Abstract of Annual Report 2018
Stock Code：002242 Stock Abbreviation：Joyoung
Joyoung Co., Ltd
Abstract of Annual Report 2018
一、Important Statements
This report is an abstract of annual report 2018. Investors are kindly reminded to read the complete version
of Annual Report 2018 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.
In the event of any discrepancy between the abstract and the full document of annual report, the full
document version shall prevail.
Board of Directors has considered and approved the preliminary plan of dividend distribution for common
shareholders as below: based on 767,371,000 shares, the Company will distribute cash dividends 8.00 yuan RMB
(before tax) for every 10 shares to all shareholders, as well as 0 bonus shares (before tax). There are no capital
reserves converted into share capital.
The preliminary plan for dividend distribution for preferred shareholders in reporting period was approved
by the Board
□Applicable √ Not Applicable
二、Company Profile
1、Corporate Information
Stock Abbreviation Joyoung Stock Code 002242
Stock Exchange
Where the Shares of
Shenzhen Stock Exchange
the Company are
Listed
Contract Board Secretary Securities Representative
Name Run HAN Minxin MIAO
No.760 Yinhai Street, Jianggan District, No.760 Yinhai Street, Jianggan District,
Address
Hangzhou, Zhejiang Province Hangzhou, Zhejiang Province
Tel. 0571-81639093 0571-81639178
E-mail 002242@joyoung.com 002242@joyoung.com
2、Business Review in the reporting period
During the reporting period, the company continued to develop, produce and sell kitchen appliances,
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Abstract of Annual Report 2018
adhered to the development strategy of “positioning the kitchen, upgrading the kitchen”, and committed to
improving the kitchen environment and changing the cooking methods of Chinese.
The company's main business model is to research and develop independently, design, sell small household
appliances. With people's yearning for a better life, pursuit of quality life, and the in-depth promotion of
consumption upgrades, the demand for exquisite, convenient and high-quality small household appliances has
increased. During the reporting period, the company's main business model did not undergo major changes.
The company is at a mature development stage, and there is no obvious cyclical characteristics. The
company's main products are among the top three in the industry.
3、Core Competence Analysis
1）Brand Advantage-Enjoy Health, Start Again
Joyoung has always been a leading brand in the field of small kitchen appliances. As a company that
invented the soymilk maker and started from it, Joyoung has been focusing on the researching, developing,
producing and selling kitchen appliances for healthy diet. After development of 25 years, the company has
accumulated a plenty of excellent suppliers and distributors, strong R & D team and excellent industry reputation,
establishing a good brand image of the company in the industry, and gradually transform brand image from
“Joyoung is equal to Soymilk Maker” to “Joyoung is equal to small home appliances for quality life”.
In the past 25 years, “health” and “innovation” have become the DNA of Joyoung. The company is
committed to using the "Chinese innovation to change the Chinese kitchen", creating a smart, convenient, open,
smoke-free Chinese kitchen for Chinese, meeting the needs of consumers in the new era. During the reporting
period, the company launched new products such as the hand-washing free automatic soymilk maker, mute high
speed blender, water-cooled pressure cooker and small red rope mug.
At present, the company's main products include soymilk maker, blender, rice maker, electric cooker,
noodle maker, slow juicer, pressure cooker, induction cooker, water heater, water purifier, dishwasher, cooking
machine, oven, range hood. There are more than 200 products within 20 categories. Among them, soymilk
maker, blender, juicer, noodle maker and air fryer range top 1 in the market and other products also range top 3
in the market.
2）Channel Advantage - Integrate Online and Offline
The company has been deeply involved in the small household appliance industry for many years, mainly
adopting the dealer system with distribution network and customer resources all over the country, linking
customers with food, providing them with good cooking experience, showing the product "zero distance" in
front of consumers and promoting impulsive consumption.
