Ecovacs Robotics Co., Ltd. (603486)

Equity Research Report　|　Industry: Home Service Robots and Smart Cleaning Appliances　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; technical indicators mainly as of the September 10, 2026 close, shareholder and institutional holdings data as of June 30, 2026

This report was automatically compiled by AI based on publicly available information and is for reference only. It does not constitute investment advice.

1. Executive Summary

Ecovacs generated revenue of RMB 10.341 billion in the first half of 2026, up 19.18% year on year, and net profit attributable to shareholders of RMB 1.248 billion, up 27.40%. However, net profit attributable to shareholders excluding non-recurring items was RMB 805 million, down 6.37% year on year, while net cash flow from operating activities was only approximately RMB 206 million, down 85.82%. Accordingly, reported profit remained positive, but the quality of core-business earnings and cash conversion came under pressure, making these the most important factors to monitor for investment decisions.

Growth was primarily driven by Ecovacs-branded service robots. In the first half of 2026, Ecovacs-brand revenue was approximately RMB 6.094 billion, up 26.82% year on year, outperforming Tineco-branded smart lifestyle appliances, which generated approximately RMB 4.051 billion, up 10.66%. In 2025, the company generated RMB 10.535 billion from service robots and RMB 8.117 billion from the Tineco brand. The two proprietary brands accounted for 97.97% of total revenue. Overseas revenue had increased to 45.9% of total revenue, while the product matrix was expanding from robot vacuums and floor washers into window-cleaning, lawn-mowing, pool-cleaning and commercial-cleaning scenarios.

Profitability had recovered significantly from 2023–2024 levels. Gross margin rose to 48.82% in 2025, net margin attributable to shareholders was approximately 9.23%, and full-year net profit attributable to shareholders reached RMB 1.758 billion, up 118.13% year on year. Nevertheless, non-recurring gains and losses amounted to approximately RMB 442 million in the first half of 2026. Second-quarter net profit attributable to shareholders excluding non-recurring items was approximately RMB 410 million, down 18.9% year on year. In addition, rising foreign-exchange losses caused finance expenses to increase from negative RMB 1.638 billion in the same period of the previous year to RMB 112 million. The sustainability of profit growth therefore still needs to be validated through subsequent non-recurring-adjusted results.

As of September 11, 2026, the share price was RMB 51.46, representing a pullback of approximately 18.9% from the interim high of RMB 61.50 on August 20. Although the stock rebounded after the RSI6 entered oversold territory, it remained below the MA20 and the Bollinger-band middle line at RMB 54.87. The MACD was below the zero line, and aggregate net selling by major funds over the most recent 10 trading days was approximately RMB 44.72 million. Technical indicators suggest room for a short-term recovery, but the medium-term trend has not yet confirmed a reversal.

2. Company Overview

2.1 Basic Information

2.2 Core Businesses and Product Portfolio

• Ecovacs-branded service robots: Including the DEEBOT series of robot vacuums, WINBOT series of window-cleaning robots, GOAT series of robotic lawn mowers, pool-cleaning robots, smart companion robots, home embodied service robots and commercial-cleaning robots.
• Tineco-branded smart lifestyle appliances: Primarily the FLOOR ONE series of floor washers, with further expansion into household cleaning, health and lifestyle categories. Global floor-washer shipments reached 4.51 million units in 2025, up 8.9% year on year.
• Cleaning-appliance OEM/ODM: Providing contract manufacturing services for international cleaning-appliance brands. However, as proprietary brands have developed, the importance of contract manufacturing to total revenue has declined.
• Intelligent robotic components: Expanding into core components such as motors, electronics, batteries and transmission systems, including businesses related to Kaihang Motor, Taiding New Energy and Qingding Intelligent. As of the end of 2025, 1GWh of production capacity had been installed and put into use under the 2GWh battery project, while the remaining capacity was still under construction or ramp-up.
• 2025 revenue structure: Total revenue was RMB 19.040 billion, up 15.10% year on year; Ecovacs-branded service robots generated RMB 10.535 billion, accounting for 55.34%; Tineco-branded high-end smart lifestyle appliances generated RMB 8.117 billion, accounting for 42.63%; other products generated approximately RMB 141 million; the two proprietary brands together generated RMB 18.652 billion, accounting for 97.97%.
• 2025 shipment and geographic structure: Global shipments of Ecovacs-branded service robots were approximately 4.40 million units, up 49.1% year on year; global shipments of Tineco-branded floor washers were approximately 4.51 million units, up 8.9%; overseas revenue from the Ecovacs and Tineco brands accounted for 45.9% of total company revenue, up 3.7 percentage points from 2024.

2.3 Position in the Industry Chain and Cost-Profit Structure

Ecovacs occupies a position combining “midstream smart-hardware manufacturing and downstream brand operations.” Historically, it primarily generated profit through the design, manufacture, branding and distribution of complete robot-vacuum and floor-washer products. It is now extending upstream into motors, batteries, transmissions and electronic components. The company mainly uses an in-house production model, and its products are generally manufactured internally.

