The sales volume exceeded one million units, and the net profit from this huge sale exceeded 600 million in half a year!

The increasing popularity of smart homes has led to explosive growth in sweeping robots in domestic and foreign markets. In the first half of 2022 alone, the size of the global sweeping robot market reached US$2.3 billion, and is expected to reach tens of billions in the future. Domestically, Ecovacs and Roborock, which are in the first echelon of the industry, have not only "grabbed land", but also increased the influence of domestic brands going overseas.

Recently, Ecovacs and Roborock Technology announced their performance in the first half of this year. Judging from the data, both companies have achieved outstanding results.

With two major brands protecting it, Ecovacs' half-year revenue is 6.822 billion yuan

In the first half of this year, while some companies saw an increase in revenue but no increase in profit, or even a decline in both, Ecovacs' revenue and net profit still maintained positive and relatively high growth.

In the first half of this year, Ecovacs' total revenue reached 6.822 billion yuan, up 27.31% from the same period last year. Net profit was 877 million yuan, up 3.15% year-on-year. It is worth noting that Ecovacs' revenue and net profit not only exceeded that of Stone Technology in the same field, but also exceeded that of Anker Innovations (revenue of nearly 6 billion yuan, net profit of about 580 million yuan) and Giant Star Technology (revenue of about 6.2 billion yuan, net profit of about 640 million yuan) and other leading sellers in the industry.

In terms of driving revenue growth, the dual-driven model of the two brands continued to work, with business revenue totaling 6.449 billion yuan, accounting for more than 94% of its total revenue. The product shipments of each brand series ranged from hundreds of thousands to millions of units.

Among them, the sales revenue of Ecovacs brand service robots was 3.497 billion yuan, a year-on-year increase of 33.88%. Accounting for 51.25% of the total revenue, the shipment volume of self-cleaning products under this brand reached 550,000 units, an increase of 254.5% over the same period last year. The sales revenue of Tineco brand was 2.953 billion yuan, a year-on-year increase of 44.98%. Accounting for 43% of the total revenue, the total shipment volume of Tineco Fuwan series floor scrubbers was 1.09 million units, an increase of nearly 49% over the same period last year.

Although the continued high inflation in major European and American countries this year has led to weak consumption, Ecovacs revealed that its performance in Japan and Asia-Pacific emerging markets in the first half of the year has achieved significant growth, which has also enabled the company's overall overseas revenue to grow. The overseas business revenue of the two major self-owned brands increased by 17.2% and 15.9% year-on-year, respectively, accounting for 27.1% and 27.7% of their respective revenues.

It is understood that the average price of Ecovacs' two major brands has been rising, reaching RMB 2,460 and RMB 1,941 respectively. In addition to sweeping robots, the company's other new products and series, such as window cleaning robots and air purification robots, are also popular with consumers, which also makes Ecovacs' business no longer rely solely on sweeping robots, but develops multiple products together.

Founded in 1998, Ecovacs is the leader in technology research and development and category innovation in the industry. In the first half of 2022, R&D expenditure reached 352 million yuan, an increase of 74.05% over the same period last year. The efficient R&D conversion efficiency has accelerated the iteration and update of products and continued to broaden the technological moat of its products.

In addition, its independent production advantages have always been outstanding. The relevant products are basically all self-produced, and with the advantages of scale, it has strong bargaining and supply chain integration capabilities. In response to the different needs of overseas markets, independent production allows Ecovacs to flexibly and efficiently adjust the production of multiple categories and multiple SKUs, and accelerate the integrated research, production and sales chain.

From sweeping robots supporting its main business to launching multiple products, from OEM labels to its own brands occupying half of the market, Ecovacs has great market potential. Also in the first echelon of this field is the rising star Roborock Technology, which also had a relatively stable performance in the first half of this year.

Sales of flagship products exceeded 1.1 million units, and Roborock Technology made a net profit of 617 million in half a year

Roborock, the brand of sweeping robots owned by Stone Technology , is well-known on Amazon. Although it started later than Ecovacs, it has developed strongly.

Stone Technology's total revenue for the first half of the year was 2.923 billion yuan, a year-on-year increase of 24.49%. Net profit was 617 million yuan, a year-on-year decrease of 5.40%. For Stone Technology, which was only established in 2014, it is really excellent to quickly occupy the market share within a few years and become a new industry leader.

Compared with the revenue growth in the same period, the net profit declined. Stone Technology said that it was mainly due to the launch of new product development, the success of domestic channel expansion, and the effectiveness of marketing. The profit decline was due to the further expansion of domestic and overseas markets, which led to a large increase in sales expenses, including advertising and marketing expenses , increased salary expenses of the sales department, and a decrease in gains and losses from forward exchange locks.

Compared with 262 million yuan in the same period last year, Stone Technology's sales expenses in the first half of the year have exceeded 500 million yuan.

In addition, due to the increase in unexpired accounts receivable, which resulted in the inflow of all sales proceeds, an increase in inventory, and a significant increase in sales expenses, the cash flow generated by Stone Technology's operating activities decreased by 81.67% compared with the same period last year, and the current net cash flow is 162 million.

However, in the first half of the year, Roborock's star product, the sweeping robot, sold over 1.1 million units , with sales revenue of 2.922 billion yuan. Related products have been at the top of Amazon's sales charts in Germany and the Netherlands.

Compared with the big names in the same industry, Roborock Technology started a little later, but it is catching up very quickly. It received investment from Xiaomi two months after its establishment in 2014. Roborock Technology, which is tied to Xiaomi, did not rest on its laurels, but instead focused on its own brand. In 2021, the proportion of revenue from its own brand reached 98%, which also made the industry see more of Roborock Technology itself, rather than just "Rollor Technology under Xiaomi's investment."

However, Stone Technology itself said that there is a risk of a single product structure. The current product structure is single and the product categories are relatively few. If the market demand for smart sweeping robots fluctuates greatly in the future or it cannot respond to consumers' demand for the performance and new functions of smart sweeping robots in a timely manner, it will have an adverse impact on its operations.

This will further test Roborock's ability to invest in scientific research in the future. Like Ecovacs, Roborock focuses on products and research and development. Its R&D investment in the first half of this year was 226 million yuan, a year-on-year increase of 13.74%. While accelerating the launch of new products, Roborock has made new progress in the research and development and technology of commercial cleaning robots, cordless floor scrubbers, vacuum cleaners and other products.

Since 2017, the smart home industry has set off a wave of innovation. Various smart devices have emerged in home scenarios, which has also promoted the vigorous development of the smart home industry. At the same time, the rise of young consumer groups and the explosion of users' demand for high-quality life have made cleaning appliances very popular in the market and become a "dark horse" in the smart home appliance category.

Amazon, the old boss of cross-border e-commerce sellers, has also launched many new smart home products. As the market pie gets bigger, more and more people are joining in. In addition to some newcomers who have just entered the field, many traditional home appliance companies have also turned to overseas markets. Under the trend of going overseas driven by products and brands, the long-term competitiveness of both Ecovacs and Roborock Technology has become the key.

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