Roborock's 2023 Net Profit Reaches CNY 2.051 Billion, Showing a 73.32% Year-on-Year Growth

On the evening of March 28th, Roborock (688169:SH) disclosed its financial report for the year 2023. The company achieved a revenue of CNY 8.654 billion, marking a 30.55% year-on-year growth, with a net profit attributable to the parent company of CNY 2.051 billion, showing a remarkable 73.32% year-on-year increase. In the recent period, listed companies in the household cleaning appliance industry have successively released their financial reports, indicating a downward trend in the industry. Despite this, Roborock's exceptional performance has defied the overall industry trend, garnering significant attention from the public.

Roborock's rapid growth is attributed to two powerful engines: continuous increase in research and development investment and simultaneous operations in both domestic and international markets. The financial report reveals that during the reporting period, the company invested CNY 619 million in research and development, representing a 26.69% year-on-year growth. By the end of the reporting period, the company had 622 research and development personnel and had acquired 522 authorized patents domestically and internationally. The company is committed to continuously iterating key technologies to establish core product competitiveness.

In the domestic market, Roborock has solidified its image as a high-end brand, strategically positioning products across various price segments. Regarding branding, the company has effectively utilized its product lineup to express distinctive brand characteristics, reinforcing consumer awareness. Additionally, through the introduction of new products, the company aims to expand its market influence. Furthermore, the company consistently enhances the promotion and advertising of its proprietary brands, increasing brand recognition through traditional e-commerce partnerships and new channel deployments.

In the international market, Roborock capitalizes on the potential market size and high-quality products, focusing on the development of the American, European, and Asia-Pacific markets, gradually establishing a global distribution network. As of now, Roborock's products are available in over 170 countries and regions, with over 15 million households using Roborock's robotic vacuum cleaners. Simultaneously, Roborock has established local subsidiaries and overseas companies in major international markets to elevate its market position and provide enhanced after-sales service. Presently, Roborock has established overseas companies in the United States, Japan, the Netherlands, Poland, Germany, South Korea, and other regions. In the United States, the company has set up online brand stores on platforms such as Amazon, Home Depot, Target, Best Buy, and Walmart. In 2023, Roborock made its debut in the offline retail chain Target, achieving widespread consumer recognition through sustained brand investment.

Through diversified marketing channels, Roborock has expanded its product sales and market coverage. During the reporting period, the company continued to deepen its cooperation with various e-commerce platforms, strategically positioning products and fully leveraging platform traffic. Additionally, the company, through marketing strategies, market research, and other means, aimed to enhance marketing efficiency and market responsiveness, further stabilizing its industry position.

Furthermore, Roborock focused on emerging formats and channels to further enrich offline sales channels. In China, the company established offline experience stores in core urban business districts through distribution channels, accurately targeting user needs to enhance user perception and experience, thereby boosting industry penetration rates. Overseas, the company made its first entry into offline physical retail in the United States in 2023 and has since expanded to over 180 Target stores in the United States.

Roborock's President, Quan Gang, stated that after years of development, the company has established mature and stable channels in its major overseas markets, along with substantial brand appeal. As Roborock becomes the most renowned brand in the global robotic vacuum industry, it continues to lead the industry's development. Roborock will further explore global user needs, continuously break through in technology, introduce products with ultimate user experiences, and enhance potential users' confidence in robotic vacuum cleaners. The company aims to fully realize the category value of robotic vacuum cleaners, transforming them from optional to essential consumer products.

Next, Roborock will accelerate product technology research, product incubation, and result transformation processes to continuously enhance the company's overall R&D capabilities and R&D efficiency. In terms of marketing, the company will further optimize and adjust its marketing business management model, streamline marketing architecture and processes, strengthen the marketing team, reinforce organizational planning and performance assessment, and ensure the implementation of annual business operation plans. Additionally, the company will continuously assess consumer demand trends in real-time, expand diversified sales channels, optimize the marketing network system, establish sales systems through multiple channels domestically and overseas, develop online and offline sales synergistically, comprehensively cover consumer groups, promote brand building, and add new impetus to sales growth.

As of the time of publication, Roborock's stock was priced at CNY 337 per share, with a total market value of CNY 44.308 billion.