Investment Rating - The report maintains a "Recommend" rating for JS Global Lifestyle (01691 HK) with a target price of HKD 1 7 [1] Core Views - JS Global Lifestyle completed the spin-off of SN Group retaining the Joyoung division and SN Asia-Pacific business The retained business achieved revenue of USD 1 43 billion in 2023 a year-on-year decrease of 3 2% on a comparable basis [1] - The Joyoung division saw a significant revenue decline of 20 5% to USD 1 05 billion due to weak demand in the domestic small household appliance market while SN Asia-Pacific business surged 137 4% to USD 150 million driven by strong growth in the Japanese vacuum cleaner market [1] - The company's gross margin for continuing operations in 2023 was 34 1% down 2 3 percentage points year-on-year Joyoung's gross margin fell by 1 percentage point to 31 1% while SN Asia-Pacific's gross margin increased by 2 6 percentage points to 42 2% [1] - The spin-off of SN Group to list on the US stock market is expected to enhance the overall value of SN and allow both JS Global and SN to focus on their respective business areas improving operational efficiency and talent incentives [1] - The report forecasts adjusted net profit attributable to shareholders of USD 70 million for 2024 USD 80 million for 2025 and USD 90 million for 2026 [1] Financial Performance - In 2023 JS Global Lifestyle reported revenue of USD 1 438 billion a year-on-year decrease of 71 7% and net profit attributable to shareholders of USD 132 million a year-on-year decrease of 60 4% [2] - The company's gross margin for 2023 was 34 1% with a net margin of 9 2% [8] - Revenue is expected to grow by 7 8% in 2024 5 8% in 2025 and 5 0% in 2026 reaching USD 1 720 billion by 2026 [2] - Net profit attributable to shareholders is projected to decline by 45 8% in 2024 but recover with growth of 16 0% in 2025 and 9 0% in 2026 [2] Business Segments - The Joyoung division contributed USD 1 05 billion in revenue in 2023 a 20 5% decline year-on-year due to weak domestic demand [1] - SN Asia-Pacific business achieved revenue of USD 150 million in 2023 a 137 4% increase year-on-year driven by strong performance in the Japanese market particularly the Shark brand which saw revenue grow by 62 5% to USD 120 million [1] Future Outlook - The company is expected to benefit from the recovery in domestic small household appliance demand and the growth potential of SN Asia-Pacific's product development and channel expansion [1] - The report anticipates improved profitability and gross margins in the future supported by product iteration and innovation strategies [1]

Financial Performance - Revenue from continuing operations in 2023 was $1,428.7 million, a decrease from $1,475.5 million in 2022[7] - Gross profit for 2023 was $486.6 million, down from $536.4 million in 2022[7] - Net profit attributable to owners of the company in 2023 was $131.7 million, compared to $332.3 million in 2022[7] - Adjusted EBITDA for 2023 was $397.1 million, a significant drop from $673.0 million in 2022[7] - Total revenue from continuing operations in 2023 was approximately $1,429 million, a decrease of 3.2% year-over-year[10] - Gross profit from continuing operations in 2023 was approximately $487 million, a decrease of 9.3% year-over-year, with a gross margin of 34.1%, down 2.3 percentage points[11] - Adjusted profit from continuing operations decreased by 72.2% to approximately $38 million, with net profit per share at 1.5 cents, down 40.0% year-over-year[11] - The company's total revenue from continuing operations decreased by 3.2% YoY to $1,428.7 million in 2023, with gross profit declining 9.3% to $486.6 million and gross margin dropping 2.3 percentage points to 34.1%[25] - The company's net profit attributable to owners of the parent decreased by 39.5% YoY to $51.9 million in 2023, while adjusted net profit dropped 72.2% to $37.7 million[25] - The company's EBITDA for continuing operations declined 31.1% YoY to $116.5 million in 2023, while adjusted EBITDA fell 56.6% to $83.9 million[25] - Pre-tax profit for 2023 was $84.8 million, a decrease from $136.7 million in 2022[57] - EBITDA for 2023 was $116.5 million, down from $169.1 million in 2022[57] - Adjusted EBITDA for 2023 was $83.9 million, compared to $193.3 million in 2022[57] - Net profit for 2023 was $150.0 million, a significant drop from $357.5 million in 2022[60] - Adjusted net profit for 2023 was $229.8 million, down from $425.6 million in 2022[60] - EBITDA for the group's continuing and discontinued operations in 2023 was $328.7 million, compared to $624.5 million in 2022[62] - Adjusted EBITDA for the group's continuing and discontinued operations in 2023 was $397.1 million, down from $673.0 million in 2022[62] Balance Sheet and Assets - Total assets as of 2023 were $1,403.3 million, a decrease from $4,635.8 million in 2022[8] - Total equity attributable to owners of the company in 2023 was $535.5 million, down from $1,899.7 million in 2022[8] - Non-current liabilities decreased to $10.4 million in 2023 from $976.1 million in 2022[8] - Current liabilities in 2023 were $694.8 million, compared to $1,595.0 million in 2022[8] - Inventory decreased by 81.4% from $646.3 million as of December 31, 2022, to $120.1 million as of December 31, 2023, primarily due to the exclusion of inventory from discontinued operations[65] - Accounts receivable decreased by 67.0% from $1,198.0 million as of December 31, 2022, to $395.8 million as of December 31, 2023, mainly due to the exclusion of receivables from discontinued operations[66] - Accounts payable decreased by 31.3% from $687.5 million as of December 31, 2022, to $472.4 million as of December 31, 2023[67] - Cash and cash equivalents stood at $319.8 million as of December 31, 2023, compared to $504.1 million as of December 31, 