Key takeaway

ROBOROCK’s interim results beat expectations, and its profitability has entered a recovery phase. Global demand for cleaning appliances continues to expand, while market share is increasingly concentrated among leading players, and the company’s global market share is rising steadily as an industry leader; amid long-term industry competition, the company has withstood pressure through continuous product upgrades and more efficient marketing, achieving improvements in both market share and profitability; despite rising raw material prices, supply chain reforms, design-driven cost reductions, and flexible pricing have effectively offset the pressure, keeping gross margin broadly stable; the selling expense ratio continues to improve, and net margin is recovering steadily. Looking ahead, the core robotic vacuum cleaner business remains solid, breakthroughs are accelerating in North America and other overseas markets, and new growth drivers such as wet-dry vacuum cleaners and robotic lawn mowers are expanding rapidly, which should continue to unlock earnings upside.

Event

On August 24, 2026, ROBOROCK released its interim report.

In 1H26, the company recorded revenue of RMB10.084bn, up 27.60% YoY; net profit attributable to shareholders of the parent company was RMB986mn, up 45.60% YoY; net profit attributable to shareholders of the parent company excluding non-recurring gains and losses was RMB803mn, up 60.74% YoY

In 2Q26, the company recorded revenue of RMB5.857bn, up 30.89% YoY; net profit attributable to shareholders of the parent company was RMB663mn, up 61.74% YoY; net profit excluding non-recurring gains and losses was RMB545mn, up 111.0% YoY

Risks: 1. Macroeconomic growth may fall short of expectations. Cleaning appliances are durable consumer goods and are closely tied to household income expectations. A slowdown in macroeconomic growth may significantly affect the sales of the company’s products; 2. Raw material prices may decline less than expected: Raw material costs account for a large share of the company’s cost of revenue. If commodity prices rise again, the company’s profitability will weaken; 3. Overseas market risks: Uncertainty in overseas markets has increased in recent years, while overseas sales account for a high share of the company’s total sales. A decline in external demand would adversely affect its performance; 4. Intensifying market competition: Competition in the industry becomes more intense amid weak market conditions. The company faces the risks of losing market share and reduced profitability due to low-price competition.