Beijing Roborock Technology Co., Ltd. (Roborock) (688169)

Equity Research Report　|　Industry: Smart Cleaning Robots and Smart Hardware　|　Report Date: September 13, 2026　|　As of the September 11, 2026 close; certain technical indicators, fund-flow data and shareholder-structure data are as of September 8, September 9 and September 30, 2026, respectively? No September 30 data appear in the research notes; the dates specified for each field should prevail

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

1. Executive Summary

Roborock’s operations showed a clear recovery in the first half of 2026: operating revenue was RMB 10.084 billion, up 27.60% year on year; net profit attributable to shareholders was RMB 986 million, up 45.60%; recurring net profit attributable to shareholders grew 60.74% year on year; and net cash flow from operating activities improved from an outflow of RMB 823 million in the same period last year to an inflow of RMB 398 million. Revenue and profit growth accelerated further in the second quarter. Overseas revenue was approximately RMB 6.07 billion, up 53.8% year on year, making it the primary growth driver. However, first-half profit included approximately RMB 192 million in IEEPA tariff refund gains, so the sustainability of the earnings improvement still needs to be assessed in conjunction with the annual audit results and recurring-profit performance.

The company’s long-term growth drivers mainly include overseas expansion, technological iteration in robot vacuum cleaners and the development of new product categories. In 2025, overseas revenue from principal operations accounted for approximately 55.9% of the total, while the overseas gross margin was 48.15%, above the domestic gross margin of 35.07%. R&D investment was RMB 1.420 billion, up 46.13% year on year, and R&D personnel accounted for 42.90% of total employees. The ramp-up of new floor-washing machines, together with expansion into robotic lawn mowers and other smart appliances, should broaden the product portfolio. However, robot vacuum cleaners and accessories still accounted for approximately 81.2% of 2025 revenue from principal operations, indicating that the business structure remains relatively concentrated.

In 2025, the company’s revenue growth diverged from its earnings performance: operating revenue was RMB 18.695 billion, up 56.51% year on year, while net profit attributable to shareholders was RMB 1.363 billion, down 31.03% year on year, and the gross margin of principal operations fell to 42.38%. Broader price-band coverage, increased low-priced products and ODM business, overseas tariffs and fulfillment costs, channel development, brand marketing and new-product investment all weighed on margins. Meanwhile, inventory rose 78.19% year on year to RMB 2.655 billion, including RMB 2.385 billion in finished goods, reflecting working-capital absorption arising from new-product launches, overseas stocking and channel expansion.

As of September 11, 2026, the share price was RMB 119.62, below the MA5, MA10, MA20 and MA50 in the short term. MACD momentum was weak, and major funds recorded consecutive net outflows under one statistical methodology. Nevertheless, the share price remained above the MA100, MA200 and the estimated lower Bollinger Band. The market currently implies approximately 18.6x–19.7x forward P/E, while the institutional consensus forecast for 2026 net profit attributable to shareholders is RMB 1.985 billion. Whether future valuation can be absorbed by earnings delivery will depend on overseas growth, margin recovery and operating quality after excluding tariff refund gains.

2. Company Overview

2.1 Basic Information

2.2 Principal Businesses and Product Portfolio

• Smart robot vacuum cleaners and accessories: covering perception and positioning, LiDAR navigation, SLAM algorithms, AI obstacle avoidance, motion control, cleaning execution, automatic water supply and drainage, fully self-cleaning docks and biomimetic robotic arms. Products launched or mass-produced in 2025 included the G30Space Explorer Edition, P20UltraPlus and P20 live-water version
• Floor-washing machines: targeting deep floor-cleaning scenarios and incorporating steam-and-hot-water dual-effect washing, AI bidirectional assistance, steam self-cleaning and multifunctional modular designs; new products scaled up in 2025, driving growth in other smart-appliance revenue
• Robotic lawn mowers: targeting outdoor scenarios such as courtyards and villas. Products include the RockMow and RockNeo series, incorporating RTK or LiDAR-fusion positioning, AI mapping, visual obstacle avoidance, four-wheel drive, active steering and dynamic suspension
• Washer-dryers and other smart appliances: including molecular-sieve adsorption drying technology, washer-dryers and handheld cleaning products. Washer-dryers remain in a product cultivation and phased adjustment stage and are not yet a major revenue contributor

2.3 Position in the Upstream and Downstream Value Chain and Cost-Profit Structure

Roborock is positioned in the middle-to-downstream portion of the smart cleaning-appliance value chain. It is a smart cleaning-products company driven by technology R&D, algorithms, branding and complete-machine manufacturing. It is neither a resource-based company controlling upstream resources nor a pure contract manufacturer. Its profitability is mainly affected by technology premiums, brand premiums, product mix, overseas channels, economies of scale and supply-chain efficiency.