2022[67] - The company's debt-to-equity ratio decreased significantly from 45.6% as of December 31, 2022, to 0.8% as of December 31, 2023, due to the repayment of all bank borrowings[68] Operational Challenges and Strategic Responses - The company faced challenges in 2023 including the US banking crisis, Russia-Ukraine war, raw material price fluctuations, inflation, and Red Sea shipping disruptions[9] - The company emphasized innovation and adaptability in response to the challenging global environment in 2023[9] - The company's ongoing operations (including Joyoung Division and SharkNinja Asia-Pacific business) experienced a decline compared to 2022 due to increased professional service fees, sales and promotion expenses, and human resource costs[17] - The company's growth strategy includes developing innovative small household appliances, expanding sales networks, and seeking strategic partnerships and acquisitions[74] - The SharkNinja Asia-Pacific division focuses on growth in existing categories, launching new product categories, and expanding into new markets in the Asia-Pacific region[76] - SharkNinja Asia Pacific division focuses on providing innovative products tailored to local consumer needs, such as lightweight cordless vacuum cleaners in Japan, leading in performance, weight, and noise levels[77] - The company expanded into the personal care category by launching hair care products in the Asia Pacific region, demonstrating its commitment to product diversification and leveraging technical expertise[77] - SharkNinja is actively evaluating untapped markets in the Asia Pacific region and developing targeted strategies to successfully launch products in new countries, aiming to enhance brand image and consumer awareness[77] - The company's growth strategy is centered on meeting consumer needs, winning in core product categories, and seeking expansion opportunities in both product categories and geographic markets[77] - SharkNinja plans to continue launching innovative products tailored to local markets through its R&D teams and leveraging the R&D platforms of Joyoung and SharkNinja Group[77] Market and Regional Performance - Joyoung division revenue was approximately $1,190 million, a decrease of 10.2% year-over-year[10] - SharkNinja Asia-Pacific division revenue was approximately $239 million, an increase of 58.9% year-over-year[10] - SharkNinja Asia-Pacific (excluding Mainland China) achieved strong revenue growth of $151.7 million in 2023, a 137.4% YoY increase, driven by market share gains in Japan and expansion into new markets like Australia, New Zealand, Singapore, and Malaysia[22] - Shark's cordless vacuum category in Japan grew retail sales outlets by 56% in 2023, increasing its value share to 16.7%, up 480 basis points from 2022[23] - SharkNinja's business in Australia and New Zealand grew 97% YoY from Q2 to Q4 2023, driven by new product launches like Detect Pro and FlexStyle, which gained an additional 8% market share in hair care appliances[24] - Joyoung division's revenue from third-party customers fell 20.5% YoY to $1,053.1 million in 2023, accounting for 73.7% of total group revenue, due to weak demand in the competitive Mainland China market[28] - SharkNinja Asia-Pacific division's revenue from third-party customers surged 137.4% YoY to $151.7 million in 2023, representing 10.6% of total group revenue[28] - SharkNinja's new markets in Australia, New Zealand, Singapore, and Malaysia contributed $47.9 million in additional revenue in 2023, diversifying the product line with items like air fryers and ice cream makers[22] - SharkNinja's entry into the South Korean market through a distributor generated $12.7 million in revenue in 2023, a new market for the company[22] - Shark brand revenue increased by 62.5% to $117.3 million, driven by innovation in cordless vacuum cleaners and the launch of hair care appliances[31] - Ninja brand revenue reached $44.0 million, entering the kitchen appliance market through strategic acquisitions[31] - Japan region revenue grew by 43.7% to $91.8 million, supported by the success of cordless vacuum cleaners designed specifically for the Japanese market[33] - Australia and New Zealand region revenue was $43.8 million, driven by strategic acquisitions and new product launches[33] - Other markets revenue increased by 74.6% to $31.6 million, due to expansion into new markets such as Singapore, Malaysia, and South Korea[33] - Cooking appliances revenue decreased by 16.7% to $570.2 million, primarily due to weak demand in the Chinese market[35] - Food preparation appliances revenue declined by 16.2% to $354.3 million, mainly due to weak demand for high-performance blenders in China[35] - Cleaning appliances revenue grew by 62.6% to $117.4 million, driven by increased market share in Japan and expansion into other markets[35] - Other product categories revenue decreased by 22.4% to $162.9 million, due to weak demand for water purifiers and cookware in China[35] Costs and Expenses - Total sales cost for continuing operations increased by 0.3% to $942.1 million, with $129.1 million attributed to related party sales[36] - Joyoung division's total sales cost to third-party customers decreased by 19.5% to $725.3 million in 2023 compared to $900.5 million in 2022[37] - SharkNinja Asia-Pacific division's total sales cost to third-party customers increased by 127.2% to $87.7 million in 2023 compared to $38.6 million in 2022[38] - The company's gross profit from continuing operations decreased by 9.3% to $486.6 million in 2023 compared to $536.4 million in 2022, with a gross margin drop of 2.3 percentage points to 34.1%[39] - Joyoung division's gross margin from third-party customer sales decreased to 31.1% in 2023 from 32.1% in 2022, primarily due to increased product promotions and