Stone Technology (688169.SH) is moving from a domestic smart home leader to a global smart home leader.

The Zhitong Finance App learned that at the close of trading on April 17, the stock price of Shitou Technology hit a 60-day high. The current stock price is 374.60 yuan/share, up 7.06%. According to public statistics, the capital flow in the first 10 trading days was a cumulative net inflow of 125 million yuan of main capital, and a cumulative increase of 2.13% in stock prices. The continued rise in stock market performance reflects the continued optimism of investors and markets about Stone Technology's operations.

Previously, at the end of March, according to data from Euromonitor International, the world's authoritative market research agency, in 2023, Stone Technology's sweeping robot sales had reached the highest sales in the world. In specific countries and regions, according to IDC data, Stone Technology ranked first in sales volume and sales in various markets such as Northern Europe, Germany, South Korea, and Turkey.

At the same time, Stone Technology's 2023 financial report also shows the company's strong development momentum and steady operation. According to financial data for the full year of 2023 disclosed by Stone Technology, in 2023, it achieved revenue of 8.654 billion yuan, an increase of 30.55%; net profit of 2,051 billion yuan, an increase of 73.32%; and net cash flow from operating activities increased 95.1% year on year to 2,186 billion yuan. The company's overseas revenue accounted for nearly half, reaching RMB 4.23 billion, an increase of 21.42% over the previous year. These data not only reflect the market competitiveness of Stone Technology, but also show its strong ability to expand in the global market.

However, on this track, competition in the global market is still fierce. In addition to leading domestic sweeping robot companies “Four Little Dragons” Covos, Stone Technology, Cloud Whale, and Chasing, which account for more than 90% of the market share, there are also a number of continuous companies entering the smart home equipment field to try to segment this rapidly growing market.

So, why is it that in an era of increasing market competition, Stone Technology is still able to successfully reach the top of the world in sales of sweeping robots. The stock market and financial reports are showing positive feedback, ushering in today's “blooming” period?

At the 2024 Stone Technology Global Press Conference held on March 29, Stone Technology CEO Quan Gang said that Stone Technology has always been centered on user value, does the right thing, and adheres to the long-term principle. In the future, Stone Technology will continue to invest in R&D, explore cutting-edge technologies that improve human life, and continue to lead the high-quality development of the industry.

Obviously, investment in R&D and market insight is key. In the 3.0 era of globalization marked by the revolutionary development of information technology, continuous iterative technological innovation and high-intensity R&D investment are an eternal moat and driving force for any enterprise.

According to the annual financial data of Stone Technology, from 2019 to 2022, the company's investment in R&D expenses increased year by year, amounting to 193 million yuan, 263 million yuan, 441 million yuan, and 489 million yuan respectively, accounting for 4.59%, 5.80%, 7.55% and 7.37% of revenue respectively. In 2023, Stone Technology's R&D investment reached 619 million yuan, an increase of 26.69% over the previous year.

Long-term high-intensity investment has enabled Stone Technology to continue to innovate products and technologies. Stone Technology is a leading international enterprise in the field of large-scale application of lidar technology, precision optical visual navigation obstacle avoidance, and related algorithms to intelligent sweeping robots. At the same time, it is also the first company to use binocular vision solutions to achieve accurate obstacle avoidance for sweepers through AI deep learning; it also innovatively uses a motor to make the mopping module have both vibration and lifting functions. While solving stubborn stains, it can also actively lift carpets to avoid getting wet. At the same time, all new sweepers have developed full-function base stations. In addition to the original basic charging functions, functions such as self-cleaning of rags, automatic dust collection, cloth drying, and cleaning tank drying have been added, solving the problems of users manually maintaining base stations. At the 2024 global press conference, Stone Technology unveiled a variety of products including G20S, V20, and P10S Pro, further consolidating its leading position in technology in the field of smart home cleaning equipment.

Pursuing product refinement and maximizing user value, as well as its insistence on long-term value, not only allows Stone Technology to continue to grow its market share, but also provides valuable experience for new competitors in the entire market to learn from. As a model for Chinese technology companies, Stone Technology has demonstrated the continuous growth and international influence brought about by continuous innovation and active response to market competition.