JS Global Lifestyle Company Limited

Good morning. Welcome all of you to come to this 2025 annual conference of global investors. I am Jiang Hanxiao from our investment department, and this is conducted in Chinese. If you require English interpreting, please switch to this English channel. And because there are so many participants today, to ensure that Thank you so much for your cooperation and understanding. Before the meeting begins, I would like to make a few routine reminders. First, the conference will be recorded. The relevant meeting materials will also be published on the conference official website. You are welcome to review them after the meeting. Second, the management's remark may contains forward-looking statements regarding future operations. Such statements are subject to authority and actual results may differ from those statements. We also may refer to some certain non-IFRS measures to better present business performance. Please refer to the definition and methodology provided. Then we will get it officially started. The agenda will be as follows. First management will provide a brief overview of the annual results and business progress. And then we will come to the QA session to discuss Communicate with investors and analysts. Now, first please allow me to introduce the company's management today. They are executive director, chief executive officer, and chief financial officer, Ms. Han Ru, chief operating officer, and head of finance office, Mr. Liu Ningqing, head of finance of this Zhuo Yang division, Mr. Pan Diangang. And now we will proceed. and we first have Ms. Hai Ren to make this opening speech and she will also do this introduction about this key point about the annual operation investors good morning welcome you to come to this 2025 annual performance presentation, and thank you so much for your participation. First of all, please allow me to give an overview of the company's overall operating performance in 2025. In 2025, the growth achieved the revenue of USD 1.6 billion US dollars, up by 4.1%, and the growth profit was the USD 534 million, up by 4.6%, and growth margin increased by 0.2% to 32.2%, and from this adjusted basis, We also have this $524 billion of third-party revenue is up by 13.2% with the corresponding gross margin of 33.5%. Adjusted net profit reached the USD 31.1 million representing a wide increase of 338%. As you can see that the business is actually very strong with the third-party business a significant improvement. And we also can see that adjusted profitability is also very obvious. For the full year of 2025, the Joyo division achieved a modest growth in domestic sales, supported by differentiation of the products. We also have done measures such as improved sales expense, central and enhanced has also realized the profit recovery. As an APAC, it has also achieved the expected growth of the revenue. Although we are still in the period of investment, its overall expense ratio has already been improved. It is evident that in 2025, while maintaining steady revenue growth, our group has also further enhanced the growth potential and earnings resilience of our businesses. Looking at different markets, the Japanese market continues to maintain its positive development momentum. The Japanese coordinates vacuum cleaner market, shocks, branches, and product competitors continue to improve. At the same time, the company continues to launch new products in Japan, including upgraded portable blender and cooking equipment. Our clients are furthering reaching the product portfolio of Ninja in Japan. Our core categories in the Australian and New Zealand markets have also continued to perform strongly, many driven by strong performance of new products such as cordless vacuum cleaner, frozen beverage makers, and coffee machines. countries and regions across APAC. We are also actively expanding and accelerating our presences. So my colleague, Leon, will also provide you a detailed breakdown and analysis of the regions and categories later. We also believe that with the further implementation of the groups three core development strategies in APEC. We are also confidently maintaining the growth momentum of Shakuninja in APEC. At the same time, the Zhoyang division, which focuses on the mainland Chinese market, we are also undergoing positive changes. Driven from prior policies such as the trading programs and the government's founded subsidies at various levels, the Chinese government has driven this into a high-end product. In response, Zhoyang has launched our fifth year year, which leverages core selling points such as high quality, appealing design, excellent cost-performance ratio, as well as health and wellness. While enhancing the consumer's quality of life, these products also better address our emotional needs. And we also have also realized this implementation of the International Overseas Office and the deployment of the team. In 2026, we will also carry on the expansion of Belt and Road Countries in Southeast Asia. We will also promote a lot of