Core Viewpoint - Joyo's performance continues to decline, with a significant drop in both revenue and profit over the past four years, raising concerns among investors about the company's future prospects [2][4][5]. Financial Performance - Joyo's revenue has decreased from 112.24 billion yuan in 2020 to 88.49 billion yuan in 2024, while net profit fell from 9.40 billion yuan to 1.22 billion yuan during the same period [4]. - In the first half of 2025, Joyo reported a revenue of 39.87 billion yuan, down 9.11% year-on-year, and a net profit of 1.23 billion yuan, down 30.02% year-on-year [4]. - The company's gross margin and net margin have also declined significantly, with gross margin dropping from 32.05% in 2020 to 25.50% in 2024, and net margin falling from 8.16% to 1.20% in the same timeframe [5]. Market Competition - The small home appliance industry is highly competitive, which has contributed to Joyo's ongoing performance challenges. Despite being a leading brand, Joyo's market share has not improved [5][6]. - The rapid growth of accounts receivable, from 2.12 billion yuan in 2020 to 10.78 billion yuan in 2024, indicates potential liquidity issues, while contract liabilities have decreased from 5.69 billion yuan to 1.61 billion yuan [5]. Employee Stock Ownership Plan - Joyo implemented an employee stock ownership plan in 2022, which has remained profitable despite the company's declining stock price. The plan raised 12.9 million yuan, with a share price of 8.0625 yuan [8][9]. - A significant portion of the shares in the plan was acquired at a price of 1 yuan per share, which has contributed to the plan's profitability [9]. - The plan is designed to enhance employee motivation and retention, but its performance has not met expectations, as evidenced by the failure to unlock shares in the first performance assessment [10].

Core Insights - The ChiNext market has demonstrated significant improvement in overall business performance in the first half of 2025, with revenue and net profit growth rates leading the A-share market [1][2] Overall Business Performance - In the first half of 2025, 1,384 ChiNext companies achieved a total operating revenue of 2.05 trillion yuan, with an average revenue of 1.483 billion yuan per company, representing a year-on-year growth of 9.03% [2] - The total net profit attributable to shareholders was 150.54 billion yuan, with an average net profit of 109 million yuan per company, reflecting a year-on-year increase of 11.18% [2] - The average operating cash inflow per company was 113 million yuan, showing a substantial year-on-year growth of 54.44% [2] - Among the 1,384 companies, 1,028 were profitable, with a profitability rate of 74.28%, and 728 companies saw a year-on-year increase in net profit, up 4.86 percentage points from the previous year [2] Key Growth Areas - The three key sectors—advanced manufacturing, digital economy, and green low-carbon—collectively generated 1.34 trillion yuan in revenue, a year-on-year increase of 9.87%, and net profit of 113.92 billion yuan, up 15.90% [3] - The green low-carbon sector led with over 190 companies achieving 507.35 billion yuan in revenue, a 10.85% increase, and net profit of 49.70 billion yuan, up 25.55% [3] - The digital economy sector, with over 300 companies, reported 370.95 billion yuan in revenue, a growth of 8.66%, and net profit of 29.22 billion yuan, up 40.03% [3] - The advanced manufacturing sector saw 327 companies generate 461.13 billion yuan in revenue, a 9.79% increase [4] Performance of Leading Companies - The top 100 companies in the ChiNext achieved a total revenue of 937.23 billion yuan, a year-on-year increase of 14.59%, and net profit of 102.45 billion yuan, up 21.56% [5] - Among these companies, 87 were profitable, and 59 experienced a year-on-year increase in net profit, with 39 companies seeing growth rates exceeding 30% [5] Global Market Expansion - ChiNext companies have made significant strides in global market expansion, with overseas revenue growing by 21.26% in the first half of 2025 [6] - The electronics and communications sectors reported overseas revenue growth of 19.72% and 65.23%, respectively [6] R&D and Investment - Total R&D expenditure for ChiNext companies reached 94.99 billion yuan, a year-on-year increase of 5.35%, with 188 companies spending over 100 million yuan on R&D [7] - Long-term asset investment totaled 182.23 billion yuan, reflecting a year-on-year growth of 9.43%, with significant increases in the electronics and power equipment sectors [7]

