Dear analysts and investors, good morning. Welcome all of you to come to this 2025 annual conference of Global Investors. I am Zhang Hansha from our investment department, and this is conducted in Chinese. If you require English interpreting, please switch to this English channel. Because there are so many participants today, to ensure the order of the meeting, your line will be muted during the presentation. During the Q&A session, we will announce the instructions for asking questions. Please kindly change your name into institute with plus your name. Thank you so much for your cooperation and understanding. Before the meeting begins, I would like to make a few routine reminders. First, the conference will be recorded. The relevant meeting materials will also be published on the company's official website. You are welcome to review them after the meeting.
Second, the management's remark may contain forward-looking statements regarding future operations. Such statements are subject to uncertainty, and actual results may differ from those statements. We also may refer to some certain non-IFRS measures to better present business performance. Please refer to the definition and methodology provided. We will get this officially started. The agenda will be as follows. First, management will provide a brief overview of the annual results and business progress. Then we will come to the Q&A session to communicate with investors and analysts. Now, first, please allow me to introduce the company's management today. They are Executive Director, Chief Executive Officer, and Chief Financial Officer, Ms. Han Run. Chief Operating Officer and Head of Finance Office, Mr. Leon Liu . Head of Finance of this Joyoung division, Mr. Kan Jiangang. Now we will proceed.
We first have Ms. Han Run to make this opening speech, and she will also do this introduction about the key points about the annual operation.
Investors, good morning. Welcome you to come to this 2025 annual performance presentation, and thank you so much for your participation. First, please allow me to give an overview of the company's overall operating performance in 2025. In 2025, our group achieved a revenue of $1.26 billion, up by 4.1%, and gross profit was $534 million, up by 4.6%, and gross margin increased by 5.2% to 32.2%. From this adjusted basis, we also have this $524 billion of third-party revenue is up by 13.2%, with a corresponding gross margin of 33.5%, which is the net profit reached $31.1 million, representing a Y-o-Y increase of 338%.
As you can see that the business is actually very strong with the third-party business, a significant improvement, and we also can see that adjusted profitability is also very obvious. For the full year of 2025, the Joyoung division achieved a modest growth in domestic sales, supported by differentiation of the product. We also have some measures such as improved facility spend control and enhanced spend detour efficiency. It has also realized the profit recovery. SN APAC has also achieved this rapid growth of the revenue. Although we are still in the period of investment, its overall expense ratio has already been improved. It is evident that in 2025, while maintaining steady revenue growth, our group has also further enhanced the growth potential and earnings resilience of its core businesses. Looking at different markets, the Japanese market continues to maintain its positive development momentum.
In this, Japanese equivalence of the June quarter market shares, brand shares, and product competitiveness continued to improve. At the same time, company continues to launch new products in Japan, including upgraded portable blender and cooking appliances, further enriching the product portfolio of Ninja in Japan.
Our core categories in the Australia and New Zealand markets have also continued to perform strongly, mainly driven by strong performance of new products such as cordless vacuum cleaner, both in beverage makers and coffee machines. In other countries and regions across APAC, we are also actively expanding and accelerating our presence there. My colleague Leon will also provide you a detailed breakdown and analysis of the regions and categories later. We also believe that with the firm implementation of the group's three-core development strategies in APAC, we are also confidently maintaining the growth momentum of Shark and Ninja in APAC.
At the same time, the Joyoung division, which focuses on the mainland Chinese market, we're also undergoing positive changes. Driven from bio policies such as the trading programs and the government-funded subsidies at various levels of Chinese government driven this move to high-end products. In response, Joyoung has launched our C series, which leverage core selling points such as high quality, appealing design, excellent cost-performance ratio, as well as health and wellness. While enhancing the consumer's quality of life, these products also better address our emotional needs. We also have also realized this implementation of the international overseas office and the deployment of the team. In 2026, we will also carry on expansion of other road countries in Southeast Asia. We will also promote a lot of localized products and to drive this new growth point of Joyoung. That's all for me.
I would like to give the floor to Leon for further detailed interpretation of all the different regions and the different parts of the business.
