On April 3, affected by the news of tariffs, the share price of "Sweeping Mao" Rock Technology (688169) fell sharply, falling 11.78% intraday and closing down 8.64%.

On the evening of the same day, the company released its 2024 annual report, which showed that driven by the rapid growth of overseas sales, Roborock achieved an operating income of 11.945 billion yuan last year, a year-on-year increase of 38.03%, and the revenue of overseas markets has exceeded that of the domestic market.

However, while the revenue increased, Roborock had to face the embarrassment of increasing revenue but not increasing profits, and its net profit attributable to the parent company was 1.977 billion yuan, a year-on-year decrease of 3.64%; The net profit after deducting non-attributable to the parent company was 1.620 billion yuan, a year-on-year decrease of 11.26%.

Roborock's revenue exceeded 10 billion yuan for the first time, and its main products include intelligent sweeping robots, floor scrubbers, washer-dryers and other smart electrical appliances. Among them, sweeping robots are the main business, with revenue of 10.848 billion yuan, a year-on-year increase of 34.17%; The gross profit margin was 52.07%, a year-on-year decrease of 2.87 percentage points.

Roborock said in its annual report that the revenue growth in 2024 was mainly due to the company's further enrichment of the product matrix and price matrix during the reporting period, and the key breakthroughs in the mainstream price segment. At the same time, the company further optimized the sales structure through an active market strategy, and achieved a significant increase in the company's domestic and overseas business revenue. In terms of sub-regions, overseas markets obviously account for a larger proportion of the company's business. In 2024, Roborock's domestic main business income will reach 5.531 billion yuan, an increase of 25.39% over the same period of the previous year; Overseas reached 6.388 billion yuan, a year-on-year increase of 51.06%.

In order to expand overseas markets, Roborock has set up a number of branches or subsidiaries to improve its understanding of the local market and better provide after-sales service. At present, the company has set up overseas companies in the United States, the United Kingdom, Japan, the Netherlands, Poland, Germany, South Korea, Canada and other places, but this has also caused the company's expenses to continue to rise. In 2024, the company's expenses for the period will be 4.123 billion yuan, an increase of 1.614 billion yuan over the same period of last year, and the expense ratio for the period will be 34.51%, an increase of 5.53 percentage points over the same period of last year. Among them, sales expenses increased by 63.28% year-on-year, management expenses increased by 63.83% year-on-year, R&D expenses increased by 56.93% year-on-year, and financial expenses decreased by 16.64% year-on-year.

In 2024, Roborock's gross profit margin will be 50.14%, down 3.79 percentage points year-on-year, and its net profit margin will be 16.55%, down 7.16 percentage points year-on-year. In terms of single-quarter indicators, the company's gross profit margin in the fourth quarter of 2024 was 44.86%, down 9.93 percentage points year-on-year and 9.09 percentage points quarter-on-quarter, and the net profit margin was 10.21%, down 13.09 percentage points year-on-year and 3.35 percentage points quarter-on-quarter.

The

tariffs are undoubtedly negative for Roborock, which will make the company's already declining performance worse.

According to public information, Roborock was founded in 2014, listed on the Shanghai Stock Exchange in 2020, and is headquartered in Beijing. The company's main business is the design, research and development, production and sales of intelligent hardware such as intelligent cleaning robots, and the main products include intelligent sweeping robots, floor scrubbers, washing and drying machines and other intelligent electrical appliances. According to the data, Roborock will rank first in the global sweeping robot market in 2024.