• Major purchased materials and inputs include brushless motors, fans, hub motors and drive assemblies; sensors, controllers, microcontrollers and related electronic components; lithium batteries, battery cells, modules and BMS; plastic structural components, roller brushes, air ducts, filters, water tanks and packaging materials; as well as transmission systems, reduction mechanisms and precision mechanical components.
• Direct-material costs were RMB 7.536 billion in 2025, accounting for 77.34% of operating costs, compared with 77.83% in 2024. The annual report does not break down the specific procurement shares of motors, chips, sensors, plastics, batteries and transmission systems; therefore, an accurate BOM cost ratio cannot be prepared on this basis.
• The company has established businesses in motors, batteries and transmission systems through subsidiaries. The motor business covers brushless motors, fans, hub motors and drive assemblies; the battery business covers cells, modules and BMS; and the transmission-system business covers planetary reduction and parallel-shaft transmission.
• Supplier concentration: Procurement from the top five suppliers was RMB 2.163 billion in 2024, accounting for 14.57% of total annual procurement. No single supplier accounted for more than 50% of procurement. This figure was disclosed in the 2024 annual report. Comparable 2025 data was not found and cannot be directly extrapolated to 2025.
• The company’s bargaining power and delivery control over certain core components should improve as in-house production capacity increases. However, battery cells, chips, sensors, electronic components, lithium-battery materials, plastics and metal materials remain subject to external supply and price fluctuations. Overall, the company does not have complete control over upstream pricing.
• Downstream customers include household consumers, online platforms, offline retailers, overseas distributors and certain commercial customers. Distribution channels cover Tmall, JD.com, Douyin, appliance chains, shopping malls, high-end department stores, home-furnishing stores, overseas e-commerce platforms, and local retailers and distributors.
• Online revenue was RMB 12.914 billion in 2025, with a gross margin of 51.84%; offline revenue was RMB 6.126 billion, with a gross margin of 42.47%. Online gross margin was higher, but the business faces pressure from platform service fees, traffic acquisition and promotional spending. Offline channels involve store, distribution, warehousing and terminal operating costs.
• Customer concentration: Sales to the top five customers were RMB 3.677 billion in 2024, accounting for 22.23% of annual sales. No single customer accounted for more than 50% of sales. This figure was disclosed in the 2024 annual report. Comparable 2025 data was not found in this review and cannot be directly extrapolated to 2025; the data source was not cross-checked in the research notes, and the latest annual report should prevail.
• Unlike automobile-component suppliers, which commonly face annual price-reduction clauses from automakers, the company primarily faces pressure from e-commerce-platform traffic and marketing expenses, offline-channel entry and promotional fees, industry price competition, consumer price sensitivity and after-sales sensitivity, as well as overseas-channel expenses, tariffs, foreign-exchange movements and after-sales costs.
• The company has brand, technology and channel advantages and possesses a degree of product pricing power. However, such pricing power is not absolute, particularly in lower-price segments and the floor-washer market, where competition remains intense.
• As of December 31, 2025, accounts receivable were RMB 2.456 billion, compared with revenue of RMB 19.040 billion, representing approximately 12.9% of revenue. The research notes indicate that accounts receivable had declined significantly from the end of 2024, suggesting improved collection and operating-receivables management. Other materials disclosed accounts receivable of RMB 2.924 billion at the end of 2024, or approximately 17.7% of 2024 revenue. China Chengxin International reported an accounts-receivable turnover ratio of 7.19x in 2024, down from 8.55x in 2023. The notes also contain a reference to RMB 4.283 billion of accounts receivable at the end of 2024, indicating differences in data definitions or records; the company’s latest annual report should prevail. Service-robot inventories increased 78.76% year on year, faster than sales growth, indicating rising inventory-investment and digestion pressure during the new-product and overseas-expansion phase.
• The top five suppliers accounted for 14.57% of procurement and the top five customers accounted for 22.23% of sales in 2024. Both figures are from 2024, and fully comparable 2025 disclosures were not found. The company had no single supplier accounting for more than 50% of procurement or single customer accounting for more than 50% of sales, but this does not establish that concentration was unchanged in 2025.

The company operates between midstream smart-hardware manufacturing and downstream brand operations. It is a midstream-to-downstream enterprise with a degree of brand and technology premium, but remains exposed to upstream component prices and downstream channel competition. Future profit improvement will depend primarily on the digestion of service-robot and new-product inventories; volume growth in high-margin categories such as fresh-water floor washers, window-cleaning robots and robotic lawn mowers; unit-cost reductions from in-house motors, batteries and transmissions; and whether overseas expansion continues to contribute profit after marketing, after-sales, tariff and foreign-exchange effects.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest formal financial report is the 2026 interim report, disclosed on August 21, 2026. As of September 13, 2026, the financial data covers January–June 2026. Net profit attributable to shareholders excluding non-recurring items was RMB 805 million in the first half of 2026, down 6.37% year on year; basic EPS excluding non-recurring items was RMB 1.41, down 7.24% year on year.

