Financial Performance and Key Indicators - The company's income for continuous operations in 2024 was CNY 1,590 million, an increase of 11.5% year-over-year [7] - Adjusted business revenue, excluding procurement services, was CNY 1,360 million, reflecting a year-over-year increase of 13.1% [7] - The company's gross margin in 2024 was CNY 510 million, up 4.7% year-over-year, while the adjusted gross margin rate was 34%, an increase of 1.5% [7][10] - Net profit declined significantly in 2024, primarily due to the underperformance of Joy Young and ongoing investments in the S and A Pac region [8] Business Line Performance - Revenue from S and A Pac increased from USD 152 million in the previous year to USD 342 million in 2024, marking a significant growth [9][18] - Joy Young's revenue decreased by approximately 3% year-over-year, attributed to intense competition in domestic markets and weak performance in small household appliances [10][14] - The overall adjusted gross margin growth was driven by the introduction of high-end products and effective cost optimization in APAC [10][11] Market Performance - The Australian and New Zealand markets showed remarkable growth, with revenue contributions increasing significantly, accounting for 43% of S and A Pac's total revenue [19] - Japan's market share and sales revenue continued to grow steadily, particularly in the cordless vacuum cleaner segment [4][21] - South Korea's market share increased from 3.7% to 20.6%, reflecting strong growth and brand influence [19][25] Company Strategy and Industry Competition - The company is focusing on optimizing resource allocation, enhancing R&D, and expanding marketing and sales channels [2][3] - Joy Young plans to concentrate on entry-level products and improve the product matrix to enhance scale and profit margins [14][72] - The company aims to leverage its successful models in Australia and New Zealand to expand into other regions, particularly Southeast Asia [46][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by fierce market competition and emphasized the need for continuous product innovation [75] - The company is optimistic about maintaining steady growth in the S and A Pac region and expanding its market presence in Southeast Asia [5][32] - Management expressed confidence in the ability to adapt to market conditions and consumer needs, aiming for sustainable growth [75] Other Important Information - The company has made significant investments in ESG initiatives, achieving a 100% complaint resolution rate for products and services [33] - Capital expenditure for continuous operations was approximately USD 27 million, primarily for marketing-related assets and office relocations [12] Q&A Session Summary Question: What is the strategy for market access in APAC? - The company utilizes both direct sales and distributor models, establishing local operational teams for direct sales while relying on distributors for broader market access [36][39] Question: What factors contributed to growth in Australia, New Zealand, and South Korea? - Growth in these markets is attributed to cultural similarities with Western markets, effective distributor partnerships, and successful product launches [42][44] Question: What are the major driving forces for development in 2025? - Key drivers include product upgrades in mature markets, expansion into new markets, and the introduction of innovative products [48][49] Question: Can you elaborate on partnerships in Southeast Asia? - The company has established partnerships with strong local distributors in Thailand and Indonesia to enhance market penetration and brand visibility [53][58] Question: How does the company plan to promote hero products in Southeast Asia? - The company emphasizes tailored product offerings based on local consumer preferences and extensive R&D to ensure market fit [60][62]
JS GLOBAL LIFE(01691) - 2024 H2 - Earnings Call Transcript