Description of the event

JS Global Life revealed 2022 results announcement: In 2022, the company achieved revenue of 5.041 billion US dollars, -2.12% (+0.7% at a fixed exchange rate), and achieved net profit of 332 million US dollars, or -20.98% year on year; in the second half of 2022, the company achieved revenue of 2,809 million US dollars, -3.51% over the same period last year, and achieved net profit of 168 million US dollars, compared to -25.86% year on year. Commenting on the incident, the SN segment's revenue stabilized in the second half of the year, and the Jiuyang division was clearly dragged down: Group/SN/Joyang received -2%/+0%/-8% in 22, respectively, and H2 received -4%/+0%/-13% respectively; after removing the influence of exchange rate fluctuations, the group received +1% throughout the year; among them, the SN segment maintained steady performance against the backdrop of marginal weakening consumer sentiment in North America and Europe, a was outstanding. Specifically, (1) the Shark brand H1/H2 was +2% +2% respectively. The increase in traditional categories and the increase in revenue from new categories and new markets effectively resisted the marginal weakening market sentiment: the US and UK market cleaning categories were +2.6/+1.2pct respectively; other categories represented by hair care and air purification H1/H2 were +13%/+22% respectively; H1/H2 in the European region was -6%/+9%, and Germany and law continued to expand in the new market; (2) Ninja brand H1/H21/H2 continued to expand; (2) Ninja brand H1/H21/H2/ -4%/-2% respectively, small kitchen The economy weakened and competition for cooking appliances was fierce. Ninja's share in the US cooking category was -1.2 pct, while the US share continued to grow. The H1/H2 cooking category was -2%/-8% respectively. H2 gross margin improved, and management and financial expense ratios increased: in '22, Group/SN/Jiuyang Maolifeng was -0.1/-0.9/+1.6pct respectively, and H2 was +1.3/-0.3/+5.2pct respectively; among them, the Joyang division achieved outstanding results; in the SN division, although tariff exemptions, marginal declines in raw material prices and sea freight rates increased gross margins, etc., due to inventory removal by North American retailers, the removal of inventories from North American retailers, and the average price of SN products also came under some pressure, at the cost level, sales expenses Compared to 2/22, respectively + D.8/was basically flat; in the second half of the year, the company paid some non-recurring bonuses, and market expansion led to personnel expansion. The management expense ratio in H2/22 was +2.5/+1.7 pct respectively; in addition, due to the US interest rate hike, the company's financial expense ratio was +0.6/+0.4pct in H2/22 respectively. Overall, the company's net interest rate attributable to the company in H2/22 was -1.8/-1.6pct year-on-year, and profits were under pressure. Operation is steady and on schedule, and profitability is expected to improve month-on-month: benefiting from faster and more effective new product iterations, effective investment on the marketing side, the SN division continues to increase its share of traditional categories such as cleaning and cooking; and the share increase in new categories such as personal care and air cleaning has also been significant; in addition, the European market is also expanding one after another. Driven by an aggressive expansion strategy, combined with superior operating strength, even if the consumer environment in Europe and the US clearly weakens marginal and market competitive pressure increases due to inventory removal in the North American market, the SN segment still maintains a relatively stable revenue scale. Overall, the driving force driving the revenue expansion of the SN division in 23 years is still solid. Combined with clear expectations for improvements in the Joyang division in 23 years, the Group can still look forward to steady expansion in the future; on the profit side, investment in management expenses etc. in 23 years is expected to return to normal, and the Group's profit is expected to decline in 23 years, when combined with the decline in costs such as sea freight. Capabilities can be expected to improve month-on-month - maintaining the company's “buyer” rating: in the second half of the year, The consumer sentiment in Europe and the US has once again weakened marginal. Against this background, the SN division's revenue has maintained steady performance, highlighting the company's superior competitive strength; the Joyang division's revenue growth pressure increased in the second half of the year, which was a burden for the group as a whole; on the profit side, due to increased terminal price competition and increased company management/financial expenses due to the removal of inventories by North American retailers, and increased company management/financial expenses, profitability declined. Looking at it later, the driving force driving the revenue expansion of the SN division remains solid. Combined with the Joyang Division's 23-year improvement expectations are clear, the Group can still look forward to steady expansion in the future; on the profit side, investment in management expenses etc. in '23 is expected to return to normal, compounded by declining costs such as sea freight, etc., and the Group's profitability can be expected to improve month-on-month. The results for 23 and 24 are expected to be +22% and +8% respectively, and the corresponding valuations are 8.9 and 8.2 times respectively, maintaining the company's “buyer” rating. Risk warning 1. Drastic changes in international trade policies;

2. Demand in the North American market is largely beyond expectations.