Revenue and net profit attributable to shareholders continued to grow in the first half of 2026, but non-recurring-adjusted profitability and operating cash flow came under pressure. Net cash flow from operating activities was RMB 206 million, down 85.82% year on year and significantly below net profit attributable to shareholders. Finance expenses were RMB 112 million, compared with negative RMB 1.638 billion in the same period of 2025, primarily due to increased foreign-exchange losses. Second-quarter net profit attributable to shareholders excluding non-recurring items was approximately RMB 410 million, down 18.9% year on year, indicating that the increase in reported profit was substantially related to non-recurring gains and losses, investment income or fair-value changes. Profit growth in 2025 significantly exceeded revenue growth, which the research notes attributed to product-mix optimization, gross-margin improvement, a lower expense ratio and overseas-business growth. In the first half of 2026, service-robot revenue was approximately RMB 6.198 billion and smart-lifestyle-appliance revenue was approximately RMB 4.066 billion; Ecovacs-brand revenue was approximately RMB 6.094 billion, up 26.82%, while Tineco-brand revenue was approximately RMB 4.051 billion, up 10.66%.

3.2 Earnings Forecasts

The THS F10 page showed that, as of August 17, 2026, 24 institutions had forecast Ecovacs’ 2026 results within the preceding six months. The figures below are market forecasts compiled from excerpts of institutional research reports, not company guidance or audited data. Results captured at different times showed differences, including 24 institutions and 2026 net profit of RMB 2.106 billion, versus 26 institutions and RMB 2.148 billion. This research note uses the aggregate data from 24 institutions as of August 17, 2026. Representative institutional forecasts include Huatai Securities’ forecast of net profit attributable to shareholders of RMB 2.084 billion, RMB 2.401 billion and RMB 2.886 billion for 2026–2028, respectively. China Renaissance Securities, Guotai Haitong Securities, Guotou Securities and China Securities each disclosed corresponding annual EPS forecasts.

3.3 Valuation and Institutional Ratings

At the September 11, 2026 close, Ecovacs’ share price was RMB 49.78. A public market-data page showed a share price of approximately RMB 49.89 as of September 10, with a 52-week range of approximately RMB 48.40–111.69. The Lixinger page around September 9, 2026 showed a total market capitalization of approximately RMB 28.9–29.8 billion, PE of approximately 14.26–14.70x, PB of approximately 3.03–3.12x and dividend yield of approximately 1.79%–1.84%. Because different pages have different refresh times, the research notes recommend using RMB 49.78 as the September 11 closing price and PE of approximately 14–15x and PB of approximately 3.1x as valuation references for early September 2026. At RMB 49.78, based on consensus EPS forecasts, forecast PE for 2026, 2027 and 2028 is approximately 13.7x, 11.5x and 9.7x, respectively. Based on the 2026 EPS forecasts of certain institutions, implied PE is approximately 13.2x for China Renaissance Securities, 13.2x for Guotou Securities and 14.0x for Guotai Haitong Securities. These forward valuations are below the 20–25x 2026 PE assumptions underlying most institutional target prices. However, target prices depend on earnings delivery and multiple expansion and cannot be equated with assured returns. Key drivers of valuation recovery include whether overseas revenue growth can translate into stable profit, whether non-recurring-adjusted earnings can return to growth, whether foreign-exchange and raw-material pressures can ease, and whether new categories such as robotic lawn mowers, window-cleaning robots and embodied intelligence can make sustained contributions.

4. Recent News and Announcements

4.1 2026 Interim Report: Revenue and Net Profit Attributable to Shareholders Increased, While Non-Recurring-Adjusted Profit and Operating Cash Flow Declined

Ecovacs disclosed its 2026 Interim Report on August 22, 2026. Revenue in the first half of 2026 was RMB 10.341 billion, up 19.18% year on year; net profit attributable to shareholders of the listed company was RMB 1.248 billion, up 27.40%; net profit attributable to shareholders excluding non-recurring items was RMB 805 million, down 6.37%; and net cash flow from operating activities was approximately RMB 206 million, down 85.82%. By brand, Ecovacs-brand service-robot revenue was approximately RMB 6.094 billion, up 26.82%, while Tineco-brand smart-lifestyle-appliance revenue was approximately RMB 4.051 billion, up 10.66%. The company stated that revenue growth was mainly driven by increased revenue from the Ecovacs and Tineco brands. The decline in operating cash flow was mainly related to the collection of a large amount of government-subsidy receivables in the same period of the previous year, increased inventory preparation during the current period and higher cash payments for purchased goods. Non-recurring gains and losses totaled approximately RMB 442 million in the first half, with fair-value changes and related items accounting for relatively large amounts. As non-recurring-adjusted profit declined year on year, the quality of core-business earnings remains subject to monitoring.