• Major purchases include electronic and smart components such as sensors, LiDAR units, cameras, chips, controllers and communications modules.
• Major purchases also include motors and power components such as fans, motors, batteries and power-management components.
• The company purchases structural and cleaning-execution components including plastic parts, metal structural parts, roller brushes, side brushes, water tanks, dustbins and docking-station components, as well as packaging, molds, processing services, purchased complete machines and outsourced processing services.
• In 2025, raw-material costs for smart hardware were RMB 7.867 billion, representing 73.09% of smart-hardware cost of sales; processing fees were RMB 1.104 billion, or 10.26%; and purchased components or complete machines were RMB 1.560 billion, or 14.49%. The sharp increase in purchased-component and complete-machine costs was mainly related to diversified capacity arrangements and the greater use of low-priced ODM products.
• Purchases from the five largest suppliers in 2025 totaled RMB 3.364 billion, or 31.50% of total annual purchases; the largest single supplier accounted for 8.22%, and none of the five largest suppliers was a related party. Supplier concentration is not extreme, but key components such as chips, sensors, motors and batteries may still be affected by supply, pricing and technological iteration.
• The company’s upstream bargaining power mainly derives from scale procurement, supplier diversification, long-term framework agreements and product-design substitution, rather than resource-monopoly bargaining power. It remains somewhat vulnerable to pricing for certain electronic and core components.
• Downstream customers include overseas distributors, retailers and local channels, domestic and overseas e-commerce platforms, the company’s self-operated online and offline channels and end consumers.
• Sales to the five largest customers in 2025 totaled RMB 5.045 billion, or 26.99% of annual sales; the largest customer accounted for 10.00% and the second-largest for 9.38%. None of the five largest customers was a related-party customer. These are 2025 data. Some customer names were exempted from disclosure for commercial-confidentiality reasons, preventing further assessment of the mix among major platforms, overseas distributors and other customer types. The latest annual report should be used for the specific customer mix.
• Overseas revenue from principal operations was RMB 10.442 billion in 2025, approximately 55.9% of revenue from principal operations; the overseas gross margin was 48.15%, above the domestic gross margin of 35.07%. Overseas operations also bear tariffs, freight, after-sales service, local-channel development and marketing costs, so overseas revenue growth does not necessarily translate into simultaneous margin expansion.
• Domestic e-commerce and platform channels control considerable traffic and marketing resources. Brand owners must continue to bear platform fees, traffic-acquisition expenses and promotional costs. Overseas markets require entry through distributors, retailers or local direct-sales channels, and channel development cycles are relatively long.
• Cleaning-appliance products are updated rapidly. Manufacturers need new products, broader price-band coverage and promotions to maintain market share. After-sales service, installation, consumables and software services also affect brand reputation and channel competitiveness.
• The company’s sharp revenue growth but declining profit in 2025 indicates that broader price-band coverage, more low-priced products and ODM business, overseas channel development and industry price competition placed pressure on margins.
• As of December 31, 2025, accounts receivable were RMB 1.118 billion, representing 5.68% of total assets and approximately 5.98% of operating revenue, with an estimated receivables turnover period of approximately 20.8 days; prepayments were RMB 141 million, up 43.70% year on year; inventory was RMB 2.655 billion, or 13.50% of total assets, up 78.19% year on year, including RMB 2.385 billion in finished goods; accounts payable were RMB 2.921 billion, materially higher than accounts receivable. Collection pressure appears manageable, but new-product stocking, overseas stocking and expansion of self-operated channels have increased inventory and working-capital requirements.
• On the supply side, the five largest suppliers accounted for 31.50% of total purchases in 2025, with the largest supplier accounting for 8.22%. On the demand side, the five largest customers accounted for 26.99% of total sales, with the largest customer accounting for 10.00%. These concentration figures are all for 2025. Some customer names were exempted from disclosure, and the research notes provided no data for other years for cross-comparison. The latest annual report should be used for reference.

