Core Business Model Drives Strong Revenue and Profit Growth
JS Global Lifestyle Company Limited (“JS Global Lifestyle” or the “Company”, together with its subsidiaries, the “Group”) announces the unaudited interim results for the six months ended June 30,2020 (the “Reporting Period”). During the six months ended June 30, the total revenue of the Group was US$1514.7 million, representing a year-on-year increase of 22.6%. The Group has overcome the difficulties and obstacles brought by the pandemic to the global economic market with its well-organized management skills and implementation capabilities. At the same time, we achieved robust organic growth in North America, Europe, China and other markets relying on our strong R&D capabilities, product strength and brand power.
Financial Highlights
– Total revenue of the Group was US$1,514.7 million, representing a year-on-year increase of 22.6%;
– Gross profit was US$661.8million, a year-on-year increase of 43.2%;
– Adjusted profit attributed to owners of the parent for the six months ended June 30,2020, increasing by 230.4% year-on-year to approximately US$108.7million;
During the reporting period, the Group operates two major business segments, the SharkNinja segment and the Joyoung segment.
The SharkNinja segment focuses on household environmental appliances and kitchen appliances which are available in North America, Europe, Japan and various other countries throughout the world. This segment continued to launch new products in the second half of 2019 and the first half of 2020, and continued to upgrade existing products, which facilitated growth across all major categories. In the United States, it has benefited from the fact of consumers staying at home, the successful launch of new heating appliances (2-Basket Air Fryer, and 8-in-1 Air Oven) and the steady growth of clean appliances. At the same time, a series of new products were recently launched in the North American market in the first half of the year, such as VACMOP and steam mop, which were well received by the market. Meanwhile, the robot vacuum launched in the second half of 2019 continued to be widely favored by consumers and kept gaining market share. In Europe, the Company’s Shark brand ranks first in the market share of upright vacuum cleaners in the UK. Ninja also launched various new products in the first half of the year following their launch in the North American market.
The Group has continued to expand its business scale across European markets along with the continual cultivation in American and British markets. For example, the gradual diffusion in German and French market, with initiation in Germany at the first half of 2020, and expected to successfully launch in France by the second half of 2020.
As of June 30, 2020 SharkNinja segment recorded approximately US$ 890.3 million of revenue, up 34.2% year-on-year, accounting for approximately 58.8% of the total revenue of the Group. Revenue from the Joyoung segment amounted to US$624.4 million, increased approximately 9.1% year-on-year and accounting for approximately 41.2% of the total revenue of the Group.
The Joyoung segment continues to offer small household appliances, focusing on kitchen appliances and cleaning appliances. In China, Joyoung brand ranks No.1 in market share in multiple innovative categories.
In the second quarter of 2020, while the impact of the epidemic in China gradually alleviated, the Company’s operations returned to normal. Due to the changes in consumption patterns, offline consumers continue to switch to online. The Company launched new products and online marketing ahead of the industry to cater to consumers’ needs and successfully offset the adverse effects of offline business due to the epidemic.
In the first half of the year, Joyoung segment launched products including S160 steam rice cooker with glass linerand K150 disposable broken wall soybean milk machine, which were well received by the market. In the meantime, the Joyoung segment further expanded its selection of intellectual property (the “IPs”) crossover products and cooperated with adorable and trendy IPs including Line Friends and Pikachu in the first half of the year, thus further improving its brand awareness among young consumers. The Shark brand also launched more localized and light weighted products in China tailored for Chinese consumers’ demands for lightweight, compact household appliances.
Going forward, the Company is committed to driving sustainable long-term growth through the development and commercialization of innovative products with strong technology and design sensibilities, as well as through sales network and product category expansion. At the same time, the Company will maximize the synergies between the Joyoung and SharkNinja segments, strengthen the Group’s brand awareness and the level of consumer interaction, seek strategic partnerships and acquisitions to achieve strategic and sustainable long-term growth, and thus enhance the Group’s market position as a leading global small household appliance company.