4.2 No Formal Third-Quarter 2026 Earnings Preview or Earnings Flash Report Found as of September 13, 2026

As of September 13, 2026, no formal earnings preview, earnings flash report or explicit profit forecast announcement for the first three quarters of 2026 had been found for Ecovacs. The latest confirmed formal financial data remains the 2026 interim report. Since the third quarter of 2026 had not yet ended, the absence of a third-quarter earnings preview is not abnormal. Investors should monitor whether the company discloses its third-quarter report or an earnings preview in October 2026. Earnings forecasts, market expectations or statements that results are “in line with expectations” in brokerage research reports do not constitute formal earnings previews by the listed company.

4.3 Cancellation of 76,498 Stock Options Completed, with No Impact on Share Capital

Ecovacs disclosed the Announcement on Completion of the Cancellation of Certain Stock Options on September 10, 2026. The cancellation involved 13 incentive recipients. Of the canceled options, 73,298 were canceled because the recipients left the company and no longer met the incentive conditions, while 3,200 were canceled because recipients under the initial grant failed to meet the performance requirements for the second exercise period. The total number of canceled options was 76,498. The relevant cancellation was completed at the Shanghai branch of China Securities Depository and Clearing Corporation Limited on September 9, 2026. The cancellation had no impact on the company’s share capital.

4.4 First Vesting Period for Reserved Restricted Shares Completed; 475,926 Shares Began Trading on September 3, 2026

Ecovacs disclosed the Announcement on the Unlocking and Listing of Reserved Restricted Shares for the First Lifting-of-Restriction Period under the 2024 Stock Option and Restricted Share Incentive Plan on August 29, 2026. The number of restricted shares released from restrictions was 475,926, and they began trading on September 3, 2026. The shares originated from the reserved grant under the 2024 stock option and restricted share incentive plan. The company had previously disclosed that, because certain incentive recipients had left the company, some restricted shares that had not yet been released from restrictions would be repurchased and canceled. An announcement dated August 22, 2026 stated that, after completion of the repurchase and cancellation, the company’s total number of shares was expected to decrease by 161,550. These matters involved the release of incentive shares and the repurchase and cancellation of restricted shares due to employees’ departure, rather than a share repurchase conducted in the secondary market.

4.5 “Ecovacs Convertible Bonds” Not Subject to a Downward Conversion-Price Adjustment; No Further Downward Adjustment to Be Proposed Within Six Months

On August 10, 2026, Ecovacs’ board approved a proposal not to adjust downward the conversion price of the “Ecovacs Convertible Bonds,” and the company disclosed an announcement on August 11, 2026. As of August 10, 2026, the conversion price of the “Ecovacs Convertible Bonds” had triggered the downward-adjustment clause. The company decided not to make a downward adjustment on this occasion. During the following six months, from August 11, 2026 to February 10, 2027, if the conditions for a downward adjustment were triggered again, the company would not propose such an adjustment. At the time of the announcement, the latest conversion price was RMB 172.97 per share, and the bonds had a term from November 30, 2021 to November 29, 2027. The decision avoids a potential increase in share dilution from a lower conversion price. However, if the share price remains below the conversion price, investors’ willingness to convert may decline, increasing uncertainty regarding subsequent put-back, repayment or conversion arrangements.

4.6 Convertible-Bond Fundraising Projects Completed; Surplus Proceeds to Permanently Replenish Working Capital

Ecovacs disclosed the Announcement on Completion of the Publicly Issued A-Share Convertible-Bond Fundraising Projects, Permanent Replenishment of Working Capital with Surplus Proceeds and Cancellation of Dedicated Accounts on August 6, 2026. As of June 30, 2026, the three fundraising projects associated with the company’s 2021 public convertible-bond issuance had used cumulative proceeds of RMB 1.0842795 billion, leaving a balance of approximately RMB 4.4172 million. Following completion of the projects, the company would use the surplus proceeds to permanently replenish working capital and cancel the relevant dedicated fundraising accounts.

4.7 Additional Guarantee of USD 300,000 for a Wholly Owned Subsidiary

Ecovacs disclosed the Announcement on Adjustments to the Progress of Guarantees Provided to a Wholly Owned Subsidiary on August 27, 2026. The guaranteed party was ECOVACS ROBOTICS INC., and the amount of the new guarantee was USD 300,000. Before this guarantee, the company’s outstanding guarantee for the subsidiary was USD 3.10 million. The guarantee was within the previously approved expected guarantee quota. As of the announcement date, the total external guarantees provided by the company and its subsidiaries were approximately RMB 110.4423 million, representing approximately 1.22% of the company’s most recently audited net assets. The company had no overdue guarantees.

