“Science and Technology Innovation Board Daily”, January 18 (Reporter Guo Hui) Fluorite Network, a smart home product and platform provider, released its 2023 performance forecast yesterday evening (January 17).

According to preliminary estimates by Fluorite Network's finance department, the company expects to achieve net profit of 540 million yuan to 580 million yuan in 2023. Compared with the same period last year (after adjustment), it will increase by 207 million yuan to 247 million yuan, an increase of 61.92% to 73.92% over the previous year. This performance forecast was not audited by a certified public accountant.

Based on this calculation, Fluorite Network's net profit for the fourth quarter of 2023 is expected to be 139 million yuan to 179 million yuan (up 21.50% to 56.59% year on year). The median value is basically the same as Q2 and Q3, but it is also expected to hit the highest in history in a single quarter.

Fluorite Network stated in the announcement that with regard to performance changes, in 2023, the company continued to focus on core advantages, consolidate technology research and development, and continuously launch competitive products; at the same time, the company continued to expand and optimize channel construction, and achieved steady growth in overall business performance. Benefiting from a combination of factors such as lean supply chain management, reduced raw material costs, increased share of cloud platform business and overseas business, and optimization of channel structure and product structure, the company's overall gross margin has increased and profitability is steady.

According to information, in addition to updating new products in product categories such as smart home cameras, smart home entry, and intelligent control last year, Fluorite Network also officially launched cleaning service robots to expand its product matrix. On October 12, 2023, Fluorite Network officially released two new cleaning service robots developed using the concept of embodied intelligence, the new RS20 Pro household AI sweeper and the first commercial cleaning robot BS1.

According to a research report released by Haitong Securities analyst Chen Ziyi in January this year, the C-end AI sweeper RS20 Pro focuses on pet families, and the Cloud Vision commercial cleaning robot BS1 focuses on the corporate building cleaning market. On the one hand, it continues to expand the smart home product line for the company, and on the other hand, it is a forward-looking practice of the company's visual navigation solution in the field of intelligent service robots.

Regarding the cleaning robot business plan, Fluorite Network said during an agency survey in the fourth quarter of 2023 that the company is very optimistic about the future market prospects and space of intelligent service robots. As one of its core self-developed product lines and as a strategic incubation business, the company will continue to invest in R&D in the future, while maintaining a strategic balance between investment and output.

Furthermore, the cloud platform business continues to increase its revenue contribution to Fluorite Network. According to the 2023 Interim Report, Fluorite Network's cloud platform service achieved revenue of 381 million yuan, accounting for a further increase of 16.74%; the cloud platform revenue increased 23.19% year over year, with a gross profit margin of 75.16%, an increase of 3.21 percentage points over the same period last year.

Fluorite Network said that the cloud platform occupies a central position in the company's business model. For consumers, the company adheres to smart home products based on visual interaction, and effectively empowers users' smart lives through diversified value-added services and open AI algorithm services. In addition to existing cloud value-added services, the company is also actively developing new value-added services to provide users with more personalized services.

For industry developer customers, the company focuses on visual technology that it excels at. As an IoT cloud platform, it helps industry customers complete intelligent transformation or develop solutions for complex scenarios through an open platform. In the future, we will continue to co-create with independent software developers to provide more PaaS platform capabilities and reduce developers' development costs.

According to the research report released by Everbright Securities in December 2023, AI helps the industry develop intelligently, and the smart home market space is broad. In terms of market size, smart home products are becoming more and more diverse, and the Internet of Things and AI algorithm technology help the industry develop in the direction of intelligence. According to Statista, the global smart home market will reach US$47.1 billion in 2024, with a CAGR of about 15% in 2020-2024. In terms of the competitive landscape, Fluorite Network faces competition from Internet brands such as Xiaomi and 360, but benefiting from product lines, product performance, channel layout, and brand reputation, the company may achieve differentiated competition.