Roborock’s Revenue Increased by 24% in H1 2022 and Sales Expenses Increased by 91%

Consumer Staples Author: Yifei Liu Aug 30, 2022 03:30 PM (GMT+8)

Roborock released its half-yearly report for 2022.

Vacuum cleaner

In H1 2022, Roborock (688169:SH) achieved revenue of CNY 2.923 billion(USD 0.4 billion), up 24.49% year-on-year. It achieved net profit attributable to the mother of CNY 617 million, down 5.40% year-on-year.

Roborock said that the growth is due to the company's new product development and launch, domestic channel expansion and the effect of marketing investment. The main reason for the year-on-year decrease in net profit attributable to the mother is that Roborock’s further domestic and overseas markets expansion led to a higher growth in sales expenses.

From January to June 2022, affected by the epidemic and the international situation, the domestic cleaning appliances sales decreased by 12.93% year-on-year, sales increased by 1.16%, and the average price of sweeping robot products increased by 46.75% year-on-year.

Roborock inferred that under the influence of the epidemic, the sales of low-end and mid-range products were affected to a certain extent, and the demand and sales of high-end products gradually increased.

At the beginning of Roborock's development, its products are all produced by commissioned processing, no self-built production base. Roborock said that later, with the landing and commissioning of the factory, its production model will gradually change to mainly independent production, supplemented by outsourced processing.

As of the close of business on August 29, Roborock shares have fallen back to CNY 316 per share, down 52.19% this year.