4.8 Changes in the Top Ten Tradable Shareholders Disclosed in the Interim Report; No Major September Increase or Reduction in Holdings by the Actual Controller or Controlling Shareholder Found to Date

As of June 30, 2026, the top ten tradable shareholders of Ecovacs had undergone certain changes. The names of entities related to SKYSURE LIMITED had changed, while their holdings remained approximately 12.60 million shares, or approximately 2.20% of tradable shares. Northbound funds held approximately 10.5241 million shares, up approximately 5.5% from the previous reporting period. ChinaAMC CSI Robotics ETF held approximately 3.4434 million shares, down 45.86% from the previous reporting period. E Fund CSI Robotics Industry ETF held approximately 3.3695 million shares, down 54.07%. These figures represent quarter-end holdings as of June 30, 2026 and are not equivalent to real-time holdings in September 2026. Public searches had not identified any new major announcement in September 2026 regarding increases, reductions or equity pledges by Ecovacs’ actual controller or controlling shareholder. Tracking-rating materials for 2026 indicated that, as of the end of March, Suzhou Chuangling Smart Investment Management Co., Ltd., the company’s largest shareholder, held approximately 41.74% of the shares and had no pledged equity. The actual controller was Qian Dongqi.

4.9 No New Secondary-Market Share-Repurchase Plan or Progress Announcement Found as of September 13, 2026

As of September 13, 2026, no new secondary-market share-repurchase plan, repurchase-progress announcement or repurchase-completion announcement implemented by Ecovacs from August to September 2026 had been found. Recent “repurchase and cancellation” activities were primarily related to the departure or failure to meet performance requirements of incentive recipients and involved the repurchase and cancellation of restricted shares. The cancellation of related stock options also represented an adjustment to the equity incentive plan and did not constitute a market-value-management repurchase of ordinary shares using the company’s own funds in the secondary market.

4.10 No Major Merger, Restructuring or Strategic-Investor Introduction Announcement Found as of September 13, 2026

As of September 13, 2026, no formal announcement had been found regarding a major asset restructuring, share issuance for asset acquisition, major merger or acquisition, or introduction of strategic investors by Ecovacs from August to September 2026. During the September 2026 IFA exhibition in Berlin, Germany, the company showcased a product portfolio covering indoor floors, glass windows, garden lawns and pool maintenance, reflecting its continued expansion into multi-scenario, full-category and overseas cleaning-robot markets. However, no announcement of a major contract amount or merger or acquisition directly related to the exhibition had been found.

4.11 No Major Regulatory-Action Announcement Found as of September 13, 2026

As of September 13, 2026, no announcement had been found that Ecovacs had been subject to major regulatory actions such as a formal investigation, disciplinary sanction, public censure, regulatory warning or inquiry response by the Shanghai Stock Exchange, the China Securities Regulatory Commission or other regulatory authorities. The company’s 2026 interim report mentioned that higher raw-material prices, foreign-exchange losses, intensifying competition and the collection pace of government-subsidy receivables could affect operating cash flow and earnings quality. These statements were operating-risk warnings in a periodic report and did not constitute special regulatory measures targeting Ecovacs.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Ecovacs closed at RMB 51.46, up 3.15% from the previous trading day, with turnover value of approximately RMB 321 million and a turnover rate of 1.12%. The share price declined from RMB 61.50 in late August to RMB 49.89 on September 10, then opened lower and recovered on September 11, but remained below MA10, MA20 and the Bollinger-band middle line. RSI6 entered oversold territory, providing some basis for a short-term rebound. However, MACD remained below the zero line, and aggregate net outflows from major funds over the most recent 10 trading days were approximately RMB 44.72 million, which was insufficient to confirm a trend reversal. Short-term support was concentrated around RMB 48.7–50 and RMB 47.4–48.4, while resistance around RMB 52 and RMB 54.87 and the sustainability of trading volume warrant monitoring.

5.3 Short-Term Outlook (One Week Ahead; Scenario Analysis for Reference Only)

⚠️ Risk warning: The following content is a subjective scenario analysis based on the September 11, 2026 closing data, historical prices and technical indicators. It does not constitute investment advice or a single-point price forecast.