Group 1: Overall Performance of ChiNext Companies - The ChiNext companies achieved a total revenue of 2.05 trillion yuan, with an average revenue of 1.48 billion yuan, representing a year-on-year growth of 9.03% [1] - The total net profit reached 150.54 billion yuan, with an average net profit of 109 million yuan, showing a year-on-year increase of 11.18% [1] - The operating cash flow significantly improved, with an average net inflow of 113 million yuan, a substantial increase of 54.44% year-on-year [1] Group 2: Profitability and Growth Rates - Over 70% of the ChiNext companies reported profits, with 1,028 companies achieving profitability, accounting for 74.28% [2] - More than half of the companies saw a year-on-year increase in net profit, with 728 companies (52.6%) reporting growth, an increase of 4.86 percentage points from the previous year [2] - In the green and low-carbon sector, over 190 companies generated a total revenue of 507.35 billion yuan, a year-on-year growth of 10.85%, and a net profit of 496.99 billion yuan, up 25.55% [2] Group 3: Sector-Specific Performance - The new energy vehicle industry saw a revenue increase of 11.45% and a net profit growth of 23.38%, with leading companies like CATL maintaining strong profitability [3] - The digital economy sector, comprising over 300 companies, achieved a total revenue of 370.95 billion yuan, a year-on-year increase of 8.66%, and a net profit of 29.22 billion yuan, up 40.03% [3] - The advanced manufacturing sector reported a revenue of 461.13 billion yuan, growing by 9.79%, with significant improvements in the second quarter [4] Group 4: Investment and R&D Trends - The top 100 companies in the ChiNext achieved a total revenue of 937.23 billion yuan, a year-on-year increase of 14.59%, and a net profit of 102.45 billion yuan, up 21.56% [5] - The overseas revenue of ChiNext companies grew significantly, with a year-on-year increase of 21.26%, particularly in the electronics and communication sectors [5][6] - R&D expenditures totaled 94.99 billion yuan, reflecting a year-on-year growth of 5.35%, with 188 companies spending over 100 million yuan on R&D [6][7]

Investment Rating - The investment rating for the company is "Accumulate" with a downward adjustment due to significant profit decline in the first half of 2025 [6]. Core Views - The company is under pressure in its operational phase but is focusing on developing a new growth area in robotics [1]. - The home appliance business showed a revenue increase of 6.02% year-on-year, while the automotive parts business experienced a remarkable growth of 89.86% [2]. - The company is collaborating with leading humanoid robot firms to develop core joint motors, successfully delivering sample products that meet customer performance requirements [2]. - The profit margin has been affected by multiple factors, including a decrease in gross margin and increased expenses, but there is potential for recovery as overseas production capacity is gradually released [3]. - The long-term growth logic of the company remains clear, with strategic partnerships established with major international appliance brands and a positive outlook for the kitchen appliance segment [4]. Financial Summary - In the first half of 2025, the company achieved a revenue of 2.07 billion yuan, a year-on-year increase of 11.0%, but the net profit attributable to the parent company fell by 46.5% to 110 million yuan [1]. - The projected net profits for 2025-2027 are adjusted to 320 million, 430 million, and 550 million yuan respectively, reflecting a downward revision due to the profit decline in the first half of 2025 [4]. - The company’s revenue is expected to grow at rates of 43.19%, 47.56%, 15.23%, 18.63%, and 18.33% from 2023 to 2027 [5]. - The dynamic PE ratios for 2025-2027 are projected to be 25.9x, 19.1x, and 15.0x respectively [4].

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company reported a significant improvement in performance for Q2 2025, with a revenue of 1.215 billion yuan, representing a year-on-year growth of 29.58%. The net profit attributable to the parent company reached 75 million yuan, a remarkable increase of 641.50% [2][4]. - The company achieved a total revenue of 2.535 billion yuan in the first half of 2025, marking an 18.94% year-on-year increase, and a net profit of 205 million yuan, up 27.32% year-on-year [4][5]. - The growth in revenue was driven by strong performance in both domestic and international markets, with domestic sales increasing by 8.39% and international sales soaring by 138.84% [11]. Summary by Sections Financial Performance - In H1 2025, the company achieved a revenue of 2.535 billion yuan, with a net profit of 205 million yuan and a non-recurring net profit of 187 million yuan, reflecting growth rates of 18.94%, 27.32%, and 52.45% respectively [4][11]. - For Q2 2025, the company reported revenue of 1.215 billion yuan and a net profit of 75 million yuan, with the non-recurring net profit showing a significant decline of 657.00% [2][4]. Product Performance - The kitchen small appliances segment generated 1.673 billion yuan in revenue, a 5.02% increase, accounting for 66.02% of total revenue. This growth was supported by national subsidy policies and strategic adjustments in product offerings [11]. - The personal care small appliances segment saw a dramatic increase in revenue to 324 million yuan, up 415.99%, largely due to high-value orders from the Roman Smart brand [11]. - The mother and baby small appliances segment achieved 145 million yuan in revenue, a 40.54% increase, driven by enhanced R&D efforts and successful product launches [11]. Market Dynamics - The company has effectively expanded its overseas sales channels, contributing to a 138.84% increase in international sales [11]. - The overall gross margin for H1 2025 was 37.19%, with a slight increase of 0.49 percentage points year-on-year, indicating improved operational efficiency [11]. Future Outlook - The company is expected to continue leveraging its strong brand recognition and innovative product development to capture growth opportunities in the creative small appliances market. Projections for net profit from 2025 to 2027 are 397 million, 443 million, and 479 million yuan, respectively, with corresponding P/E ratios of 21.54, 19.29, and 17.84 [11].