unfavorable product mix[40] - SharkNinja Asia-Pacific division's gross margin from third-party customer sales increased to 42.2% in 2023 from 39.6% in 2022, benefiting from premium product mix and strategic acquisitions[41] - The company's other income and gains from continuing operations increased by 343.7% to $94.5 million in 2023 compared to $21.3 million in 2022, driven by gains from financial assets measured at fair value[44] - Sales and distribution expenses decreased by 2.7% to $256.3 million in 2023 compared to $263.5 million in 2022, mainly due to reduced channel marketing expenses in mainland China[46] - Administrative expenses increased by 52.8% to $216.0 million in 2023 compared to $141.4 million in 2022, primarily due to increased equity compensation and special professional fees related to the spin-off project[48] - Other expenses from continuing operations increased by 47.4% YoY to $2.8 million in 2023, primarily due to the absence of a one-time income adjustment from intercompany fees between continuing and discontinued operations[49] - Financing costs from continuing operations rose by 5.9% YoY to $19.9 million in 2023, driven by accelerated amortization of deferred financing costs, partially offset by reduced bank loan interest[50] - Income tax expenses from continuing operations decreased by 42.1% YoY to $14.6 million in 2023, mainly due to lower pre-tax profits from continuing operations[51] - Net profit from continuing operations declined by 37.0% YoY to $70.3 million in 2023, while combined net profit from continuing and discontinued operations dropped by 58.1% YoY to $150.0 million[53] - Adjusted net profit from continuing operations stood at $37.7 million in 2023, compared to $135.7 million in 2022, reflecting significant adjustments for non-recurring items and equity compensation[55] - The company's Chinese subsidiaries are subject to a 25% corporate income tax rate, with three entities benefiting from preferential tax rates or exemptions in 2023[51] - Bank loan interest expenses decreased to $13.4 million in 2023 from $15.1 million in 2022, while deferred financing cost amortization increased to $6.1 million from $2.8 million[52] - The company reported a negative $32.6 million in non-recurring and non-operational items for 2023, compared to a positive $24.2 million in 2022[55] - Equity compensation expenses surged to $55.1 million in 2023 from $6.7 million in 2022, significantly impacting adjusted profitability[55] - The company recognized $12.8 million in special professional fees and bonuses related to the spin-off project in 2023[55] - The company incurred $85.8 million in special professional service fees and bonuses related to the spin-off project in 2023[60][62] - The company recognized $40.3 million in procurement service income during the transition period post-spin-off[57][60][62] - The company received $1.7 million in product development and transition service fees from SharkNinja's non-Asia Pacific business[57][60][62] Corporate Governance and Leadership - Stassi Anastas ANASTASSOV has been a non-executive director since June 25, 2019, and a member of the company's strategic committee since the listing date[82] - Yuan DING has been an independent non-executive director since August 29, 2022, and serves as the chairman of the audit committee and a member of the nomination and strategic committees[83] - Yang Xianxiang has been an independent non-executive director since October 11, 2019, and was appointed as the chairman of the remuneration committee on July 30, 2023[84] - Sun Zhe was appointed as an independent non-executive director and a member of the audit and remuneration committees on July 30, 2023[85] - Wang Xuning, aged 55, is the chairman, CEO, and executive director of the company[86] - Han Run, aged 44, is the executive director, CFO, and vice chairman of Joyoung[86] - Yang Ningning, aged 45, has been the chairman of Joyoung since December 2022 and the chairman of Suncoo (China) Technology Co., Ltd. since August 2018[86] - Guo Lang has been the general manager of Joyoung since December 2022, with extensive experience in consumer goods operations[86] - Kan Jiangang has been the CFO of Joyoung since March 2022, with previous experience as the financial director of Tianqi Lithium Corporation and various financial roles at Robert Bosch Group[86] - The company's largest customer accounted for 12% of total revenue, while the top five customers accounted for 22% of total revenue in 2023[94] - The largest supplier accounted for 5% of total procurement, while the top five suppliers accounted for 22% of total procurement in 2023[94] - The company's distributable reserves amounted to approximately $76.352 million as of December 31, 2023[92] - The company completed the spin-off and distribution of SharkNinja, Inc., which began trading on July 31, 2023, and is no longer consolidated in the company's financial statements[95] - The company secured a $100 million loan facility on January 31, 2024, with a maturity date extendable to 36 months under certain conditions[96] - Charitable donations for the year ended December 31, 2023, were approximately $590,000, compared to $1.125 million in 2022[93] - The company did not recommend a final dividend for the year ended December 31, 2023, due to strategic restructuring and plans to invest in the Asia-Pacific market[89] - The company's annual general meeting is scheduled for May 22, 2024, with a notice to be published on the Hong Kong Stock Exchange website and the company's website[88] - The audit committee reviewed the company's consolidated financial information for 2023, including accounting principles and practices, with external auditor EY[91] - The company's share transfer registration will be suspended from May 17 to May 22, 2024, for the