In 2018, the company achieved better development both online and offline. Based on the original more
than 40,000 sales terminals nationwide, the company has continuously improved its sales network and actively
explored new retail business. During the reporting period, there were dozens of “Home of Joyoung” in the
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Abstract of Annual Report 2018
Shopping Mall, hundreds of brand flagship stores, brand experience stores, brand stores and other stores, to
achieve coverage of different levels of the market with three-dimensional sales.
The company maintained a high growth rate on its traditional online channels which has become an
important part of revenue source. In order to carry out the new retail model under mobile internet environment
such as O2O (Online to Offline), the Company was actively integrating online channel with offline channel to
form a new retail model. The company built a team to analyze new retail, new media, big data and wireless
applications as well as was developing a retail system to provide service for flagship stores and experience stores.
Joyoung strived to provide a smart one-stop shopping service for consumers through the process of data
monitoring and sharing, fans interaction, customer attraction, scan payment and delivery.
3）Operating Advantage – Connect Fans Online and Offline
In 2018, the company continued to adhere to the road of quality, highlighting the value of innovation,
making products more valuable and has a good sense of design, upgrading from function to feeling. The
company not only seize the growth channel, but also make the channel more efficient and make terminal
provide better experience. In 2018, the company made a breakthrough in the construction of brand stores,
especially in the high-end commercial body such as Shopping Mall. Users are at the core. The company has
gathered more than 20 million user fans through WeChat, Weibo, shop terminals, after-sales outlets, etc. How
to serve existing users and attract more fans means a huge opportunity.
In 2018, the company held dozens of "Human-Machine Wars" activities nationwide to promote meal maker,
and held the "China Broken Cellwall Festival" to promote the products of broken-wall high speed blender,
actively exploring the trial of e-commerce live broadcast, fan classrooms, and devices-food combination, strive
to achieve high value conversion of user data.
4）Technology Advantage – Smart Life, Innovation Technology
With the improvement of consumers' quality of life and consumption, the demand for high-quality,
intelligent household appliances is created. Through data mining and user experience information collecting, the
company continuously introduces products that solve the “pain points” in user life through the self-built
three-level research and development system. With the application of new technologies such as small programs
in WeChat and Internet of Things, the company strives to create healthy, intelligent, convenient and open
Chinese kitchen space.
The smart product can improve the user's convenience and comfort, reduce the energy, physical strength,
time and other costs of the user, and enhance the user's enjoyment, convenience and sense of accomplishment
in the process of use, thereby realizing the value of the product and the brand. The company has launched
market-oriented products to meet the needs of different consumer groups, tapping market capacity and
maintaining a steady increase in the company's market share.
The company also develops a new network operation and maintenance support platform by using PTS
product quality traceability, WMS warehouse management and other modern information systems to realize
intelligent and ecological integration of software and hardware. It realizes the functions of equipment
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Abstract of Annual Report 2018
management, remote control, information collection, fault diagnosis and information push, realizing real-time
expert interaction help with image function, pre-sales and after-sales service.
