Joyoung Co., Ltd. Abstract of the Semi-Annual report 2024
Ticker: 002242 Stock Abbreviation: Joyoung
Joyoung Co., Ltd.
Abstract of the Semi-Annual Report 2024
Section I Important Statements
This is an abstract of the Semi-Annual Report 2024. Investors are kindly reminded to read the complete version of Semi-annual Report 2024
on the website, which is designated by the China Securities Regulatory Commission to get complete information about operational results, financial
statements, and future plans of the Company.
All directors attended the board meeting that reviewed the Semi-Annual Report.
Modified Audit Opinion
Applicable √ N/A
The preliminary plan for dividend distribution and converting capital reserves into share capital for common shareholders which were
considered and approved by the Board
Applicable √ N/A
The Company plans not to distribute cash dividends, not to issue bonus shares, and not to increase capital through the conversion of capital reserves.
The preliminary plan for dividend distribution for preferred shares in the reporting period was approved by the Board
Applicable √ N/A
Section II Company Profile
1. Company Information
Stock Abbreviation Joyoung Ticker 002242
Stock Exchange Where the Shares of
Shenzhen Stock Exchange
the Company are Listed
Contact Us Board Secretary Securities Representative
Name Minxin MIAO
No.760 Yinhai Street, Qiantang New District,
Address
Hangzhou, Zhejiang Province
Tel. 0571-81639178
E-mail 002242@joyoung.com
2. Management's Discussion and Analysis
According to the National Bureau of Statistics (NBS), China’s Gross Domestic Product (GDP) amounted to 61.7 trillion yuan in the first half of
this year, representing a year-on-year growth of 5.0%; of which, GDP in the second quarter saw a year-on-year growth of 4.7%(www.gov.cn). Since
the beginning of this year, despite some fluctuations in global economy, frequent geopolitical conflicts and international trade frictions, etc., domestic
macroeconomic operation was generally stable as domestic demand was picking up gradually.
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Joyoung Co., Ltd. Abstract of the Semi-Annual report 2024
Although China is in a critical period of transforming the mode of development, optimizing the economic structure and transforming the growth
engine, high-quality development is still the core of the new era. As the domestic consumer goods industry continues to experience technology
upgrading, structural adjustment and market segmentation, players in the industry proactively adapt to changes in the consumption environment,
demonstrating the strong resilience and development potential of the domestic consumer market.
During the reporting period, the Central Committee of the Communist Party of China, the State Council and relevant ministries and commissions
also successively proposed the policy of “supporting the trade-in of household appliances and other durable consumer goods”, supporting the
construction of a recycling system for used household appliances and furniture, and other renewable resources, assisting local governments in
promoting the trade-in of household appliances and other durable consumer goods, actively expanding domestic demand, and leveraging the
fundamental role of consumption in driving economic growth.
Although the competition in the small household appliance industry, in which the Company operates, continues to intensify, the market
concentration of leading brands is still relatively high. At the same time, new brands are rapidly emerging by virtues of innovative technology and
Internet marketing, promoting rapid iteration and change in the industry. Consumers are willing to pay a reasonable premium for high quality, high
value, cost-effective small household electrical appliances with health and wellness, especially those personalization, intelligence, environmental
protection and environmental friendliness.
Space Technology: Quality Technology Leading to New Life
This April, Joyoung launched the space technology 3.0 series of products including the 0-coating non-stick rice cooker 40N9U Pro, the water
purifier with heating function R5 Pro, and the multi-functional high-speed blender Y8 at its new product launch event in Shanghai celebrating the
30th anniversary of the starting of Joyoung.
Space Technology 3.0: 0-Coating Non-stick Rice Cooker 40N9U Pro
To make great rice, Joyoung upgraded its new dual-core air-cooling system and added far-infrared top heating, which can better achieve precise
temperature control of the rice. It can also adjust rice texture from soft to hard to meet the personalized needs, and currently supports “one-touch”
intelligent customized cooking for 8 types of rice, all in the pursuit of returning to the “original intention” of a bowl of rice - “delicious”!
