#China #Beijing #Robotics #Cheetah Mobile #UFACTORY

Cheetah Mobile's Significant Acquisition of UFACTORY

Cheetah Mobile Inc., a prominent IT company headquartered in China and publicly traded on the NYSE under the ticker CMCM, has made headlines with its recent strategic decision to acquire a controlling stake in Shenzhen UFACTORY Technology Co., Ltd. This bold move reflects Cheetah Mobile's ambition to further delve into the robotics sector and bolster its AI integration capabilities.

On July 28, 2025, the company announced that one of its majority-owned subsidiaries has finalized a definitive agreement to obtain a 60.8% equity interest in UFACTORY, a distinguished provider of lightweight robotic arms, for approximately RMB99.5 million. This acquisition comes after Cheetah Mobile already held a 19.2% stake in UFACTORY, positioning the company to control around 80% of UFACTORY's equity post-transaction, equating to a beneficial ownership of roughly 75.8%.

The acquisition is set to close by the third quarter of 2025, pending standard closing conditions and board approval. Mr. Sheng Fu, the Chairman and CEO of Cheetah Mobile, expressed his enthusiasm about this strategic partnership, emphasizing UFACTORY's status as a leader in collaborative robotics. With its advanced technology infrastructure and efficient go-to-market strategy, UFACTORY is seen as a fitting ally for Cheetah Mobile as it embarks on its next growth phase focused on AI and robotics development. Sheng remarked, "This acquisition will enhance our product portfolio, enabling our service robots to operate in a wider array of physical surroundings and handle diverse tasks effectively. This is a key milestone in our mission to deliver smarter and more versatile robotic solutions to markets worldwide."

Alongside the excitement about growth potential, Chief Financial Officer Mr. Thomas Ren outlined the financial aspects of the acquisition. He revealed that the deal will be funded using the company's cash reserves. As of March 31, 2025, Cheetah Mobile boasted more than USD $230 million in net cash, granting the company substantial financial flexibility to pursue meaningful strategic investments that promise sustained value for shareholders.

Overview of UFACTORY

Founded in Shenzhen, UFACTORY specializes in creating innovative robotic arms designed to work collaboratively with humans in shared spaces. Its flagship product, the UFACTORY xArm, has gained traction as a top-performing robotic arm in the sector, notable for its profitability and revenue growth, particularly in international markets. The company’s offering includes a range of robotic arms that vary between five, six, and seven axes, along with various robotic accessories, making them highly adaptable for multiple applications.

This attraction of customers is rooted in UFACTORY’s commitment to developing a user-friendly experience, allowing for easier integration into different operational environments. Their reputation for delivering quality robots that can flexibly adapt to varying use cases has fostered a loyal customer base across the globe, thus enhancing its financial standing.

About Cheetah Mobile

Cheetah Mobile is revered in the technological sector, specializing in AI innovation. The company has captured a vast user base with its extensive portfolio of internet products and services tailored to both PC and mobile users. Alongside its focus on product development, Cheetah Mobile actively invests in the independent research of AI technologies, which significantly augments the capabilities of its service offerings.

Their array of services extends beyond product sales; they also provide robust advertising services globally and capitalize on resources such as multi-cloud management platforms. The company is dedicated to utilizing cutting-edge AI technologies to empower its products, thereby making technology smarter and more accessible for global audiences.

The acquisition of UFACTORY marks a critical juncture for Cheetah Mobile, as it not only expands their business portfolio but also solidifies their stance in the competitive landscape of robotics. By focusing on integrating AI solutions into their products, Cheetah Mobile aims to redefine the role of robotics in various industries, thus laying a stronger foundation for future innovations and market adaptability.

In conclusion, this acquisition not only represents a significant financial investment but also a strategic move that positions Cheetah Mobile at the forefront of the burgeoning robotics industry, potentially reshaping their business strategy in the ever-evolving technological landscape.