Bear Electric Appliance Co.,Ltd. released its 2025 financial report on the evening of April 8. The data shows that the company achieved revenue of 5.23 billion yuan in 2025, a year-on-year increase of 9.92%. Net profit attributable to shareholders of the listed company was 393 million yuan, surging 36.4% compared to the previous year.
Following a severe contraction in the small household appliance market in 2021, the industry has re-entered a growth cycle in recent years. This resurgence is driven by industrial intelligent upgrades and category expansions targeting niche scenarios such as the pet economy and silver-haired economy. Concurrently, as a sub-sector with a stronger light-asset attribute within the home appliance manufacturing industry, new players are attempting to enter the competitive landscape. They leverage their advantages in areas like IP marketing and rely on mature OEM supply chains. In March of this year, the trendy toy brand Pop Mart International Group Limited officially announced its entry into the small household appliance sector.
Against this backdrop, a key indicator for the future development of Bear Electric Appliance Co.,Ltd., a leading domestic small appliance company known for its creative, refined, and fashionable brand characteristics, will be its ability to secure a greater share of the market recovery dividends amidst the impact of emerging IP-focused competitors.
The small household appliance market is showing signs of recovery. According to AVC's Omni-channel data, the overall retail sales value of kitchen small appliances in 2025 reached 63.3 billion yuan, an increase of 3.8% year-on-year. The average price was 242 yuan, rising 11.4% compared to the previous year.
From a market development trend perspective, national subsidy policies have been a significant driver boosting both industry average prices and sales value. The market share of the low-end segment (below 300 yuan) was 46.5%, a decrease of 7.8% year-on-year. The mid-range segment (300-1000 yuan) held a 33.3% share, up 4.2% year-on-year. The high-end segment (above 1000 yuan) accounted for 20.2% of the market, increasing by 3.7% compared to the previous year.
Furthermore, demand catering to specific consumer groups and scenarios is becoming a primary source of industry growth. Data indicates that online sales of air fryers and table-top single ovens reached 2.45 billion yuan and 840 million yuan respectively in 2025, with year-on-year growth of 8% and 10%. Demand for ice makers also saw a simultaneous climb.
Examining Bear Electric's financial report reveals that within its main business, revenue from kitchen small appliances in 2025 was 3.38 billion yuan, a modest increase of 3.19% year-on-year. In contrast, revenue from maternal and infant small appliances during the same period was 283 million yuan, growing significantly faster at 12.91% year-on-year.
The company stated in its report that consumer demand for kitchen small appliances is becoming increasingly differentiated. The specific segmented needs of groups such as individuals living alone, the elderly, pet owners, and young consumers focused on scenario-based consumption are becoming new engines driving industry growth.
Simultaneously, compared to traditional appliance categories, small household appliances have shorter product replacement cycles. This necessitates that companies maintain a relatively faster pace of research, development, and new product launches.
AVC data shows that from 2021 to 2025, the year-on-year growth rate of the online market for kitchen small appliances declined from 19% to -9.3%. The industry is approaching a 5-6 year product replacement cycle, which presents potential growth opportunities for the kitchen small appliance market.
According to the financial report, Bear Electric's R&D investment in 2025 was 212 million yuan, an increase of 8.77% year-on-year. However, the number of R&D personnel decreased from 572 to 537. Key R&D projects included quick-detach blade blenders, soy milk makers, gravity-suspension blade meat grinders, 5L dough mixers, and Italian coffee machines.
Seeking new growth avenues from a regional market perspective, Bear Electric's overseas revenue in 2025 was 951 million yuan, a substantial increase of 42.37% year-on-year. The empowering effect of the acquisition of Roman Smart on the company's efforts in personal care small appliances and overseas expansion is beginning to be realized.
The company noted in its report that competition in the domestic kitchen small appliance market is intensifying and becoming increasingly saturated. In contrast, overseas markets, particularly emerging markets abroad, are demonstrating significant growth potential due to consumption upgrades and growing recognition of Chinese manufacturing, offering new growth curves for enterprises. As an OEM supplier for international brands like Philips and Panasonic, Roman Smart possesses prior experience in developing and manufacturing products for overseas markets. This advantage helps address Bear Electric's previous shortcomings in international markets, while utilizing Bear's own brand to empower the acquired company.
In July 2024, Bear Electric acquired a 61.78% stake in Roman Smart for 154 million yuan, implying an overall valuation of 250 million yuan and a premium of 109.23%. Financial report data shows that in its first full fiscal year post-acquisition, Roman Smart achieved annual revenue of 595 million yuan.
Previously, when announcing the acquisition, both parties entered into a valuation adjustment mechanism agreement. According to the agreement, Roman Smart is required to achieve net profits of no less than 15 million yuan, 25 million yuan, and 40 million yuan in 2024, 2025, and 2026 respectively, with a cumulative total of no less than 80 million yuan over the three years. If the cumulative net profit falls below 64 million yuan, the former controlling shareholder, Yan Youchun, must compensate with up to 15% of the equity. Conversely, if the cumulative profit exceeds 96 million yuan, Bear Electric would be required to pay a cash compensation of 20 million yuan.
According to the financial report, the audited net profit attributable to shareholders of the parent company (after deducting non-recurring gains and losses, taking the lower figure) achieved by Roman Smart in 2025 was 65.3382 million yuan. This exceeds the promised annual target net profit of 25 million yuan for 2025, meaning Roman Smart has fulfilled its performance commitment for the year.
It is noteworthy that as the small appliance market gradually recovers, more new manufacturers are attempting to enter this sector. Previously, Wang Ning, Chairman and CEO of Pop Mart International Group Limited, revealed during an earnings conference in March that the company would launch IP-centric derivative small appliance products in April, available on e-commerce platforms like JD.com.
Unlike traditional major appliances, the product design and marketing strategies of small appliances often focus more on specific needs within minor home life scenarios, leading to new products with clearly defined functions. Furthermore, as the unit price difference for most similar small appliances is small, resulting in low consumer decision-making costs, factors such as trendiness, convenience, and aesthetic appeal hold more influence compared to the technical parameters and cost-performance ratio that are major considerations when purchasing large appliances.
An industry analyst noted that, considering the characteristics of the small appliance industry and Pop Mart's own strategy, the sector possesses light-asset attributes. Coupled with China's mature and comprehensive supply chain system, Pop Mart does not need to establish heavy-asset factories itself but can quickly enter the market by relying on成熟的OEM models. Currently, Pop Mart's small appliance products are all OEM-manufactured by Xinbao Electrical Appliances.
With the entry of new manufacturers possessing strong IP, a key challenge for Bear Electric Appliance Co.,Ltd. in subsequent market competition will be how to further expand its user base into segmented scenarios while consolidating existing brand and channel achievements.
Comments