From the air-cooling water film technology to the dot-matrix micro-pit technology, and now to rice grain activation suspension chamber technology,
Joyoung’s 0-coating non-stick rice cooker has gone through three iterations of technology. 40N9U Pro achieves a better non-stick effect than the
2023 model, allowing rice to “levitate” on the inner liner. The surface of the inner liner has been upgraded with 8k mirror stainless steel, which is
smoother and easier to clean. The hardness of ultra-hard stainless steel used is 3.5 times that of 316L stainless steel, and after 200,000 times of
machine tool wear-resistance test, it is equivalent to maintain non-stick after 30 years of use.
Space Technology 3.0: Water Purifier with Heating Function R5 Pro
Joyoung is committed to promoting the technical implementation and upgrading of space technology in household water purifier products with
antibacterial zinc oxide material. Considering that flowing water still carries the risk of bacterial growth, The Company's newly released water purifier
with heating function R5 Pro adds up an extra barrier - pasteurized circulation sterilization technology, to achieve a “three-in-one” whole chain
antibacterial system including the filter, pipeline, and pasteurized cycle sterilization, effectively solving the potential risk of bacterial growth in water
purifier pipeline.
Not only that, R5 Pro also adopts the latest generation of instant large flow heating technology, capable of filling a 150ml cup with boiling water
in just 6 seconds, and with warm water in less than 2 seconds. R5 Pro also provides a 6-year long-lasting filter, superimposed on the AI intelligent
filter life monitoring system. In areas of good water quality, filter’s life could be extended to 7 to 8 years. R5 Pro may be a product that can change
the business model of the water purifier industry.
Space Technology 3.0: Multi-functional High-speed Blender Y8
Joyoung independently developed the BlenderX grinding system, which is equipped with frequency conversion brushless motor with strong
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Joyoung Co., Ltd. Abstract of the Semi-Annual report 2024
power, accompanied with sound insulation cabin space technology, to achieve a better light sound effect. The Company also pioneered fully automatic
“wash and dry” function including high-pressure spray washing, high-temperature steam washing, high-speed stirring washing and high-temperature
cycle drying, to achieve immediate dry and cleanliness after wash. Under the premise of a sterilization rate as high as 99.99%, it can effectively inhibit
bacteria for 72 hours.
Y8 can not only make the rough texture of cereal milk become silky smooth-like milk, but also achieve stepless adjustable grinding direction
and speed, so that the food retains its granularity and high fiber to meet the needs of different people in the family. The Company's independently-
developed “new wise pupil remote sensing technology” allows the machine to continuously simmer without overflowing while rapidly heating up, so
that the food continues to boil at the optimal extraction temperature.
Going with the Flow: The New Standard for Content Scenarios
As young people gradually became the mainstream consumer group of the new era, the Company's brand positioning, communication methods
and experience scenes in stores also became more and more youthful, fitting for the mainstream consumers. And the active, accurate and efficient
communication of the whole chain can help the Company reach more target groups which is beneficial for improving the conversion rate of the chain,
and introduce original intelligent technology products to more families.
According to data from the National Bureau of Statistics, in the first half of the year, total retail sales of consumer goods amounted to 23.60
trillion yuan, an increase of 3.7% year-on-year. Among them, household electrical appliances and audio-visual equipment increased by 3.1% year
on-year, 2.1 percentage points higher than that of the same period of the previous year. With the steady increase in residents' income, consumer
goods trade-in policy guided the orderly release of residents' consumption potential, playing a certain “catalytic” role in promoting the growth of durable
consumer goods such as automobiles, home appliances, and continuously enhancing the people’s sense of happiness and fulfillment.
Domestic retail channels are changing rapidly, and the online and offline channels are ever-changing. The Company continues to actively
layout and expand emerging channels, coordinates the development of shelf e-commerce and content e-commerce, Shopping Mall new retail and
markets in lower-tier cities, grasps the opportunity of content e-commerce, focuses on the development of content e-commerce platforms such as
Xiaohongshu and Douyin, and establishes professional teams such as user research, data analysis, content creation, live video broadcasting, and
editing, directing, and filming, etc., and gradually forms the complete live broadcasting matrix and the closed loop of “interested - purchase – share”.
By these ways, the Company accumulated more new users and new customer as the NPS lifted.
