JS Global Lifestyle Company Limited

Dear investors and analysts, good morning.

Welcome to this JS Global 2016 results presentation. So I am the moderator today, Poppy. Today our meeting will be conducted in Chinese. If you need English interpretation, please switch to English channel on Zoom interface toolbar due to the large number of participants in order to ensure the order of the meeting. During the speaker speech, your line will be muted. And in the QA session, we will report the QA method for you. So please change your name into the format of Institute Press Your Name. Thank you so much for your cooperation. Before we get started, let me make a few... Reminders, first of all, this conference call will be recorded and it will be published on the company's official website simultaneously. Welcome to consult after the meeting. Secondly, in the management speech, there may be expectations for future operation and the forward-looking statements, which are uncertain and actual results may differ from the statements said. We may also mention some non-IFRS metrics to better present the business performance. So for relevant definitions and scopes, please refer to the announcements and presentation materials. So now let's get started. Here is today's agenda. We will have the management team to briefly present the interim results and business progress. Then we will come to the QA session to discuss with all the investors and analysts. So now let's introduce the company's management attending today's meeting. We have Ms. Hai Run. Executive Director, CEO and CFO of the company, Mr. Liu Mingxin, Chief Operating Officer and Head of Finance, Mr. Liu Mingxin, the Secretary of the Board of Directors of Joyon. So now let's enter the management presentation session. First speaking by Ms. Han Ru. She will present the Key Points of Companies and New Business Report. Thank you. Thank you, Poppy. Dear investors, good morning. Welcome you to this JS2016 interim results presentation, and thank you so much for your continued attention and support for our company. So first, let me briefly walk you through the group's overall operating performance for the first half of the 2016. In H1-2016, the group recorded revenue of USD741 million. Gross profit was the USD 229 million, with a gross margin of 30.9%. On the adjusted basis, revenue from third-party customers reached the USD 711 million. Adjusted net profit was the USD 14.8 million, up 9.6% YYY. Although revenue and gross margin in the first half were Impacted by weaker consumer demand in mainland China, business transformation in South Korea, and intensified competition in certain markets, our group still has recorded a net profit of USD 13 million, turning from loss-for-profit compared with same period last year, with overall profitability improved. Our business segment, ShopNinja APAC, continues to demonstrate resilience in development. In H1, revenue from third-party customers grew 6.2% YOY. Including the impact of the software business transformation, the growth would be 31.5%. The NAZ market continued to perform well with steady growth in core categories such as cooking, beverage, and clinic. Japan's market grew at constant currency. We also have made positive progress in emerging markets such as India and Southeast Asia. The South Korea market has also completed our transition to DTC and resumed our sales in the second quarter. We will also continue to strengthen our local operations and channel development to drive business improvements. From Zhuo Yuan perspective, in H1, the domestic market Small home appliance market continue to face challenges from the weak demand and intensified competition. In response to the market changes, Joyon continues to drive product innovation and channel optimization around its core categories. Market shares in key categories such as the soy milk maker and blender remain stable, while the share of direct sales channel also further increased. In H2, Tor Yong will also continue to launch new products in core categories, continuously enhance product competitiveness and channel operational efficiency, and strive for safety improvements in market size and share. That's all for my brief introduction. I will hand over to Tor Yong to give you further details on the performance of each business and region. Thank you. Okay, thank you, Ms. Han. So now, I will update to you about the overall performance of our group in H1. So now, let's just first look at the overall financial performance. As mentioned by Ms. Han, our H1 revenue was $741 million, while our decrease by fell 0.3%, and revenue from third party was a $711 million YOY decrease of 1.2%. Revenue performance was mainly affected by the weak demand of a Jooyeon business in China and the transformation of a business in South Korea. And in terms of profitability, the group's gross margin was $229 million, and the YOY decrease of 7.7% to the gross margin was a 70.9% YOY decrease of 1.2%. So according to the third-party revenue, the gross profit was also 229 million U.S. dollars, a YOY decrease of 5.3%. Gross margin was 32.2%, YOY decrease of 1.3%. Although we have a depression on revenue and the gross margin, our net profit still has been achieved at 11 million U.S. dollars in H1, turning a profit compared with the same period last year. And our adjusted net profit was 14.8% increase of 9.6% YOY. and net profit adjusted margin rose from 1.7% to 2%. This