HANGZHOU, China, Oct. 29, 2020
- Joyoung's nine-month (9M) report shows a year-on-year 13.24% increase in revenue, with the net profit reaching RMB 644 million and the revenue surging by 22.07% year-on-year to RMB 2.52 billion in the third quarter.
- The strong growth in both revenue and profit highlights Joyoung's success in adjusting the product and sales strategies to offset the impact of the COVID-19 pandemic.
HANGZHOU, China, Oct. 29, 2020 /PRNewswire/ -- Joyoung (002242), a leading manufacturer of small kitchen appliances and subsidiary of JS Global (1691.HK), reported a total revenue of RMB 7.08 billion for the nine-month period in 2020, an increase of 13.24% compared to the same period last year. The revenue in the third quarter was RMB 2.52 billion, a 22.07% year-on-year growth. Net profits attributable to Joyoung's shareholders in the first nine months were RMB 644 million.
China's economy has demonstrated strong resilience in the context of the global pandemic, with the national GDP in the first three quarters growing by 0.7% compared to the same period last year. China's economic rebound is particularly fast in the third quarter when the quarterly growth turned positive for the first time in 2020 and rose by 4.9%. Against this backdrop, the domestic retail sales of consumer goods in Q3 started to show green shoots of recovery as the sales figure grew by 0.9% quarter-to-quarter, despite the overall retail slump in the first nine months due to the economic fallout of the coronavirus.
In the face of this complex and challenging market environment, Joyoung seized the market opportunity by promptly adjusting the product and sales strategies to meet the growing demand for online shopping. Meanwhile, Joyoung remains committed to delivering the best offline shopping experience at its brick-and-motor stores. The Company continued to expand its offline retail channels at shopping malls across China as offline consumption gain a rapid recovery after the COVID-19 outbreak was brought under control.
Joyoung continued to engage in the development of 5G mobile internet actively. Recognizing the trends in online shopping, the Company also strives to achieve a comprehensive digital transformation by integrating social e-commerce, online live streaming and online-to-offline retailing into its business.
To satisfy diversified customer demands for products featuring high added value, high quality, good design, and smart features, the Company has adjusted its product strategy by expanding "SKY series", including the K series self-cleaning cell-wall-breaking soymilk maker, the Y series self-cleaning cell-wall-breaking high-speed blender and the S series rice cooker with liner-free of inner-coating.
With this approach, the Company was able to further consolidate its market share in the mainstream categories. To attract consumers from younger demographics, the Company has been established multiple crossover collaborations by teaming up with Line Friends, Pokemon, Hello Kitty, Heytea and Doraemon, to create a wide array of cute and fashionable small kitchen appliances with different themes.
For the upcoming 'Double 11' shopping festival, the Company will collaborate with Tmall, a leading E-commerce site owned by Alibaba Group, to launch an online campaign during which the brand ambassador Deng Lun will bring many surprises to the customers including Joyoung's SKY series and many other small home appliances. The debut of the products will meet customers at the Westlake, where they will have a face-to-face opportunity to date and dine with a "holographic Deng Lun".