Hong Kong, October 27, 2026: Quant Group (02685.HK) announced that its indirectly wholly owned subsidiary, Silicon Base (Beijing) Intelligent Technology Development Company, has entered into a framework procurement agreement with Chewujie (Beijing) Automobile Co., Ltd. to supply up to 2,000 embodied-AI robot solutions by the end of 2027 for use in automobile showrooms and 4S outlets.
The agreement marks Quant Group’s first large-scale framework order for its Physical AI business, signifying a shift from technical feasibility validation to commercial delivery. The robots will be deployed for reception, vehicle presentation, customer engagement, sales lead capture, and distribution functions at Chewujie’s network of outlets.
Potential revenue from Chewujie agreement
Quant Group’s integrated solution includes robot hardware, embedded software, scenario configuration, and supporting services. The company said pricing varies depending on the package, with a conservative estimate for lightweight interactive robots and basic software licensing at around RMB 15,000 per solution, implying potential incremental revenue of about RMB 30 million. A standard package with scenario customization is estimated at RMB 50,000 per solution, or RMB 100 million in incremental revenue, while a premium solution could reach RMB 100,000–200,000 per unit, with potential revenue of RMB 200–400 million.
The company noted that these figures assume full delivery, but actual quantities are indicative and subject to demand from Chewujie’s outlets. Revenue will be recognized in stages, and the timing and amount remain uncertain.
Physical AI business not yet reflected in valuation
As of October 23, 2026, Quant Group’s shares closed at HK$2.935, giving a market capitalization of approximately HK$1.65 billion, below its net asset value per share. The company reported 2025 revenue of RMB 1.035 billion and net profit of RMB 195 million, with its current valuation largely based on its e-commerce AI solutions business. The Physical AI segment, which Quant Group has been developing since early 2026, is not yet factored into its market value.
By comparison, UBTECH reported 2025 revenue of RMB 2.001 billion and a net loss of RMB 703 million, with a market cap of about HK$34.3 billion and a price-to-sales (PS) ratio of 15–20. Unitree, with 2025 revenue of RMB 1.699 billion and net profit of RMB 591 million, had a market cap of RMB 236.6 billion, implying a PS ratio of approximately 36. The sector average PS ratio is around 25, with overseas benchmarks such as Tesla’s Optimus also using a PS ratio of 25.
Valuation outlook and sector benchmarks
Quant Group’s e-commerce AI solutions business remains stable, with 2025 e-commerce revenue of RMB 1.035 billion, net profit of RMB 195 million, and gross merchandise value exceeding RMB 10 billion on its Yangxiaomie platform. Applying a PS ratio of 1.5–2 or a P/E ratio of 8–10 to this segment implies a valuation of about RMB 2 billion.
The Physical AI business is positioned as the core driver for a potential re-rating. Quant Group does not manufacture its own robots but provides a Physical AI foundation model, including its WAM world model and Store Agent, and has completed technical feasibility validation across multiple scenarios such as food service and automobile showrooms. The company has also established an ecosystem with ByteDance Volcengine, Tungkong Inc.’s Ruihong Robot, and Chewujie, and co-founded a RMB 1 billion cognitive-intelligence fund with Z.AI and Jiangmen Ventures.
Estimates suggest the Physical AI business could generate about RMB 140 million in revenue in 2027, including RMB 50 million from the Chewujie order (assuming 50% realization), RMB 40 million from Beijing Ruihong, RMB 18 million from food service and retail, and RMB 30 million from software licensing and SaaS subscription fees. If additional clients are secured, 2027–2028 revenue could reach RMB 300–500 million. Applying a PS ratio of 25 to projected 2027 revenue of RMB 150–300 million yields an implied valuation of RMB 3.75–7.5 billion.
Sum-of-the-parts valuation and commercialisation milestone
Combining the e-commerce and Physical AI segments, a sum-of-the-parts valuation suggests a fair value for Quant Group of approximately RMB 5.75–9.5 billion, or up to HK$11 billion at the upper end, equating to a share price of about HK$19.5. This assumes delivery of at least 50% of the 2,000 units under the Chewujie agreement, 2027 Physical AI revenue above RMB 200 million, and successful market positioning as a Physical AI foundation model provider.
The 2,000-unit framework agreement is seen as a pivotal step for Quant Group, marking its transition from concept to contract in the Physical AI sector. The company said that, against sector PS benchmarks, successful scaling of the Physical AI business could support a market capitalization approaching HK$10 billion, compared to the current HK$1.65 billion.
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