Roborock is positioned in the middle-to-downstream portion of the smart cleaning-appliance value chain. It is a complete-machine company driven by technology R&D, algorithms and branding, rather than an upstream resource-based, high-margin business or a pure contract-manufacturing, low-margin business. Further margin improvement will mainly depend on a higher share of premium products, the release of economies of scale from new products, product-mix optimization, lower overseas fulfillment costs, improved supply-chain efficiency and control of channel subsidies and marketing expenses, rather than simply expanding sales volume.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Recurring net profit attributable to shareholders was RMB 803 million in the first half of 2026, up 60.74% year on year; net cash flow from operating activities was RMB 398 million, compared with an outflow of RMB 823 million in the same period last year; basic EPS was RMB 3.83. Recurring net profit attributable to shareholders was RMB 545 million in the second quarter of 2026, up 111.02% year on year. Recurring net profit attributable to shareholders was RMB 1.092 billion in 2025, down 32.60% year on year, and basic EPS was RMB 5.29.

Revenue, net profit attributable to shareholders and cash flow all improved significantly in the first half of 2026 compared with 2025, while second-quarter revenue and profit growth accelerated further from the first quarter. Overseas revenue was approximately RMB 6.07 billion, up 53.8% year on year, while domestic revenue was approximately RMB 4.01 billion, up 1.5%; overseas operations were the primary source of revenue growth. It should be noted that part of the IEEPA tariff refund gain was recognized in the first half, with approximately RMB 192 million recorded in current-period profit and approximately RMB 275 million in cumulative refunds received. Final accounting treatment and the impact on 2026 net profit remain subject to confirmation by the annual audit. Accordingly, profit growth should not be entirely extrapolated as normalized operating growth. Recurring net profit and second-half earnings quality should be monitored closely.

3.2 Earnings Forecasts

The above figures are a six-month and 24-institution consensus compiled by Tonghuashun F10 as of September 11, 2026. They are institutional research forecasts rather than company-announced data. The forecast rationale mainly includes overseas expansion, a lower selling-expense ratio, improved profitability in floor-washing machines, ramp-up of robotic lawn mowers and marginal easing of domestic competitive pressure. Representative institutional forecasts for 2026–2028 net profit attributable to shareholders are: CITIC Securities: RMB 2.032 billion, RMB 2.364 billion and RMB 3.226 billion; Huatai Securities: RMB 2.186 billion, RMB 2.718 billion and RMB 3.283 billion; Kaiyuan Securities: RMB 2.069 billion, RMB 2.501 billion and RMB 3.129 billion; Everbright Securities: RMB 2.093 billion, RMB 2.544 billion and RMB 3.066 billion; and Guolian Minsheng: RMB 1.980 billion, RMB 2.401 billion and RMB 2.815 billion.

3.3 Valuation and Institutional Ratings

As of the September 11, 2026 close, the share price was RMB 119.62, total shares outstanding were approximately 260 million, and total market capitalization was approximately RMB 30.99 billion. Trailing P/E was approximately 18.57x, adjusted P/E approximately 22.25x and P/B approximately 2.14x. EPS based on the figure as of June 30, 2026 was approximately RMB 6.44. Based on disclosed financial statements, rolling net profit attributable to shareholders for the latest four quarters was approximately RMB 1.672 billion, implying a TTM P/E of approximately 18.5x, broadly consistent with the 18.57x disclosed on market-data pages. Based on institutional consensus EPS, forward P/E is approximately 15.7x for 2026, 12.5x for 2027 and 10.3x for 2028. Current valuation already reflects a considerable portion of expectations for 2026 earnings recovery, but if institutional forecasts are achieved, valuation will continue to decline with earnings growth in 2027–2028. Key valuation risks include the temporary nature of tariff refund gains, overseas competition and marketing investment, RMB exchange-rate fluctuations, domestic robot-vacuum competition and weaker-than-expected profitability improvement in floor-washing machines and robotic lawn mowers. Institutional dispersion widens for 2028, making long-term valuation less reliable than the 2026 forecast.

4. Recent News and Announcements

4.1 2026 Restricted Stock Incentive Plan Grant Completed

On September 1, 2026, the company held the 21st meeting of the third Board of Directors and approved the grant of restricted shares under the 2026 Restricted Stock Incentive Plan. The grant date was September 1, 2026. A total of 892,600 shares were granted to 87 management, technical and business employees at a grant price of RMB 56.32 per share. The shares will be issued by the company as A-share ordinary shares and represented approximately 0.3439% of total shares outstanding at the time of grant. The incentive plan has a maximum term of 60 months. Subject to satisfaction of the vesting conditions, the shares will vest in four tranches beginning 12 months after the grant date, with each tranche generally representing 25%. Incentive recipients do not include company directors, senior executives, shareholders holding more than 5%, the actual controller or their immediate relatives.