annual general meeting[90] - Wang Xuning holds a 55.69% stake in the company through direct and indirect interests, including 1,934,882,576 shares[104] - Han Run holds a 46.15% stake in the company through direct and indirect interests, including 1,603,578,331 shares[104] - Huang Shuling holds a 46.15% stake in the company through direct and indirect interests, including 1,603,578,331 shares[104] - Wang Xuning indirectly owns 61.85% of Shanghai Hezhou Investment, which holds 83.75% of Lihao Investment, a major shareholder of Jiuyang Soybean[102] - Jiuyang Soybean is owned by Lihao Investment (42.5%), Solar Blue (25.5%), Jiuyangyuan Partnership (15%), and an independent third party (17%)[102] - Hangzhou Yibei, which was deregistered in August 2023, was 54.08% owned by Wang Xuning and his close associates[102] - The company's products target home and individual consumers, while Jiuyang Soybean focuses on supplying factories, schools, and restaurants[102] - The company's home appliances, such as soy milk machines and blenders, differ in usage scenarios from Hangzhou Yibei's capsule beverage machines[102] - Han Run holds a 0.27% stake in a related entity, Jiuyang, with 2,040,000 shares[108] - JS&W holds a beneficial interest of 1,603,578,331 shares, representing 46.15% of the company's equity[111] - Hezhou and Tong Zhou hold controlled corporate interests of 1,603,578,331 shares each, both representing 46.15% of the company's equity[111] - HONGTAO Holding Company Limited holds a joint interest of 1,603,578,331 shares, representing 46.15% of the

Investment Rating - The report maintains a "Buy" rating for the company with a target price of HKD 1.54, based on an 11x PE multiple for 2024 [2][6] Core Views - The company reported revenue of USD 1.429 billion in 2023, a year-on-year decline of 3.17% on a comparable basis, with net profit from continuing operations at USD 70 million, down 36.96% year-on-year [1] - Joyoung division revenue declined by 21% year-on-year to USD 1.053 billion due to weak demand in the domestic small household appliance market and intensified competition, while SharkNinja (SN) Asia-Pacific division revenue surged 137% year-on-year to USD 152 million, driven by strong sales of wireless vacuum cleaners in Japan and market expansion in Australia and New Zealand [1] - The company's gross margin for continuing operations in 2023 was 34.1%, down 2.3 percentage points year-on-year, with the Joyoung division's gross margin declining by 1.0 percentage point due to increased promotional activities and a higher proportion of low-margin products, while the SN Asia-Pacific division's gross margin improved by 2.6 percentage points due to a higher proportion of high-margin products and channels [1] - The company's net profit margin for continuing operations in 2023 was 4.9%, down 2.6 percentage points year-on-year, primarily due to increased marketing and human resource investments for expanding the Asia-Pacific market and one-time professional service fees related to business restructuring [1] Financial Forecasts - The report forecasts the company's net profit attributable to shareholders for 2023-2025 to be USD 132 million, USD 64 million, and USD 74 million, respectively, with EPS of USD 0.04, USD 0.02, and USD 0.02 [2][6] - Revenue is expected to grow by 7.1% in 2024 and 14.2% in 2025, reaching USD 1.530 billion and USD 1.747 billion, respectively [3] - The company's gross margin is projected to remain stable at around 34.1%-34.6% from 2023 to 2025, while the net profit margin is expected to decline to 4.2% in 2024 and 2025 [3] Business Performance by Region - Revenue from China declined by 20.6% year-on-year to USD 1.038 billion in 2023, while revenue from Japan increased by 43.7% year-on-year to USD 92 million [1] - The company entered new markets in Oceania, Singapore, and Malaysia, generating revenue of USD 44 million from Australia and New Zealand and USD 32 million from other markets in 2023 [1] Valuation and Peer Comparison - The company's 2024 PE multiple of 11x is based on a peer group average, with comparable companies including Supor, VESYNC, SEB SA, and Whirlpool Corporation, which have adjusted average PE multiples of 11.25x for 2024 [6][7]

Financial Performance - For the first quarter ending March 31, 2024, the operating revenue was RMB 2,065,327,130.90, representing a year-on-year increase of 9.15% compared to RMB 1,892,190,788.93 in the same period last year[4] - Net profit attributable to shareholders was RMB 129,962,893.25, reflecting a growth of 7.06% from RMB 121,389,403.14 in the previous year[4] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 125,416,859.18, which is an increase of 7.23% from RMB 116,958,852.23 year-on-year[4] - Basic and diluted earnings per share were both RMB 0.17, up 6.25% from RMB 0.16 in the previous year[4] Cash Flow and Assets - The net cash flow from operating activities was RMB 313,309,588.31, showing a slight increase of 2.09% compared to RMB 306,900,520.10 in the same quarter last year[4] - The total assets as of March 31, 2024, were RMB 7,617,060,903.71, a marginal increase of 0.07% from RMB 7,612,080,030.42 at the end of 2023[4] - Net assets attributable to shareholders increased to RMB 3,603,566,285.42, representing a growth of 3.81% from RMB 3,471,347,161.90 at the end of 2023[4] Non-Recurring Items and Subsidies - Non-recurring gains and losses totaled RMB 4,546,034.07 for the quarter, with various components contributing to this figure[5] - The company continues to focus on government subsidies related to normal business operations, which amounted to RMB 7,350,572.56 during the quarter[5] Return on Equity - The weighted average return on equity was 3.67%, an increase of 0.03 percentage points from 3.64% in the previous year[4]