Thank you, Madam Han. Later, I'm going to share with you our 2025 performances. By different division, Joyoung 2025 third-party revenue has reached $1.032 billion, and it's having a small growth compared with $1.021 billion last year. The main is still about the soy milk maker and food preparation. As in APAC, it's actually reached a very high growth, it's about 56%, and they are mainly driven by several different aspects. The first one is about the new product being still successful, and the new category being improved significantly, as well as expenditure and exploration about the new markets. You also can see that while SN APAC continues unleashing the full momentum, our Joyoung business is also operating steadily.
If we break down by different regions, the growth are mainly coming from ANZ and Japan. ANZ is actually the most outstanding growth, up by 73.5% Y-o-Y, and driven by increased market share in core categories, no matter it's about cordless vacuum cleaners and ice cream maker and smoothie maker, as well as the new coffee machine we promoted into market at the end of the year, which all have driven the positive growth. The revenue was $158 million in Japan, up by 41.1% with the fierce competition. Our cordless vacuum cleaner has also still continued its growth. The successful launch of the blender further driven growth in the food preparation. Korea's revenue grew by 28.2% Y-o-Y to $91 million, maintaining steady growth, mainly benefiting from the continuous increase in market share in cleaning and food preparation like our blender.
The Chinese revenue was $1.017 billion, up by 1.3% despite the fierce competition. We also have the differentiated products. Driven by this diversification, we are also having a quite good revenue growth, but it is partly offset by the decline of categories such as rice cooker. The other regions revenue was USD 44 million, up by 51.7%. It is mainly from the successful expansion of Southeast Asia, like Singapore and Malaysia. The gross profit and gross margin, we also think in 2025 our gross margin for third party revenue was 33.5%, representing a slight decrease. With the SharkNinja APAC segment, driven by factors such as higher freight costs compared to prior periods with our high growth margin of that. Generally speaking, I think that the gross margin, we are still performing very stably. With the fierce competition, the resilience of the profitability have also been strengthened.
Now let us check the operation efficiency. In 2025, the whole inventory turnover days were 48 days. The trade receivable and those receivable turnover days were 98 days. The trade payable and those payable turnover days were 175 days. Compared with last year, there was no significant change. It could be able to support the pace of business expenditure as well as the growth in the different regions. Now let us check the capital structure. In 2025, our CapEx was USD 29 million with no significant change compared to last year. Until the end of 2025, our total debt structure was about $80 million, and the $50 million was a one-year loan denominated in RMB, and then the remaining was a loan nominated in USD, maturing in January 2027. Meanwhile, until the end of 2024, the previous non-current liabilities have all been paid back.
We also can see from the perspective of our debt structure, the group's debt to equity ratio increased from 0.05 times in 2024 to 0.14 times in 2025, which is a very stable range. It has supported the healthy development of the business expansion as well as maintain the flexibility financially. From business, now let us first check the Joyoung. As Madam Han mentioned, our core category internal sales has achieved a very good growth. The soy milk maker category grew by 30%, mainly due to the launch of differentiated innovative products that the industry trend and effectively address the pain points. Water purifier is more catering to the Chinese consumer needs. The cookware category reversed its decline and achieved a growth of 3% Y-o-Y, reflecting the positive impact of adjustments in product and channel strategy. Overall, Joyoung has maintained our growth in our fundamental traditional advantages.
The next thing is about the growth in the emerging channel is of a very good quality. Taking Douyin as an example, our market share in Douyin from 6.1% in 2023 grew to 6.9% in 2025, showing a continuous growth trend. Our relative pricing index from 214 in 2023 to 275 in 2025, significantly higher than our peers. This demonstrates we not only expanded our growth and also realized a better operating quality and better price tier upgrades. There are two points. The first one, we constantly adhere to sell live broadcasting as this format on the Douyin channel and implemented various live stream methods. Next is also we have increased the high-end and mid-end products with differentiated innovation to set us apart. In 2026, we also will look at several aspects, products, channels, and efficiency. Product side.
