(Yicai Global) Aug. 30 -- Ecovacs Robotics and Roborock Technology, major Chinese makers of cleaning appliances, reported slower revenue growth in the first half compared with a year earlier, mainly because of rising costs. Their shares fell.

Revenue at Ecovacs jumped 27 percent to CNY6.8 billion in the six months ended June 30, versus a 123 percent gain a year earlier, the Jiangsu province-based company said on Aug. 27. Net profit rose 3.2 percent to CNY877 million, slowing from a 543 percent gain in the first half of 2021.

Roborock’s income rose 24 percent to CNY2.9 billion (USD420 million), after a 32 percent jump a year ago, the Beijing-based firm said late yesterday. Net profit fell 5.4 percent to CNY617 million (USD89.2 million), compared with a year-earlier 40 percent jump.

Slowing revenue gains came after a 13 percent slump in sales of domestic cleaning appliances in China as a result of surging raw materials costs that drove product prices nearly 50 percent higher, according to data from All View Cloud.

Shares of Ecovacs [SHA: 603486] closed down 1.4 percent at CNY80.68 (USD11.67) today, while Roborock [SHA: 688169] dipped 0.7 percent to CNY313.82 (USD45.39).

Thanks to sweeping robots and Tineco-branded floor cleaners, Ecovacs maintained growth in both revenue and net profit. Despite weaker demand from Europe and the United States, Ecovacs benefited from significant growth in Japan and the Asia Pacific region. In the first half, Ecovacs' and Tineco's overseas revenue jumped 17 percent and 16 percent, respectively, from a year earlier.

Roborock focused on expanding markets in Europe, the US, and Southeast Asia, notching up growth in the first two.

Growth potential still exists in the domestic and overseas markets. GfK's latest research report showed that the Chinese market for cleaning appliances will exceed CNY30 billion (USD4.3 billion) this year and is expected to more than double to CNY75 billion by 2030. Meanwhile, the market share of Chinese robot sweepers overseas soared to 46 percent in the first half.

Ecovacs founder and Chairman Qian Dongqi previously told Yicai Global that there are still markets for sweeping robots and floor scrubbers to develop. A CNY4,999 or CNY5,999 (USD720 or USD870) price tag for a sweeping robot can be expensive for rural residents, which would suggest a large market there yet to be explored, he added.

Editors: Shi Yi, Futura Costaglione