Market Overview - The small home appliance sector experienced a decline of 0.16% on September 2, with Beiyikang leading the drop [1] - The Shanghai Composite Index closed at 3858.13, down 0.45%, while the Shenzhen Component Index closed at 12553.84, down 2.14% [1] Stock Performance - Notable gainers included: - Ecovacs (603486) with a closing price of 96.29, up 3.54% on a trading volume of 95,300 shares and a turnover of 909 million [1] - Hongzhi Technology (870726) closed at 17.90, up 2.29% with a trading volume of 30,700 shares and a turnover of 54.37 million [1] - Yanshida (002403) closed at 15.39, up 2.19% with a trading volume of 163,700 shares and a turnover of 248 million [1] - Notable decliners included: - Beiyikang (870199) closed at 41.59, down 4.87% with a trading volume of 30,400 shares and a turnover of 127 million [2] - Fujia Shares (603219) closed at 18.08, down 3.21% with a trading volume of 99,600 shares and a turnover of 180 million [2] - Rainbow Group (003023) closed at 22.38, down 2.57% with a trading volume of 40,700 shares and a turnover of 91.56 million [2] Capital Flow - The small home appliance sector saw a net outflow of 281 million from institutional investors, while retail investors contributed a net inflow of 110 million [2] - The capital flow for individual stocks showed: - Yanshida had a net inflow of 8.90 million from institutional investors, but a net outflow of 15.74 million from retail investors [3] - Ecovacs had a net inflow of 7.28 million from institutional investors, with a net outflow of 13.91 million from retail investors [3] - Beiyikang experienced a significant net outflow of 6.87 million from retail investors [3]

Core Viewpoint - Joyo's performance has been under pressure for four consecutive years, with a significant decline in both revenue and net profit, while its employee stock ownership plan remains profitable despite the overall downturn in stock price and performance [1][5][8]. Financial Performance - Joyo's revenue peaked in 2020 at 11.224 billion, with a net profit of 940 million, but has since declined, with 2024 figures showing revenue at 8.849 billion and net profit at 122 million [5]. - In the first half of 2025, Joyo reported revenue of 3.987 billion, a year-on-year decrease of 9.11%, and a net profit of 123 million, down 30.02% year-on-year [5]. - The company's gross margin fell from 32.05% in 2020 to 25.50% in 2024, while net margin dropped from 8.16% to 1.20% in the same period [6]. Market Competition - The small home appliance industry is highly competitive, which has contributed to Joyo's declining performance. Despite being a leading brand, Joyo's market share has not improved [6]. - Accounts receivable increased significantly from 212 million in 2020 to 1.078 billion in 2024, indicating potential issues with product sales [6]. Employee Stock Ownership Plan - Joyo's employee stock ownership plan was implemented in 2022, with a total of 12.9 million shares at a purchase price of 1 yuan per share, raising 129 million [8][9]. - The plan allows for half of the shares to be acquired at a price of 1 yuan, while the average repurchase price was 17.01 yuan, contributing to the plan's profitability [9][10]. - Participants in the plan are limited to senior management and core personnel, with a maximum of 45 participants [11][12]. Performance Assessment - The employee stock ownership plan has not met its performance targets, with the first unlock period failing to meet the required performance metrics, resulting in 320,000 shares not being unlocked [14]. - The second unlock period has 686,200 shares set to be unlocked, indicating some level of performance achievement [14].

