The small household appliance brand Delma, known for manufacturing products for Xiaomi and Philips, is undergoing significant restructuring.
Recently, it was revealed that Delma has disbanded its Suzhou team, affecting nearly 100 employees. The company confirmed the move, stating it was part of a strategic adjustment to align with current market conditions and long-term development goals.
Sources linked the Suzhou downsizing directly to Delma’s declining performance. According to its latest financial report, Delma’s Q3 2025 net profit plunged 44.34% year-on-year to RMB 20.04 million, while operating revenue fell 10.26% to RMB 699 million. For the first three quarters, revenue dipped slightly by 0.63% to RMB 2.384 billion, with net profit down 14.66% to RMB 88.72 million.
The company attributed the losses to slowing market growth in the small appliance sector, intensified competition, and increased R&D spending to enhance product competitiveness. However, facing stiff competition from industry leaders like Dreame, Ecovacs, and Roborock, Delma’s challenges are mounting.
**Suzhou Restructuring: Cleaning Division Losses Cited as Key Factor** In 2023, Delma successfully listed on the Shenzhen Stock Exchange after three IPO attempts, leveraging its contract manufacturing ties with Xiaomi and Philips. Earlier this year, Delma announced a strategic partnership with Xiaomi to produce customized products, including humidifiers, vacuum cleaners, and blenders.
Suzhou, a key manufacturing hub in the Yangtze River Delta, hosts major players like Dreame and Ecovacs. However, Delma, founded in Foshan in 2011, lacked the operational efficiency of local competitors in Suzhou.
Delma’s Suzhou subsidiary, established in August 2022, primarily handled cleaning appliances such as vacuum cleaners and floor scrubbers. The abrupt closure reportedly stemmed from internal decisions, leaving nearly 100 employees affected.
Insiders noted that Delma’s cleaning division was unprofitable this year, and without strategic adjustments, losses could worsen in 2026. The company stated the restructuring aimed to optimize resource allocation and focus on core R&D capabilities.
**Q3 Performance Slump: Net Profit Nearly Halved** The Suzhou team’s dissolution aligns with Delma’s worsening financials. Q3 2025 revenue dropped 10.26% year-on-year, while net profit plummeted 44.34%. For the first nine months, revenue dipped slightly, but net profit fell 14.66%, reflecting severe growth pressures.
Historical data shows a prolonged decline. Net profit halved in 2023 compared to 2022, and despite a partial recovery in 2024, 2025’s figures lag behind. Gross margins also weakened, with two of three major product categories reporting declines.
**Shareholder Sell-offs and Regulatory Warnings Raise Governance Concerns** Amid financial struggles, Delma’s second-largest shareholder, Panmao (Shanghai) Investment, sold 3.12% of its stake, cashing out approximately RMB 155 million. The move, amid falling stock prices, sparked market concerns over the company’s outlook. Delma’s shares have dropped over 33% from their IPO price.
Additionally, Chairman Cai Tieqiang and Deputy General Manager Cai Yanqiang received regulatory warnings for violating securities laws in a short-selling incident involving an associate.
Notably, top shareholders include Dong Haifeng (husband of influencer Viya) and Xiaomi-affiliated Tianjin Jinmi Investment.
**Consumer Complaints Mount Over Quality and Service** Delma faces growing consumer grievances, with 12 recent complaints filed on China’s 12315 platform. Six cases involved unresolved disputes due to the company’s refusal to mediate. Issues ranged from product safety hazards to poor after-sales service, with some users reporting repeated repairs within a year.
Industry experts warn that neglecting quality control amid rapid expansion could further damage Delma’s brand reputation.
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