- Ecovacs was already separating its business logic between service robots and cleaning appliances.
- The 2018 report showed why robot products had much stronger margin potential than traditional vacuum manufacturing.
- Tineco and sensing technology were early signals of the group’s next floorcare direction.
Ecovacs released its annual report for 2018, and I have excerpted some important sections for reference.
Some of the companies in which Ecovacs has a stake represent the direction in which Ecovacs is poised to develop next.
Business Overview, primarily focusing on the major brands/segments of Ecovacs and Tineco.
Research and development team and industrial design.
The next direction for development is sensors. Tineco's latest cordless vacuum cleaners have already begun using a dust sensor to automatically adjust suction power.
Revenue in 2018 had already reached RMB 5.694 billion, representing a growth of 25.11%. At this rate, Ecovacs is expected to surpass Kingclean and become the top brand in the vacuum cleaner industry in 2019.
Financial data for each quarter
The data for each segment shows that the gross margin for small appliances (vacuums) is indeed too low, at only 17%, while service robots have a margin of 47.57%.
From the production figures, self-manufactured vacuum cleaners amount to 6.31 million units. Robots have reached over 4 million units, while those purchased externally total 617,000 units. The external purchase portion should gradually decrease to zero.
Material Cost Composition
Cost Distribution
Research and Development Investment
Main Shareholding Structure Controlling Human Interest
Data from participating enterprises
Details of Major Participating Enterprises, which represent one of Ecovacs's future development directions.
Aierite: Operates primarily in thesweeper vehicle and floor scrubber markets. Automaticsweeper vehicle and floor scrubber appear to be directions that Ecovacs is also likely to layout in the future.
Roborock: Programmable robots and children's toys. Family intelligent toys are also one direction for Ecovacs.
Roborock: Laser-guided mobile robots. From the official website, it is evident that the products arebiased toward commercial and industrial applications (biased towards commercial and industrial applications).
Roborock Technology: Artificial Intelligence. Will there be a virtual butler integrated into future robot vacuums?
Xiajidu Technology: Multimodal Artificial Intelligence Robot Technology. This should be done to enhance the robot's voice processing capabilities.
There is also an independent director, Yu Kai, the CEO of Horizon Robotics, who is also an expert in the field of autonomous driving.
