JS Global Lifestyle Company Limited

H1 2026 revenue was USD 741 million, down 4.3% YoY, and third-party revenue was USD 711 million, down 1.2% YoY. Gross profit was USD 229 million, down 7.7% YoY, and gross margin was 30.9%, down 1.2 percentage points; on a third-party basis, gross profit was USD 229 million and gross margin was 32.2%, down 1.3 points. Net profit was USD 13 million, versus a loss in the prior-year period, and adjusted net profit was USD 14.8 million, up 9.6% YoY; adjusted net margin rose from 1.7% to 2.0%. Management did not provide formal next-quarter or full-year financial guidance, but said H2 would focus on product launches, market expansion, mix improvement, supply chain management and better capital efficiency. They also said South Korea sales improved after the DTC transition, and they were confident the market could be at least better than last year on an annual basis.

CEO Han Run said the company made progress despite a complicated market environment, pointing to improved profitability and resilience in SharkNinja APAC and ongoing product innovation and channel optimization at Joyoung. Her tone was constructive but measured: she repeatedly acknowledged weak demand in Mainland China, South Korea business transformation issues, and competition in several markets, while emphasizing a second-half focus on product innovation, deeper local execution, and sustainable growth across APAC. She also highlighted plans to keep improving product mix, supply chain, expenses and operating efficiency.

Leon Liu said the main H1 revenue pressure came from weak Joyoung demand in China and the South Korea transition, but he emphasized profitability improvement from expense management, business mix changes and nonoperating items. He cited inventory turnover days of 57, receivables and notes receivable turnover days of 101, and capital expenditures of USD 18 million versus USD 21 million a year earlier; interest-bearing loans were USD 79 million and the debt-to-equity ratio was 0.15x. On margins, he said APAC benefited from new higher-margin products, better sourcing, VAVE-driven cost optimization and scale efficiencies, offsetting raw-material and freight pressure. He also said the company will continue to balance investment in innovation and expansion with financial stability.

Analysts focused on why SharkNinja APAC gross margin improved despite raw-material inflation, how much of the adjusted profit improvement came from each segment, whether Joyoung could narrow its revenue decline in H2, how the company would avoid stock-outs for APAC hits, and what the outlook was for Japan and South Korea. Management said APAC margin held up because of higher-margin new products, better sourcing, VAVE design optimization and better scale efficiencies, while Joyoung still faced pressure from weak demand, subsidy changes and higher freight from DTC. On capacity, Leon Liu said the company had added suppliers and production lines, was coordinating manufacturing capacity, and would use APAC-specific product launches and designated lines to support supply. For Japan, he said the company is responding to price competition with more cost-effective products, new launches and broader category coverage; for South Korea, he said the DTC transition was efficient and management is confident the business can be at least better than last year.