In the context of increasingly fierce competition in the small home appliance market, the established small home appliance company Joyoung's revenue declined in 2024, and profits came under pressure.

On Thursday, Joyoung released its full-year and fourth-quarter performance for 2024, specifically:

Financial performance: In 2024, revenue was 8.849 billion yuan, a year-on-year decline of 7.94%; net profit attributable to shareholders was 122 million yuan, a significant drop of 68.55%, with basic earnings per share of 0.16 yuan, reflecting the company's profit pressure.

Q4 revenue was 2.667 billion yuan, a quarter-on-quarter increase of approximately 48.58%; net profit was 24 million yuan, although the amount is not large, it showed significant improvement compared to the -773 million yuan in the third quarter, with a quarter-on-quarter increase of 131.53%.

Core business: The revenue from the small home appliance main business accounted for over 98%, with the food processing machine series and nutrition cooker series still being the main sources of income, but revenue from the Western appliance series declined significantly.

Strategic transformation: Focusing on online channels, actively laying out content e-commerce, and increasing R&D investment to maintain market competitiveness.

Future outlook: Focusing on the small home appliance main business, expanding the brand value of "home kitchen" + "public welfare kitchen" + "space kitchen," and seeking new growth points.

In addition, the company plans to distribute a cash dividend of 1.5 yuan (including tax) for every 10 shares.

Core business shows resilience

From the revenue structure, the traditional small home appliance main business remains Joyoung's "basic plate," accounting for over 98%. Among them, the food processing machine series and nutrition cooker series still account for the main sources of income, totaling 74.75% of total revenue. The revenue from the Western appliance series was 1.686 billion yuan, down 26.91%, with a gross margin of 25.36%, reflecting the fierce competition faced by emerging categories.

Joyoung is also working to adjust its product structure, attempting to improve overall profitability through differentiated products and mid-to-high-end products.

Channel transformation, marketing upgrade, and online-offline collaborative development

In the face of increasingly fierce market competition, Joyoung actively embraces channel transformation. In the annual report, the company emphasized the importance of online channels, actively laying out content e-commerce, forming professional teams, and building a self-broadcasting-focused live streaming matrix.

Last year, Joyoung's online sales accounted for 59.75%, but the gross margin for online sales was 28.15%, lower than the 21.58% for offline sales. Meanwhile, the investment in channel transformation has significantly increased sales expenses by 13.43% year-on-year.

This may indicate that while online channels are key to growth, how to improve the profitability of online channels remains a problem that Joyoung needs to solve In addition, against the backdrop of intensified industry competition, Joyoung insists on research and development innovation, continuously launching new products. During the reporting period, the company added 1,392 patent applications, with R&D investment of 361 million yuan, accounting for 4.08% of operating revenue, maintaining a high level. According to the annual report, Joyoung focuses on the mid-to-high-end market with its "Space Technology 3.0 Series" and has launched multiple innovative products. R&D innovation is key to maintaining the company's competitiveness