The "high-growth myth" of Zhejiang Supor Co.,Ltd., the "King of Small Household Appliances" in the A-share market, has come to an end.
Recently, Supor released its Q3 2025 financial report, showing a revenue of 5.42 billion yuan, down 2.30% year-on-year, and a net profit attributable to shareholders of 426 million yuan, down 13.42% year-on-year. This marks a rare instance of simultaneous declines in both revenue and net profit in the company's recent history.
In terms of business structure, Supor has long relied on cookware and kitchen appliances, with slow progress in expanding new business lines. Over the past five years, its revenue share from new segments grew by only 4 percentage points. This stagnation has led to challenges such as "brand aging" and weakened product competitiveness.
Public records show that Su Zengfu and his son Su Xianze co-founded Supor. According to the company's mid-year report, Su Xianze reduced his stake by 51,272 shares in the first half of 2025, citing mandatory annual divestment rules. Since 2011, Su Xianze has cashed out over 170 million yuan in total.
**Dual Decline in Revenue and Profit, Slow Expansion into New Categories** Supor's cumulative revenue for the first three quarters of 2025 reached 16.897 billion yuan, up 2.33% year-on-year, while net profit attributable to shareholders fell 4.66% to 1.366 billion yuan. Although revenue saw a slight increase, profitability weakened. The Q3 performance was particularly concerning, with both revenue and net profit declining.
A longer-term analysis reveals that Supor's slowing growth has been evident for years. After peaking in 2018, both revenue and net profit growth began fluctuating downward. By 2020, annual revenue and net profit turned negative, and since then, net profit growth has remained in the single digits or negative territory. Similarly, after a brief rebound in 2021, revenue growth soon slowed again.
At the operational level, Supor's heavy reliance on cookware and kitchen appliances—which contribute over 85% of revenue—has hindered diversification. Non-kitchen segments, such as home appliances, accounted for just 14.56% of revenue in 2025, up marginally from 10.19% in 2020.
"Supor's core kitchen business remains its primary revenue driver, indicating sluggish progress in diversification and new product development," an industry insider noted.
**Weak Domestic Sales, Overdependence on Major Shareholder for Exports** Domestic sales, historically Supor's growth engine, have stagnated in recent years, dragging down overall performance. From 2020 to 2025, domestic revenue growth fluctuated between -12.71% and 10.80%, with periods of contraction.
While export sales have surged, Supor's heavy reliance on its majority shareholder, SEB Group, poses risks. SEB, which owns 83.19% of Supor, handles the distribution of Supor's products to over 50 countries. Since 2020, exports have consistently accounted for about 30% of Supor's revenue, with SEB-linked transactions making up roughly 28% of annual sales.
"Any economic volatility or strategic shifts by SEB could directly impact Supor's overseas performance. Potential tariff changes in key markets like Europe and the U.S. may further squeeze already thin export margins," the insider added. The close ties also weaken Supor's bargaining power, leaving critical decisions—such as pricing and production—largely in SEB's hands.
**High Dividends: A 'Cash Cow' for Shareholders?** Despite slowing growth, Supor has maintained aggressive dividend payouts. From 2021 to 2024, dividend ratios ranged from 80% to 99.82%, with a notable 166.68% surge in 2022 (including a special dividend).
Meanwhile, Su Xianze and other executives have continued to reduce their stakes. Since 2011, Su alone has cashed out over 170 million yuan.
However, Supor's R&D spending lags behind peers like Bear Electric Appliances and Joyoung, with its R&D-to-revenue ratio declining yearly from 2.37% in 2020 to 1.99% in 2025.
Industry veteran Liang Zhenpeng criticized SEB for treating Supor as a "cash cow," neglecting R&D and long-term development in favor of dividends and its role as a "Chinese OEM."
"Despite years in the market, Supor has failed to build technological or brand barriers, lacking a unique competitive edge," Liang remarked.
For Supor's management, the sustainability of its high-dividend strategy may soon require serious reconsideration.
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