Roborock Targets RMB 70 Billion by 2029

Roborock has re-listed on the Hong Kong stock market. Let’s take a look at some interesting contents from the prospectus of this Hong Kong stock market.

The first is the performance part of the stone itself.

Roborock's sales increased from 6.6 billion in 2022 to 11.9 billion in 2024. In just three years, sales doubled. Gross profit was 6 billion yuan. Among them, sales in the Chinese market were 5.5 billion, gross profit was 2.57 billion, and gross profit margin was 46.%. Sales in overseas markets were 6.38 billion, gross profit was 3.43 billion, and gross profit margin was 5.37 billion.

The number of other robot vacuums is 3.5 million units, with sales of 10.89 billion, and the number of hard floor washers and washing machines is 619,000 units, with sales of 1.07 billion RMB.

Among them, direct sales are 4.95 billion RMB, and distributor sales are 6.96 billion RMB. The situation of the top five customers is here. Now Roborock is constantly taking back the original distribution market, which can increase profit margins, but the withdrawing dealers also give competitors the opportunity to expand the market.

Roborock also mentioned in the prospectus that their current export tariff to the United States is 55%, including 10% basic tariff, 25% fentanyl and 25% 301 investigation. This is consistent with what I said in my previous video.

Roborock lists the robots of 2024 The market share of the five major vacuum brands, if calculated by GMV, is 23.4%, and if calculated by sales volume, Roborock is 16.7%, all ranking first in the world. Among the competitors listed here, brand A should be Ecovacs, brand B should be iRobot, brand C should be Dreame, and brand D should be Narwal. Xiaomi is missing here. According to IDC data, Xiaomi should have a market share of 9.7%.

Roborock's current global market share is No. 1 in the world in both GMV and sales. The five major markets in the world are as follows: No. 2 in the Chinese market (the No. 1 should be Ecovacs), No. 2 in the U.S. market (the No. 1 should be iRobot), No. 3 in Japan, No. 1 in South Korea, and No. 1 in Germany.

Then regarding the robot vacuum and hard floor washer markets, Roborock still has some judgments.

First of all, China's smart cleaning market is 5 billion US dollars in 2024 (including 2.5 billion US dollars for robot vacuum, 2 billion US dollars for hard floor washer, and 50 million US dollars for others). Roborock accounts for 23%. By 2029, the market is expected to grow to 13.7 billion US dollars (including 6.9 billion US dollars for robot vacuums and hard floor washerss ($5.8 billion and the other $1 billion), Roborock’s goal is to occupy 42.4% of the share and reach $5.8 billion.

Then in 2024, the global smart cleaning appliances were 15.1 billion US dollars (including 9.3 billion US dollars for robot vacuum, 3.6 billion US dollars for hard floor washer, and 2.2 billion US dollars for others). Roborock now accounts for 12.3% of the market share. By 2029, the market is expected to grow to 41.4 billion US dollars (including 25.2 billion US dollars for robot vacuums and hard floor washerss (11.8 billion U.S. dollars, others 4.4 billion U.S. dollars), Roborock’s goal is to achieve 25.5% of the market share, 10.5 billion U.S. dollars. Compared with the current sales of 11.9 billion yuan, it will increase nearly 6 times. This ambition is indeed very big.

Robot in the global market Vacuum market sales are estimated to be US$2.5 billion in 2024 in China and US$6.9 billion in 2029, US$2 billion in the US market in 2024 and US$4.8 billion in 2029, and US$500 million in Japan in 2024 and 2 It is expected to be 1.3 billion US dollars in 9 years, South Korea is 500 million US dollars in 24 years, and it is expected to be 1 billion US dollars in 29 years. Germany is 500 million US dollars in 24 years, and it is expected to be 1 billion US dollars in 29 years. Other markets are 3.3 billion US dollars in 24 years, and it is expected to be 10.1 billion US dollars in 29 years.

global robot In terms of sales volume, the global vacuum market will be 20.6 million units in 2024 and will reach 43.2 million units in 2029. Among them, the Chinese market will have 5.4 million units in 2024 and is expected to reach 11.7 million units in 2029. The US market will have 4.7 million units in 2024 and is expected to reach 85 million units in 2029. 00,000, Japan will have 1.3 million units in 2024 and 2.4 million units in 2029, South Korea will have 900,000 units in 2024 and 1.4 million units are expected in 2029, Germany will have 800,000 units in 2024 and 1.4 million units in 2029, and other markets will have 7.6 million units in 2024 and 17.8 million units in 2029.

The hard floor washer market sold 10.5 million units in 2024, with sales of US$3.6 billion, and is expected to reach 30.2 million units in 2029, with sales of US$11.8 billion.

Here is some interesting information from Roborock’s prospectus, as well as some of my personal opinions:

1. At present, the growth of Roborock's products and channels is very stable. According to their own estimates, it can reach 10.1 billion U.S. dollars (almost more than 70 billion yuan) in 2029. This figure has increased 6 times compared to Roborock's current sales of 11.9 billion U.S. dollars in 24 years. The main source is that the external market capacity has increased by 2-3 times, and then its own market share has increased by 2-3 times. If the market capacity can really be as expected, based on Roborock's current capabilities, I think there is a great opportunity.

1. Roborock currently has a team of 2,560 people, with a very high efficiency ratio. And the team is very young. In this way, it will have a great competitive advantage in future competition.

1. Hard floor washers should not be the focus in the future and will be directly included in other cleaning appliances. At present, the opportunities for cleaning appliances are much greater than washing machines. In the future, they may develop into commercial robots, window cleaning robots, robotic mowers and even robotic pool cleaners. In this regard, the Roborock brand should still have a relatively large advantage.