1. Key Technical Levels

2. One-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher subjective weight, approximately 50%–60%; a subjective judgment based on current technical indicators and fund flows, not a statistical probability): Reference range of RMB 49–54. The trigger is that the stock holds the RMB 48.7–50 support zone but trading value does not continue to expand when the stock rebounds toward RMB 52–54.9, or the overall sector performs only moderately. RSI6 was oversold and the stock rebounded on September 11, but MACD remained below the zero line and MA20 and the Bollinger-band middle line around RMB 54.87 continued to exert pressure. Oversold recovery and overhead selling pressure may coexist.
• Weak decline (medium subjective weight, approximately 30%; a subjective judgment based on current technical indicators and fund flows, not a statistical probability): Reference range of RMB 47.4–49, with a possible test of the previous low around RMB 48.4 under weak conditions. The trigger is a renewed break below the RMB 48.7–50 support band, accompanied by an increase in daily turnover value and continued net outflows by major funds, or simultaneous weakness in the small-appliance and consumer sectors. If the September 11 rebound is quickly erased, this may indicate that higher-volume buying has not yet developed into sustained fund participation.
• Strong rebound (low subjective weight, approximately 10%–20%; a subjective judgment based on current technical indicators and fund flows, not a statistical probability): Reference range of RMB 54–57. The trigger is that the stock effectively reclaims RMB 52 and then breaks above the RMB 54.87 MA20 and Bollinger-band middle line, while turnover value expands for several consecutive sessions to approximately RMB 350–400 million or more and major-fund flows shift from consecutive outflows to consecutive inflows. This scenario requires continued price-volume confirmation. Given that MACD has not yet formed a golden cross and medium-term RSI remains weak, it should not currently be assigned excessive weight.

3. Fund-Flow and Liquidity Background

Recent turnover value increased from approximately RMB 145 million on September 8, 2026 to approximately RMB 321 million on September 11, while the turnover rate rose from 0.48% to 1.12%. This indicates improved volume during the short-term rebound, although a 1.12% turnover rate does not represent extremely high turnover. The current situation is closer to a fund-flow contest under moderate liquidity, and a single day of increased volume is not sufficient to confirm a trend reversal. Regarding ownership structure, as of June 30, 2026, the top ten shareholders collectively held approximately 72.5% of shares, the top ten tradable shareholders held approximately 73.17% of tradable shares, and institutional holdings represented approximately 76.66% of tradable A-shares. The top ten institutional investors included the controlling shareholder and related parties, as well as Hong Kong Securities Clearing Company, robotics ETFs and E Fund CSI Robotics Industry ETF. Since these data are quarter-end snapshots from approximately two and a half months before September 11, 2026, the actual structure may have changed. The number of shareholders increased 9.53% quarter on quarter during the same period, while institutional holdings declined from the end of 2025, suggesting some dispersal of ownership or institutional selling. Although concentration was high, this does not establish the current real-time order-book or bid-ask depth.

Verifiable volume-confirmation signal: If turnover value exceeds RMB 350–400 million for two consecutive trading days in the coming week, while the closing price simultaneously holds above RMB 52 and moves toward or breaks through RMB 54.87, this could be viewed as confirmation of improved short-term fund participation. If increased volume occurs primarily on down days, it is more likely to represent the release of selling pressure than effective fund inflows.

4. Key Points to Monitor (Observation Framework Only, Not Trading Instructions)

• Observe whether the share price can hold the RMB 48.7–50 support zone; if it breaks down, monitor the RMB 47.4–48.4 strong-support zone.
• Observe whether RMB 52 can shift from resistance to support, and whether the RMB 54.87 MA20 and Bollinger-band middle line can be decisively breached.
• Observe whether turnover value can exceed RMB 350–400 million for several consecutive sessions and rise in tandem with the share price.
• Observe whether major-fund flows can end the consecutive net-outflow pattern. As of September 10, 2026, net outflows had continued for the most recent 7 trading days. All of the above are observation frameworks and not trading instructions.

The above scenario analysis is based on the September 11, 2026 closing data and calculations using historical prices and technical indicators. Short-term share prices may also be affected by news, fund flows, the broader market and other factors. Technical indicators themselves have lagging effects and limitations. This analysis does not guarantee future actual performance and does not constitute a buy or sell recommendation. Investors should independently assess the latest market information and bear investment risks themselves.

6. Industry Landscape and Competitor Analysis

6.1 Industry Overview

The company operates in the home service-robot and smart-cleaning-appliance industries. Competition has shifted from pure hardware competition toward comprehensive competition encompassing technology, brands, channels, supply chains and overseas operations. Leading companies are expanding from robot vacuums into window-cleaning, lawn-mowing, pool-cleaning and embodied-intelligence applications.

6.2 Competitive Landscape

• Home service robots: Global robot-vacuum shipments were approximately 24.124 million units in 2025, up 17.1% year on year. Chinese robot-vacuum retail sales were approximately RMB 21.3 billion, up 10.2%, while retail volume was approximately 6.73 million units, up 11.6%. The top four brands accounted for a combined 85.3% of China’s online robot-vacuum market by retail sales, indicating relatively high industry concentration.
• Competition in robot vacuums includes lidar, visual recognition, three-dimensional obstacle avoidance, AI semantic recognition, integrated vacuuming and mopping, automatic dust collection, automatic water supply and drainage, hot-water mop washing and fresh-water floor washing. The share of mid- to high-end products is increasing, but price competition in lower-end segments remains intense.
• Floor-washer industry: China’s retail sales were approximately RMB 16.2 billion in 2025, up 14.9% year on year, while retail volume was approximately 8.21 million units, up 24.2%. As of the end of 2025, there were 71 brands on sale, 35 fewer than at the end of the previous year. The top three brands accounted for 68.4% of online retail sales.
• The average online floor-washer price was approximately RMB 1,903 in 2025. The RMB 1,000–3,000 price band accounted for 83.2% of online retail sales. The industry continued to exhibit significant value-for-money competition, making both brand premium and cost-control capabilities important.
• Industry data primarily came from third-party institutions such as IDC and AVC, as cited in the company’s annual report. Different institutions may use retail value, retail volume, online channels or all-channel statistics, and the relevant definitions should not be mixed.

