JS Global Life Achieved a Smooth Transition After the Restructuring

 Focusing on Business Scope, Expanding Localization Efforts

Rapid Growth in APAC Business

2023FY Revenue Reaches US$1.43 Billion

(HONG KONG, March 28, 2024) – JS Global Lifestyle Company Limited (Stock Code: 1691.HK) ("JS Global" or the "Group"), a world-leading producer of small household appliances with three major brands: Shark, Ninja, and Joyoung, today announced its annual results for the year ended December 31, 2023 (the "Year").

JS Global has achieved a significant milestone during the Year by transitioning through a successful business restructuring and strategically focusing on the APAC market. The SharkNinja business units, which distribute products in North America, Europe, and other non-Asia Pacific markets (“SharkNinja Non-APAC segment”), have been classified as discontinued operations, while the existing businesses of the Group, including Joyoung and SharkNinja APAC, which distribute products only in non-China regions, constitute the continuing operations. This strategic move allows JS Global to focus on its core business and pursue growth opportunities in key markets, thereby expanding its business scope. Despite a challenging market environment, the Group has demonstrated resilience and maintained its strategic focus, achieving a total revenue of US$1,428.7 million from continuing operations. The Group's gross profit totaled US$486.6 million. Profit from continuing operations amounted to US$70.3 million for the Year.

Joyoung segment

During the Year, Joyoung prioritized technological innovation to offer consumers a continuous supply of highly desirable home appliances. The segment achieved success with products such as the second-generation zero-coating non-stick rice cooker and quiet high-performance blender, effectively reaching a greater number of middle-class households in China, and successfully linked the health-conscious image of rice cookers, an essential product category, with the Joyoung brand.

In terms of channels, Joyoung expanded its presence in e-commerce platforms and emerging channels through enhanced operational efficiency and the consistent introduction of innovative technologically sophisticated products. Joyoung also strengthened its retail terminals, implemented livestream sales, and utilized its self-built digital platform network to adapt to the high-speed online-offline integration era.

Overall, Joyoung has reinforced its leadership in the small household appliance industry during the Year through its dedication to innovation, product expansion, and channel development.

SharkNinja APAC segment

The SharkNinja APAC segment experienced strong revenue growth in 2023, excluding China. Revenue from third-party customers reached US$151.7 million, compared with US$63.9 million for the previous year. This growth was driven by the gain in market share by Shark vacuum products in Japan – generating US$91.1 million in revenue, and strategic acquisitions in Australia, New Zealand, Singapore, and Malaysia, which led to incremental gains in revenue totaling US$47.9 million. The segment also diversified its product line with air fryers, indoor grills, blenders, multi-cookers, and ice cream makers. Entry into the South Korean market through local distributors generated an additional US$12.7 million in revenue.

The ability of the SharkNinja APAC segment to accelerate revenue growth from third-party customers can be attributed to innovations achieved in the cordless vacuum category of the Japanese market. Additionally, the seamless transition of strategic acquisitions allowed the segment to immediately broaden its geographical and category footprint. Notably, the launch of cordless vacuums, hair care products, and ice cream makers in Australia showcased the segment's capability to enter new markets with a diverse range of high-quality products. These accomplishments exemplify the segment's commitment to delivering innovative solutions that enhance the daily lives of consumers in the Asia-Pacific region.

Prospects

The prospects for the Joyoung segment appear promising, supported by the Chinese government's initiatives to boost the household appliance industry and promote domestic demand. Joyoung, as a leading brand in the small household appliance sector, remains committed to retail-oriented growth and meeting consumer needs. By leveraging market insights, product development, and marketing strategies, Joyoung aims to expand its product lines and enhance synergy with the Shark brand. By exploring new sales channels and focusing on delivering high-quality products, Joyoung is well positioned to achieve sustainable leadership in the industry.

Looking ahead, the SharkNinja APAC segment aims to develop and expand its business in the Asia-Pacific region (excluding China), focusing on the top 25 cities. With approximately 40% of the world's population and around 870 million households in the APAC markets, the segment aims to positively impact people's lives by offering innovative small home appliances to approximately 75 million households. The growth strategy revolves around existing category growth, new category launches, and expansion into new markets, driven by a deep understanding of consumer needs and a dedication to providing tailored and cost-effective product offerings.

JS Global remains committed to addressing the evolving needs of consumers, and maintaining focus on consumer-centric innovation. With the support of the R&D platform of the Joyoung segment and SharkNinja Group, JS Global will introduce innovative products tailored for local markets through localization solutions developed by its Asia-Pacific R&D team. Leveraging the Group’s robust marketing and media communication capabilities, as well as the extensive omni-channel sales network, JS Global will further strengthen the advantages of its core product categories and enrich its diverse portfolio of small home appliances.