Financial Performance - Revenue from continuing operations for the year ended December 31, 2023, was $1,428.7 million, a decrease of 3.2% year-on-year[2]. - Gross profit from continuing operations was $486.6 million, down 9.3% compared to the previous year[2]. - Profit from continuing operations was $70.3 million, reflecting a significant decrease of 37.0% year-on-year, while total profit from both continuing and discontinued operations was $150.0 million, down 58.1%[2]. - Adjusted EBITDA from continuing operations decreased by 56.6% to approximately $83.9 million, while total adjusted EBITDA from both continuing and discontinued operations decreased by 41.0% to approximately $397.1 million[2]. - The basic earnings per share attributable to ordinary equity holders of the parent for the year was 3.8 cents, down from 9.7 cents in the previous year[4]. - The company reported a net loss in other comprehensive income of $28.2 million, compared to a loss of $75.1 million in the previous year[5]. - The company reported a net profit of $70.3 million for the year ended December 31, 2023, compared to $111.5 million in 2022, reflecting a decrease of 37.0%[109]. - Adjusted net profit for the year ended December 31, 2023, was $37.7 million, a decrease of 72.8% from $135.7 million in 2022[109]. Assets and Liabilities - Non-current assets totaled $381.4 million, a significant decrease from $2,053.7 million in the previous year[7]. - Current assets decreased to $1,021.9 million from $2,582.1 million in the previous year, primarily due to a reduction in inventory and accounts receivable[7]. - Total assets decreased to $708.53 million in 2023 from $3.04 billion in 2022, representing a decline of about 76.7%[8]. - Current liabilities decreased to $694.76 million in 2023 from $1.60 billion in 2022, a reduction of approximately 56.5%[8]. - Non-current liabilities dropped significantly to $10.37 million in 2023 from $976.14 million in 2022, a decrease of approximately 98.9%[8]. - Total equity decreased to $698.17 million in 2023 from $2.06 billion in 2022, reflecting a decline of about 66.2%[8]. Revenue Breakdown - Total revenue for the year ended December 31, 2023, was $1,428,706 thousand, a decrease of 3.2% from $1,475,506 thousand in 2022[18]. - The revenue from the China market was $1,037,566 thousand, down 20.6% from $1,307,225 thousand in 2022[16]. - The SharkNinja Asia Pacific segment generated revenue of $238,673 thousand, an increase from $150,200 thousand in 2022, reflecting a growth of 58.8%[14]. - Revenue from the Joyoung segment was $1,053.1 million, a decline of approximately 20.5%, accounting for about 73.7% of total revenue[81]. - Revenue from Japan increased to approximately $91.8 million, a year-on-year growth of 43.7%, driven by innovative cordless vacuum cleaners designed specifically for Japanese households[86]. - Other markets generated approximately $31.6 million in revenue, a year-on-year increase of 74.6%, primarily due to entry into new markets such as Singapore, Malaysia, and South Korea[86]. Expenses and Costs - The cost of goods sold for inventory was $942,122,000 in 2023, slightly up from $939,120,000 in 2022, reflecting a marginal increase[24]. - Research and development expenses for the year amount to $55,154,000, a decrease from $58,042,000 in 2022, reflecting a reduction of about 5%[24]. - Total financing costs increased to $19,860,000 in 2023 from $18,761,000 in 2022, marking an increase of approximately 6%[27]. - Administrative expenses increased by approximately 52.8% to about $216.0 million for the year ended December 31, 2023, from $141.4 million in 2022, primarily due to a significant increase in equity compensation and special professional service fees related to a spin-off project[102]. - Sales and distribution expenses decreased by approximately 2.7% to about $256.3 million for the year ended December 31, 2023, compared to $263.5 million in 2022, mainly due to reduced channel marketing expenses in mainland China[100]. Market and Strategic Developments - The company terminated operations of SharkNinja Group in July 2023, distributing all shares to shareholders[9]. - The company operates under the "Shark" and "Ninja" brands, focusing on floor care products and kitchen appliances[9]. - The company has focused on three core competencies: developing innovative products with design appeal, executing diverse marketing campaigns, and establishing an omnichannel sales network[68]. - The company plans to enhance brand awareness and influence through creative marketing activities and expand its sales network and product categories[124]. - The company is committed to launching innovative products tailored to local consumer needs, leveraging its R&D capabilities[127]. Employee and Governance - As of December 31, 2023, the group had approximately 2,745 employees, a decrease from 5,661 employees as of December 31, 2022[129]. - Employee costs for the year ended December 31, 2023, amounted to $391.2 million, down from $452.1 million in 2022[129]. - The company has established four board committees, including a strategy committee and an audit committee, to enhance corporate governance[131]. - The company has complied with all applicable provisions of the corporate governance code during the reporting period, with some exceptions noted[133]. Future Outlook - The company anticipates that global macroeconomic conditions will gradually recover, providing new growth opportunities in the consumer market[128]. - The overall economic performance in the Asia-Pacific region remains robust, benefiting from rapid recovery in the consumer market and accelerated digital transformation[128]. - The company aims to achieve sustainable growth through the development and commercialization of innovative small home appliances with strong technology and design[124].