4.2 Restricted Stock Incentive Expenses Expected to Be Amortized in Installments

Publicly reposted information indicates that the company used the Black-Scholes model to measure the fair value of the restricted shares and expects to recognize and amortize equity-incentive expenses in installments from 2026 through 2030. The publicly reposted estimate was approximately RMB 71.3483 million. This is an estimate, and the final amortization amount should be based on subsequent formal financial reports issued by the company.

4.3 Self-Inspection of Trading by Insiders with Access to Restricted Stock Incentive Information

On September 2, 2026, the company disclosed a self-inspection report on trading in company shares by insiders with access to information concerning the 2026 Restricted Stock Incentive Plan. The current search of announcements did not identify any regulatory action arising from abnormal trading by insiders, nor any related regulatory penalties or inquiry documents.

4.4 2026 First Extraordinary General Meeting Approved Shareholding Plan and Equity-Incentive Proposals

On September 1, 2026, the company held its first extraordinary general meeting of 2026, which approved the 2026 Business Partner Shareholding Plan and its summary, the shareholding-plan management measures, authorization for the Board of Directors to handle matters relating to the shareholding plan, the 2026 Restricted Stock Incentive Plan and its summary, the implementation and assessment management measures, authorization for the Board of Directors to handle matters relating to the restricted stock incentive plan, and the reappointment of the accounting firm. All proposals were approved. For the proposals relating to the business-partner shareholding plan, approximately 79.48% of minority shareholders attending the meeting voted in favor. For the draft 2026 Restricted Stock Incentive Plan, approximately 89.57% of attending minority shareholders voted in favor.

4.5 Business Partner Shareholding Plan Management Committee Established

On September 1, 2026, the company held the first meeting of participants in the 2026 Business Partner Shareholding Plan. The meeting approved the establishment of a management committee and elected Quan Gang, Wang Kaijing and Jia Jingtao as committee members, with Wang Kaijing serving as chair.

4.6 Share Repurchase Progress

The company is repurchasing shares for an employee shareholding plan or equity incentives. The expected repurchase amount is RMB 15 million–RMB 30 million, with a maximum repurchase price of RMB 154.95 per share. The repurchase period is August 12, 2026 to August 11, 2027, funded by the company’s own funds. As of August 31, 2026, the company had repurchased 152,509 shares, approximately 0.0588% of total shares outstanding, for a cumulative payment of RMB 17,504,596.71, excluding stamp duty, trading commissions and other expenses. The transaction price ranged from RMB 106.40 to RMB 121.13 per share. The progress announcement was disclosed on September 2, 2026. As of September 13, 2026, no month-end September repurchase progress announcement had been found, so the number of shares repurchased from September 1 to September 13, 2026 could not be further confirmed.

4.7 Shares from the Second Vesting Period of the 2024 Restricted Stock Incentive Plan Listed

The second vesting period of the company’s 2024 Restricted Stock Incentive Plan met the vesting conditions, with 16,658 shares eligible for vesting. These shares began trading on September 10, 2026. The number of shares listed was 16,658, representing approximately 0.01% of total shares outstanding. The vesting recipients did not include company directors or senior executives.

4.8 Interim Report Shows Changes in Shareholdings; No New Major-Shareholder Disposal Announcements Identified

Information relating to the interim report as of June 30, 2026 shows changes among the company’s ten largest tradable shareholders compared with the previous reporting period. Public media reported that two shareholders entered the list, two exited and five reduced their holdings. This reflects changes in holdings at the end of the reporting period and does not constitute a recent block or centralized-auction disposal plan. Nor can it be used to conclude that the relevant institutions continued selling in September 2026. As of September 13, 2026, no newly disclosed September 2026 disposal plans, implementation results or changes in shareholdings had been identified for major shareholders including Chang Jing, Ding Di and Tianjin Jinmi Investment Partnership.

4.9 2026 Interim Report Discloses Operating Data; No New Earnings Guidance

As of September 13, 2026, no new earnings forecast, earnings flash revision or profit-warning announcement issued by the company in September 2026 had been identified. The company disclosed its 2026 interim report on August 25, 2026. Publicly disclosed figures show that first-half 2026 operating revenue was approximately RMB 10.084 billion, up 27.60% year on year; net profit attributable to shareholders was approximately RMB 986 million, up 45.60%; and recurring net profit increased approximately 60.74% year on year. These are formally disclosed interim financial figures and are not forecasts.

4.10 No Major Acquisition, Regulatory Penalty or Change of Control Identified

As of September 13, 2026, no announcements had been identified in September 2026 concerning a major asset restructuring, external acquisition, sale of major assets or change of control. No announcements had been identified concerning major regulatory measures, disciplinary actions or material inquiries from the China Securities Regulatory Commission or the Shanghai Stock Exchange. Recent public announcements have focused on the employee shareholding plan, restricted stock incentives and share repurchases.