local products and to drive this new growth point of Zhuo Yang. So that's all for me. I would like to give the floor to Leon for further detailed interpretation of all the different regions and different parts of the business. Thank you, Madam Kai. And later, I'm going to share with you our 2035 performances. and by different division join on 2025 third party revenue has reached 1.032 billion USD and is having a small growth compared with 1.021 billion last year the main is still about the soybean milk maker and food preparation and SNAPAC is actually reached a very high growth is about 56% and they are mainly driven by several different aspects. The first one is about the new products being so successful and the new category being improved significantly as well as expenditure and exploration about the new markets. You also can see that while S&A has continued to unleash the full momentum, our Zhuo Yang business is also operating steadily. If we break down by different regions, the growth are mainly coming from A&D A&D is actually the most outstanding growth, up by 73.5% YOY, and driven by increased market share in four categories, no matter if it's about cordless, vacuum cleaners, and ice cream maker, and smoothie maker. As well as the new coffee machine we promoted to market at the end of the year, which all have driven the public growth. The revenue was 158 million US dollars in Japan, up by 41.1% with this year's competition. Our cordless vacuum cleaner has also still continued its growth. and the successful launch of this blender further driven both in the food preparation and the three years revenue grew by 28.2% worldwide to USD 91 million maintaining steady growth many benefiting from the continuous increase in market share in cleaning and food preparation like our blender and the Chinese revenue was USD 1.017 billion USD up by 1.3% despite the fierce competition we also have the differentiated and driven by this diversification. We are also having a quite good revenue growth, but it's partly offset by the decline of the federal recession price cooker. The other region's revenue was USD 44 million, up by 51.7%. It's mainly from the sectors of expansion, such as Asia, like Singapore and Malaysia. And the gross profit and gross margin, we also continue to increase our gross margin. Our third-party revenue was 33.5%, representing a slight decrease. and with the Shark Ninja Apex segment driven by such a higher phase cost compared to prior periods with our high growth margin of that. Generally speaking I think that the growth margin we are still performing very stably and with the fierce competition our resilience of the property have also been strengthened. Now let's check the operation efficiency. In 2025 the growth Inventory turnover days were 48 days. The trade receivable and those receivable turnover days were 98 days. The trade payable and those payable turnover days were 175 days. Compared with last year, there was no significant changes. It could be able to support the pace of business expenditure as well as the growth in the different regions. Now let's check this capital structure in 2025. Our cap was USD 29 US dollars with no specific change compared to last year. Until the end of 2005, our total debt structure was about 80 million US dollars and the 50 million US dollars was a one-year loan denominated in R&D and the remaining was a loan nominated in USD, maturing in January 2007. Meanwhile, until... The end of 2024, the previous non-current liabilities have all been paid back. And we also can see from the perspective of overall debt structure, the growth stats to equity ratio increased from 0.05 times in 2014 to 2014, times in 2015, which is a very stable range. It has supported the healthy development of the business expansion, as well as maintaining the flexibility financially. From business, now let's first check with Joy Yang. As Ms. Chan mentioned, our core category, internal sales, has achieved a very good growth. and the soy milk maker category grew by 30%, mainly due to the launch of differentiated innovative products that the industry trend and effectively address the pain points. Water purifier is more catering to the Chinese consumer needs. The cookware category reversed its decline and achieved a growth of 3% worldwide, reflecting a positive impact of adjustments in product and channel strategies. Overall, Joy Young has maintained our growth in our fundamental traditional advantages. And the next thing is about the growth in the emerging channel. It's also very good quality, taking ZOIN as an example. Our market share in ZOIN from 6.1% in 2023 to be increased to 6.9% in 2025, showing a continuous growth trend. And our relative price index from... 214 in 2023 to 275 in 2025, significantly higher than it appears. This demonstrates we not only expanded our growth and also realized a better operating quality and better price tier upgrades. So there are two points. The first one, we constantly adhere to self-live broadcasting as is the format on the Zoin channel and implemented