From product side, we will focus on this definition of new consumer scenarios, adopting mid to high-end pricing, and purchasing systematic innovation. On the channel front, we also further streamline our store matrix and implement unified pricing and achieving omni-channel data tracking, increasing the proportion of direct operating channels. The final goal is very obvious. We hope to have more market share, better gross margin and optimizing the efficiency. Now let's check SN APAC. First to Japan. According to GfK data, Shark market share in 2025 has reached 24%, 22%, 25% and 25% in four quarters of 2025, two 25% in the last two quarters. That is to say, our brand strength and competitive strength have also been continuously improved. We are also promoting some new products. For example, portable blender and Ninja Creami, Ninja portable cooker.
These new cookware products have also opened up new growth opportunities in the future. Next page, we could also see ANZ. ANZ performance is still very bright. Shark cleaning revenue up by 15% Y-o-Y. Ninja food preparation revenue has grown up by 168% Y-o-Y and cooking and beverage up by 79%. We also have this power detector clean technology and automatic dust collection. New version of a cordless vacuum cleaner has been a very good performance. We have also promoted a lot of the new products in the fan category like FlexBreeze, PowerFans, and HydroGo, have all got a very good market response.
For food preparation category, the overall category, what we are having the fans in our product like the Ninja SLUSHi, ice cream maker, as well as the new generation of this very high emotional value, Ninja CREAMi Scoop & Swirl ice cream maker, have all seen very bright, very prosperous development. Ninja Luxe Café Premier in coffee category established our market leadership with just a few weeks of the launch. This is a new product approaching the end of last year for this new category. We only have one SKU, only two colors, have already achieved a very good result in Australia. Generally speaking, ANZ market has already formed a growth pattern driven by multi categories. For South Korea, in 2025, our revenue has reached $91 million and continued our strong growth. It is heading further improvement compared with the $17 million last year.
By different categories, Shark cleaning up by 44%, beauty and home grew by 63%, refrigeration from Ninja up by 3%, cooking and beverage grew by 21%. The growth mainly coming from our floor cleaning and Ninja's blender. The categories grew. Especially the lighter cordless vacuums in the WandVac and the Smart IQ detection technologies are having a strong growth. Ninja Blast Max, which is the portable, convenient blender and the detector power blender. These new types of the blender have also enhanced the food preparation category, maintaining its strong position as the second-largest category. Facing 2026, the SN APAC will continuously innovate the core categories and expand into the new categories. For example, Ninja Creami in 2025. At the year-end, we launched the product. In 2026, we will continuously iterate the product.
The Ninja CREAMi Scoop & Swirl, Ninja Luxe Café Premier, and the Shark FlexBreeze HydroGo, these fan products will also continuously boost the growth for the future. Also, we have seen the newly expanded market are starting to contribute to more revenues. In the past two years in New Zealand, Japan and SN APAC has scaled up, and we also expanded to other SEA markets. In the second half of 2025, we also accessed into Taiwan, China. In these newly expanded markets, the revenue has been increased from $13 million to $29 million in 2025, with a Y-o-Y growth of 129%. It means that in these new markets, we are scaling up, which had also provided a new flexibility and elasticity for the future growth. Generally speaking, in 2025, there had been several features for our group growth.
The first is the third-party business growth is strong, and the second is the net profit after adjustment has been enhanced strongly. The SN APAC has continued to act as a growth engine, and Joyoung maintained a steady growth. The innovation channel development and the regional expansion has been going on smoothly. Going forward, we will continuously focus on product innovation, channel optimization, operational efficiency and regional expansion so we can promote the high quality and sustainable development. Thank you.
Thank you, Madam Han and Leon, for your sharing. Next, we will start the Q&A. If you want to ask via voice, please click the raise hand from the reactions button at the toolbar in the Zoom interface. If you want to ask by text, please enter your question in the chat box. Let's start with the first question. Please raise your hand. Okay. Let's welcome Feng Ruilin from CLSA. Go ahead.
Hello, management. Can you hear me?
Yes, we can hear you.
Hello, management. I am Feng Ruilin, an analyst from CLSA . I have a few questions. I will ask them one by one. The first question is about the gross margin. We can see that the third-party transaction has maintained a high growth, but I can also see that the gross margin had dropped slightly.
