Among them, revenue in the third quarter was 3.302 billion yuan, a year-on-year increase of 14.44%; net profit attributable to shareholders of listed companies was 245 million yuan, a year-on-year decrease of 48.94%.
01 Revenue side: Product price reduction, share boosts
sweepers in the short term, with the rapid catch-up of emerging brands such as Zhuimi, the market competition in the cleaning appliance industry is becoming more and more fierce. The industry has entered the stage of product functions from core technology iteration micro-innovation . Ecovacs took the lead in fighting a "price war" to try to move towards the mass market and release new demand.
Since the T10 OMNI price cut in July this year, its online share has increased significantly from 1.34% in that month to 10.63% in September, directly driving Ecovacs' overall market share from 36% in July to 43% in September, with a significant price reduction effect.
In addition, in terms of channels, the company attaches importance to integrated online and offline marketing. It enhances its brand influence online through "celebrity spokesperson + advertising implantation + cross-border linkage + short videos and live broadcasts" and actively creates "expertistic" retail stores offline.
Especially this year, the company has increased its layout of Douyin channels. Tonglian data shows that the company's Douyin sales in the third quarter increased by 56% year-on-year.
Ecovacs price reduction products and sales market share trend
floor washing machine , as the industry is still in the first high growth stage brought about by breakthroughs in core technology, the online sales of Tianke brand increased by 9% in the third quarter and 35% offline, and its leading position is still stable. Judging from the pre-sale situation of Double Eleven, as of October 27, the cumulative pre-sales of the Ecovacs and Tmall brands on the Tmall platform were 404 million and 302 million respectively, ranking third and sixth in the home appliance category.
02 Profit end: sales fees are high, profitability is under pressure
As a "intelligent robot" company, Ecovacs has been going further and further in the road of "focusing on marketing and neglecting R&D" in recent years.
In the third quarter, the company's net sales rate fell by 55.32% year-on-year, which was the direct trigger that the company's continued high expenses in the sales field and seriously squeezed out R&D expenses.
Q3 sales net profit margin
Financial report data shows that from 2018 to 2021, Ecovacs' R&D investment accounted for 3.60%, 5.22%, 4.67% and 4.20%, respectively, declining year by year.
In contrast, Ecovacs' sales expenses of up to 3.237 billion yuan in 2021, a year-on-year increase of 107.39%, accounting for 24.74% of revenue, nearly 6 times that of R&D.
In the third quarter of this year, the company's sales expenses increased by 50.64% year-on-year, completely inversely with profits.
Sales expenses in the third quarter
In the cleaning appliance market, which is already increasingly competitive, Ecovacs despises its first-mover advantage in technology, channels, supply chains, etc., and continues to play to its shortcomings and avoid strengths, but has no product strength and innovation. The stock price is the best feedback to performance.
As of the closing of the afternoon on the 31st, Ecovacs' stock price fell to 59.51 yuan per share, which has fallen by more than 70% from the highest point at the end of July 2021. The company's market value has evaporated by more than 100 billion yuan in just over a year.
Just two days before the financial report was released, Ecovacs had just held a new product launch conference, releasing its first mowing robot G1 and commercial cleaning robot K1 and M1, focusing on the European market.
However, the clever timing of the press conference was also questioned by the outside world as a means of "market value management", that is, to use new products to boost stock prices in advance to conceal the company's ugly performance.
03 Conclusion
In the past two years, Ecovacs has made a lot of efforts from sweeping robots to cooking robots , but the market has become tired of hearing one story after another of "changing soup but not changing medicines". The story of "intelligent robots" seems to be almost impossible to tell.
Under the background of pressure on the consumption environment, the overall cooling of the cleaning electrical track. If Ecovacs continues to lose sight of one thing and does not focus on the R&D field, the position of the industry leader may be no longer safe.
As of October 31, a total of 27 institutions made predictions for Ecovacs' 2022 annual performance within 6 months: it predicts earnings per share in 2022, an increase of 9.47% year-on-year, and a net profit in 2022 of 2.254 billion yuan, an increase of 12.13% year-on-year.
Performance forecast
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