6.3 Major Competitors

Compared with Roborock, Ecovacs has a broader product portfolio and an earlier start in service robots, covering window-cleaning and lawn-mowing products. Compared with Dreame, Ecovacs has a more established service-robot brand history, offline channels and domestic brand recognition. Compared with Narwal, Ecovacs covers window-cleaning, lawn-mowing and commercial service robots and has a broader product matrix. Compared with Xiaomi/Mijia, Ecovacs is more focused on specialized cleaning-robot R&D, service-robot categories and high-end brand operations. Dreame and Narwal are private companies lacking complete audited financial, capacity and profitability data. Comparisons are therefore primarily based on products, brands and industry position and cannot constitute fully comparable financial analysis.

7. Risk Factors

• Risk of declining non-recurring-adjusted earnings: Net profit attributable to shareholders excluding non-recurring items declined 6.37% year on year in the first half of 2026, while second-quarter non-recurring-adjusted net profit attributable to shareholders declined 18.9%. If non-recurring gains and losses decrease, growth in net profit attributable to shareholders could be significantly below reported growth.
• Operating cash-flow and inventory-utilization risk: Net cash flow from operating activities was approximately RMB 206 million in the first half of 2026, down 85.82% year on year. Service-robot inventories had previously increased 78.76% year on year, faster than sales growth. If new-product or overseas inventories are digested more slowly than expected, capital occupation and inventory-impairment pressure may increase.
• Foreign-exchange and overseas-operating risk: Overseas revenue accounted for 45.9% of total revenue. Finance expenses increased from negative RMB 1.638 billion in the same period of 2025 to RMB 112 million in the first half of 2026, primarily due to higher foreign-exchange losses. Overseas-channel expenses, after-sales costs, tariffs and foreign-exchange movements may continue to erode profit.
• Brand and price-competition risk: Competition in robot vacuums and floor washers is intense. The RMB 1,000–3,000 online floor-washer price band accounted for 83.2% of retail sales, and the company continues to face value-for-money competition in lower- and mid-price segments and the floor-washer market. If promotions intensify or average selling prices decline, the improvement in gross margin may not continue.
• Risk of slower Tineco growth: Tineco-brand revenue grew 10.66% year on year in the first half of 2026, below the 26.82% growth rate of Ecovacs-brand service robots. If price competition in floor washers continues, the company’s revenue mix and profit improvement may be negatively affected.
• Upstream supply-chain and in-house-production ramp-up risk: Direct materials accounted for 77.34% of operating costs in 2025. Battery cells, chips, sensors, electronic components and lithium-battery materials remain dependent on external suppliers. As of the end of 2025, only 1GWh of production lines under the 2GWh battery project had been put into operation, with the remaining capacity still under construction or ramp-up. The extent to which in-house components improve costs and delivery remains uncertain.
• Convertible-bond-related risk: The company decided not to adjust downward the conversion price of the “Ecovacs Convertible Bonds” for six months from August 2026. The latest conversion price was RMB 172.97 per share. If the share price remains below the conversion price, willingness to convert may decline, increasing uncertainty around subsequent put-back, repayment or conversion arrangements.
• Share-price and ownership-structure volatility risk: As of September 11, 2026, the share price remained below MA20 and the Bollinger-band middle line, while major-fund flows had recorded net outflows for the most recent 7 trading days. Historical-trading estimates indicated that approximately 95.5% of positions were at an unrealized loss, with median holding cost of approximately RMB 55.20. If the RMB 48.7–50 support zone fails, selling pressure could increase again.

8. Conclusion and Outlook

The company has relatively clear growth drivers. Ecovacs-brand service-robot revenue and shipments are growing rapidly, overseas revenue is increasing as a proportion of total revenue, and new categories such as window-cleaning robots, robotic lawn mowers and fresh-water floor washers, together with component businesses in motors, batteries and transmission systems, could support product-mix optimization and lower unit costs. In the first half of 2026, service-robot revenue growth was significantly higher than Tineco-brand growth, indicating that the current growth focus is shifting toward service robots and multi-scenario products.