Investment Rating - The report assigns an "Overweight" rating to the company [1] Core Views - The company's fundamentals are solid, and its overseas market expansion is expected to bring new growth opportunities [3] - The company is expected to achieve net profits of $75 million, $90 million, and $103 million for 2023-2025, with year-on-year growth rates of +20% and +14% for 2024 and 2025, respectively [3] - The company is increasing its investment in overseas markets, which is expected to accelerate market share growth [3] Company Overview - JS Global Lifestyle (1691) is the parent company of Joyoung, responsible for the global operation of the Joyoung brand and the Asia-Pacific operation of Shark and Ninja brands [6] - In 2023H1, the company's revenue from continuing operations was approximately $574 million, with Joyoung, Shark, and Ninja contributing 85%, 8%, and 1% respectively [6] - The company focuses on expanding its presence in the Asia-Pacific region, with a strategic shift towards direct operations in key markets such as Australia, New Zealand, Singapore, and Malaysia [10] Overseas Market Potential - The urbanization rate in several Asia-Pacific countries remains low, indicating significant potential for new home appliance demand [13] - Countries like Thailand, Malaysia, Vietnam, the Philippines, Cambodia, India, and Indonesia have urbanization rates ranging from 24% to 78%, suggesting room for growth in home appliance penetration [14] - The rapid growth of cross-border e-commerce platforms like Temu and TikTok provides new opportunities for Chinese companies to expand in the Asia-Pacific region [17] Product and Brand Strategy - Shark and Ninja brands have strong overseas influence, with a rich product portfolio and strong capabilities in launching new products [13] - Shark is a well-established brand in North America, with a diverse product range including vacuum cleaners, steam mops, and air purifiers [26] - Ninja has a strong presence in the kitchen appliance market, particularly in the US, with a 30% market share in the blender segment [31] - The company is leveraging its product innovation capabilities to introduce new products, such as the Ninja cordless blender, which is expected to drive growth in the Asia-Pacific market [31] Domestic Market Growth - Joyoung's product portfolio includes essential kitchen appliances like rice cookers, pressure cookers, and soy milk machines, which are expected to remain stable in the long term [37] - The company is actively promoting product iterations to stimulate replacement demand and innovate in traditional product categories [37] - Joyoung's market share in the rice cooker segment increased to 14.1% in 2023, up by 0.6 percentage points year-on-year [41] Financial Performance - The company's revenue in 2022 was $5.04 billion, with a slight year-on-year decline of 2% [4] - Net profit in 2022 was $332.27 million, a year-on-year decrease of 21% [4] - The company's PE ratio in 2022 was 9.99, and the PB ratio was 2.22 [4] Future Outlook - The company is expected to achieve revenue growth of +9% and +11% in 2024 and 2025, respectively [47] - The gross margin is expected to remain stable at around 37.5% and 37.7% in 2024 and 2025 [48] - The company's net profit is forecasted to grow by +20% and +14% in 2024 and 2025, reaching $90 million and $103 million, respectively [48]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或完 整性亦不發表任何聲明，並明確表示，概不就因本公告全部或任何部分內容而產生或因倚賴該等內 容而引致的任何損失承擔任何責任。 1 JS Global Lifestyle Company Limited （股份代號：1691） （於開曼群島註冊成立的有限公司） JS 环球生活有限公司 有關九陽股份有限公司 截至2023年9月30日止第三季度及前三季度的 第三季度報告的公告 本公告由JS环球生活有限公司（「本公司」）根據香港聯合交易所有限公司證券上市規 則（「上市規則」）第13.09條及香港法例第571章證券及期貨條例第XIVA部項下的內幕 消息條文（定義見上市規則）而刊發。 九陽股份有限公司（「九陽」）為本公司的附屬公司，且其股份於深圳證券交易所上市 （股份代號：002242）。為符合深圳證券交易所的適用法規，九陽已於2023年10月30 日在深圳證券交易所網站上刊發其2023年第三季度報告。 請參閱本公告附錄，當中載有根據中國企業會計準則編製的九陽截至2023年9月30日 止第三季度及前三季度的未經審核主要財務資料。 附錄 截 ...