5. Share-Price Performance and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, Roborock closed at RMB 119.62, approximately 45% below its 52-week high and approximately 34% above its 52-week low. The share price had fallen below the short-term MA5, MA10 and MA20 and the estimated Bollinger middle band. MACD indicated weak short-term momentum, but the price remained above the MA100, MA200 and estimated lower Bollinger Band, suggesting that the medium- and long-term position had not been fully broken. Major funds showed consecutive net outflows under the Da Bolang methodology, while turnover value contracted from the elevated levels of August 25 and September 1. In the short term, attention should focus on the RMB 118.5–RMB 120.0 support zone, the RMB 124.5–RMB 128.0 resistance zone and whether price and volume improve together.

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

⚠️ Risk warning: The following is a subjective technical scenario analysis based on the September 11, 2026 closing data. It does not constitute investment advice or an instruction to buy, sell, hold or stop loss.

① Key Technical Levels

② Scenarios for the Coming Week (Subjective Weights, Not Statistical Probabilities)

• Range-bound consolidation (relatively higher weight, approximately 60%; this is a subjective heuristic based on current technical indicators and fund flows, not a statistical probability): estimated price range of approximately RMB 116.5–RMB 125.0. Conditions include a low-volume stabilization near RMB 118.5–RMB 120.0, turnover value remaining within the recent normal range of approximately RMB 500 million–RMB 800 million, inability to decisively break through the RMB 124.5–RMB 128.0 resistance zone and no obvious systemic shock to the broader market or the household-appliance sector.
• Weak decline (medium weight; a subjective heuristic based on current technical indicators and fund flows, not a statistical probability): estimated price range of approximately RMB 111.5–RMB 119.0. Conditions include a decisive closing break below RMB 118.5, continued consecutive net outflows by major funds, daily turnover value again expanding to approximately RMB 900 million–RMB 1.2 billion or more while the price declines, or simultaneous weakness in the household-appliance sector and the broader market. A high-volume breakdown could move the price toward the MA200 near RMB 115 and the lower Bollinger Band.
• Stronger rebound (low-to-medium weight; a subjective heuristic based on current technical indicators and fund flows, not a statistical probability): estimated price range of approximately RMB 124.5–RMB 132.0. Conditions include reclaiming RMB 124.5–RMB 125.5, followed by a decisive break above RMB 127.5–RMB 128.0, daily turnover value materially exceeding recent norms and reaching at least approximately RMB 900 million–RMB 1.0 billion, a shift by major funds from consecutive net outflows to net inflows for at least two consecutive days, and simultaneous strength in household-appliance or cleaning-appliance sectors. Only after a high-volume break above RMB 128 would rebound potential toward RMB 130–RMB 132 become observable; before reclaiming RMB 127.5–RMB 128.0, the move would still be viewed mainly as a technical recovery.

③ Fund-Flow and Liquidity Background

As of September 11, 2026, the turnover rate was 2.19% and turnover value was approximately RMB 682 million. Turnover value over the latest several trading days was approximately RMB 430 million–RMB 1.44 billion, including approximately RMB 430 million on September 8, RMB 865 million on September 7, RMB 644 million on September 4, RMB 831 million on September 3, RMB 819 million on September 2 and RMB 1.442 billion on September 1, compared with approximately RMB 2.557 billion on August 25. The company is not a low-liquidity small-cap stock, but turnover value contracted during the recent pullback. The data showing aggregate holdings of approximately 41.46% for the ten largest tradable shareholders and approximately 10.44% for institutional shareholders are as of March 31, 2026, while the approximately 32,900 shareholder accounts are as of June 30, 2026. These data lag September 11, and the actual structure may have changed because of institutional rebalancing, shareholder disposals and index rebalancing. From a trading perspective, the recent contraction in turnover value indicates lower short-term participation than during the high-volume phase. If turnover expands again during a decline, concentrated selling pressure should be monitored; if the price stabilizes on lower volume near support, it will be important to observe whether selling pressure is easing at the margin.

If turnover value reaches approximately RMB 900 million–RMB 1.0 billion or more on a future trading day while the closing price reclaims the RMB 124.5–RMB 128.0 resistance band, this could serve as one volume-price confirmation signal of renewed short-term fund participation. If turnover expands while the share price continues to fall below RMB 118.5, the move would be more consistent with high-volume exit activity or the release of selling pressure.

