INLIF Limited has begun construction of a second phase of its digital intelligent manufacturing base in Nan’an, Fujian. The new 14,134‑square‑meter facility will house two automated robotic assembly lines and a three‑dimensional intelligent warehousing system, and is expected to lift annual robotic‑arm output to roughly 10,000 units once operational.
The expansion comes on the back of a 52.49% year‑over‑year rise in revenue for the first half of 2025, driven by robust demand from new‑energy vehicle, home‑appliance, and packaging customers. However, the company posted a net loss of $1.98 million for the same period, a swing from a $0.39 million profit in H1 2024. Gross margin contracted from 25.45% to 17.50%, reflecting higher cost of revenue and a 148.04% jump in operating expenses, largely due to increased administrative costs and share‑based compensation.
Revenue growth was supported by a 52.49% increase in sales volume, but margin compression was driven by a 68.73% rise in cost of revenue and a 148.04% rise in operating expenses. The company’s management highlighted that the higher costs were a result of investing in new technology and expanding its workforce to support the Phase II build, while still maintaining pricing power in its core segments.
The Phase II project represents a significant capital outlay, though the exact figure has not been disclosed. By integrating 5G‑enabled smart manufacturing and advanced automation, INLIF aims to improve production efficiency, reduce cycle times, and position itself to capture a larger share of China’s industrial‑automation market. The expected output of 10,000 robotic arms per year is intended to meet the growing demand for automation in the new‑energy vehicle and packaging sectors.
INLIF’s Nasdaq listing has faced a compliance challenge, as the company received a minimum‑bid‑price deficiency notice on 2025‑10‑27. The notice, coupled with a “Strong Sell” technical sentiment signal and a neutral analyst rating, has heightened investor scrutiny. Management has not yet provided a revised guidance range, but the company’s focus on long‑term capacity expansion signals confidence in sustaining growth despite short‑term profitability pressures.
CEO Rongjun Xu emphasized that the company’s revenue and gross‑profit growth in H1 2025 reflected strong customer demand and effective sales initiatives. He noted that the company would continue to invest in research and development and leverage its high‑tech enterprise status to secure a reduced 15% tax rate, which helps mitigate the impact of the current net loss. The Phase II build is positioned as a strategic investment to drive future profitability as the company scales its production capabilities.
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