Company Overview - JS Global Lifestyle's mission is to enhance daily life quality through innovative smart home products, maintaining a leading position in the global small appliance market with brands like Shark, Ninja, and Joyoung[16]. - The company focuses on three core competencies: developing innovative design-driven products, diverse brand marketing, and establishing a global omnichannel sales network[16]. - The company aims to create market anticipation for new products by continuously innovating and expanding its product categories[16]. Financial Performance - In the first half of 2023, the company achieved a revenue of $573.6 million, a decrease of 18.5% compared to $703.4 million in 2022[26]. - The gross profit for the same period was $213.4 million, down 14.7% year-on-year, with a gross margin of 37.2%, an increase of 1.6 percentage points from the previous year[25]. - The adjusted EBITDA for the reporting period was approximately $78.9 million, a decrease of 18.7% year-on-year[25]. - The adjusted net profit for the reporting period was approximately $52.0 million, a decrease of 27.8% compared to the previous year[25]. - Total revenue from external customers was $539.5 million, down from $667.1 million in the previous year, reflecting a decline of approximately 19.2%[29]. - The overall decline in revenue is primarily due to a slow recovery in consumer markets and a downward trend in the home appliance industry[28]. Segment Performance - The revenue from the Joyoung segment was $490.9 million, a decrease of approximately 23.2% year-over-year, accounting for about 85.6% of total revenue[28]. - SharkNinja's revenue in the Asia-Pacific segment increased to $48.6 million, representing a growth of approximately 73.0% year-over-year, contributing about 8.5% to total revenue[28]. - The Japanese market recorded revenue of $37.4 million, an increase of 29.9% year-over-year, driven by continuous innovation in the cordless vacuum cleaner category[32]. - The Shark brand generated revenue of $47.7 million, an increase of 48.6% year-over-year, due to market share growth in cleaning appliances and entry into new hair care appliance categories[30]. - The cooking appliances category generated $268.7 million in revenue, accounting for 49.8% of total sales, while food preparation appliances contributed $155.6 million, or 28.8%[33]. Market Challenges - In the first half of 2023, the company's ongoing operations, including the Joyoung segment and SharkNinja Asia business unit, experienced a decline compared to the first half of 2022, primarily due to challenges in the Chinese market[18]. - Revenue from the China region was $482.3 million, a decrease of 22.6% year-over-year, attributed to weak overall demand and intense competition[31]. - Consumer spending in mainland China showed signs of downgrade, with over half of 15 small appliance categories experiencing a decline in average prices according to AVC[83]. Strategic Initiatives - The company is focusing on enhancing its O2O digital marketing operations to improve retail sales capabilities and reach consumers more effectively[21]. - The company aims to strengthen its brand value in the "home kitchen," "public welfare kitchen," and "space kitchen" segments, adapting to market changes and consumer needs[21]. - The company plans to launch new product categories in existing markets, such as kitchen appliances and personal care products, which have proven successful in other markets[80]. - The company emphasizes digital operations by utilizing a self-built digital platform to extract big data value and establish a comprehensive O2O digital marketing operation system[80]. Ownership and Governance - The board of directors underwent changes, with Mr. Xu Ning Wang serving as both Chairman and CEO, which the board believes is beneficial for business development[95]. - The company has adopted the standard code of conduct for securities trading, ensuring compliance among all directors and relevant employees[96]. - The company has a complex ownership structure involving various holding companies and trusts, indicating a high level of control by key individuals[115]. Cash Flow and Investments - Cash flow from operating activities before tax profit was $176,915,000, down from $229,260,000 in the previous year, indicating a decline of about 23%[175]. - Cash flow used in investing activities totaled $(115,979) thousand, compared to $(94,390) thousand in the previous year, indicating a 22.9% increase in investment outflows[177]. - The company acquired a 12.09% stake in Sogou Technology (Beijing) Co., Ltd. for $3,520,000, enhancing its investment portfolio[173]. Employee and Shareholder Information - Employee costs for the group amounted to USD 221 million for the reporting period, an increase from USD 200.2 million in the previous year[135]. - The board has proposed an interim dividend of HKD 0.0392 per share for the six months ended June 30, 2023, compared to no dividend in the same period last year[136]. - The company has implemented an employee stock ownership plan (ESOP) with a maximum funding amount of RMB 208 million, allowing for the purchase of up to 8 million shares[131].