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

• Observation framework, not a trading instruction: monitor whether the RMB 118.5–RMB 120.0 area can stabilize on lower volume, and whether a decisive break below it leads toward RMB 115 and the strong-support zone of RMB 111.5–RMB 116.5.
• Observation framework, not a trading instruction: monitor whether the RMB 124.5–RMB 128.0 resistance zone can be reclaimed on higher volume, particularly whether RMB 127.5–RMB 128.0 is decisively broken.
• Observation framework, not a trading instruction: monitor whether major funds end their consecutive net-outflow pattern under the Da Bolang methodology, while interpreting other platform methodologies cautiously.
• Observation framework, not a trading instruction: monitor whether daily turnover value can reach and remain above approximately RMB 900 million–RMB 1.0 billion, while using price direction to assess whether the move reflects fund entry or selling-pressure release.

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

6. Industry Structure and Competitor Analysis

6.1 Industry Overview

The smart cleaning-appliance industry remains in a phase of rising penetration and category expansion. Competition has shifted from single-function competition toward comprehensive capabilities in AI navigation, robotic arms, live-water floor washing, automatic water supply and drainage, self-maintaining docking stations, after-sales networks and global channels. Global shipments of household cleaning robots reached 32.72 million units in 2025, up 20.1% year on year. The five largest global smart robot-vacuum manufacturers collectively held a 70.4% market share. China’s cleaning-appliance retail sales were approximately RMB 47.1 billion in 2025, up 11.3% year on year, while retail volume was approximately 35.50 million units, up 17.0%.

6.2 Competitive Landscape

• Roborock and Ecovacs have long occupied the first tier of China’s robot-vacuum market, with leading advantages in branding, technology, channels and after-sales service.
• Dreame, Narwal and Xiaomi have created competitive pressure in certain price bands and online channels through high-speed motors, floor-washing technology, AI algorithms, ecosystem channels and product differentiation.
• Chinese brands have developed a cluster advantage in the global robot-vacuum market. Global competition includes channel, brand and product competition among Roborock, Ecovacs, Dreame, Xiaomi, Narwal and iRobot.
• Roborock’s sharply higher revenue but lower profit in 2025 reflects the R&D, marketing, after-sales and inventory investment pressure arising from rapid product iteration, full price-segment coverage and overseas channel development.
• According to 2024 Chinese smart robot-vacuum market data disclosed by IDC and the China Research Institute of Industrial Economics, based on shipments, Ecovacs accounted for approximately 25.4%, Roborock approximately 21.6%, Narwal approximately 16.3%, Xiaomi approximately 13.7% and Dreame approximately 12.2%, for a combined approximately 89.2%. Different institutions may use shipments, sales volume, sales value, online retail sales or global-market data, so these shares should not be directly compared across years or institutions.
• Dreame and Narwal are unlisted companies, and complete audited disclosures of their revenue, profit, capacity and customer concentration are unavailable. Their market-share and competitive data should therefore be treated as reference only and cannot be strictly compared on a like-for-like basis with the annual-report data of Roborock and Ecovacs.

6.3 Major Competitors

Compared with Ecovacs, Roborock is more concentrated on robot-vacuum technology, global branding and R&D iteration efficiency. Compared with Dreame, Roborock is more mature in global-brand stability, large-scale production, product systems and listed-company capital strength. Compared with Narwal, Roborock has a larger product, brand and channel scale. Compared with Xiaomi, Roborock focuses more deeply on R&D in the single category of cleaning robots, while Xiaomi relies more on its ecosystem and channels. Compared with iRobot, Roborock has advantages in product iteration, intelligent algorithms, price-performance and integration of China’s supply chain.

