JS Global Lifestyle Company Limited

Investors and analysts, good morning. I am Ma Chen from Investor Relationship and Cooperation Communication Department. Welcome to JS Global Interim Results presentation. Before we officially begin, please allow me to introduce the management team who are present today. They are Madam Han Ren, CFO and Executive Director, Senior Vice President of Finance and Chief of Staff APEC Operation, Lian Liu. Chief Financial Officer, Financial Director, Kenny Kan. Secretary of the Board of Directors, Joy Yang, Max Miao. So before it's too late, let's invite Madame Han to make an opening speech. Good morning, everybody. Thank you for attending the JS Global 2014 stream results presentation on your busy schedule. On behalf of JS Global Lifestyle, I would like to express my heartfelt gratitude to all of you for your long-term support and interest. Over the past six months, JS Global has entered a new phase of development and a new beginning. We have optimized the allocation of resources, attracted global talents, and increased our investment in R&D, user research, marketing, and other areas. We have made a lot of progress, but we also have identified some areas where we still need to improve. Today, my team and I would like to share with you some of our operating results for the past six months. The Joy Young segment remains the group's largest revenue generating business. Despite the increasingly competitive market and challenging consumer environment in its operating region, we stayed true to Joy Young's core value of health innovation during the first half of 2024, advanced the research and development of the new products, to tackle the small but significant issues in daily lives joy young has introduced us the generation of zero coating non-stick rice cookers designed to help consumers prepare healthier personalized taste for rice additionally we also have launched instant water purifier that can operate for up to six years without needing to the filter replacement and unveiled a new line of technological products featuring unique automatic soil milk maker for As an Asia-Pacific, since the strategy restructuring in the second half of 2023, we have directly operated by JS Global. During the first half of this year, we focused on the optimizing of IT, tech, internal control, legal, and HR functions across as an Asia-Pacific to ensure that the business units could fully optimize on the potential of Asia-Pacific market. In terms of organic growth, we continue to seize steady increase in market share and sales revenue, particularly by reinforcing our leading position in cordless vacuum cleaner in Japan to the markets in Australia, New Zealand and South Korea have also performed exceptionally with a strong growth across most categories, providing valuable experiences for the future market expansion. Additionally, we also have expanded our original presence by formally entering the Indonesian and Philippines market through the exclusive distribution model with the prominent local distributors partnership as SN Pacific will continue to advance its infrastructure improvements. We are confident that this segment will maintain the steady growth in the future, contributing positively to the group's overall performance. Now, let's invite Leah and Amas to introduce the 2024 interim results and the upgrades of the two different segments. Now, let's first invite Leah. Thank you, Madam President. Han, thank you so much for your continuous attention to JS Global. Now let me introduce to you the key financial matrix in H1. For revenue, we have been very resilient, reaching 29.5% of the growth. For growth margin and growth profit have all maintained a growth, except for the earning from the transaction related, we still have about 13.1% of the growth. So for gross profit and gross margin, because of our significant investment in Joy Young, it has got a significant decline of the EBITDA after adjustment. We also have already got a very good result of the positive revenue growth. So the adjusted EBITDA, you can also see from the announcement, the main influences are still about our partial investment valuation adjustment and then for the sourcing and supply chain investment during the transitional period. These are the major adjustments. Now let's talk about the breakouts of the revenue. for each one for the third party. From the third party revenue, according to the constant exchange rate, we have about 17.7% growth. What is impressive is about the Shark Ninja APEC growth. and the proportion of the transaction related has from the 9% to be doubled to more than 20% of each one this year. And the next page, we could also see according to the region and area. So for the revenue, you can see compared with last year, the YOY except for Japan, for the rest of the markets have all got a significant growth. And for Japan with a constant exchange rate, we also have seen an over 30% of the growth for the third-party sales of the gross margin. We can also see the gross margin level. We also can see compared with last year, we have over 2% of the growth compared with last year. The major contribution is also from The overall product portfolio, especially for APAC, including for the new products, for the MPD, we have very high growth margin. And now let's see the overall cycle of the operation. We have maintained a very healthy cash flow. You can see with almost 30% of the revenue growth, our inventory turnover and receivable turnover compared with the end of 2023, it has all been improved. For the payable turnover has also been improved until this half of 2024 compared with last year. So it's also because of our restructuring and our stable supply chain and stable cash flow, we have reached this