mainly reflected our group's effort in expense management and operating item changes and business structure adjustments. So for the next page, let's look at different segments. In H1, 2026, Joy Young's third party, revenue was $467 million, slight decrease compared with $490 million in the same period of time due to the relatively weak sales of blender, rice cooker, and electric kettles. And it is offset by the decline by the growth of soy milk maker and cookware. So Shop Ninja, our third-party revenue in Asia Pacific was $244 million with a YY increase of 6.2%. The apparent growth was also mainly affected by the business transformation in South Korea, existing the impact of a South Korea business, as Ms. High mentioned. If we exclude that, the revenue in APEC has actually increased by 31.5%. The growth was mainly driven by the strong performance cooking and the beverage, especially our air fryer, crispy, and our newly launched espresso machine, thanks to their excellent performance. So from the revenue structure, that's an APEC, percentage of the third-party revenue has increased from 31.9% to 34.4%. This has already shown this continuous increase of our APAC revenue to the group's overall line. So in terms of regional distribution, ANZ is the major source of growth driver in H1 this year. The number has increased from 96 million U.S. dollars to 129 million U.S. dollars, mainly driven by the strong performance of air fryers. And the special machine was also launched at the end of 2025. It has brought about an overall positive performance in H1 of this year, and there was also continuous growth in cordless vacuum cleaners. Japanese market revenue decreased from 66 million U.S. dollars to 63 million U.S. dollars, mainly due to the depreciation of the Japanese yen. circulated a constant exchange rate, hence market revenue increased by 2.6%, with very good growth in SANS and RFI. The colors of Hume-Quainer were affected by market competition and price pressure, canceling each other due to this compensation of different developments. So, fast careers market revenue dropped from $58 million to $18 million, mainly due to the transition to a direct-to-sales mode. So, this sale in the first quarter was greatly affected by that. After the transition to direct sales in the second quarter, sales also increased. proved that not enough to offset the impact of the first quarter's disruption. Revenue in other regions increased from $17 million to $44 million, reflecting the progress of our emerging market expansion. In Chinese market, it decreased from $483 million to $457 million. This is mainly due to the weak demand. So the next page is our gross margin from the third-party revenue in H1-2026. and it decreased from 241.6 million US dollars to 229 million US dollars. The gross margin dropped from 33.5% to 32.2%. When we break them down, we also can see that the Joy Young's worldwide impact on gross profit was negative, 22.2 million US dollars, mainly due to the changes in product mix, government subsidy adjustments, and it's also the increase of the transportation fee after the proportion of direct sales increase. As an APAC continued to contribute of $9.5 million in gross profits mainly due to the launch of new products with higher gross margins and continuous product cost optimization. So generally speaking, group-wise, The decline of our growth margin mainly comes from the pressure of joy on business, which is partially offset by the improvement of S&APAC. So in the future, we will also continue to optimize the product mix and the supply chain and improve operational efficiency to continuously improve the profit quality. For the next page, for our operational efficiency in H1-2026, Our entire inventory days of turnover was 57 days, lower than 59 days in H1 2025. It was slightly higher than the full year level of 2025. Our receivables and notes receivable turnover days were 101, higher than 97 in H1 2025. And our accounts receivable and notes receivable turnover days were 198, relatively stable compared with last year. Overall inventory management remained relatively stable. We will pay continued attention to this for this accounts receivable and the notes receivable with our combination of the business and channel structure changes. So in the second half of the year and beyond, the group will also continue to stress inventory planning, collaboration in payment collection and the supply chain and support business growth, as well as improving the efficiency of our capital use. Thank you. For the next page, we also can see that the group continuously to maintain a balanced and prudent capital structure. H1, 2026, our capex was $18 million, lower than $21 million in the same period last year. As of June 30, 2026, the group's interest-bearing loans amounted to $79 million, of which non-current loans were $44 million with a loan of $35 million and a debt-to-equity ratio of 0.15 times. It has slightly increased from 0.14 times, but it is still basically flat. So overall, it is still at a very low level. The current capital structure is mainly... focusing on the group's continued expansion in investment in product innovation, market expansion, especially in the APEC region, and daily operations. We will still continue to strike a balance between business advancement, capital efficiency, and financial stability. Next, we will move on to the APEC business updates.

Sorry about it.