At the same time, the Company has also strengthened the construction of retail terminals such as training shopping guide teams to carry out
scenario-based demonstrations and do live streaming. Relying on self-developed digital platform, the Company has built a more comprehensive,
efficient and accurate O2O digitalized marketing and operation system covering omni channels, especially emerging channels, which will
comprehensively enhance the ability of its retail sales.
In order to better reach users, serve consumers and comply with the market development trend, during the reporting period, the Company also
focused on the development of online direct-to-consumer channel, which not only brings the Company closer to consumers, users and followers, but
also contributes to the Company's long-term sustainable and high-quality development.
Insist on Innovation: Never Forget the Original Intention of Health
In 1994, Joyoung invented the first fully-automatic home soymilk maker. Over the past 30 years, Joyoung has accumulated 13,181 patents,
among which more than 700 are invention patents. Every technological breakthrough and product innovation represents Joyoung’s deep
understanding of consumers’ need for a healthy life and the craftsmanship of its products. Joyoung has entered more and more families with its
products as a good helper for people's healthy life.
As a leading brand in the domestic small home appliance industry, Joyoung is full of confidence in its future development prospects and strives
to enhance its professional and efficient operational capabilities to keep pace with the times. While continuously launching innovative technology
products that lead the industry development trend, the Company has also increased its investment in innovative technologies in the entry-level price
segment to differentiate itself from the competition and strive to increase the NPS value of the company's brand, market share, category penetration
and product penetration rate.
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Joyoung Co., Ltd. Abstract of the Semi-Annual report 2024
"Health" and "innovation" are not only the DNA of the Joyoung brand, but also the inheritance of the Company's values. Through continuous
technology and product innovation, efficient digital user communication and product implementation, and fast and precise marketing strategies, the
Company captures new market demands in a timely manner and responds quickly to meet the user's needs for high-quality small home appliance
products.
Insisting on providing innovative products with healthy materials, the Company provided convenience for Joyoung users’ “family kitchen”,
provided nutritional meals for more than 500,000 rural children in more than 1,500 “public welfare kitchens”, improved the quality of food and water
for astronauts in China's space station.
In the future, the Company will continue to strengthen the brand asset value of “Family Kitchen” + “Hope Kitchen” + “Space Kitchen” and adhere
to the development of small household appliances such as kitchen appliances, water appliances, cleaning appliances, personal care appliances and
cookware, actively embrace the changing market environment, continue to give full play to the advantages of insight into consumer demand and
quick respond, adhere to the retail sales-driven, comprehensive development of emerging channels, and is committed to building the Company into
a leader in high quality small home appliances in all categories.
3. Core Competence Analysis
For details, please refer to the 2023 Annual Report.
4. Key Accounting Data and Financial Indicators
Whether the Company performed a retroactive adjustment to or restatement of accounting data
□Yes √No
H1 2024 H1 2023 Flux
Operating revenues (RMB Yuan) 4,386,653,704.23 4,317,600,554.64 1.60%
Net profits attributable to shareholders of the Company (RMB Yuan) 175,392,648.58 247,159,357.70 -29.04%
Net profits attributable to shareholders of the Company before non-
211,300,336.32 226,146,160.01 -6.56%
recurring gains and losses (RMB Yuan)
Net cash flow from operating activities (RMB Yuan) 227,260,930.12 336,547,705.76 -32.47%
Basic earnings per share (RMB Yuan /share) 0.23 0.33 -30.30%
Diluted earnings per share (RMB Yuan /share) 0.23 0.33 -30.30%
Decrease by
Weighted average return on net assets 4.96% 7.33%
2.37 pct.