The continuation of earnings improvement will depend on service-robot inventory digestion, new-product volume growth, the extent to which overseas revenue converts into stable profit, and the degree to which in-house components improve costs and delivery. Institutions continue to expect revenue and net profit attributable to shareholders to grow in 2026–2028, but these forecasts are not company guidance. The company needs to validate earnings quality through sustained growth in non-recurring-adjusted profit, recovery in operating cash flow, and easing expense and foreign-exchange pressure.

In the short term, the share price is characterized by both an oversold rebound and pressure from medium-term moving averages. Investors should monitor the RMB 48.7–50 support zone, resistance around RMB 52 and RMB 54.87, and whether trading volume and fund flows continue to improve. Fundamentally, investors should focus on the formal third-quarter and full-year 2026 results, inventory changes, overseas-business profit contribution and cash-flow performance. Technical indicators and market forecasts cannot replace the company’s actual operating results.

Data Sources

• Ecovacs Robotics Co., Ltd. 2025 Annual Report
• Ecovacs (603486)_Company Announcements_Ecovacs: 2026 Tracking Rating Report_Sina Finance_Sina.com
• Ecovacs (603486)_Company Announcements_Ecovacs: 2025 Annual Report_Sina Finance_Sina.com
• Company Announcements_Ecovacs: 2024 Annual Report_Sina Finance_Sina.com
• Ecovacs (603486)_Company Announcements_Ecovacs: 2023 Tracking Rating Report_Sina Finance_Sina.com
• https://static.cninfo.com.cn/finalpage/2025-06-04/1223748237.PDF
• Ecovacs Robotics Co., Ltd. 2024 Annual Report
• Roborock (688169)_Company Announcements_Roborock: 2025 Annual Report_Sina Finance_Sina.com
• Ecovacs (603486)_Company Announcements_Ecovacs: 2026 Interim Report_Sina Finance_Sina.com
• Ecovacs (603486) Earnings Forecast_F10_Tonghuashun Financial Services
• Ecovacs (603486) Earnings Forecast_F10_Tonghuashun Financial Services
• Ecovacs (603486) 2026 Interim Report Review: Strong Overseas Sales Growth Continues; Earnings Disrupted by Foreign Exchange and One-Off Factors_Sina Finance_Sina.com
• Guotou Securities–Ecovacs (603486): Rapid Overseas Sales Growth, Fair-Value Changes Boost Profit–260823
• Ecovacs (603486) Institutional Forecasts_Stockstar
• Ecovacs Robotics Co Ltd (603486) Historical Prices–Investing.com
• Ecovacs (603486) Latest Stock Price, Real-Time Chart, Share-Price Analysis and Forecast_Investing.com
• Ecovacs (603486) PE|Valuation|Fundamentals–Lixinger
• Ecovacs (603486)_Company Announcements_Ecovacs: 2026 Interim Report_Sina Finance_Sina.com
• Ecovacs: Completion of Cancellation of 76,498 Stock Options_Eastmoney
• Ecovacs (603486)_Material Matters and News Announcements_Investor Alerts_Sina Finance_Sina.com
• China Securities Journal–Ecovacs Robotics Co., Ltd. Announcement on Not Adjusting Downward the Conversion Price of the “Ecovacs Convertible Bonds”
• Ecovacs (603486)–Material Matters Memo–Stock Market Center–Sohu Securities
• Ecovacs (603486)_Company Announcements_Ecovacs: Announcement on Adjustments to the Progress of Guarantees Provided to a Wholly Owned Subsidiary_Sina Finance_Sina.com
• Changes in Ecovacs’ Top Ten Tradable Shareholders: Northbound Funds Increase Holdings While ChinaAMC CSI Robotics ETF and Others Reduce Holdings_Sina Finance_Sina.com
• e Company Observer: Full-Category Expansion Pushes the Boundaries of Service Robots
• Shanghai Stock Exchange Main Board Listed Companies
• Ecovacs (603486)_Stock Quote, Quote Homepage_China Finance Online
• Ecovacs (603486.SH) Stock Quote_Historical Data_Major-Fund Flows_Dabolang Data
• Ecovacs (603486.SH), Share Price, Real-Time Market Data, News and Financial Data | HSTong
• Ecovacs (603486)–Historical Trading Data | Daban Ke
• Ecovacs (603486) Shareholder Research_F10_Tonghuashun Financial Services
• Ecovacs Shareholders Numbered 52,876 as of June 30, 2026, Up 9.53% Quarter on Quarter
• Institutional Positioning: Aggregate Holdings of the Top Ten Institutions Disclosed for Ecovacs (603486) in 2Q26 Declined by 1.05 Percentage Points_Eastmoney

This report was automatically searched, compiled and generated by AI based on publicly available information. Information is current as of the September 11, 2026 close; technical indicators are mainly as of the September 10, 2026 close, and shareholder and institutional holdings data are as of June 30, 2026. Timing differences may exist. Specific data should be based on the company’s formal announcements and authoritative data terminals. This report is for information compilation and research reference only and does not constitute investment advice. Investors should make independent judgments and bear investment risks themselves.