid robot track. But in fact, Huaxiang's connection with Shunde began two years ago. In January 2024, the Huaxiang South China Base project started construction in Shunde, with a total investment of 1 billion yuan, mainly serving the extension of the white goods casting industry chain and the high-quality processing and production of intelligent equipment. In December 2025, Huaxiang Humanoid Robot Company announced that the first production line for precision components for humanoid robots at its Guangdong Shunde factory had completed the installation and commissioning of all high-precision core equipment and achieved stable production. In April this year, Huaxiang Precision's humanoid robot components completed their monthly target; in May, the Phase II project officially entered mass production. From a 1 billion yuan home appliance casting base to today's 130-mu robot R&D and intelligent manufacturing headquarters, Huaxiang's chessboard in Shunde is rapidly upgrading. To understand why Huaxiang can cut into humanoid robot components, one must first look at its original business. As one of the few comprehensive casting enterprises in China with cross-industry, multi-variety, and large-scale production capabilities, the metal components and metal parts produced by Huaxiang Group through casting and machining are widely used in white goods compressors, automobiles, construction machinery, pump and valve fittings, power components, and reducers, among other parts. A key figure: Huaxiang's market share in core components for air-conditioning compressors is about 30%, deeply tied to leading enterprises such as Midea, Haier, and Gree. Simply put, this is a "manufacturing veteran" that emerged from the Loess Plateau; it does not make end products, but has achieved top domestic scale in the segment of precision metal structural parts. And this accumulation is precisely one of the most scarce capabilities in the humanoid robot track. The demand for precision metal structural parts in humanoid robots is rigid. A humanoid robot has dozens of joints, and each joint cannot do without reducers, structural parts, and liquid cooling assemblies, with processing accuracy required to reach the micron level and materials needing to balance lightweighting and high strength. Based on manufacturing capabilities and large-scale production experience, Huaxiang Group is targeting the reducer metal structural parts track, has established business contacts with multiple leading reducer manufacturers and robot OEMs, completed sample verification for multiple products, and passed on-site factory audits by key customers. It is reported that Huaxiang's humanoid robot business has carried out cooperation with enterprises such as Jiya Precision and Shanchuan Robot. In January this year, Huaxiang Co., Ltd. also held a strategic cooperation signing ceremony at its headquarters with Keenon Robotics, a leading global service robot enterprise, and the two sides plan to jointly establish a joint venture to carry out comprehensive cooperation in the humanoid robot field. Positioning in the upstream and downstream of the industry chain continues. In June, Huaxiang Group completed its controlling stake in Shanghai Shenzhi Chuang Vision Technology Co., Ltd., an enterprise in the field of industrial AI visual inspection. This is a key step in deepening the integration of "artificial intelligence + manufacturing" and building the core competitiveness of future factories. What the capital market cares more about is: how much revenue can the robot business actually bring to Huaxiang? The answer is: very little at present. It is reported that Huaxiang Co., Ltd.'s full-year operating revenue in 2025 was 4.127 billion yuan, a year-on-year increase of 7.83%; net profit was 563 million yuan, a year-on-year increase of 24.57%; net profit after deducting non-recurring gains and losses was 506 million yuan, a year-on-year increase of 25.10%. However, the revenue and profit of its robot component business account for a relatively small proportion of the total and have no major impact on operating performance. The 2026 interim report shows that the company's total operating revenue was 2.206 billion yuan, and net profit attributable to the parent company was 262 million yuan, a decrease of 28.7114 million yuan from the same period last year, down 9.89% year on year. The main business maintains its fundamental performance, while the robot component business is still in a cycle of investment and volume ramp-up, and value realization still takes time. But behind the continuous layout is its positioning move aimed at the next generation of high-potential tracks. According to the "2026 Global Humanoid Robot Market Research Report" released by Frost & Sullivan, calculated by sales volume, the global humanoid robot market size was 35,000 units in 2025 and had reached 36,000 units in the first half of 2026; calculated by revenue, it was 500 million US dollars for the full year of 2025 and 540 million US dollars in the first half of 2026. Robot components are becoming the link with the most concentrated value and the most urgent need for domestic substitution in the humanoid robot industry chain. Joint modules, harmonic reducers, precision structural parts—these core components, which account for more than half of the complete machine cost, are precisely the position where precision manufacturing enterprises like Huaxiang have the best opportunity to cut in.