Core Insights - ECOVACS, founded in 1998, is a leader in service robots and high-end smart appliances, known for launching China's first robotic vacuum cleaner and smart floor washer [1] - The company has shown strong performance in ESG areas such as green supply chains and product innovation, but there are aspects that require improvement [1] Environmental Performance - ECOVACS has achieved full ESG assessment coverage for its suppliers, with 320 suppliers for service robots and 366 for TINECO by the end of 2024 [2] - The company implements lifecycle management for its supply chain, ensuring sustainability through strict evaluations based on environmental, quality, and ethical standards [2] - Local suppliers account for 43.44% and 66.12% of the service robot and TINECO divisions, respectively, which helps reduce logistics costs and greenhouse gas emissions [2][3] Supplier Management - ECOVACS conducts regular assessments of suppliers based on key indicators such as quality and delivery time, with a 100% rate for signing integrity clauses and social responsibility agreements [4] - The company incentivizes high-performing suppliers while requiring improvements from underperforming ones to enhance sustainability [4] Energy and Emissions - In 2024, ECOVACS generated 2,546.10 MWh of electricity from its photovoltaic systems, with 2,530.71 MWh used internally [4] - However, greenhouse gas emissions increased significantly to 51,144.84 tons CO2e in 2024, up from 27,315.71 tons in 2023, primarily due to the operations of its subsidiary, which requires substantial steam energy [5][6] Innovation and Employee Rights - The company invested 885 million yuan in R&D in 2024, representing 5.35% of its revenue, and employed 1,667 R&D personnel [8] - ECOVACS has a 100% rate for labor contract signing and social insurance coverage for its employees, with a comprehensive compensation management system [11] Product Quality and Customer Service - Despite strong innovation, ECOVACS faces challenges in product quality and after-sales service, with 3,784 complaints reported on a consumer platform, mainly regarding product malfunctions and high repair costs [12] - The company has been criticized for inadequate responses to privacy concerns following a security vulnerability in one of its products [11][12]