various live stream methods. And next is also we have increased the high-end and mid-end products. with differentiated innovation to set us apart. In 2026, we also will look at several aspects, products, channels, and efficiency. Product size... From product side, we will focus on this definition of new consumer scenarios, adopting new to high-end pricing and purchasing systematic innovation on the channel front. We also further streamline our score matrix and implement unified pricing and achieving omni-channel data tracking, increasing the proportion of direct operating channels. The final goal is very obvious. We hope to have more market share, better close margin, and optimizing According to GSK data, sharp market share in 2025 has reached 24%, 22%, 25%, and 25% in four quarters of 2025, two 25s in the last two quarters. That is to say our brand strength and competitiveness have also been continually improved. And we are also promoting some new products, for example, portable blender and the Ninja Crispy, Ninja Impossible Cooker. The new cookware products have also opened up new growth opportunities in the future. Next page, we could also see M&T. A&D performance is still very, very bright and the shop cleaning revenue up by 15% while while ninja foot preparation revenue has grown up by 168% while while and cooking up average up by 79%. And we also have this power-detected clean technology and automatic dust collection. New version of cordless vacuum cleaner has seen a very good performance. We have also promoted a lot of new products in the sand category, like Flex Squeeze, Tower Sands, and Hydro-Doll have all got a very good market response for food preparation category. The overall category, what we are having a stand in our products like Ninja Slushy, Ice Cream Maker, as well as the new generation of this very high emotional value, Ninja Swirl, Ice Cream Maker, have all seen very bright, very prosperous development. And Ninja Nuts Cafe Premium in coffee category is established our market leadership with just a few weeks of the launch. This is a new product approaching the end of last year for this new category. We only have one SKU, only two colors, have already achieved a very good result in Australia. Generally speaking, A&T market has already formed a growth pattern driven by multi-categories. For South Korea, in 2005, our revenue has reached the USD like 1 million and continued our strong growth. and it is having a further improvement compared with the 17 million last year. By different category, shop cleaning up by 44%, beauty and home grow by 63%, repartition from ninja up by 3%, cooking and beverage grow by 21%. The growth mainly coming from our floor cleaning and ninja's blender. The category is growth.

Especially the light cordless vacuums in the 1K Clear and the Smart IQ detection technologies have been a strong growth. And Ninja Blossom Max, which is a portable... Convenience Blender and the Detector Power Blender. These new types of the blender have also enhanced the food preparation category, maintaining its strong position as the second largest category. So, facing 2026, the S&A Pack will continuously Innovate the core categories and expand into the new categories. For example, Ninja Christie in 2025. At the year end, we launched the products. So in 2026, we will continuously iterate the products. And Ninja Swirl, Ninja Luxe Cafe, and Shark Flex Free Hydro Gold. These fan products will also continuously boost the growth for the future. And also, we have seen the newly expanded markets are starting to contribute more revenues, and in the past two years in New Zealand, Japan, and the South, as APEC has scaled up, and we also expanded to other SEA markets. and in the second half of 25 we also accessed into Taiwan, China and in these newly expanded markets the revenue has been increased from 13 million to 29 million in 25 with a young year growth of 129%. It means that in these new markets we are scaling up which has also provided a new flexibility and elasticity for the future growth. So, generally speaking, in 2015, there had been several features for our growth. The first is the third-party business growth is strong, and the second is the net profit after adjustment has been enhanced strongly, and the S&P APAC has continued to act as a growth engine, and Zhou Yang maintained steady growth. And the innovation channel development and the regional expansion has been going on smoothly. So going forward, we will continuously focus on product innovation, channel optimization, operational efficiency, and regional expansion so we can promote high-quality and sustainable development. Thank you. Thank you, Madam Han and Leo for your sharing. Next, we will start the Q&A. If you want to ask via voice, please click the raise hand from the reactions button at the toolbar in the Zoom interface. If you want to ask by text, please enter your question in the chat box. Let's start with the first question. Please raise your hand.

Okay, let's welcome Feng Ruilin from the CLSA. Go ahead.