China Securities Co., Ltd.: DJI enters the sweeping robot industry and continues to look optimistically at the increase in the penetration rate of clean electric appliances and the growth potential of industry leaders.

China Securities Co., Ltd. released a research report stating that DJI has officially entered the sweeping robot industry with the release of the ROMO series. In terms of market positioning, the P series is expected to attract high-end consumers with its top-tier materials and transparent design, while the competition is fierce in the mid-range price segment, and DJI's S/A series does not have high differentiation. Overall, traditional manufacturers are expected to still hold a significant market share in terms of comprehensive cost-effectiveness. DJI does not currently have plans to expand overseas, so the impact on the market is neutral. DJI's entry into the market is a technological endorsement for the sweeping robot category, which will drive consumer education and market expansion, further solidifying industry valuation. The report continues to be optimistic about the increasing penetration rate of cleaning appliances and the growth potential of industry leaders. Key points from China Securities Co., Ltd. are as follows: DJI's release of its first sweeping robot with a transparent design has sparked high interest. On August 6th, DJI's ROMO series sweeping robot was officially unveiled, with the transparent design being the main highlight, showcasing DJI's technological aesthetic. The ROMO series, as DJI's first sweeping and mopping robot, matches the top brands in the industry in terms of hardware configuration and functionality: DJI uses top-tier materials in its hardware, pricing higher than the industry average flagship products. DJI's most prominent features are its design and obstacle avoidance capabilities. The "dual-camera vision + three LiDAR" combination is a high configuration with millimeter-level obstacle avoidance accuracy. The design, with its transparent body and base station, is an industry-first style. The dual-camera solution requires more in-depth information processing compared to structured light/TOF solutions, making it the highest technical route in terms of algorithm and chip performance for obstacle avoidance. DJI is positioned in the high-end pricing segment, generally priced higher than products from traditional companies with similar configurations. Market analysis: DJI is expected to occupy a certain market share in the high-end market. The report predicts that DJI will make a breakthrough in the 5000+ price segment, with the ROMO series holding its own against mainstream flagship models in terms of hardware comparison, and significantly innovating in terms of appearance. Traditional industry leaders still dominate the mid-to-low-end market in China and overseas, with DJI's S/A series showing minimal differentiation from competitors. Consumers already have a strong awareness of mainstream brands such as iRobot and Ecovacs Robotics. DJI currently has no plans to expand overseas, so its impact on the overseas market is minimal. Recognizing DJI's role in driving the penetration rate of the category. The sweeping robot industry is currently at a critical stage of transitioning from the early market to the mass market. The report believes that DJI's entry into the market has a more profound positive significance - endorsing the category, driving consumer education and market expansion, and further supporting the growth potential of cleaning appliances and industry leaders.