My question to the management is, what are the reasons behind this? Also in New Zealand, Australia, and Japan, the competition has been more ferocious. I'm wondering whether there will be some impact on the gross margin because of the competition, and whether you're going to adopt some measures to maintain a relatively steady gross margin. Thank you. This is my first question about gross margin.
Okay, very. Leon, can you answer the first question?
Okay. Thank you very much for question. You're very careful about the indicators. Indeed, there has been a slight change of the gross margin. Let me explain a little bit. In Joyoung segment, the gross margin in the first half had dropped slightly, but in the second half it increased a little bit because of the optimization of the product structure.
The second thing, because SN APAC had a higher proportion, at the group level, the growth margin has increased, and SN APAC had been contributing to that enhancement. Also for us in SN APAC, there is accounting measure impact. The freight accounting to the cost in 2024 and 2025. This number has increased a little bit, and the growth margin of the product itself, excluding these factors, had been very stable and in 2026, we will continuously improve the growth margin, mainly through the optimization of the product mix to offset the headwinds of the competition. I also understand that in New Zealand and Australia and Japan, there has been more competition, especially by the price gap from our competitors.
You may have seen that over the past few years, we continuously promote the new products in the vacuum cleaners and the food preparation products, and we introduce the new products to the market every year and are facing the competition and the price stress. On the one hand, we are going to moderately reduce the price for the existing product. More importantly, we are going to emphasize on introduction of the new products, especially those with high profitability and the net growth margins, so that we are able to maintain a very healthy growth margin level. Thank you.
Thank you for your answer. It's very clear. My second question is mainly about the net profit margin. You can see that on the financial report, the adjusted net profit had been increased a lot.
I wonder whether you can break it down to us a little bit. What are the reasons for the increase? Also in my previous exchange with the company, I remember that you have mentioned the equity incentives for the employees. If I remember that correct, it should be three-year period, and I think it's close to the end, and I wonder whether the net profit will no longer be influenced by this equity incentives project.
Okay, thank you. I will continue to answer your second question. Indeed, about RSU. It's a three-year period starting from 2023, ending 2025, and it will have a very limited impact on our performance in 2026 because some of the RSU is related to the period of the taking positions of the employees, and most of it has been accrued by the end of 2025.
Speaking of adjusted net profit growth, it's been tripled and it's reached $31.1 million USD, and there have been several recoveries. The first is optimization of the real-time price expense and the enhancement of the displacement efficiency. We have recovered the net profit, and in 2024 it was an abnormal drop. The second thing is that although SN APAC is still in investment period, as we had mentioned, we will have the three- to five-year investment window. But in 2025, including the investment of the new products, expansion of the teams, as well as the investment of the new offices, we have more details and intensive management. In terms of the profit contributions as in SN APAC have been stronger. Going forward, I would like to report to you about our measures in consolidating our net profit.
The first is to enhance the mature market like ANZ and Japan. We will have a more efficient management such as the inventory promotions and receivables collection of the fees. The second is to continuously optimize the portfolio of products such that the growth margin and net margin will be further improved. We wanted to have a higher proportion of the categories and the products that drives the high profitability. The second is to coordinate the supply chain management so that we can reduce the cost and improve efficiency. Number four, we will have a more prudent investment in the new markets. Although in APAC, we are still in the investment stage, but that does not mean that we will just carelessly spend a lot of money on these markets. We will have a very careful and a prudent investment strategy.
Okay, it is very clear. Thank you. My last question, it is a more long-term question. We can see SharkNinja APAC has scaled up. It is no longer a very small business. I would like to ask the management, as of the revenue side, can you give us a guidance? Or at the bottom line, can you give us a guidance, what are your measures to maintain the long-term profitability? Thank you.
Well, this is a very good question, but you may also have seen that in the previous years we did not provide any specific guidance. But from my side, what I can tell you is that we will definitely continue to maintain a healthy and sustainable growth to drive more to the expansion of the market. I believe this market will maintain strong. We will be able to be in a very strong position. Going forward, the APAC market is still big.
If you take a look at the peers in the same categories, as in APAC, is one of the fastest growing company, and especially in New Zealand and Australia and Japan. Excluding our brand, then you will see that the whole market is dropping. We are actually driving the growth of the whole market, and we believe that in 2026, we will continue this momentum of growth. As we have mentioned before, with the efficient management, improvement of the cash flow and the profitability management, we will maintain the healthy and high-quality growth.