7. Risk Factors

• High dependence on overseas operations: Overseas revenue from principal operations accounted for approximately 55.9% in 2025, while overseas revenue was approximately RMB 6.07 billion in the first half of 2026, up 53.8% year on year. Overseas operations also bear tariffs, freight, after-sales, local-channel development and marketing costs. If these costs rise, overseas revenue growth may not translate into corresponding profit growth.
• Temporary nature and accounting uncertainty of tariff refund gains: First-half 2026 profit included approximately RMB 192 million in IEEPA tariff refund gains, while cumulative refunds received were approximately RMB 275 million. Final accounting treatment and the impact on full-year net profit remain subject to annual-audit confirmation. Current profit growth should not be regarded entirely as normalized operating growth.
• Specific risk of declining profitability: The gross margin of principal operations fell to 42.38% in 2025, operating costs rose 80.96% year on year, selling expenses rose 64.95% and net profit attributable to shareholders fell 31.03%. If broader price-band coverage, low-priced products, ODM business and overseas channel investment continue to increase, gross and net margins may remain under pressure.
• Relatively concentrated product structure: Smart robot vacuum cleaners and accessories generated RMB 15.173 billion in 2025, approximately 81.2% of revenue from principal operations. Washer-dryers remain in a product-cultivation and phased-adjustment stage. Uncertainty remains over whether floor-washing machines, robotic lawn mowers and other smart appliances can continue scaling and improve profitability. If new categories underperform, dependence on the core category will remain high.
• Rising inventory and working-capital use: Inventory was RMB 2.655 billion at the end of 2025, up 78.19% year on year, including RMB 2.385 billion in finished goods. Production and sales data also showed ending inventory of 1.3458 million smart robot vacuum cleaners and 650,600 other smart appliances. If new-product iteration, overseas stocking or channel sales underperform, the company may face pressure from inventory digestion, promotional price cuts and inventory impairment.
• Domestic and overseas competition may compress product premiums: The company competes with Ecovacs, Dreame, Narwal, Xiaomi and iRobot in robot vacuum cleaners. Competition has expanded into AI navigation, robotic arms, self-maintaining docks, floor-washing technology, after-sales networks and global channels. If competitors increase price, R&D or channel investment, Roborock may need to raise marketing and R&D spending, affecting margins.
• Remaining vulnerability to key components in the supply chain: The company purchases sensors, LiDAR units, cameras, chips, controllers, motors and batteries. Although purchases from the five largest suppliers represented 31.50% of total purchases in 2025, key electronic components may still be affected by supply, pricing and technological iteration. At the same time, the sharp increase in purchased-component and complete-machine costs may weaken supply-chain efficiency and product margins.
• Potential expense and share-count effects from equity incentives and repurchases: The 2026 Restricted Stock Plan granted 892,600 shares to 87 recipients. Estimated equity-incentive expenses of approximately RMB 71.3483 million will be amortized from 2026 through 2030, with the final amount subject to formal financial reports. The company is also continuing repurchases and advancing employee shareholding and incentive plans. Investors should monitor the impact of related expenses, vesting conditions and share-count changes on EPS.
• Short-term trading conditions remain weak: As of September 11, 2026, the share price was RMB 119.62, below several short-term moving averages, with the MACD histogram below the zero axis. One fund-flow statistic showed a net outflow of approximately RMB 237 million over the latest 10 trading days and consecutive net outflows over the latest five disclosed trading days. A break below RMB 118.5 accompanied by higher turnover could increase short-term volatility. Technical indicators are lagging, and statistical methodologies differ across platforms.

8. Conclusion and Outlook

Roborock’s core growth foundation remains its global brand, accumulated cleaning-robot technology, R&D investment and expansion into new categories. Rapid overseas revenue growth in the first half of 2026, continued volume growth in floor-washing machines and robotic lawn mowers, a lower selling-expense ratio, improved product mix and better supply-chain efficiency could support earnings recovery. The company recently completed the grant under its Restricted Stock Incentive Plan and advanced its business-partner shareholding plan, which should strengthen long-term incentives for management, technical and business personnel. However, the related equity-incentive expenses will be recognized in installments from 2026 through 2030.

The key issue is whether growth can translate into sustainable profit and cash flow. Revenue surged in 2025, but gross and net margins declined significantly. First-half 2026 profit was also affected by tariff refund gains, so current profit growth cannot be extrapolated in full. If overseas channel development, tariffs, freight, after-sales and marketing investment remain high, or if the share of low-priced and ODM products increases, revenue expansion may continue to come with margin pressure. Conversely, if recurring profit continues to grow, inventory growth becomes more reasonable and new categories improve profitability, the certainty of earnings recovery will strengthen.

From a technical and valuation perspective, the share price is in a pullback and consolidation phase after sharp volatility. RMB 118.5–RMB 120.0 is a short-term observation zone, while RMB 124.5–RMB 128.0 faces resistance from moving averages and previous trading concentration. These price levels merely reflect existing technical data and cannot replace fundamental analysis. Institutional forecasts continue to imply revenue and earnings growth from 2026 to 2028, but forecast ranges differ, and the reliability of long-term forecasts is lower than that of near-term data. Future assessments should continue to incorporate actual earnings, cash flow, inventory, overseas operating margins and the accounting treatment of tariff refunds.

