On March 25th, Cheerwin Group Limited (Cheerwin) released its 2023 annual performance report, achieving double-digit growth in both revenue and net profit for the year. Specifically, the revenue reached 1.62 billion yuan, representing an increase of 11.7% year-on-year, while the net profit surged by 164% to 173 million yuan. Additionally, the gross profit margin increased by 2.9 percentage points.
In the financial report, Cheerwin attributed the growth in revenue to successfully seizing market opportunities and continuously advancing the rapid development of product categories and online and offline channels. The substantial increase in net profit was credited to the group’s adherence to prudent management principles, implementation of effective cost management measures, and ensuring steady growth in revenue, cash flow, and surplus profits. Furthermore, the rise in gross profit margin was attributed to the group’s ongoing optimization of product category structure and supply chain reform.
By product category, as of December 31, 2023, revenue from the household care products category, which includes household repellent and insecticide products, household cleaning and air care products amounted to 1.472 billion yuan, an increase of 13.5% year-on-year; revenue from pet and pet products reached 77.3 million yuan, up by 0.5%; while revenue from personal care products decreased by 4.6% to 61.4 million yuan.
In terms of sales channels, online channel revenue was 550 million yuan, up by 10.7% year-on-year, while offline channel revenue was 1.066 billion yuan, representing an increase of 12.2%. Chao Yun Group stated that post-COVID-19 recovery, the overall performance of the group gradually improved, with rapid growth in offline channel sales, while the growth in online channel revenue benefited from platforms such as Douyin (TikTok) and the expansion of the group’s direct sales and distribution channels.
Looking ahead, Cheerwin expressed its commitment to strengthening its multi-brand, multi-category, and omni-channel development strategy, product innovation, and channel profitability enhancement. Additionally, it will focus on enhancing the distribution of high-margin products, seizing incremental opportunities in emerging channels, and achieving sustainable development for the group.