As of 30 June, 2024 As of 31 December, 2023 Flux
Total assets (RMB Yuan) 7,672,617,856.82 7,612,080,030.42 0.80%
Net assets attributable to shareholders of the Company (RMB Yuan) 3,565,341,465.31 3,471,347,161.90 2.71%
5. Number of Shareholders of the Company and Their Shareholdings
Unit: share
Total number of common shareholders at the Total number of preferred shareholders with resumed voting
43,030 0
end of the Reporting Period rights at the end of the Reporting Period (if any)
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Joyoung Co., Ltd. Abstract of the Semi-Annual report 2024
Top 10 common shareholders（excluding lending and transfer of shares business）
Total shares Number of Pledged or frozen shares
Nature of Shareholding
Name of shareholder held at the restricted
shareholder percentage Status Number
period-end shares held
Domestic non-
Shanghai Lihong Enterprise Management Co.,
state-owned 50.13% 384,523,746 0 N/A 0
Ltd.
corporation
Foreign
BILTING DEVELOPMENTS LIMITED 16.94% 129,924,090 0 N/A 0
corporation
Joyoung ESOP Plan (Phase 1) Others 2.09% 16,000,000 0 N/A 0
Foreign
Hong Kong Securities Clearing Co., Ltd. 1.81% 13,872,582 0 N/A 0
corporation
State-owned
Central Huijin Investment Ltd. 1.46% 11,201,233 0 N/A 0
corporation
China Universal Asset Management Co.,Ltd -
Others 1.09% 8,361,510 0 N/A 0
Social Security Fund Portfolio No.423
China Life Insurance Co., Ltd.-Traditional-
Others 1.02% 7,798,088 .0 N/A 0
General Insurance Product - 005L - CT001 SH
CPIC-Dividend-Personal Dividend Others 0.40% 3,045,512 0 N/A 0
PICC P&C-Traditional-General Insurance Products Others 0.33% 2,512,340 0 N/A 0
National Social Security Fund Portfolio No. 101 Others 0.26% 2,031,792 0 N/A 0
In April 2019, the shareholding structure of BILTING DEVELOPMENTS LIMITED changed. MR.
Xuning WANG, the actual controller of the Company, became the actual controller of BILTING
DEVELOPMENTS LIMITED (See Report No. 2019-027 of the Company on
www.chinainfo.com.cn.). As a result, Shanghai Lihong Enterprise Management Co., Ltd. and
BILTING DEVELOPMENTS LIMITED, both controlled by Mr. Xuning WANG, are defined as acting-
in-concert parties by the Administrative Measures for the Takeover of Listed Companies.
Other than the aforementioned related and acting-in-concert parties, the Company is uncertain
Related or acting-in-concert parties among
shareholders above about whether there are related or acting-in-concert parties among shareholders above.
In July 2024, BILTING DEVELOPMENTS LIMITED changed its name to JS Global Capital
Management Limited, which is still a party acting in concert with the controlling shareholder of the
Company, Shanghai Lihong Enterprise Management Co., Ltd. The aforementioned change does
not involve any equity change of the Company’s controlling shareholder and has no impact on the
Company's operating activities, and there has been no change in the Company's controlling
shareholder and de facto controller.
Explanation on common shareholders
participating in securities margin trading (if N/A
any)
The number of ordinary shares held in the repurchase specialized account of Joyoung Co., Ltd. at
Notes on the existence of repurchase
specialized accounts among the top 10 the end of the reporting period was 4,000,000 shares, accounting for 0.52% of the total share capital
shareholders (if any) of the Company.
Shareholders holding more than 5% of shares, top 10 shareholders and top 10 shareholders with non-restricted shares outstanding
participating in the lending and transfer of shares business
□ Applicable √ Not applicable
Top 10 shareholders and top 10 shareholders with non-restricted shares outstanding changed from the previous period due to
lending/repatriation in the lending and transfer of shares business
□ Applicable √ Not applicable
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Joyoung Co., Ltd. Abstract of the Semi-Annual report 2024
6. Change in Controlling Shareholders or Actual Controllers
Change in controlling shareholder during the reporting period
□Applicable √ N/A
There was no change in controlling shareholder of the Company during the reporting period.
Change in actual controller during the reporting period
□Applicable √ N/A
There was no change in actual controller of the Company during the reporting period.
7. Total Number of Preferred Shareholders and TOP 10 Preferred Shareholders and Their Shareholdings
□Applicable √ N/A
The Company had no preferred shareholders holding shares during the reporting period.
8. Bonds in Existence at the Date of Approval for Filing of the Semi-annual Report
□Applicable √ N/A
Section III. Important Matters
None
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