Fullgrace: Failed in China, Found a Second Spring in Europe

Author | Song Wanxin

Editor | Zhang Fan

FullGaint Intelligence, an agricultural robot company founded by Wu Di, the former chief scientist of DJI, is sprinting for a listing on the Hong Kong Stock Exchange.

Wu Di once served as the vice president of system engineering at the European company Coresonic AB, participating in the R&D of 4G communication chip technology. After returning to China in 2012, he successively served as the system director at Spreadtrum Communications. In 2016, Wu Di joined DJI Innovation, leading the R&D work of industrial automation and intelligent hardware. Leveraging his compound background in communications, drones, etc., FullGaint entered the agricultural field.

(Source: FullGaint Intelligence's prospectus)

However, Wu Di did not choose the popular drone field, but the relatively "niche" track of traditional agricultural machinery automation modification.

Currently, the main products sold by FullGaint include agricultural automatic navigation systems, livestock robots, building control systems, and cleaning robots, etc., helping users achieve digital and unmanned operations in traditional heavy physical labor jobs.

Among them, the autonomous driving and navigation system is the company's main product. This system is a post - installation product used for the intelligent upgrade of traditional ground agricultural machinery, covering scenarios including field preparation, planting, field management, and harvesting.

After installing the autonomous driving and navigation system, traditional machinery can smoothly turn automatically and plan the best path, reducing repetitions and improving coverage.

This startup founded in December 2017 has occupied a place in the global market in less than eight years.

(Source: FullGaint Intelligence's prospectus)

Data shows that in the global agricultural robot market, FullGaint Intelligence has become the third - largest supplier of agricultural automatic navigation system kits in terms of global shipments, with a market share of about 8.5% in 2024. It is also the second - largest supplier of post - installation agricultural automatic navigation system kits, with a market share of 16.9%.

In addition to the agricultural sector, FullGaint Intelligence has also started to layout in industries such as construction and property management.

During the reporting period, the revenue from the agricultural and livestock sectors accounted for 94.7%, 88.8%, 77.8%, and 73.3% respectively; at the same time, the revenue from the construction and property management sectors increased from 1.8% to 13.1%, and the revenue from property management accounted for 2.5%, 2.4%, 5.6%, and 9.5% respectively.

01 Losing Ground in China, High Growth in Europe

Agriculture is one of the more mature scenarios for robot implementation. According to market research statistics, the global agricultural robot market size is expected to grow from 8.9 billion yuan in 2024 to 74.9 billion yuan in 2029, with an average annual compound growth rate as high as 53.3%.

However, according to FullGaint's prospectus, the company's performance growth in the past few years has lagged behind the industry growth rate.

Data shows that from 2022 to 2024 and the first six months of 2025, FullGaint Intelligence achieved revenues of 504 million yuan, 530 million yuan, 570 million yuan, and 358 million yuan respectively. The year - on - year revenue growth rates in 2023 and 2024 were 5.16% and 7.55% respectively, with only single - digit annual revenue growth rates. However, its revenue in the first six months of 2025 increased by 49.17% year - on - year.

While the overall revenue growth is slow, FullGaint Intelligence's regional revenue structure is undergoing a profound reconstruction, with its revenue base shifting from the Chinese market to the European market.

Data shows that during the reporting period, the company's revenue from Chinese customers dropped significantly from 276 million yuan to 73.651 million yuan, and the proportion dropped sharply from 54.7% in 2022 to about 20.6% in the first half of 2025. During the same period, the company's revenue in Europe soared from 97.402 million yuan to 200 million yuan in the first half of this year, and its proportion in total revenue jumped from 19.3% to 56.1%.

(Source: FullGaint Intelligence's prospectus)

In the Chinese market, the decline in grain prices has reduced farmers' incomes, suppressing their enthusiasm for agricultural machinery equipment modification. For example, although the subsidies and retail prices of FullGaint Intelligence's autonomous driving system vary greatly in different regions, the actual payment price is basically between 5,000 and 10,000 yuan. In 2024, the per - capita disposable income of rural residents was only 23,119 yuan.

Instead of spending money on upgrading the navigation system to save labor, it's better for farmers to work a little harder themselves.

(Source: Kaiyuan Securities)

However, different from agricultural production in China, European agriculture faces the problem of labor shortage. Especially in agricultural production, due to climate factors, it requires a large amount of labor in a short period of time, which further intensifies the contradiction between labor supply and demand.

The prospectus shows that in the wheat harvesting scenario in Europe, local farmers using FullGaint's AT2 have effectively reduced the repeated and missed harvesting areas, shortening the harvesting cycle from 2 days to 1 day and improving the operation efficiency by 25% - 40%.