Core Viewpoint - Joyo's performance has been declining for four consecutive years, with significant stock price drops, yet its employee stock ownership plan remains profitable due to favorable purchase conditions [1][4][6]. Financial Performance - Joyo's revenue peaked at 11.22 billion yuan in 2020, but has since declined to 8.849 billion yuan in 2024, with a half-year revenue of 3.987 billion yuan in 2025, down 9.11% year-on-year [4][6]. - Net profit fell from 940 million yuan in 2020 to 122 million yuan in 2024, with a 30.02% decline in the first half of 2025 [4][6]. - The company's gross margin decreased from 32.05% in 2020 to 25.50% in 2024, and net margin dropped from 8.16% to 1.20% in the same period [6]. Market Competition - The small home appliance industry is highly competitive, impacting Joyo's market share and profitability [5][6]. - Despite being a leading brand, Joyo's market share has not improved, indicating challenges in maintaining its competitive edge [5][6]. Employee Stock Ownership Plan - Joyo's employee stock ownership plan was implemented in 2022, allowing employees to purchase shares at 1 yuan each, while the average repurchase price was 17.01 yuan [7][8]. - The plan includes 12.9 million shares, with a total fundraising of 12.9 million yuan, and the average purchase price for the shares held is approximately 8.0625 yuan [7][8]. - The plan is limited to senior management and core personnel, with a maximum participation of 45 individuals [8]. Performance Assessment of Employee Stock Ownership Plan - The plan has not met its performance targets, with the first unlocking period failing to release 320,000 shares due to unmet criteria [10]. - The second unlocking period will release 686,200 shares, while 1.6013 million shares will not be unlocked [10].

Core Viewpoint - Joyo's performance has been under pressure for four consecutive years, with a significant decline in both revenue and net profit, while its stock price has dropped over 80% from its peak in 2020 [1][4][6]. Financial Performance - In 2020, Joyo achieved a revenue of 11.224 billion yuan and a net profit of 940 million yuan, but by 2024, these figures had fallen to 8.849 billion yuan and 122 million yuan respectively [4]. - For the first half of 2025, Joyo reported a revenue of 3.987 billion yuan, a year-on-year decrease of 9.11%, and a net profit of 123 million yuan, down 30.02% year-on-year [4]. - The company's gross margin and net margin have also declined from 32.05% and 8.16% in 2020 to 25.50% and 1.20% in 2024 [5]. Market Competition - The small home appliance industry is highly competitive, which has contributed to Joyo's declining performance. Despite being a leading brand, Joyo's market share has not improved [5]. - Accounts receivable have increased significantly from 212 million yuan in 2020 to 1.078 billion yuan in 2024, indicating potential issues with product sales [5]. Stock Performance - Joyo's stock price peaked at 42.88 yuan in 2020 and fell to a low of 8.53 yuan in 2024, reflecting a maximum decline of over 80% [6]. - As of September 1, 2025, Joyo's stock closed at 9.71 yuan, with a market capitalization of 7.409 billion yuan [6]. Employee Stock Ownership Plan - Joyo implemented an employee stock ownership plan in 2022, which has remained profitable despite the company's declining stock price [7][8]. - The plan involved a total of 12.9 million shares at a subscription price of 1 yuan per share for half of the shares, while the average repurchase price was 17.01 yuan [8]. - Participants in the plan are limited to senior executives and core management, with the number of participants adjusted from a maximum of 27 to 45 [9]. Performance Assessment of Employee Stock Ownership Plan - The employee stock ownership plan has not met its performance targets, with the first unlock period failing to meet the required performance metrics, resulting in 320,000 shares not being unlocked [11].

Investment Rating - The investment rating for the company is "Outperform the Market" [5] Core Views - The company experienced a slight revenue decline due to tariff disruptions, but its operational quality is steadily improving. In H1 2025, the company achieved revenue of 7.8 billion (+1.0%) and a net profit attributable to shareholders of 540 million (+22.8%) [1][3] - The company is actively optimizing its product structure and reducing costs to enhance profitability, despite facing challenges in overseas sales due to tariffs [1][3] - The company is expanding its multi-brand strategy in the domestic market to capture new growth opportunities [2][3] Revenue and Profitability - In H1 2025, the company's revenue from external sales grew by 2.5% to 6.07 billion, while domestic sales revenue decreased by 3.8% to 1.73 billion [2][3] - The gross profit margin improved by 0.3 percentage points year-on-year to 22.1% in H1 2025, with external sales gross margin increasing by 0.7 percentage points to 21.1% [3] - The net profit margin attributable to shareholders increased by 1.2 percentage points year-on-year to 7.0% in H1 2025 [3] Financial Forecasts - The company has adjusted its profit forecasts for 2025-2027, expecting net profits of 1.19 billion, 1.33 billion, and 1.46 billion respectively, with growth rates of 13%, 12%, and 10% [3][4] - The projected PE ratios for 2025, 2026, and 2027 are 11, 10, and 9 times respectively [4][3] Market Position and Strategy - The company is establishing manufacturing bases in Indonesia to enhance its overseas production capacity, aiming for normalized growth in international sales [1][2] - The company is diversifying its product offerings by setting up an appliance research institute and expanding into commercial machines, personal care, and smart gardening tools [2][3]