With the performance booming, cross-border sales netted 2 billion yuan a year!

Recently , Ecovacs, the best seller of Amazon cleaning robots , released its 2021 annual performance forecast, once again using data to prove its strength to the industry. Roborock , another brand owner of Amazon sweeping robots, Roborock Technology, is also making rapid progress in this field ...

Net profit of 5.48 million yuan a day ! Ecovacs sales soared

The announcement shows that in 2021, Ecovacs expects to achieve a net profit attributable to shareholders of listed companies of RMB 2 billion to RMB 2.05 billion, an increase of RMB 1.35 billion to RMB 1.41 billion compared with the same period last year, a year-on-year increase of 211.9% to 219.7%; the non-net profit is expected to be RMB 1.85 billion to RMB 1.9 billion, a year-on-year increase of 248.4% to 257.8%.

It can be seen from the third quarter 2021 financial report data released earlier by Ecovacs that from January to September last year, the net profit attributable to shareholders of the listed company was 1.33 billion yuan. It can be inferred from this that the net profit attributable to shareholders of the listed company in the fourth quarter of last year was 670-720 million yuan.

Overall, as one of the world's earliest service machine developers and manufacturers, Ecovacs saw a significant increase in profits in 2021 and continued to move forward steadily.

It is not difficult to see from the performance forecast that the main reason for the company's expected performance increase is inseparable from the two main forces of Ecovacs and Tineco . The performance forecast shows that the company will continue to deepen the dual-wheel drive strategy of Ecovacs and Tineco in 2021, successfully launch a number of household service robots and high-end smart life appliances that are best-selling globally, and promote the rapid growth of the business revenue of the two brands.

At the same time, on the basis of rapid revenue growth, the company continued to optimize its product structure, and its overall gross profit margin increased significantly, which is also one of the key points to improve the company's overall profitability.

As the two main players of the company, the performance of the two self-owned brands, Ecovacs and Tineco, has always been very outstanding. In the third quarter and the first three quarters of last year, the increase in the company's revenue and the increase in net profit attributable to shareholders of listed companies were inseparable from the growth in revenue and the increase in gross profit margin of Ecovacs brand household service robots and Tineco brand smart home appliances .

During last year's Double Eleven period, the company's omni-channel sales exceeded 3 billion yuan, a year-on-year increase of 107%, of which Ecovacs brand sales exceeded 1.6 billion yuan and Tineco brand sales exceeded 1.4 billion yuan.

During the epidemic, home appliances , including sweeping robots and home cleaning appliances , became one of the best-selling categories in the world. However, Ecovacs mentioned in its earnings forecast that due to the impact of various factors such as raw material costs, chip supply, and transportation costs , Ecovacs experienced the same challenges as many other companies.

Ecovacs said that in 2022, the company's two main brands, Ecovacs and Tineco, will continue to provide novel smart products that combine technological innovation and user value; the company will also further expand its global business footprint, seize growth opportunities in the robotics and smart life sectors, and expand new smart scenarios based on existing product categories.

In fact, as mentioned in the performance forecast, the company's investment in research and development can be said to have increased year by year, which is also an important driving force for Ecovacs to quickly grow into an industry leader.

Whether in terms of revenue or net profit, Ecovacs's position in the market is second to none, which also reflects the strong demand of consumers for sweeping robots. The global sweeping robot market still has considerable room for growth in the future. In addition to Ecovacs, Roborock is also advancing rapidly in this field ...

Net profit margin exceeds 25%, Stone Technology is also very strong

As the lazy economy becomes popular, sweeping robots have entered thousands of households with their ability to free consumers' hands. Companies like Ecovacs, which specializes in sweeping robots, and Stone Technology , a high-priced stock on the Science and Technology Innovation Board , have achieved remarkable results.

Roborock , the brand of sweeping robots owned by Stone Technology , is well-known on Amazon and has achieved remarkable results. According to sales data, Roborock sold 1.23 million sweeping robots in the first half of 2021 .

Relevant data shows that from January to June 2021, Stone Technology's operating income was 2.348 billion yuan, of which the net profit attributable to the parent company was 652 million yuan. In terms of revenue, it is less than half of Ecovacs in the same period, but in terms of net profit margin, it has exceeded 25%, which is much higher than Ecovacs, and it is envied by many cross-border sellers.

But this situation changed in the third quarter of 2021.

Stone Technology's net profit in the third quarter was 364 million, down 17% year-on-year, the first time its net profit has declined in a single quarter since its listing. Stone Technology said that hiring popular celebrities as spokespersons was one of the important reasons for its profit decline.

Comparing the data of Roborock Technology and Ecovacs in the first three quarters of 2021, Roborock Technology's operating income was 3.827 billion, a year-on-year increase of 28.43%; Ecovacs's revenue was 8.243 billion, a year-on-year increase of 99.04%. Whether it is revenue or profit, the growth rate and data are far apart.

This data is closely related to the investment ratio of their R&D and marketing expenses. According to the data from the first three quarters of 2021, the R&D expenses of both companies were 311 million, but the R&D expense rates were different, with Stone Technology at 8.13% and Ecovacs at 4.13%.

In terms of marketing expenses, Stone Technology spent 513 million yuan, with a marketing expense rate of 13.40%; Ecovacs spent 1.893 billion yuan, with a sales expense rate of 22.96%. It seems that it is not unreasonable for industry insiders to attach importance to marketing investment, after all, high investment leads to high returns.

For Stone Technology, the decline in its net profit may be due to the following reasons.

Overseas market expansion encountered risks. In 2021, due to the impact of the epidemic and other factors, port congestion, container detention and soaring shipping costs have led to increasingly tight shipping capacity, which has had a certain impact on the on-time delivery of its overseas orders.

Rising raw material costs. The sharp rise in the prices of raw materials needed for home appliances has hampered the profit margins of the home appliance sector. Not only traditional home appliance companies, but also the profit margins of cross-border e-commerce companies have been greatly impacted.

In addition to market expansion and rising raw material costs, Stone Technology is also facing threats from intensified market competition and the rise of new home appliance stars.

Industry insiders said that whether it is a sweeper or a floor scrubber , it is not too difficult for companies to enter the market. As far as going overseas is concerned, it is not impossible for traditional home appliance companies to expand across e-commerce and vigorously expand the market .

The industry market environment is ever-changing. Sellers need to constantly adjust their business strategies based on their actual conditions, so that they can win the market and increase consumer stickiness while providing consumers with high-quality products to ensure that they are invincible.

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