Okay, thank you very much for your answer, check. No more questions from my side, and I wish your business going better and better.
Thank you, Feng. Next, let us welcome the next investor. Zhou Yan Fung from Huatai Securities. Go ahead.
Dear management, I have two questions about the SN APAC business architecture. The first question is about the New Zealand and the Australian market. As you have said, it is very competitive in this market, but in 2025, you still maintained a high double-digit growth. It is a very nice performance. Can you tell us the reasons for such a growth? The second question is about the outlook for the New Zealand and Australia market in 2026.
Okay, thank you very much. I would like to answer this question. Actually, we have repeatedly mentioned to you that in the New Zealand, Australian markets had been more and more competitive, and we have seen some of the competitors taking different strategies to enhance their position. The reason why we are able to have such great success in this market is because that we have always been following through our strategy.
That is, the continuous market share growth of the core categories and the introduction of the new categories and products. Let me introduce one by one. For Ninja, we have several key products that are performing very well. For example, the Ninja SLUSHi product. Since the launch of this product, it has been growing continuously. This kind of growth has pushed the growth of the total performance and also the coffee machines. Leon also mentioned the Ninja Luxe Café has a very impressive performance since the launch of the product. It was in Sydney and in Melbourne. We had a pop-up store at the cafe lab. In the first month, we have become listed on the top of the retail platforms. We have been dominating those sales rankings for a very long period. These two star products have been beyond our expectations.
In the second half of the year, we also have the Ninja CREAMi Scoop & Swirl, the ice cream maker, had also been very successful. In the cleaning products, the new generation vacuum cleaner also had used the Smart IQ technologies, such as the automatic dust capture, and it also helps us to gain more shares. This is the main reason for us to have this steady growth in 2025. In 2026 and beyond, we believe that from the top line, we will continuously enhance our strategy. That is to continuously promote innovation and to optimize the product mix so we can make sure that the development is more balanced. Another message we wanted to deliver to you, and also Leon had mentioned about it, that is in the New Zealand and Australian market, also including in Japan. This belongs to relatively mature markets.
Going on, our focus will switch from quickly scaling output to high-quality scaling output. We will improve the efficiency of the management, for example, the adjustment of the advertising fees and the operation fees, et cetera. This kind of mature market can back up to our cash flows. It will become the driver of the growth.
My second question is related to the Japanese market, and Leon had mentioned that Japan has a relatively high market share of the cleaning products. Also, in Japan, there are some strong local brands in home appliances. What is your take on your progress and performance in the Japan market in 2025, and what is your outlook for 2026 and 2027 in Japan? This is my second question. Thank you.
Okay, got it. A lot of people have already communicated with us, including Shark and Ninja in Japan. We have already got a very good, strong performance. We also can see for cleaning category, we have already had this very high market share. But we also can see that you still see that for such a high share for our market share, it is still steadily increasing. For 2024, you can see for this cordless vacuum cleaner was about 20%. At the end of 2025, we can see it is obviously being improved to 25%. They are actually attributed to the two key products like Shark PowerClean360 and Featherweight 3.0. For this strong product are driving us in the Japanese market as a very strong position. I have also shared with you that because for Japan, the competition of cordless vacuum cleaner was very fierce..
A lot of competitors are taking very aggressive pricing strategy. On this occasion, we also can see that the overall market of this cordless vacuum cleaner is declining without Shark. We also can see for Shark cleaning category in Japan, we have already achieved this double digit increase. It has been far greater than the average performance of the industry. This is precisely proving that our growth is attributed by the growth of our product quality as well as the improvement of the market share, instead of this tailwind for entire industry. What you have heard about cookware and food preparation category. After this Ninja BLAST, we have already established a vast recognition of the market. Later our Ninja Blast Max is also further prolonging our momentum of growth. Our market share has also got about 3%-4% of growth.