4、Key Accounting Data and Financial Indicators
（1）Key Accounting Data and Financial Indicators of the last three years
Whether the Company performed any retroactive adjustment or restatement of previous years' accounting data:
□ Yes √ No
Unit：RMB Yuan
FY2018 FY2017 Flux (%) FY2016
Operating revenue 8,168,708,704.23 7,247,524,855.71 12.71% 7,314,804,589.33
Net profit attributed to
754,255,160.96 688,918,657.33 9.48% 697,726,767.34
shareholders of the Company
Net profit attributed to
shareholders of the Company
569,149,447.51 605,300,787.82 -5.97% 596,541,931.17
before non-recurring gains
and losses
Net cash flow from operating
408,700,191.24 48,903,264.69 735.73% 1,006,736,608.98
activities
Basic earnings per share
0.99 0.90 10.00% 0.91
(RMB Yuan/share)
Diluted earnings per share
0.99 0.90 10.00% 0.91
(RMB Yuan/share)
Weighted average ROE (%) 20.70% 18.40% 2.30% 21.36%
FY2018 FY2017 Flux (%) FY2016
Total assets (RMB Yuan) 6,660,086,381.54 5,350,746,142.18 24.47% 5,592,562,970.47
Net assets attributable to
shareholders of the 3,810,291,395.62 3,574,555,421.97 6.59% 3,444,009,901.47
Company(RMB Yuan)
（2）Quarterly accounting data
Unit：RMB Yuan
2018Q1 2018Q2 2018Q3 2018Q4
Operating revenue 1,568,115,691.64 2,071,473,417.82 1,798,543,653.86 2,730,575,940.91
Net profit attributed to
shareholders of the 147,001,251.42 223,039,120.70 199,167,030.05 185,047,758.79
Company
Net profit attributed to
shareholders of the
Company before 141,899,333.07 150,619,728.93 172,822,292.08 103,808,093.43
non-recurring gains and
losses
Net cash flow from 126,015,945.57 97,571,168.77 194,875,852.20 -9,762,775.30
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Abstract of Annual Report 2018
operating activities
Whether there are significant differences between the above financial data or the total value with the previous
quarterly, semi-annual reports which had been disclosed previously.
□ Yes √ No
5、Shareholders and shares
（1）Number of common shareholders and preferred shareholders with voting rights, top 10 shareholders
Unit: Share
Total
Total number of
number of Total number of preferred
Total number of common preferred
common shareholders with veto
shareholders one month shareholders
shareholders 33,753 33,354 0 rights one month before 0
before the end of with vote rights
at the end of the end of Reporting
Reporting Period at the end of
Reporting Period
Reporting Period
Period
Top 10 common shareholders
Total shares Number of Pledged or frozen
Nature of Shareholding shares
Name of Shareholder held at the restricted
Shareholding percentage
period-end shares held Status Number
Shanghai Lihong Domestic Pledged 320,403,436
Management Company non-state-owned 50.10% 384,523,746 0
Limited corporation Frozen 0
BILTING DEVELOPMENTS Foreign
16.93% 129,924,090 0
LIMITED corporation
State-owned
Central Huijin Investment Ltd 4.99% 38,310,500 0
corporation
National Social Security Fund Other domestic
1.63% 12,535,271 0
No.113 investor
Basic Pension Insurance Fund Other domestic
0.83% 6,354,209 0
No.1207 investor
Basic Pension Insurance Fund Other domestic
0.74% 5,647,492 0
No.1005 investor
Hong Kong Securities Foreign
0.44% 3,390,131 0
Clearing Company Ltd corporation
Agricultural Bank of China
Other domestic
Limited - CSI 500 Exchange 0.42% 3,255,481 0
investor
Traded Fund
Basic Pension Insurance Fund Other domestic
0.42% 3,247,212 0
No.1206 investor
Domestic
Jianping QIU 0.38% 2,907,440 0
individual
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Abstract of Annual Report 2018
The Company is not sure whether there are related or
Related or acting-in-concert parties among acting-in-concert parties among shareholders above, which is
shareholders above defined by the “Administrative Measures for the Takeover of
Listed Companies”.
Explanation of common shareholders
‘participation in securities margin trading (if N/A
any)
（2）Disclose the property rights and control relationship between the company and the actual controller in
block diagram form
三、Discussion and Analysis of Operation
1、Business Performance Review in the reporting period
Whether there is any industry specific information disclosure rules that the company is required to compile with.
□ Yes √ No
In the context of consumption upgrading, in order to meet the needs and aspirations of residents for a
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Abstract of Annual Report 2018
better life, the company adheres to the brand road, firmly promotes the business philosophy of value marketing,
and strives to improve the company's profitability and brand influence.
At present, 80’s, 90’s has become the main consumer group. Young people mainly rely on online shopping
and accept new things, new models, new lifestyles faster, so the company is also actively exploring new
categories and new retail. The company will explore the integration of online and offline to the greatest extent
and achieve a steady development of the market scale.
