JS Global Lifestyle Company Limited

Greetings to our investors and online guests, and a warm welcome to the 2022 Annual Results Announcement of JS Global Lifestyle. I'm Chen Bin from the IR team of JS Global Lifestyle, and I'm honored to be your host for this event. Whether you're participating in person or remotely, I encourage you to engage with our management team later in the Q&A session. Before we begin, I'd like to introduce the management team of JS Global Lifestyle who will present with us today. They are Mr. Wang Xuning, Chairman, CEO and Executive Director of JS Global Lifestyle, founder of Zhouyang. Mr. Mark Barocas, Global President of JS Global Lifestyle, President of Shark Ninja. Ms. Yang Ningning, Chair of Zhouyang. Ms. Han Run, CFO and Executive Director of JS Global Lifestyle Mr. Leon Liu, Financial Director of JS Global Lifestyle Mr. Paul Cabone, CFO of Shark Ninja Mr. Kenny Kan, CFO of Zhou Yang I'm Mars Chen, IR Manager of JS Global Lifestyle First, let's welcome Mr. Wang Xuning, Chairman, CEO and Executive Director of JS Global Lifestyle, founder of Joyang, to deliver an opening remark. Welcome, Chairman Wang.

Hello, everyone.

Greetings investors, we are delighted to have you here with us today at the 2022 Annual Results Announcement of JS Global Lifestyle. I would like to thank you for your continued support and interest in the company. Looking back on 2022, the world faced a multitude of challenges and instability including rising inflation, increasing costs for raw materials, tightening physical and monetary policies, ongoing geopolitical tensions, recurring domestic and international epidemic, and excessive imagery abroad. Despite these unfavorable circumstances and a high benchmark from the previous year, JS Global Lifestyle managed to achieve a almost flat in revenue for the full year of 2022 on a constant currency basis compared to last year. In 2022, the Shark Ninja segment has upgraded its products in existing categories, which include vacuum cleaners, robotic vacuum cleaners, multifunctional electronic cooking pots, and air fryers. We have also broadened our product portfolio in new categories. In the last two years, launched products like FlexStyle hair styler and dryer and 3-in-1 air purifiers, Additionally, the Shark Ninja segment is continuously expanding into new product categories, including outdoor grills and wet-dry 2-in-1 vacuum. Apart from expanding product lines, Shark Ninja's sales performance across various markets is also impressive. Despite many complications, the U.S. market has managed to maintain a revenue level that is compared to that of the previous year. In the European market, Shark Ninja even bought the trend and achieved a double-digit growth on a constant currency basis. It is worth mentioning that our offline markets in Germany and France have also been launched, and we are confident in the long-term development of the European market. Other markets represented by Asia Pacific region have also demonstrated solid growth in 2022, and JS Global aims to further develop the Shark Ninja brand in APAC. We plan to enhance our existing product range in the Asia Pacific market, launch products that are tailored to local preferences, and expand our reach to new regions with untapped consumer potential. In 2022, we focus on enhancing the competitiveness of the ZHOUYANG brand by expanding its product series and offering products for various scenarios. Furthermore, we introduce several competitive new products that outperform the industry, including no-flip air fryer, zero-coating rice cooker, blender and cookware with antibacterial technology and two-in-one water purifier. These new products help to strengthen Joyang's market position as a leading national brand in China. Joyang's core strength lies in its ability to understand customer needs. Its extensive R&D capabilities, its diverse supply chain system, and its nationwide online and offline sales network in 2022, Joy Young underwent some management adjustment to introduce fresh energy and foster changes in future operations. Moving forward, Joyoung will focus on improving its operational sales and profitability capabilities, with particular emphasis on enhancing its refined operational capacity. The company will continue to expand its product line, which includes small kitchen appliances, small cleaning appliances, water appliances, and cookware, and seek to maximize the synergy between Joyoung and Shark. As we look ahead to 2023, You may have heard about our plans to spin off Shark Ninja's European and U.S. business for a separate listing in the U.S. However, JS Group will still retain the Joy Young and Shark Ninja Asia Pacific business. Our growth strategy and business model will remain unchanged. and we are confident in our ability to accelerate the growth of our small appliances business in the Asia-Pacific market, including Greater China. Our three-dimensional strategy will continue to focus on growing our existing products and markets, entering new categories and expanding into new markets. We will maintain our core business model which involves identifying and meeting consumer needs, launching innovative products through global R&D collaboration, and leveraging our marketing and omni-channel sales network to create successful products. It's important to highlight that the synergy between JS Group and Shark Ninja Group will persist and become stronger in the future. To improve business efficiency and meet operational requirements, the two groups will increase cooperation in product development, research and development, engineering and supply chain management, as well as strengthening partnership in brand management and expand Asia-Pacific business. Dear investors, while improving the quality of life for global consumers, fulfilling our social responsibility is the foundation for the healthy and sustainable development of JS Global Lifestyle and a reflection of our long-term value as a listed company. We have always been dedicated to upholding high ESG standards and have been promoting them systematically. We have established a comprehensive ESG indicator system and management structure aligned with the UN SDGs. Additionally, we encourage more individuals to join us in making a positive impact on society and the environment. Although the future presents significant economic and geopolitical uncertainties worldwide, we anticipate a gradual recovery and sound development of the global economy with COVID under control. We have confidence in our company's development and will work tirelessly with all our employees to improve our operations and performance continually. We aim to promote a healthy and orderly corporate development, generate long-term value and returns for our investors. Thank you all. Thank you, Chairman Wang, for your remark. Next, let's welcome Ms. Han Run, CFO and Executive Director of JS Global Lifestyle to introduce JS Global's financial performance in 2022. Ms. Han.