For afterwards growth, we are still quite confident. As we all know that in Japan, our market new product promotion have always been quite cautious. Before launching to market, we also will do a lot of market consumer localization as well as product tests to avoid any repetitive inconvenience measures to guarantee our good word of mouth and the repeated purchase. What you have mentioned, like a heating product, we have also got like a Ninja City[uncertain]. As Leon mentioned, it has just been promoted to market in the end of 2025. In 2026, we also will do further session to make sure that the sales quantity will also be further amplified. Just like the Shark cleaning and the home categories, we will also have some new products to be launched. That's all.
Okay, got it. Thank you so much for this patient answer. I also look forward to our new products, would have even greater competitiveness in Japan, South Korea and ANZ.
Thank you so much for your question. Let's have this third investor for the question. Okay. Now let's have Guangfa Home Appliance , Wen Xuan to propose the question. Can you hear me?
Hello. Good morning. I'm very honored to have this opportunity. I am analyst from Guangfa Home Appliance. I would like to have two questions about Joyoung. The first thing is, for our revenue from Joyoung domestically has rebounded. We would like to know that for 2026, this growth, could it be further expanded or is it like 2025, the government subsidy has overused the margin potential and 2026 it will decline? We would like to clarify that. First of all, please be everything.
Of course, in China in 2025, we have already achieved the growth with our overall benchmarking with the industry peers. Our growth is better than the industry average. A lot of analysts have also noticed that in H1 2025, we had this national subsidy. After Q3, the national subsidy has also gradually phased out. Our own performance still maintained a growth in Q3 and Q4. The national policy of government subsidy has helped us year round, but the overall proportion was not very significant. Now let's come back to our interpretation about the business and performance in 2025. Our growth still mainly comes from our strong category, like blender and soy milk maker. We have achieved very good growth because of our product confidence. I think this is the time honored advantage accumulated by us in the past few years.
This is also the source of momentum and confidence for further growth in 2026. For new categories, for example, cookware and water purifier, as we have also mentioned. For Douyin or some other niche categories and for the new categories, we have also achieved some improvements. At the same time with the cost ratio control as well as the overall improvement of the expenditure, we have also optimized our profitability. These are all the experiences we have collected in fierce competition that we could still focus on and further polish. in 2026, I believe we will further promote some differentiated new products in food processing and preparation as well as cookers. No matter if it's about rice cooker or high pressure cooker, we will still promote the growth of scale and profitability. At the same time, we also will have this niche categories in water purifier and cookware.
We also will give full play to our hero products. This is also what we are going to promote our further growth in logistics as the defined strategies and tactics. In channel aspect, even if without the national subsidy, we will still use the adjustment and optimization of our channel structure to further amplify our in-house operation online, and more nimbly and flexibly with our own insights about user data and online data. We also hope to sensitively adjust or grasp the consumer's consumption trends and habits to further focus on our mid and high-end products to have the product structure further optimized. Generally speaking, I have to say that in 2025, with our stable development, we will still guarantee our profitability, could also be guaranteed in 2026, and then to promote the improvement of our scale.
Thank you. Thank you so much. Very clear.
I have another question. This is The tariff of China and U.S. has also been declined a little bit, but due to the tariff war last year, our export business was negatively influenced. In 2026, do we have some new expectations about our export business of Joyoung?
For our export business, there are mainly two parts. The first is SN and JS related business, and the next is about our own international business. In 2025, what is most negatively hit was the SN business related ones. Because of the tariff influence, it has declined significantly. We expect in 2026, it will still have this further reduction. It will be narrowed gradually. From Joyoung overall business, we also hope to further amplify our Joyoung International overseas business. We have also announced our announcement that we are changing our overseas business as its authorized distribution model.
This also includes the JS Global and our subsidiaries. We think that the change of that could also further utilize our JS Global APAC mature market and channel advantages, and it could also have a better value give a full play to. It could also facilitate our Joyoung's OBM business, could be further and long-term grown as our long-term expectation. We also expect that in 2026, it is also the first year of our business adjustment. We will also lay a solid foundation for that. We also hope to cooperate with the JS and our subsidiaries to do better synergy with better results achieved, and to offset the negative influence brought by external environment.
Okay. Got it. Very clear. Thank you. That's all from me.