The company achieved operating income of 8,168.7 million yuan in 2018, an increase of 12.71% over the
previous year. Among them, food processing machine, nutritional glutinous products and Western-style
electrical products all achieved good growth while the induction cooker products and other products maintained
a stable development. The company's product structure was continuously optimized, and the dependence on
single products continued reduced.
In 2018, the company's operating costs were 5,544.2 million yuan, an increase of 14.19% year-on-year. The
company's gross profit margin decreased by 0.88 percentage year-on-year;
In 2018, the company's sales expenses were 1,376.7 million yuan, up 25.97% year-on-year, the sales
expense ratio was 16.85%, up 1.77% over the same period; the management expenses were 310.3 million yuan,
an increase of 8.22%, and the management expense rate was 3.80%, down 0.16 percentage year-on-year; the
R&D expenses were 297.6 million yuan, an increase of 11.66% year-on-year.
In 2018, the company realized a total profit of 871 million yuan, an increase of 6.53% over the previous year;
the net profit attributable to shareholders was 754.3 million yuan, an increase of 9.48% over the previous year.
In 2018, the company's net cash flow from operating activities was 408.7 million yuan, up 735.73% over the
previous year, mainly due to the increase of operating revenue.
During the reporting period, the company continued to focus on the small household appliance industry,
in-depth exploration of online and offline integration, continued to promote the diversified strategic
development of the kitchen business, and constantly committed to transforming brand image from “Joyoung is
equal to Soymilk Maker” to “Joyoung is equal to small home appliances for quality life”. At the same time, in
2018, the company realized the transformation of “going out of the kitchen and entering the living room” by
investing in SharkNinja(China) Technology Co., Ltd., and realized the expansion of the company's product line to
the field of household cleaning and small household appliances.
1）Value marketing enhanced brand image
In the reporting period, Joyoung continued to shape brand image, produce high-quality products and adopt
value marketing strategy. Joyoung not only was selected as one of the brands in the “National Brand Plan”
launched by CCTV so to add advertisement on multiple channels of CCTV, but also cooperated with Youku in
advertising and promoting during the World Cup on Youku’s live game and replay channels. Besides, Joyoung also
launched more promotion and advertisement through various channels such as outdoor media, vertical media
and social media to carry out value marketing accurately, which was very beneficial to improve brand awareness
and increase brand value. It also attracted people’s attention and improved their purchasing willingness.
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Abstract of Annual Report 2018
The company adheres to experiential marketing. Online operations are mainly created and discussed
through Internet topics and directly interact and communicate with users, consumers and fans. Directly connect
users with new media and new technologies, maintain and operate tens of millions of fans, and actively explore
fans under the Internet. The economy is striving to turn traffic into purchasing power and form a “closed loop
from communication to sales”.
2）Multi-channels
In 2018, Joyoung proactively expanded its offline channels with “customer focused” strategy. The company
not only renovated retail stores, developed channels in the commercial complex such as Shopping Mall, but also
built channels including “Home of Joyoung” in Shopping Mall, flagship stores, brand experience stores and
specialty shops. In 2018, several hundreds brand stores have been established. Therefore, an all-dimension
channel network covering different markets was gradually established.
The Company maintained a high growth rate on its traditional online channels which has become an
important part of revenue source. In order to promote the new retail business and integrating online channel
with offline channel, the company not only built more offline brand stores but also operate “Joyoung Official
flagship Store” directly in Tmall platform, achieving the experience of take a try offline, take an order online,
delivery from the nearest place to customer’s home. The Company also built a team to analyze new retail, new
media, big data and wireless applications as well as was developing a retail system to provide service for offline
and online integration.
3）More Research, Better product
Since the establishment, the company has always attached great importance to the reserve and output of
technology development. In 2018, research and development expenses of the company were 297.7 million yuan,
an increase of 11.66% year-on-year. The company explored forward-looking innovative technologies, improved
R&D systems and introduced high-end R&D talents to effectively promote technological progress and innovation.