With a large amount of potential demand and cost - effective products, the subsequent goal for FullGaint is how to open up the market. Due to the harsh working environment of agricultural equipment and the strong urgency of maintenance in harvesting and other links, agricultural robots highly rely on the local maintenance of the dealer network.

According to the prospectus, 95% of the company's revenue depends on dealers. The number of FullGaint's dealers increased significantly in 2023, rising from 1,462 in 2022 to 2,088 in 2023.

According to industry insiders' estimates, FullGaint Intelligence's average sales and management expense ratio is about 52% - 60%. In contrast, for XAG, an agricultural robot company that also submitted its prospectus recently, this figure is about 40% - 48%.

(Source: FullGaint Intelligence's prospectus)

02 Turning from Loss to Profit, Gross Margin Improvement

The prospectus shows that as of June 30, 2025, FullGaint Intelligence had an accumulated loss of 2.162 billion yuan. From 2022 to 2024 and the first six months of 2025, the company's losses were 333 million yuan, 471 million yuan, 334 million yuan, and 151 million yuan respectively.

However, the adjusted profit turned positive in the first half of this year, recording 21.93 million yuan.

(Source: FullGaint Intelligence's prospectus)

In addition to the sales and management expenses mentioned above, as a technology company, R & D investment is also a major source of costs.

Moreover, adhering to the full - stack self - research route, FullGaint Intelligence's average R & D expense ratio is also higher than the industry average. The prospectus shows that from 2022 to 2024, the company's R & D expenses reached 234 million yuan, 270 million yuan, and 232 million yuan respectively. In 2023, the R & D expense ratio was as high as 50.9%.

The continuous losses have directly eroded the company's cash flow. From 2022 to 2024, the company's net cash outflow from operating activities totaled 391 million yuan. In the first half of 2025, it barely achieved a net inflow of 77.536 million yuan, but it was far from enough to fill the previous gap.

What's more severe is the pressure on the liability side. As of June 30, 2025, the company's net debt was as high as 1.501 billion yuan, almost doubling compared with 685 million yuan at the end of 2022; during the same period, the cash and cash equivalents were only 179 million yuan, and the cash - to - debt ratio was only about 9%, highlighting the short - term repayment pressure.

(Source: FullGaint Intelligence's prospectus)

However, it is worth affirming that the expansion of the overseas market has significantly improved FullGaint Intelligence's gross margin. The prospectus shows that FullGaint's gross margin has significantly improved since 2023. From 2022 to the first half of 2025, the company's gross margins were 29%, 53.6%, 64.5%, and 65.7% respectively, with improved profitability, even exceeding that of Insta360.

(Source: FullGaint Intelligence's prospectus)

The improvement of the gross margin in 2023 was due to the full - scale expansion of FullGaint Intelligence's overseas market in that year. As mentioned above, in Europe and the United States, FullGaint quickly captured customers and the market based on the cost - effectiveness advantage of its products.

Compared with the domestic market, the intelligentization of the agricultural market in Europe and the United States is still a blue ocean.

According to the ModorIntelligence report, the market size of the European agricultural machinery market was 43.34 billion US dollars in 2025 and is expected to reach 50.97 billion US dollars by 2030. The report points out that as the value of asset utilization data is proven in audited sustainability reports, the penetration rate of telematics is expected to increase in the next few years.

European farms are characterized by a high degree of intensive and large - scale operation. For example, farms in Western European countries (such as Germany, France, and the Netherlands) have a large average scale and a high degree of mechanization. Farmers are willing to pay a premium for high - end equipment that can improve efficiency and reduce labor costs.

Meanwhile, from the perspective of the competitive landscape, although established European and American agricultural machinery enterprises such as John Deere and CLAAS are strong, they are not as flexible as emerging technology companies in terms of intelligentization and software iteration speed. Chinese enterprises such as FullGaint have advantages in AI algorithms, cost control, and rapid iteration.

Therefore, while maintaining high performance, the prices of FullGaint Intelligence's products are usually 20% - 30% lower than similar products in Europe and the United States, forming a competitive advantage of "high cost - effectiveness + high technology" and quickly capturing market share.

However, whether the overseas advantage can be sustained and ultimately help FullGaint Intelligence turn the situation around remains to be verified by time.

*Disclaimer:

The content of this article only represents the author's views.

The market is risky, and investment should be cautious. In any case, the information in this article or the opinions expressed do not constitute investment advice to anyone. Before making an investment decision, if necessary, investors must consult professionals and make decisions carefully. We have no intention to provide underwriting services or any services that require specific qualifications or licenses for the trading parties.

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