Actual Controller of Roborock to Reduce Holdings by Less Than 2%

Roborock, a publicly traded robot vacuum company in China, announced on February 21 that Chang Jing, the actual controller, founder, chairman and general manager, plans to reduce his shares by less than 2%.

According to the announcement, as of February 21, Chang holds 23.15% of the company’s shares. Due to his own capital needs, Chang plans to reduce the shares that he obtained before the IPO through a centralized bidding process.

It is worth mentioning that on January 15, Roborock disclosed the reduction plans of three other major shareholders, Shunwei Ventures III (Hong Kong) Limited, Tianjin Jinmi Investment Partnership, and Ding Di, an early investor of Roborock. They reduced their shares by about 6%, 2% and 1.5% respectively.

Roborock’s main business is the design, research and development, production and sales of intelligent hardware, including intelligent sweeping robots, hand-held vacuum cleaners, cleaning robots and floor washers.

According to the company’s 2022 interim report, the company’s share in the Chinese market increased by 11.68% to 23.57% year-on-year. In fact, it just started to build its own factory in the first half of last year.

According to the company’s financial report for the third quarter of 2022, Roborock recorded an operating income of about 4.392 billion yuan ($637 million) in the first three quarters of last year, up 14.78% year-on-year, and the net profit was about 855 million yuan, down 15.85% year-on-year.

In the official flagship store of Roborock on JD.com, one of the largest e-commerce platforms in China, the price of the G10S sweeping robot with the highest sales volume sells for 4,799 yuan/set, but a post-coupon price is 4,099 yuan/set. In the past, the market of sweeping robots was mainly held by a few professional brands such as Ecovacs Robotics, Roborock, Xiaomi and Narwal. Nowadays, home appliance giants such as Gree, Haier, and Midea have launched similar products.

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Therefore, this year, Roborock began to open up other development routes. Chang mentioned in an open letter released on February 21 that it took the company 36 months to develop their third drying technology – molecular sieve low-temperature drying. This revolutionary innovation will be applied to the company’s upcoming washing and drying machine.