During the reporting period, the company received 1,204 new patent applications, including 186 invention
applications, 1,110 utility models and 179 design applications. As of the end of the reporting period, the
company had 5,217 patents in total, including 235 invention patents, 4,196 utility patents and 786 design
patents, which has laid a solid technology foundation for the company's future development.
The company's self-built three-level research and development system continuously meets the needs of
consumers who want small appliances for high-quality life, and responds quickly to ensure that the product is
updated. The company invest heavily in R&D, always produce high quality products and enhance brand value.
Then more consumers would regard Joyoung as an innovative, valuable and reliable brand, which help the
company grow steadily.
2、Whether there is any significant change in the main business during the reporting period
□ Yes √ No
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Abstract of Annual Report 2018
3、Products information accounting for 10% of the company’s main revenue or profit
Unit：RMB Yuan
Gross Revenue Flux Gross margin
Product revenue profit Profit Flux (%)
margin (%) Flux (%)
Food processor
3,408,350,266.71 1,329,597,439.04 39.01% 8.21% 4.06% -1.56%
appliance
Nutrition pot 2,739,942,682.12 713,755,068.69 26.05% 18.74% 16.76% -0.44%
Western
electric 1,075,257,494.84 348,383,428.33 32.40% 20.99% 30.17% 2.29%
appliance
4、Existence of seasonal or cyclical characteristics of operations requiring special attention
□ Yes √ No
5、Significant changes compared with the previous total amount or the components for revenue, cost, and the
net profit attributed to the equity owners.
□Applicable √Not Applicable
6、Suspension and termination of listing
□Applicable √Not Applicable
7、Matters related to financial reports
（1）Changes on accounting policy, Accounting estimates and Accounting methodology compared with the
last year
The company prepared the 2018 Annual report according to the (caikuai[2018]No.15)associated
with its explanation, also comply with the Accounting standards for enterprises, this accounting policy changes
is subject to retroactive adjustment。The financial items and amount in 2017 should be restated as followed,
Previous Restatement
Notes Receivable 1,718,459,801.97Notes receivable and Accounts
1,846,990,968.97
Accounts Receivable 128,531,167.00 receivable
Interest Receivable 2,662,794.52
Other Receivable 29,848,168.74
Other Receivable 27,185,374.22
Fixed Assets 631,189,103.17
Fixed Assets 631,189,103.17
Disposal of Fixed assets
Construction in Process 568,244.33
Construction in Process 568,244.33
Engineering Materials
Notes Payable 8,040,000.00 Notes Payable and Accounts
1,027,907,537.76
Accounts Payable 1,019,867,537.76 payable
Interest Payable Other payable 214,119,818.33
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Abstract of Annual Report 2018
Divident Payable
Other Payable 214,119,818.33
General and Administration
286,729,225.06
General and Administration expense
553,312,102.58
expense Research and Development
266,582,877.52
expense
Notes：Individual tax commission refunds adjusted from non-operating income to other earnings, this accounting
policy change is retroactive, then reduce the non-operating income RMB 1,348,230.15 yuan, and increase the
other earnings RMB1,348,230.15yuan in FY2017。
（2）Statement of significant accounting errors that requiring retroactive restated during reporting period
□Applicable √Not Applicable
（3）Statement of changes in the scope of consolidated statements compared to the previous period
1. During the reporting period, the company sold the 100% shares of Suzhou Jiuyang Company. This company has
not been included in the scope of consolidation since June 2018.
2. During the reporting period, Hangzhou Jiuyang Company has been absorbed and merged by Onondo company,
and has not been included in the scope of consolidation since January 2018.
3. During the reporting period, the company acquired 51% shares of SharkNinja (China) Company, which
completed in September 2018, then incorporated into the scope of the company's consolidation that month.
