Analysis of Yunjing Intelligence's Gross Margin Before IPO: Assessment of Profit Recovery Potential

As an important player in China’s robot vacuum cleaner track, Yunjing Intelligence is in the process of a Hong Kong IPO. According to public information, the company was incubated by the Songshan Lake Robot Industry Base, which is known as a “national-level technology enterprise incubator” and has incubated more than 80 hard technology companies [1]. Yunjing Intelligence competes with Ecovacs, Dreame, Roborock, etc. in the industry [2].

According to the financial data shown in the search results, Yunjing Intelligence experienced a significant drop in gross margin to 4.9% before its IPO [3]. This level is far lower than the 47.9%-54.1% gross margin range of industry leader Roborock in the same period [2].

• Intensified Price Competition
  : The robot vacuum cleaner industry has entered the “era of three highs”, with technology moving from “2D cleaning” to “3D space” [2], and brands are engaged in fierce internal competition in terms of parameters, functions, and prices
• Rising Marketing Investment
  : Industry competitors not only promote hardware iteration but also actively lay out value-added models such as software, subscription services, and ecological collaboration [4]
• Increased R&D Investment
  : To meet the demand for technological upgrading, enterprises need to continuously invest in R&D to maintain competitiveness
• Supply Chain Pressure
  : Fluctuations in raw material costs and changes in supply chain bargaining power

• Broad Market Space
  : Robot vacuum cleaner products have covered more than 20 million households in over 170 countries and regions [2]
• Technological Iteration Opportunities
  : New technologies such as robotic arms, 3D ToF lidar, and edge-side AI models are rapidly being converted into mass-produced products [2]
• Overseas Expansion Dividend
  : Gross margins in overseas markets are usually higher than in domestic markets, and Roborock’s overseas revenue accounts for 53.6% [2]

• Industry-wide Profit Pressure
  : Roborock’s annual profit margin in 2024 decreased by 7.1 percentage points compared to 2023 [2]
• Cash Flow Pressure
  : The net cash flow from operating activities in the first three quarters of the industry showed a significant decline [2]
• High Sales Expenses
  : Sales expenses doubled in the first three quarters [2]

1. Sustained Loss Risk
   : Peer companies such as Ledong Robotics have sustained losses from 2022 to 2024 [5]
2. Uncertainty in Gross Margin Recovery
   : A gross margin of 4.9% is at an extremely low level, and returning to normal levels requires time and strategic adjustments
3. Intensified Industry Competition
   : New players such as DJI have entered the market, with monthly sales exceeding 10,000 units in the first month [2]

Yunjing Intelligence’s 4.9% gross margin indeed reflects that the company is facing significant profit pressure. Considering:

• The robot vacuum cleaner industry is still in a period of technological change
• The overseas market has great expansion potential
• The industry’s overall profitability is under pressure

: product structure optimization, overseas market expansion, and effective cost control measures. Investors need to pay close attention to whether the company can achieve stable and rebound gross margins through scale effects and technological innovation after the IPO.

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[1] Sina Finance - Wo’an Robotics (6600.HK) Listed on First Day, Scarce Embodied Intelligence Target Lands in Hong Kong Stock Market! (https://finance.sina.com.cn/stock/bxjj/2025-12-30/doc-inhepxis9684856.shtml)

[2] OFweek Network - Robot Vacuum Cleaner Industry Enters “Era of Three Highs”, Roborock Chooses Hong Kong Stocks as a New Springboard (https://mp.ofweek.com/robot/a356714699587)

[3] Financial Data Chart - Yunjing Intelligence IPO Financial Data (https://mp.m.ofweek.com/Upload/News/Img/member99964204/202510/13162312912097.png)

[4] 36Kr - Owes Chinese Companies 2.5 Billion Yuan, Global Robot Dominator: No Money Left (https://m.36kr.com/p/3591058889097222)

[5] 36Kr - Robot Companies, Queuing to Go Public in Hong Kong (https://m.36kr.com/p/3596165862866946)

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