Sources familiar with the matter revealed that Galbot, in its IPO preparation, brought in investment banks and accounting firms for guidance. However, during the financial audit, Galbot’s revenue was halved due to nearly half of its revenue being of low quality, consisting of related-party transactions and miscellaneous income.
The impact of this revenue halving on Galbot’s IPO is currently unclear. This leading avatar company is valued at tens of billions, and investors are waiting for the IPO to exit.
However, if it affects Galbot’s IPO, it will undoubtedly be a heavy blow to the current booming investment and financing in the avatar industry.
This year, many leading avatar companies set very aggressive delivery targets to boost revenue for their IPOs, ranging from as high as 10,000 units to 1,000 units. Achieving 1,000 units would generate hundreds of millions in revenue, significantly boosting IPO prospects.
However, the reality is far from ideal. With the first half of the year almost over, even delivering 100 units is proving difficult.
While VLA and world models are very eye-catching in performance demos, they are ineffective in real-world scenarios, exhibiting poor success rates and reliability in task operations. Therefore, many embodied companies have begun poaching engineers from the traditional algorithm industry within the autonomous driving sector, using autonomous driving rule-based algorithms (perception, PNC, SLAM) for overfitting in an attempt to achieve commercialization.
For embodied companies that are currently enjoying a surge in funding, this marks a critical juncture. Whether they can deliver on their IPO promises to investors will significantly impact future fundraising. Failed IPOs will severely damage investor confidence.