Data Sources

• Annual Report of the Company Limited for 2024
• Roborock (688169)_Company Announcements_Roborock: 2025 Annual Report_Sina Finance_Sina.com
• Roborock (688169 CH)
• Company Announcements_Roborock: 2022 Annual Report_Sina Finance_Sina.com
• Roborock (688169)_Company Announcements_Roborock: 2023 Annual Report_Sina Finance_Sina.com
• Roborock (688169)_Company Announcements_Roborock: 2024 Annual Report Summary_Sina Finance_Sina.com
• https://disc.static.szse.cn/download/disc/disk03/finalpage/2025-09-09/9eacd26e-a7d7-4186-827c-1197ddc2085d.PDF
• Ecovacs (603486)_Company Announcements_Ecovacs: 2025 Annual Report_Sina Finance_Sina.com
• Interview with a Dreame Robot-Vacuum R&D Expert: Focusing on User Pain Points and Leading the Cleaning-Technology Transformation
• Narwal China Head Wang Jungang Leaves; Competition among Robot-Vacuum Industry Giants Faces Further Uncertainty _ Eastmoney.com
• Annual and Interim Reports | Xiaomi Corporation
• Roborock (688169)_Company Announcements_Roborock: 2026 Interim Report_Sina Finance_Sina.com
• Roborock (688169)_Company Announcements_Roborock: 2026 Interim Report_Sina Finance_Sina.com
• Roborock (688169): Revenue and Earnings Growing Rapidly; Tax Refunds Boost Profit__Sina Finance_Sina.com
• Roborock (688169)_Company Announcements_Roborock: 2025 Annual Report_Sina Finance_Sina.com
• Roborock (688169) Earnings Forecast_F10_Tonghuashun Financial Services Network
• Kaiyuan Securities: Buy Rating for Roborock_Stock Channel_Stockstar
• Institutional Ratings | Two Institutions Update Roborock Rating
• Roborock (688169) 2026 Interim Report Review: Rapid Revenue Growth and Earnings Leverage; Overseas Markets and New Categories Jointly Drive Growth__Sina Finance_Sina.com
• Roborock (688169.SH) Stock Quotes_Historical Data_Major Fund Flows - Da Bolang Data
• Kaiyuan Securities: Buy Rating for Roborock_Stock Channel_Stockstar
• Roborock (688169)_Stock Quotes and Market Overview_Zhongcaiwang
• Company Code: 688169
• Roborock (688169)_Company Announcements_Roborock: Announcement on Granting Restricted Shares to Participants under the 2026 Restricted Stock Incentive Plan_Sina Finance_Sina.com
• Roborock Announcement on Granting Restricted Shares to Participants under the 2026 Restricted Stock Incentive Plan_Sina Finance_Sina.com
• Roborock (688169) All Announcements - Lixinger
• Roborock (688169)_Company Announcements_Roborock: Resolution Announcement of the First Extraordinary General Meeting of 2026_Sina Finance_Sina.com
• Roborock (688169)_Company Announcements_Roborock: Resolution Announcement of the First Extraordinary General Meeting of 2026_Sina Finance_Sina.com
• Resolution Announcement of the First Participants’ Meeting of Roborock’s 2026 Business Partner Shareholding Plan_Sina Finance_Sina.com
• Roborock (688169)_Company Announcements_Roborock: Progress Announcement on Repurchasing Company Shares through Centralized Bidding_Sina Finance_Sina.com
• Roborock (688169)_Company Announcements_Roborock: Announcement on Vesting Results and Listing of Shares for the Second Vesting Period under the 2024 Restricted Stock Incentive Plan_Sina Finance_Sina.com
• Changes in Roborock’s Ten Largest Tradable Shareholders: Shijihuixiang and Others Enter; Northbound Funds and Others Reduce Holdings_Sina Finance_Sina.com
• Roborock_Individual Stock Calendar_Eastmoney Data Channel
• Roborock (688169)_Stock Quotes and Market Overview_Zhongcaiwang
• Roborock (688169) Historical Stock Data: Historical Quotes, Prices and Charts_Investing.com
• Roborock (688169) Stock Technical Analysis, Forecasts and Trading Suggestions_Investing.com
• Roborock (688169) Individual Stock Analysis_Niucha Stock Diagnosis_Tonghuashun Finance

This report was automatically retrieved, compiled and generated by AI based on publicly available information, current as of the September 11, 2026 close; certain technical indicators, fund-flow data and shareholder-structure data are as of September 8, September 9 and September 30, 2026, respectively? No September 30 data appear in the research notes; the dates specified for each field should prevail. 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, does not constitute investment advice of any kind, and investors should make independent judgments and bear their own investment risks.