Summary of Key Points
In the first half of 2026, Stone Technology delivered an impressive report of “counter-cyclical growth”: its revenue exceeded 10 billion yuan (10.084 billion yuan) for the first time, a year-on-year increase of 27.6%, and its net profit reached 986 million yuan (a year-on-year increase of 45.6%), with profit growth outpacing revenue growth. Despite the overall decline of the domestic cleaning appliance market by 0.7%, Stone Technology achieved quality growth through its global strategy (a significant increase in overseas market share), systematic innovation (focusing on overall coordination rather than simply increasing technical specifications), expansion into new businesses (from indoor to outdoor cleaning), and optimization of its supply chain.
I. The Foundation for Counter-Cyclical Growth: Stable Domestic Market + Explosive Overseas Growth
The domestic market entered an adjustment period in the first half of the year due to factors such as the reduction of subsidies and forward-shifted demand, but Stone Technology strengthened its position. During the 618 shopping festival, its sales shares for robotic vacuums and floor washers reached 35.73% and 27.22%, respectively, firmly placing it among the top players. The overseas market saw even more impressive results: during Amazon Prime Day, it led the market share for robotic vacuums in seven countries, including Germany, the UK, and the US, with a 45% market share on Amazon Europe and a 33% market share on Amazon North America. The success in both domestic and international markets is the core reason for its counter-cyclical growth.
II. Profit Growth Outpacing Revenue Growth: Improved Efficiency + Unexpected Tax Refunds
Why did profit growth (45.6%) exceed revenue growth (27.6%)?
Firstly, there was an improvement in operational efficiency: the deepening of its global strategy and the establishment of local teams overseas made sales smoother and cost control more effective. Secondly, the company received an unexpected tax refund of $39.87 million (approximately 270 million yuan), which was like a windfall. Although exchange rate fluctuations caused some losses, the impact of the tax refund was more significant, leading to faster profit growth. Additionally, the company’s operating cash flow increased by 398 million yuan year-on-year, indicating that the cash was actually received and not just nominal.
III. Moving from “Brute Force” to “Intelligence”: Systematic Innovation
In the past, the cleaning appliance industry focused on competing by increasing hardware specifications, such as stronger suction, thinner designs, and more sensors, but this often came at a higher cost without necessarily improving performance. Stone Technology adopted a different approach—systematic innovation, ensuring that all components of its products work together to enhance the user experience while reducing costs. For example, its G30S Ultra robotic vacuum automatically raises its brush roll when encountering carpets to avoid wetting them and adjusts its cleaning strategy when entering low spaces. The floor washer solves the problem of getting dirtier with each pass through advanced structural design and can also dry efficiently with low energy consumption. These improvements are not just individual technical upgrades but involve reengineering the entire product’s architecture and algorithms. The company also invested heavily in research and development, spending 720 million yuan (7.14% of its revenue) and obtaining 1,172 new patents, with R&D personnel accounting for 40% of its workforce, ensuring its ability to innovate.
IV. New Engines for Growth: Expanding from Indoor to Outdoor, and Going Beyond “Merely Selling”
Stone Technology is no longer limited to robotic vacuums and floor washers. In the first half of the year, it launched its first intelligent lawn mower, extending its business from indoor to outdoor cleaning and tapping into the growing demand for smart home solutions. Its global strategy has evolved from cross-border sales to localized operations, with branches established overseas and new online platforms such as Shopee and Lazada added, as well as offline presence in major supermarkets like Costco and BestBuy. By optimizing its supply chain in Vietnam and Malaysia, the company has reduced tariffs and logistics costs, making its products more affordable and faster to deliver.
V. The Future of the Industry: Innovation Drives the Next Cycle
According to OviCloudNet, the domestic cleaning appliance industry has hit a bottom, and the next cycle will be driven by innovative products. IDC believes that the global market will move away from general growth and will focus on three key areas: technological innovation, comprehensive product offerings, and localized operations. Stone Technology aligns well with these trends, with systematic innovation, a full range of products covering both indoor and outdoor cleaning, and local teams overseas, indicating significant potential for future growth.
In summary, Stone Technology’s counter-cyclical growth is not accidental but the result of a combination of globalization, innovation, and business expansion. For consumers, this means access to smarter and more affordable cleaning products. For the industry, it sets an example by demonstrating that true innovation, rather than just increasing technical specifications, is the key to long-term success. (This article does not constitute investment advice.)