healthy operational cycle. Now let's... Lastly, introduce our overall balance the capital structure. We also can see that the end of July last year, we have already returned all the loans with interest bearing. So now we have like a zero interest bearing loans for all the operation are all based on our own cash generation So for the dad, for our IC, you can see they are all very healthy. We are very confident we could still support our APEC growth. and these are all about the 2024 h1 overall financial report now i would like to invite mars to introduce the updates of the two different business units thank you leon good morning and j y has just finished its uh performance release. Now I'm going to update you. For H1, we have already got the 30th anniversary and our new scientific technological product new launch over the past 30 years. Joy Young has always adhered to the health innovation by paying attention to and solving the small problems in everyone's life. Joy Young has continued to participate in the core technology, building the quality small household appliances, constantly promoting the innovation of healthy lifestyle to help Chinese people to live better. To be more specific, Joy Young has launched three core new products. The first one is our third generation zero-coating rice cooker compared with the previous generation. This generation for the inner container has further adopted the technology of rice grain activation suspension beam, which makes the non-stick effect meets the national class two non-stick standard through the heating module on the base and the top and the air cooling technology with precise temperature control to adjust to the softness and the hardness of the taste. It could also make it possible to realize the human computer interaction through IoT. The second one is the all around wall breaking nutrition master Y8, which uses the brushless variable frequency motor to reduce the noise from the source to make the cooking process more quiet and comfortable. And we also have loaded with the automatic one button processing, cleaning, sterilization and drying lazy gospel function. And in grinding and popping blender X crushing system and intelligent Remote sensing technology can help the consumers to obtain a better delicate taste and more nutrients. The third one is Re Xiao Jing R5P. This product adopts this three-in-one full-link antibacterial system of the filter elements. So pipeline and pasteurization to prevent the inside of the water filter from becoming a hotbed. for bacteria. So the biggest selling point is that it has a long lasting filter cycle that it could be used for six years, much longer than the most products available in line to lower the cost of replacement for the filter. So we also have stick to the idea of solving the problem of combining health and innovation to solve the small but important problems. So the next is about the business updates of SM Pacific. After the strategic reorganization, Joyon has vigorously developed the Shock Ninja APEC this year, helping it to establish a more perfect system and function as Madame Han said, a more complete team and system, accelerating the launch of the new products and new categories, and gaining more market share through expanding the market capacity. promotion and marketing activities. This slide is what we always stick to this IR deck because this page will guide our team to constantly keep going forward. As an APEC is committed to actively influencing the quality of life of every family every day, focusing on consumers, gaining more deeper insight into the consumer's ideas, providing the localized products with the best cost performance at the same time on the marketing slide by providing quality marketing activity to improve the brand image. to improve the brand awareness of the consumers and the new product utility rate could also be improved. So the growth strategy of SM Pacific has been based on the development strategy of constantly exploring new markets, new opportunities, and constantly consolidating the new advantages into the core existing categories, introducing new categories as well. In the first half of this year, the company maintained good growth in Japan, showing strong performance in new markets like Australia, New Zealand and South Korea. We also have entered the new markets. Other products have also launched in the market and with very good popularity among the consumers. So now let's talk about the first pillar of the growth. Using our core products, we have been very successful. So the cordless vacuum cleaner in Japan, as we all know. And now let's take the cordless vacuum cleaner as an example. Last year, we have launched the CleanSense IQ. and the EOVA system, Neo Series. So in this half of the year, it has been very well welcomed. It has also been very well received by the local retailers. In the past six months, our in-store display has been constantly expanded. According to GFK Post statistics, our market share of the cordless vacuum cleaner in Japan compared with last year's 17% to be improved to 19% this year. Compared with 2021, within more than two years, our market share has been doubled or even more. This is still like in H1 of this year with our sales competitor carried out the price for quality measure and then discounting strategy for H1 this year. This has shown our Japanese consumers and retailers constantly enhancing their trust in the brand and products of Shark Ninja. So now I would like to share with you how could we achieve the second growth of the of the new category. So for example, the Ninja Blast portable blender, after entering Australia in H2 last year, it has received a very good response. We have also introduced it into Japan and South Korea.

