Sweeping robot maker Roborock forecasts 69%-86% jump in 2023 net profit

Roborock credited the spike in profits over the past year to three factors, including a leap in overseas demand and sales, new product releases and a growing sales network.

Roborock (石头科技), one of China’s largest cleaning robot developers, said in an exchange filing on January 23 that its net profit attributable to the parent company in 2023 reached 2 billion yuan (US$279 million) to 2.2 billion yuan.

Its expected net profit gained between some 817 million yuan and 1.017 billion yuan, up 68.99% to 85.89% compared to the level from a year earlier, Roborock said.

Meanwhile, the company’s net profit attributable to shareholders after deducting non-recurring gains and losses amounted to 1.8 billion yuan to 2 billion yuan through 2023, an increase of 602 million yuan to 802 million yuan, up 50.29% to 66.98%.

Roborock credited the spike in profits over the past year to three factors, including a leap in overseas demand and sales, new product releases and a growing sales network.

What’s more, one of its wholly owned subsidiaries was recognized as a special high-tech software firm and in turn became eligible for corporate tax rebates.

Besides, the accrual in the fair value of the company’s wealth management products also boosted its net profit, the exchange filing said.

Across-the-board expansion

In its 2023H1 financial statement, Beijing-based Roborock cited numbers from AVC, a home appliance intelligent provider, and said that as of June 30, online retail sales revenue of its robot vacuum products represented 26.3% of the total across the country, up by 2.7 percentage points.

Meanwhile, its retail sales volume as of H1 2023 went up 2.8 percentage points to account for 21.2% of the total nationwide.

Roborock’s major rivals, such as Ecovacs (科沃斯), Xiaomi (小米科技), Dreametech (追觅科技) and Narwal (云鲸), have yet to release their annual financial statements for 2023 to offer figures for comparison.

China’s home-use cleaning gadget market rose 3.1% year on year to 15 billion yuan as of June 2023.

Of the total, the online sales of homegrown robot vacuums and mops hit 5.71 billion yuan, an increase of 38.1% from the same period in 2022.

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Ni Tao

Ni Tao is the founder and editor-in-chief of cnrobopedia. Prior to cnrobopedia, he had a full decade of experience with a major state-run English-language newspaper as a tech reporter and opinion writer. He is also a communications specialist, having provided consultancy services to established firms like Siemens, Philips, ABinBev, Diageo, Trip.com Group (Nasdaq: TCOM, HK: 9961), Jianpu Technology (NYSE: JT) and a handful of domestic startups. A graduate of Fudan University, he writes widely about China's business and tech scenes and other topics for global publications including South China Morning Post, SupChina, The Diplomat, CGTN, Banking Technology, among others, and tries to impart his experience to students at Fudan University Journalism School, where he is a part-time lecturer. When he's not writing about robotics, you can expect him to be on his beloved Yanagisawa saxophones, trying to play some jazz riffs, often in vain and occasionally against the protests of an angry neighbor. Get in touch with him by dropping a line at nitao0927@gmail.com.

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