China Securities Co., Ltd.: Accelerating the commercialization of embodied intelligence, with great market potential for "AI + sports" and "AI + security."

China Securities Co., Ltd. research report stated that the commercialization of embodied intelligence is accelerating, mainly focusing on ball sports and security patrol scenes, with Siasun Robot & Automation & 's robot dogs being able to solve their problems and pain points. The tennis Siasun Robot & Automation Acemate and the golf caddy Siasun Robot & Automation of ONEROBOTICS (06600), as well as the security patrol Siasun Robot & Automation jointly developed by Zhejiang Taotao Vehicles (301345.SZ) and Kandi Technologies Group, Inc. (KNDI.US) with CloudWalk, indicate a large market potential for "AI + sports" and "AI + security". Meanwhile, companies in the intelligent travel industry have the potential to enter leisure sports and security patrol scenes, utilizing their understanding of demand, production, manufacturing, and sales channels. The main points of China Securities Co., Ltd. are as follows: Focus on ball sports and security patrol scenes: Siasun Robot & Automation & robot dogs are changing the training and security modes, solving efficiency and effectiveness issues. In the sports scene, the core value lies in providing customizable, high-intensity, standardized intelligent training and assistance services, solving problems such as strong dependence on manpower, uneven resources, and low efficiency in traditional training modes. In the patrol scene, the core value lies in performing boring, dangerous, or tasks difficult for humans to perform, achieving the automation, intelligence, and unmanned upgrading of security work. Specific applications of Siasun Robot & Automation & robot dogs: In tennis, ONEROBOTICS launched the AI tennis Siasun Robot & Automation Acemate in May 2025, with crowdfunding exceeding $2.4 million, indicating its commercialization potential and driving the rapid growth of mobile Siasun Robot & Automation in enhancing training, and other mainstream products surpassed their fundraising goals, indicating that the commercialization of embodied intelligence in sports training scenes is accelerating. In golf, Navee launched multiple electric golf carts, indicating the potential for companies in the intelligent travel industry to expand into golf and other leisure sports scenes. In July 2025, Kandi entered the North American golf intelligent equipment market with CloudWalk, attracting numerous players. In security patrol, tech companies like CloudWalk and others have mature solutions, and have reached deep cooperation agreements with scenario/channel partners, using the latter's understanding of market pain points and mature sales networks to quickly enter overseas markets like North America and achieve commercialization. How big is the market space for terminal applications? For tennis, with the increasing penetration rate driving the growth of tennis Siasun Robot & Automation, it is estimated that the sales volume of tennis Siasun Robot & Automation in the United States in 2035 will reach 4.28 million units, with a market size of $6.4 billion, with a CAGR of over 100%. For golf, with the increasing penetration rate driving the growth of golf caddies Siasun Robot & Automation, it is estimated that the sales volume of golf caddies Siasun Robot & Automation in the United States in 2035 will reach 1.41 million units, with a market size of $2.8 billion, with a CAGR of over 90%. For security patrol, as inspection Siasun Robot & Automation gradually replaces high-cost human security and monitoring, the increasing number of application sites and ownership rates in the United States are expected to drive the demand and market size of security patrol Siasun Robot & Automation, with the expected ownership reaching 130,000 to 270,000 units, annual demand reaching 20,000 to 40,000 units, and market size reaching $1.1 billion to $1.7 billion. Risk warning 1) Uncertainty in technological development: As embodied intelligence is a new and emerging technology industry, key technologies have not yet undergone full industry cycle verification. The current industry technology iteration speed exceeds expectations, and if the company's R&D progress lags or faces risks of rapid decline in product competitiveness. In addition, increased scrutiny of artificial intelligence ethics may pose restrictions on algorithm training data sources. 2) Risk of deteriorating competitive ecosystem: The Siasun Robot & Automation track is attracting cross-border giants and capital-intensive inflows, leading to potential drastic industry restructuring. Competitors leveraging vertical integration for cost advantages and brand premium capabilities may continue to squeeze the survival space of small and medium-sized manufacturers. 3) Fluctuations in international trade policies: Global trade barriers for Siasun Robot & Automation are structurally upgrading, with new non-tariff barriers such as technical standards certification and restrictions on cross-border data flows continuously increasing. The company's overseas business expansion may face sudden policy adjustments, including challenges such as restricted imports of key components and increased requirements for local production. Political factors leading to supply chain restructuring pressures, such as the GEO Group Inc, may significantly prolong the market development cycle. 4) Macro-environmental risks: As a capital-intensive industry, the development of Siasun Robot & Automation depends highly on overall economic conditions. With differentiation in growth momentum among major global economies, enterprise procurement decisions are becoming more cautious, and consumer demand is also constrained by slowing growth in disposable income. During a tightening monetary policy cycle, rising financing costs and simultaneous valuation system restructuring may present a dual challenge to cash flow management for enterprises still in their growth stage.