4. During the reporting period, the company established the new company: Jinan Jiuyang Real Estate Company, a
wholly-owned subsidiary company, has been incorporated into the scope of the consolidation since its
establishment.
5. During the reporting period, Shandong Soybean Company, a subsidiary of the company, completed the
cancellation of industry and Commerce and was no longer included in the scope of the consolidation of the
company.
（4）The forecast of Operating Performance in 2019 Q1
□Applicable √Not Applicable
四、Prospects for the future development
1、External environmental analysis
In 2018, China’s economic development faced severe challenges from the external environment and
economic transformation. Under the strong leadership of the Party Central Committee with General Secretary
Xi’s secretary, China’s economic development was generally stable and stable on a high base. People's lives
continue to improve. Earlier, the 19th National Congress report also pointed out that the main contradiction in
Chinese society has been transformed into "the contradiction between the people's growing need for a better
life and the development of inadequate balance." This shows that the main goal of the residents in the past is to
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Abstract of Annual Report 2018
seek food and clothing, and to continue to pursue a better life. Future residents need not more consumer goods,
but healthier, more beautiful and more sophisticated consumer goods. The upgrading and transformation of
consumption will also become the main driving force for economic development.
As the small household appliance industry enters the big cycle of consumption upgrading, it is expected
that the small household appliance industry will continue to improve in the next few years, and there is much
room for development and improvement. This also urges small household electrical appliance enterprises to
actively cater to the preferences of the young main consumer groups, and launch "high quality, high value, high
value" products. As a leading brand in the domestic small household appliance industry, the company has fully
researched and prepared the market status. After more than two years of taking the road of quality, brand road,
value marketing and value ascending, the company has accumulated rich and valuable experience. In the future,
we will continue to adhere to the development of two-wheel drive of products and channels.
2、future development strategy and business plan
The company will continue to focus on the main business, adhere to the strategy of “positioning the kitchen,
upgrading the kitchen”, strengthening the strategy of value marketing, focusing on the development of products
and superior products in the market, and promoting the development of new categories through innovation.
In March 2019, the company released a new brand proposition "Enjoy Health", which means that the brand
Joyoung is officially embracing youth. The company hopes to make healthy lifestyle full of joy and attraction, as
well as convenient and comfortable, and give consumers maximum nutrition with minimum efforts and
enjoyable experience, through light and fashionable products, smart and convenient experience, scientific
combination of machines and ingredients. At the same time, the company also launched K series hand-washing
free soymilk maker (K1s, K mini, Ksolo), the world's first hand-washing free high speed blender Y88, the new
species in rice maker category, steaming rice cooker S5 and a lot of new products to provide consumers home
appliances for high quality life.
On the basis of steady development of the existing main business, the company cooperated with
SharkNinja in 2018. At present, the synergy effect of the cooperation between the two parties is gradually
enlarged, which not only makes the company officially enter the domestic high-end household cleaning electrical
appliances field, but also increases the company's overseas sales. The scale of income. In 2019, Shark will
continue to innovate for the Chinese market, focusing on the cleaning methods of Chinese households,
upgrading and launching the whole house cleaning solution products, such as the main large-scale villa machine
A7, stubborn cleaning products steam sterilization mop / steam cleaning Machines, local instant cleaning
products, hand-held and new products such as sweeping robots.
On the channel side, the company will continue to vigorously promote the construction of high-end
commercial complex stores and brand stores such as Shopping Mall. In 2019, the company will open hundreds of
new brand stores nationwide, fully embrace new retail and strive to improve its own channels. The store's
revenue share,providing consumers with a stylish, technology, warm shopping environment and a good
consumer experience.
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Abstract of Annual Report 2018
In the future, the company will continue to explore and promote the development of extension, find
suitable expansion opportunities in the global home appliance field, and carry out strategic reserves of brands,
resources, products, technologies and talents for the company's future long-term development.
This Abstract of Annual Report 2018 is written in Chinese and English. In the event of any discrepancy
between two versions, the Chinese version shall prevail.
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