Financial Performance - Revenue from continuing operations for the six months ended June 30, 2023, was $573.6 million, a decrease of 18.5% year-over-year[2]. - Gross profit from continuing operations was $213.4 million, down 14.7% compared to the previous year[2]. - Profit from continuing operations was $46.2 million, reflecting a 30.2% decrease year-over-year[2]. - EBITDA from continuing operations decreased by 19.9% to approximately $73.1 million[2]. - Adjusted EBITDA from continuing operations was approximately $78.9 million, a decrease of 18.7% year-over-year[2]. - Total profit from both continuing and discontinued operations was $139.5 million, down 22.9% year-over-year[2]. - The adjusted profit attributable to equity holders of the parent from continuing operations decreased by 24.7% to approximately $40.5 million[2]. - The group reported a net profit for the six months ended June 30, 2023, of $139.5 million, compared to $180.9 million in 2022, reflecting a decline of about 23%[92]. - Adjusted net profit for the six months ended June 30, 2023, was approximately $52.0 million, down from $72.0 million for the same period in 2022[89]. Revenue Breakdown - Total revenue for the six months ended June 30, 2023, was $573,618 thousand, a decrease of 18.4% compared to $703,435 thousand for the same period in 2022[21]. - Sales to external customers for 九陽 were $490,866 thousand, down from $639,005 thousand in the previous year, representing a decline of 23.1%[21]. - Sales to external customers for SharkNinja 亚太 were $48,608 thousand, compared to $28,086 thousand in the prior year, showing an increase of 73.2%[21]. - The Joyoung segment generated revenue of $490.9 million, a decline of approximately 23.2% year-over-year, accounting for about 85.6% of total revenue[58]. - SharkNinja Asia Pacific segment revenue from external customers was $48.6 million, an increase of approximately 73.0% year-over-year, representing about 8.5% of total revenue[58]. - Revenue from the China region was approximately $482.3 million, a decrease of 22.6% year-over-year due to weak overall demand and intense competition[63]. Assets and Liabilities - Non-current assets as of June 30, 2023, totaled $309.2 million, significantly down from $2,053.7 million as of December 31, 2022[9]. - Cash and cash equivalents were $244.7 million, down from $504.1 million at the end of 2022[9]. - As of June 30, 2023, total current liabilities amounted to $2,457,295 thousand, an increase of 54% compared to $1,595,028 thousand as of December 31, 2022[10]. - Current assets net value reached $1,826,376 thousand, up from $987,101 thousand, indicating a significant growth[10]. - Total non-current liabilities decreased to $10,122 thousand from $976,138 thousand, reflecting a substantial reduction[10]. - The total equity as of June 30, 2023, was $2,125,470 thousand, compared to $2,064,649 thousand at the end of 2022, showing a slight increase[12]. Expenses and Costs - Sales and distribution expenses from continuing operations decreased by approximately 10.5% year-on-year to about $106.5 million for the six months ended June 30, 2023, compared to $119.0 million for the same period in 2022[79]. - Administrative expenses from continuing operations decreased by approximately 5.3% year-on-year to about $63.5 million for the six months ended June 30, 2023, compared to $67.0 million for the same period in 2022[81]. - Financing costs from continuing operations increased by approximately 121.8% year-on-year to about $14.1 million for the six months ended June 30, 2023, compared to $6.4 million for the same period in 2022, primarily due to an increase in average interest rates[85]. - Employee costs amounted to $221.0 million in the reporting period, up from $200.2 million in 2022[112]. Market and Strategic Focus - SharkNinja operates two reportable segments: Joyoung, focusing on kitchen appliances, and SharkNinja Asia Pacific, which offers a range of floor care products and kitchen appliances[18]. - The company focuses on three core competencies: developing innovative products with design appeal, implementing diverse brand marketing, and establishing a global omnichannel sales network[45]. - The company is focusing on digital marketing strategies, particularly targeting Gen Z consumers through platforms like Douyin and Xiaohongshu, to enhance retail performance[49]. - SharkNinja's growth strategy focuses on expanding in the top 25 cities in the Asia-Pacific region, including entering new countries like Australia, New Zealand, Singapore, and Malaysia[107]. Corporate Governance and Shareholder Actions - The company remains committed to maintaining good corporate governance practices and has complied with all applicable code provisions during the reporting period[115]. - The board proposed an interim dividend of HKD 0.0392 per share for the six months ended June 30, 2023, compared to no dividend for the same period in 2022[124]. - The company repurchased a total of 20,040,500 shares at a total cost of HKD 160,362,425, with the highest and lowest purchase prices being HKD 8.34 and HKD 7.76 respectively[119].

JS 环球生活有限公司 JS GLOBAL LIFESTYLE COMPANY LIMITED Global ( 於 開 曼 群島 註 冊 成 立 的 有 限 公 司 ) 股份代號:1691 t質創新的 生活方式 ● 12 年度葬 目錄 2 4 5 8 29 34 54 69 75 76 77 79 82 85 199 | --- | |----------------------| | | | 公司資料 | | 財務資料概要 | | 董事長致辭 | | 管理層討論與分析 | | 董事及高級管理層履歷 | | 董事會報告 | | 企業管治報告 | | 獨立核數師報告 | | 綜合損益表 | | 綜合全面收益表 | | 綜合財務狀況表 | | 綜合權益變動表 | | 綜合現金流量表 | | 財務報表附註 | | 釋義 | 2 JS 環 球生活有限公司 韓潤 單敏奇 非執行董事 註冊辦事處 Cayman Islands 總辦事處及主要營業地點 香港 上環 審核委員會 香港 提名委員會 上環 21樓 薪酬委員會 Timothy Roberts WARNER（主席） 香港證券登記分處 公司資料 董事會 執行董事 王旭 ...