I also wish everything will have a smooth development in the future. I apologize because of limited time. We'll have the last question. Okay. Now let's invite Wang Wencong from CITIC Securities.
Hello, can you hear me?
Yes, we can hear you, Wencong.
I am from CITIC home appliance analyst, Wang Wencong. I have some questions about the new markets. I would like to propose the question to the management team. First, we have seen that for South Korea, the growth speed was very fast, and this year the speed slowed down slightly. I would like to know that currently for South Korean market, what are the main driving forces of the revenue growth? Generally speaking, the overall market size, what is the scale of their market with our own products? Afterwards, what is our strategic management and plan for the South Korea market? This is my first question.
Okay. I will invite Leon Liu to answer the question. Thank you, Wencong, for the question.
First of all, let me do the breakdown of the growth of 2025 in South Korea. First is the Shark cleaning category. For floor cleaning category, it has achieved steady growth. It is attributed to our intelligent IQ technology and one-button clearing technology, including Featherweight and PowerClean360 . So the feature is very obvious. It could actually go forward and go backward. It could all vacuum in the dust as well as its security. I do not know, maybe in South Korea, have you seen that we invited a spokesperson of Hongliu? That's very well received in the market. From Ninja is our blender, including Ninja Blast Max. This is our newer generation, greater size of the blender and the Smart IQ power autonomous sensing, intelligent sensing with silent noise. Very good silent IQ technology for all those products have really promoted our overall growth.
From the market share of 2025, we also have seen for the category of food processing, we have increased them by 800 basis points to 21.4%. It's a very leading position. South Korea, the growth speed, as you mentioned, is not as fast as before. As for South Korean market, for the scale and expectation, what would that be? From our perspective, to be frank, as you can tell, in South Korea, previously, we operated more by the distributor model.
We also can see that our distributor was named as Cosmo & Company. They have two listed companies in South Korea as a listed group. For them, operational-wise, they are pillar businesses of petrol chemical as well as battery, have run into some difficulties. They have also influenced our distribution business, especially about cash flow. In order to deal with this unexpected situation, we have also made a very fast decision.
With the decision made by the management team. We are actually researching about this restructuring. Very soon, we will do part of this in-house management by ourselves, like OBM, and some of them are online and offline. About this, a smaller share of the business, we will still have this distributor to do that. To a certain extent, it would alleviate the pressure of our supplier. On the other side, it would also allow us to get a faster entrance into the direct sales and direct operation to lay a solid foundation for the future growth. I believe we could see the final result very soon. This year, we also expect the growth to be very satisfying. I think in other validated markets with proven experience, we could also rapidly grow the product.
Speaking of the total scale of the Korean market, we believe that is similar to the Japanese market, and even competitive to the market size in Australia. I believe that by category, if you compare it with in America or Europe, in Korea, it is still very limited. We believe there is huge potential for the Korean market, and we could continue to grow there.
Thank you.
Got it. Thank you, Leon. Very clear.
Very frank. This is about the Korean market. My second question is about after the spin-off as SN APAC and Europe and the U.S. The R&D have been taken place in the West, and we paid the product development fees. Can we count that as the R&D expense of the company? Also in U.S. and Europe, their products target more on the Caucasian consumers and integrates or adapt to their culture as well. In such Asian markets, we have the Confucianism cultures or the East Asia cultures, and will we strengthen the development of the local R&D team to adapt to the local culture?
Thank you, Wencong, for your question. This is also something we have paid a lot of attention to. Just as you have said, after the spin-off, most of the products had to continue the style of a SharkNinja US or a SharkNinja Global. Some of the new products are also mainly from that part. I'd like to remind you, for example, in Japan, the reason why we are able to achieve over 160 million sales revenue in Japan, it is because a very special situation. The cordless vacuum cleaner of Shark, especially the lightweight one, it has a base station, and this is specifically developed for Japan. After the localization strategy, we have developed those local products, and then we introduced the products from Japan to Europe and the U.S., and we have seen very good performance, especially in Europe.
