Core Viewpoint - The domestic small home appliance market is experiencing intensified competition, leading to price wars and significant challenges for companies like Bear Electric, which reported a decline in net profit despite a slight increase in revenue [3][6]. Company Summary - Bear Electric achieved a revenue of 4.758 billion yuan in 2024, a year-on-year increase of 0.98%, but its net profit dropped to 288 million yuan, a significant decline of 35.37% compared to the previous year, marking the largest drop in nearly nine years [3][5]. - The company's stock price has fallen by 10.52% year-to-date, with a cumulative decline of over 55% from its peak in June 2023, resulting in a total market capitalization of 6.732 billion yuan [5][6]. - Bear Electric's core product line, particularly in kitchen appliances, is facing market share erosion from competitors, leading to a 10.1% decline in revenue from this segment in 2024 [12]. Financial Performance - The gross profit margin for Bear Electric decreased to 35.29% in 2024 from 36.61% the previous year, attributed to a shift in revenue structure and increased costs [10]. - Operating costs rose by 2.67% year-on-year, with raw material costs increasing by 4% and labor costs by 10.42% [10]. - Management expenses grew by 24.25% to 236 million yuan, financial expenses surged by 171.74% to 14.377 million yuan, and R&D expenses increased by 36.48% to 195 million yuan [10]. Market Dynamics - The overall retail sales of kitchen small appliances in 2024 were 60.9 billion yuan, a slight decline of 0.8%, indicating a stagnation in industry growth [15]. - The market is transitioning into a phase of stock competition, with the previous "home economy" benefits dissipating and consumers extending their product replacement cycles [17]. - Companies must balance high-end product development, international expansion, and cost control to sustain growth in a highly competitive environment [18].