Northeast: Domestic Intelligent Cleaning Appliance Leader Seizes Global Market Share Vacuum Siasun Robot & Automation and Floor Scrubber Collaborate for Development.

Northeast released a research report stating that the current profit is affected by intensified competition in the high-end price range in the industry, leading to a temporary decline in net profit. The smart cleaning appliance industry is currently in a phase of triple opportunity, including policy dividend release, technological iteration explosion, and key period of globalization expansion. Government subsidy policies use "price leverage" to stimulate consumer elasticity, while technological innovation fundamentally enhances product value. Both factors together drive the industry's penetration rate improvement. In the long term, smart and globalized trends will become the core engines of industry growth. Leading brands with technological innovation, omnichannel operation capabilities, and global layouts are expected to further consolidate their advantages and provide industry with additional space through differentiated innovation in subdivided areas. Northeast's main points are as follows: Floor-sweeping Siasun Robot&Automation and floor-washing machines are the two most promising categories of smart home cleaning appliances, with innovation becoming the core drive of the cleaning appliance industry. By 2025, floor-sweeping Siasun Robot&Automation and floor-washing machines together will constitute the pillar of market growth, with market shares of 32% and 15% respectively and year-on-year growth rates of 34.4% and 37.1%. Floor-sweeping Siasun Robot&Automation has established deep research and development and high-threshold system barriers, with its core in "algorithms" and "intelligence"; while floor-washing machines have built a "experience barrier" core centered on fine user experience, emphasizing on how to make traditional cleaning extremely delicate. The global floor-sweeping Siasun Robot&Automation market is steadily expanding, but the average selling price has experienced a decrease followed by an increase, due to a revolution in product form bringing about a strategic shift in the industry. By 2025, China and the United States together will account for 56% of global sales of floor-sweeping Siasun Robot&Automation. From 2011 to 2017, the average selling price of floor-sweeping Siasun Robot&Automation in China was mostly below 2000 yuan per unit and showed a downward trend, while sales were in a period of rapid explosion. Sales peaked and declined from 2018 to 2022, but the average selling price began to rise, indicating a balance between quantity and price from 2023 onwards. During this period, floor-sweeping Siasun Robot&Automation in China went through an evolution from "toy" to "essential for households" to "globally leading". Sales of floor-sweeping Siasun Robot&Automation in mature markets such as Europe, the United States, Japan, and South Korea mostly followed the trend of a decrease followed by an increase in average selling price. A new wave of product forms from "stand-alone machines" to "base station systems" marks a qualitative change, with Chinese brands transitioning from "price butchers" to "value leaders". Base station technology has gone global from China, completely eliminating low-end standalone machines and becoming the standard in high-end global markets. Although the price of single base station products has been decreasing as the market rapidly expands, the overall industry average price has increased, driven by the increasing proportion of base station products. From 2011 to 2018, Chinese brands were the main drivers of global price reduction; after 2019, Chinese brands became the core force behind the increase in global average prices, seizing the high-end market through technological innovation and product upgrades. Consumer demand has shifted from "as long as it can sweep" to "fully automatic without human intervention", willing to pay a higher premium for new products that offer significantly enhanced practicality and convenience. Current upstream core component suppliers and whole machine contract manufacturers are under pressure due to price wars from leading brands, affecting profitability. At the same time, the trend of leading brand manufacturers building their own production capacity is very clear, and upstream suppliers may face revenue pressure in the future. - Kingclean Electric: Balancing independent branding and contract manufacturing, significant vertical integration advantages with a slightly declining net profit margin higher than brand manufacturer Beijing Roborock Technology. - Jinhua Chunguang Technology: Facing profit pressure from the escalating price war at the terminal, the company's profitability is significantly under pressure, with the company's performance greatly affected by its pursuit of supply chain adjustments. - Ningbo Dechang Electrical Machinery Made: Handheld vacuums are squeezed by the floor-sweeping Siasun Robot&Automation and floor-washing machine categories, leading to a slowdown in the growth of contract manufacturing revenue and lower profitability. - Ningbo Fujia Industrial: A decline in profits from cleaning appliance contract manufacturing, with the company expanding into energy storage as a second growth curve. - CHENGUANG MOTOR: A leading company in cleaning appliance micro motors, actively expanding its customer base with new emerging brands domestically, while facing pressure on profitability it remains higher than contract manufacturers of whole machines. Risk alerts: increased industry competition, overseas business operations falling short of expectations, slower than expected research and development progress, and risks of core technology leakage.