And this is the first time that we have launched the new product of Ninja in Japan market. And after two months of the launch, we realized that the Ninja Blast had already topped the market share list in Japan. We had become the number one in Japan. And in Japan and South Korea, we also had invested in the Ninja branding and the Blast product marketing. and on the TVs, magazines and the bus stops as well as the screens of the malls as well as the shopping shops constructions we have a great development and all these events are able to deliver our better brand image and the content of the products to the consumers and last but not least the third pillar is the expansion of the new market and It helps us to further expand the market share. And last year, we have accessed the New Zealand, Australia and South Korea market. And last year in April, we had acquired the distributors to access the Australian market. And as for the South Korea, we collaborated with the new distributors closely and re-entered the market. So for these to re-enter the new markets, we have a great advancement. So as you can see here, we are gaining the markets here in Australia market. And all of the core categories are gaining their shares. And what's worth mentioning is that since the beginning of the 2023 to the end of the June this year, the quarterless category has been gaining tractions and had increased from 1% to 16% this year. so this had demonstrated that the Charlotte Cordless in the past six months had become a great and strong brand in Australia and likewise in South Korea our marketing is very eye-tracking to the consumers and we want a lot of the good feedbacks from the consumers and over the past six months we had to continuously launch the core products in South Korea and this momentum will continue and hopefully next year this time we are able to share with you more details about the change of the market share in South Korea like today's sharing of the market share in Australian market and in the final part I'd like to very quickly walk you through our efforts in ESG and I believe that our performance in this front is also very Great. And in the first half of 2024, we had been successfully listed among the Hanson ESG50 Index and had become the only home durable company in China, incorporated in the Standard and Poor 2024 Sustainable Development Yearbook. And all those recognitions had identified our efforts in ESG and sustainable development and laid a solid foundation for our future sustainable development. and the Jiuyang Foundation also celebrated our 30-year anniversary and the 1,500 charity kitchens had been established in the first half of the year and we will continue to contribute to improving the health and the nutrition of students living in the rural areas and guarantee their healthy lives And this presentation deck will be uploaded to the website. And that is the end for the prepared remarks. And if you are on Zoom, you can type in the words to ask the questions. And while we are waiting for you to type in your questions on the web, let's check out the secretary and operator about the telephone questions. And she will introduce you how to raise the questions. And please press the star 1. so first the press the star and then the press number one and after you hear the prompter you can start to ask the question and next let's welcome a fine savvy from what i g and to ask the question All right. Thank you for giving me this opportunity to ask you the question. Hello, everyone. I'm Han Xia Li from Guo Tai Jun'an. Dear managers, I have a small question. So first is still about our Japan market. And can you share with us the proportion of revenue from Shark and Ninja? And as for Shark, in a Japanese market, we have been gaining our... market shares for the vacuum cleaners. And we can see this trend over the past few years. So how do you deploy your categories and distribute your channels? And Dyson and Hoover, some of the other competitors are also developing very quickly. So what is the differentiation of our positioning? So what are our benefits and advantages to differentiate ourselves? What are our highlights? This is my first question. Thank you. All right, thank you very much for your question. I'd like to invite Leon to answer the question about the revenue share between Shark and Ninja. And the rest of us will add our comments. All right, thank you for your question.

Thank you.