On August 25, Ecovacs, a global leader in service robotics and intelligent lifestyle appliances, released its first Environmental, Social, and Corporate Governance Report (ESG). The report shows that Ecovacs builds the company's ESG governance system from various aspects such as ESG management structure, green energy use, science and technology research and development, and public welfare.
In terms of corporate governance, it is the Board of Directors that fulfills the responsibility for decision-making and monitoring of ESG matters within the company. As of the end of 2022, the board of directors of Ecovacs consisted of nine directors, including three independent directors and one female director. Under the leadership of the board of directors, the Company conducts effective corporate governance with accumulated experience and in-depth understanding of ESG concepts.
In terms of green energy use, Ecovacs has established a more complete environmental management system and developed a number of systems covering green production, sewage, and response to climate change to reduce pollution emissions.
In terms of scientific and technological research, Ecovacs adheres to user needs as the goal of research and development. In 2022, Ecovacs' R&D expenditures amounted to CNY 744 million, a year-on-year increase of 35.5%, and by the end of 2022, the R&D staff amounted to 1,600, a year-on-year increase of 33.7%.
In terms of public education, Ecovacs invests in education public welfare in the form of scientific and technological poverty alleviation and educational inclusion. The company through the establishment of the Ecovacs Robotics Education Fund, helps and cultivates the children of families with financial difficulties to obtain better educational opportunities. In 2020-2022, the Ecovacs Robotics Education Fund annual donationed of CNY 30,000, CNY 50,000, and CNY 133,000. So far, it has been a cumulative total of 116 subsidies for the children of employees in difficulty, 141 outstanding students in difficulty, donated 17 rural elementary schools, 1987 books. Subsidiary Tineco also set up the Tineco Culture and Art Fund in 2019, aiming at helping children with economic difficulties or poor school facilities who do not have access to culture and art.
Ecovacs established China's first robot-themed museum: Creative Technology Museum. With the theme of science and technology cultivation, the museum has developed more than 100 popular science courses, and in 2022, it will organize a total of 32 online public welfare live classes and 10 offline public welfare activities, covering more than 10,000 people. The museum has popularized science to cover more than 76,000 young people and helped more than 30,000 innovative groups.
According to the Ecovacs released 2023 half-yearly report show, the company realized operating income of CNY 7.144 billion, an increase of 4.72% year-on-year. Net profit of the parent company of CNY 584 million; as of the end of the first half of the year, the total assets amounted to CNY 13.715 billion, an increase of 3.05% year-on-year. Among them, Ecovacs brand service robot realized sales revenue of CNY 3.504 billion, up 0.22% year-on-year; the subsidiary company Tineco high-end intelligent life appliances realized sales revenue of CNY 3.280 billion, up 11.08% year-on-year; the two private brand business revenue totaled CNY 6.784 billion, up 5.19% year-on-year, accounting for 94.96% of the total revenue.
In the first half of the year, Ecovacs further optimized the cleaning ability of sweeping robots, successively launched Added Value new products, and built a diversified product matrix and comprehensive price coverage through the synergy of core products such as the T20 series and X1S Pro. In the second quarter, the shipment volume of self-cleaning products in the first half of the year amounted to 750,000 units, an increase of 37.2% year-on-year; the revenue share of self-cleaning products amounted to 80.3%, an increase of 16.5 percentage points over the same period of the previous year.
"Ecovacs will pay more attention to the development of ESG in the future, adhere to innovation, operate in compliance, emphasize employees' rights and interests and talent development, etc., and actively fulfill its social responsibility, thus promoting social development."Qiantongqi, Chairman of Ecovacs, stated.