Cheetah Mobile Acquires Majority Stake in UFACTORY to Boost Robotics and AI Innovations
- Cheetah Mobile acquires 60.8% of UFACTORY, increasing its stake to 80%, enhancing its robotics capabilities.
- The acquisition aligns with Cheetah Mobile's strategy to integrate advanced AI and robotics technology across various industries.
- Cheetah Mobile aims to leverage UFACTORY's expertise to enhance its global product offerings and competitive edge in technology.
Cheetah Mobile Expands Robotics Footprint with UFACTORY Acquisition
Cheetah Mobile Inc., a prominent player in the Chinese IT landscape, embarks on a significant strategic move by announcing its acquisition of a 60.8% equity stake in Shenzhen UFACTORY Technology Co., Ltd., a frontrunner in the lightweight robotic arms sector. This acquisition, valued at approximately RMB99.5 million, builds upon Cheetah Mobile’s existing 19.2% ownership of UFACTORY, ultimately elevating its total stake to 80% post-transaction. The board of directors has already approved the deal, and it is poised for completion in the third quarter of 2025, contingent upon customary closing conditions. This venture reflects Cheetah Mobile’s commitment to integrating advanced technology within its product offerings, particularly in the burgeoning field of artificial intelligence (AI) and robotics.
The acquisition underscores Cheetah Mobile's strategic vision, as articulated by Chairman and CEO Sheng Fu, who emphasizes the transformative potential of UFACTORY's technology. By enhancing its capabilities in adaptive robotics solutions, Cheetah Mobile positions itself to meet the diverse needs of various industries and applications. UFACTORY, known for its profitable operations and innovative products like the "UFACTORY xArm," boasts a robust international clientele, which aligns well with Cheetah Mobile's goal of expanding its global reach in AI and robotics. The integration of UFACTORY’s expertise is expected to accelerate Cheetah Mobile's innovation pipeline and enhance its competitive edge in technology solutions.
From a financial perspective, Cheetah Mobile is well-prepared to fund this acquisition through its substantial cash reserves, which totaled over USD230 million as of March 31, 2025. CFO Thomas Ren notes that this strategic investment not only bolsters the company's robotics portfolio but also promises to deliver sustainable value for stakeholders. As the robotics sector continues to evolve, Cheetah Mobile's proactive approach to investing in cutting-edge technology positions it favorably within the competitive landscape of AI and robotics.
In addition to reinforcing its technological capabilities, this acquisition signals Cheetah Mobile's dedication to innovation and adaptability in a rapidly changing market. By aligning with a leader in collaborative robotics, the company is set to leverage UFACTORY's advanced solutions to enhance its product offerings and further its mission of delivering state-of-the-art technology solutions globally. This strategic move illustrates Cheetah Mobile's intent to remain at the forefront of the IT industry, marking a new chapter in its evolution as a technology powerhouse.
The acquisition of UFACTORY not only represents a significant financial investment but also a commitment to advancing the intersection of AI and robotics. With this acquisition, Cheetah Mobile is poised to harness the potential of collaborative robotics to drive innovation and create value in its future endeavors.