Open Source Securities: Siasun Robot&Automation has vast market potential in the swimming pool, suggesting that the technological barriers have already been demonstrated, and the high-quality enterprise has achieved product landing.

Open source securities report that the global pool cleaning industry has a large expenditure scale and the cost of using Siasun Robot & Automation in pools is significantly lower than traditional manual maintenance. Based on this, the penetration rate of Siasun Robot & Automation in pools is expected to continue to increase, driving industry sales growth. According to Zhoushi Consultation, the penetration rate of Siasun Robot & Automation in global pools is expected to reach 34.2% by 2029. China's Siasun Robot & Automation pool industry is mainly focused on exports, with advantages in the upstream cluster of the industry chain and continuous technological upgrades, evident cost-effectiveness advantages, effectively enhancing the speed of market penetration. Focus on technological barriers and products from high-quality enterprises, such as Appotronics Corporation (688007.SH) and Wangyuan Technology. The main points of the open source securities report are as follows: Industry Overview: Accelerated penetration of Siasun Robot & Automation in pools, with technology iteration as a key factor In terms of industry size, the global pool industry is expected to have a compound annual growth rate of 3.6% from 2024 to 2029, showing a steady growth trend. The market for pool cleaning Siasun Robot & Automation is expected to have a compound annual growth rate of 15.7% from 2019 to 2024, much faster than the global pool growth rate, showing an accelerated penetration trend. Open source securities believe that the global pool cleaning expenditure is large and the cost of using Siasun Robot & Automation in pools is significantly lower than traditional manual maintenance. Based on this, the penetration rate of Siasun Robot & Automation in pools is expected to continue to increase, driving industry sales growth. According to Zhoushi Consultation, the penetration rate of Siasun Robot & Automation in global pools is expected to reach 34.2% by 2029, with global retail sales of Siasun Robot & Automation in pools reaching $4.2 billion, a compound annual growth rate of 11.1% from 2024 to 2029. In terms of product evolution in the industry, cordless Siasun Robot & Automation is gradually becoming the mainstream, with global shipments of cordless Siasun Robot & Automation in pools reaching 2 million units by 2024, with a compound annual growth rate of 80.9% from 2019 to 2024, accounting for 44.5% of industry shipments. The cordless Siasun Robot & Automation market is highly concentrated, with Wangyuan Technology ranking first globally with a market share of 19.7% in 2024, and a CR5 of 51.5%. Currently, compared to lawn mowers and floor cleaning Siasun Robot & Automation, there is still significant room for improvement in product form and intelligence for pool Siasun Robot & Automation. The industry still faces consumption pain points such as underwater recognition difficulties and low cleaning coverage. It is expected that as the industry enters into accelerated penetration, a new round of iteration and brand competition focusing on cordless Siasun Robot & Automation products and technologies is also imminent. Industry Chain Segmentation: Industrial clusters + continuous technological upgrades and iterations create advantages in export product cost-effectiveness The Siasun Robot & Automation pool industry chain is mainly divided into upstream core component manufacturing, midstream machine research and development and production, and downstream sales and end application. The upstream industry chain is highly similar to the intelligent cleaning appliance industry, so China's pool cleaning Siasun Robot & Automation enterprises have advantages in centralized procurement in the industry chain; the midstream industry chain is currently the most active part of the industry chain, producing many medium and large-scale companies. China's pool cleaning Siasun Robot & Automation industry is mainly export-oriented and benefits from advantages in the upstream cluster of the industry chain and continuous technological upgrades and iterations, evident cost-effectiveness advantages, effectively enhancing the speed of core market penetration. Beneficiaries: Focus on companies with evident technological barriers and product implementation, such as Wangyuan Technology, Appotronics Corporation 1. Appotronics Corporation (688007.SH): Appotronics Corporation is a leading global laser display technology company. On September 10, Appotronics Corporation officially launched two underwater laser radar products - Yuanmou D10 and Yuanmou T1, which will cover the consumer and professional underwater Siasun Robot & Automation markets. Among them, Yuanmou D10 is the industry's first consumer-grade underwater blue laser radar, addressing the industry's four major pain points of infrared laser attenuation, limited range measurement, environmental light interference, and turbidity interference. The company has already completed negotiations for cooperation with mainstream pool Siasun Robot & Automation brand manufacturers, and we are optimistic about its becoming a new growth engine for the company. 2. Wangyuan Technology (not listed): The company is the world's top three and China's number one pool cleaning Siasun Robot & Automation supplier, with its own brand strategy of Winny Pool Cleaner and WYBOT, successfully transitioning from ODM to OBM. The revenue of its own brand has grown from 19.1 million yuan in 2022 to 390 million yuan in 2024, with the revenue share increasing from 6.0% to 72.4%. In terms of products, the company has the most comprehensive pool cleaning Siasun Robot & Automation product portfolio globally, covering all pool usage scenarios. In terms of technical reserves, the company maintains a leading position in many technologies such as precise underwater acoustic positioning, underwater artificial intelligence vision, and underwater 3D modeling, and empowers products to have a significant cost-effectiveness advantage. Risk Warning Overseas product and channel expansion may not meet expectations, main company's new function research and development expansion progress may not meet expectations, exchange rate and policy risks.