After the spin-off, we have been paying the license fee, whether it is counted as the R&D expense. Maybe it's a positioning thing. For SN APAC, it's more about sales. At the moment, we haven't covered the full functions as that of the U.S. and Europe. That would definitely be the development direction. A new message for you, Wencong. We have been developing the product development team in SN APAC region, and the team is scaling up. For example, you mentioned about the North and East Asian market. We will also adapt to the consumer needs there. If you have noticed before, then we have a-
FlexStyle product is shortly launched in Korea and Japan because it was a very successful product in U.S. and Europe. However, it did not have a very good response from the market. Indeed, this is our experience, and we had been strengthening the development of the beauty and the thermal product to adapt to the local market needs.
We will develop based on the demand of the local markets and leverage the SN US or SN Global R&D capabilities as well as Joyoung's China R&D capabilities. All of these will support the development. This is the synergy among these segments. They can have a coordinated development, and we believe that this strategy works. Going forward, we will strengthen our capabilities, including the engineering, the quality, and the product development capabilities so that we can form a more comprehensive ecosystem in SN APAC.
Thank you, Leon. Very clear. I have a final question. At the moment, SN APAC prioritizes the New Zealand, Australia, Japan, and the Korean markets, where the consumption power is relatively high. In your presentation, you also mentioned that you are expanding some emerging markets like those from Southeast Asia, and most of them are developing countries and the consumption power is not as strong compared with the developed market. In China, we also have some low entry point products to compete. My question is that, for these emerging markets, what are your strategies to access?
Thank you, Wencong. This is an excellent question. You already have pointed out the differences of these Asian markets. Some are very close to the U.S. and the Europe levels, like New Zealand and Australia. We also have Japan and South Korea with the specific Eastern and North Asia cultures.
We also have the Southeast Asia countries with a lot of emerging markets that we intend to explore, and they have the dense population there. What we want to share with you is that in the second half of 2025, we access the Taiwan China market, and of course, the market there also has very high consumption power and big similarities of culture, high acceptance of the products that we have launched in Japan and Korea. This year, very soon, we're going to access Hong Kong China markets, although it's relatively small, but we believe that consumption power there is strong, and the brand recognition is also high. We have achieved some recognitions of certain products in Japan and Korea, and we believe that those products will be suitable for Hong Kong because we foresee the acceptance will be high.
Southeast Asia is very different because although they have dense population, the products that we intend to sell, the customer group we wanted to target on are very limited. We do not wanted to target on everyone. Our initial strategy is to target on those who are relatively more well-off and in cities that are better off to conduct marketing. We will not have a whole nationwide strategy. It's the beginning of 2026, and the social media platform have been very strong. We will utilize those channels to target on the well-off groups of the consumers who have the consumption power to buy our products, to let them know who we are and what our value is, and how we can help them to improve their life from the function or design and emotion perspective.
We will definitely have a more targeted strategy to do the marketing and to gain consumer insight and to be very specific to our consumer markets. What we know is that when they get up in the morning, what kind of social media channels they use, what kind of cars they drive to go to work. We will get all these details, and what are their main activities after work. Whether they go to the gym or not, how much attention they pay to health, et cetera. All of these details are included in our market investigation to help us gain a better consumer insight. This will help us to have a more targeted strategy to engage or touch these consumers. This is our strategy in Southeast Asia market.
Thank you, Leon. Very clear. I believe that the management has a very clear idea about the strategies to expand the market. Thank you again. Very detailed answer. That is all from my side. Thank you.
Thank you all. That is the end of the Q&A session. Finally, let's welcome Madam Han to deliver the closing remarks.
Okay. Thank you for your participation and questions. Overall, in 2025, amid a complex and volatile market environment, the group still achieved continuous optimization of the revenue structure and the steady growth of the core businesses. As SN APAC, we continue to serve as a growth engine. Joyoung business also consolidated its foundation through product and channel adjustments. Looking ahead, we will continue to focus on product innovation as our core strategy. We will further strengthen channel and operational capabilities and steadily expand the key markets and the new product categories.
We will drive the groups to achieve higher quality and more sustainable development. Thank you all for your attention and support.
Thank you, Madam Han. If you have any more questions, you can contact the IR team of the company. Thank you again for your support and attention to JS Global. That is the end of today's session. Thank you.