Core Viewpoint - The article highlights the ongoing issues with product quality and customer service at Bear Electric (小熊电器), particularly following a serious incident involving an exploding health pot, which has raised concerns about the company's operational practices and market strategy [2][3]. Group 1: Product Quality Issues - Bear Electric has faced multiple complaints regarding product quality, including incidents of explosions leading to injuries, indicating a systemic issue within the company's quality control processes [3][4]. - The company's focus on sales over research and development has been criticized, with sales expenses increasing from 440 million yuan in 2020 to 864 million yuan in 2024, while R&D spending has remained below 200 million yuan annually [5]. - The reliance on OEM production methods has weakened the company's control over supply chain and product quality, contributing to the frequency of quality-related complaints [5]. Group 2: Financial Performance and Market Position - In the first half of 2025, Bear Electric reported revenues of 2.535 billion yuan, a year-on-year increase of 18.94%, and a net profit of 205 million yuan, up 27.32% [6]. - The kitchen small appliances segment remains the largest revenue source, generating 1.673 billion yuan, but its growth is slowing, with only a 5.02% increase compared to previous periods [6]. - The personal care small appliances segment has seen significant growth, largely due to the acquisition of Guangdong Roman Intelligent Technology, which contributed 286 million yuan in revenue, accounting for 88% of the segment's total [7]. Group 3: Sales Channels and Inventory Management - Bear Electric's sales strategy heavily relies on online channels, with online sales accounting for over 90% at its peak, which poses risks due to high concentration [8]. - The company has been attempting to diversify its sales channels by exploring offline and overseas markets, but overseas revenue remains below 20% of total income [8]. - Inventory levels have been rising, reaching 716 million yuan in the first half of 2025, a 17.41% increase year-on-year, indicating potential challenges in managing product supply and demand [8].