Analysis of Supor's Export Dependence on SEB Group and Paths for Small Home Appliance Enterprises to Break into the High-End Market

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According to the latest data, in 2024, Supor’s related party transactions with SEB Group accounted for

of the company’s total revenue, with export business growing by 21.07%, but [1]. This means Supor has essentially become an OEM factory for SEB Group with extremely low autonomy. In 2024, export revenue reached 7.502 billion yuan, and the OEM model covered nearly all export revenue, accounting for as high as [2].

Indicator	Value	Industry Impact
SEB Related Transaction Ratio	31.42%	High dependence on a single customer
Export OEM Ratio	99.93%	Lack of independent brand capabilities
Export Gross Profit Margin	18.62%	Significantly lower than domestic sales’ 27.69%

According to the 2025 Q3 report, Supor achieved operating revenue of 5.42 billion yuan in Q3,

; net profit attributable to shareholders of listed companies was 426 million yuan, [1]. Collection pressure continues to increase: as of the end of Q3 2025, accounts receivable climbed to 3.133 billion yuan, an compared to 2.69 billion yuan at the end of 2024[1].

• Weak Endogenous Growth
  : From 2021 to 2024, the growth rate of domestic sales plummeted from 10.8% to
  -1.21%
  ; in 2024, domestic sales accounted for 66.55% of total revenue[1]
• Narrowing Profit Margins
  : The gross profit margin of export business is about 18.62%, far lower than the 27.69% of domestic sales; fluctuations in low-margin export business directly drag down overall profitability[1]
• Weak Risk Resistance
  : In 2022, the reduction of SEB orders caused Supor’s export revenue to plummet by
  29.09%
  ; after SEB Group’s organic revenue fell by 1.2% in Q3 2025, Supor’s export revenue declined again in response[1]

In late May 2025, after the company’s dividend distribution, three executives—Director Su Xianze, Deputy General Manager Ye Jide, and Chief Financial Officer Xu Bo—

[1]. More notably, the Su family has reduced its holdings multiple times since 2011, with Su Xianze personally cashing out over ; during SEB Group’s acquisition in 2007, the Su family cashed out at least through the transaction[1]. This “clearance-style” share sell-off reflects insufficient confidence in the company’s long-term development prospects.

• Low R&D Investment
  : In 2024, R&D expenses were approximately 470 million yuan,
  accounting for only 2.09% of revenue
  , while dividends in the same period reached 2.239 billion yuan, with a
  dividend payout ratio as high as 99.8%
  [1]
• Lagging Channel Layout
  : In H1 2020, online channels accounted for only about 50% of sales, lagging behind the industry average of 80% and also lower than Bear Electric’s 95% online share[1]
• Absence from Emerging Tracks
  : It still focuses on traditional categories such as rice cookers and electric kettles, and has missed opportunities in emerging tracks like breakfast makers and electric lunch boxes[1]

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The current small home appliance market is in a

, with core contradictions including[3]:

• Demand Side
  : The rapid increase in early penetration brought forward demand, and most categories have entered longer replacement cycles; residents are more cautious about optional consumption, and the sluggish real estate market has weakened first-time purchase and improvement demand
• Supply Side
  : Product innovation still stays at parameter stacking and minor functional differences, making it difficult to build perceptible experience barriers; with the strengthening of platform price comparison and traffic rules, pricing power has further tilted towards channels, and price wars have become the norm

Enterprise	High-End Performance	Challenges
Midea Group	Diversified layout, OBM ratio increased to 45%	Low overseas operating profit margin
Haier Smart Home	Growth of high-end brand Casarte, improved global layout	Difficult brand integration
Bear Electric	95% online share, scenario-based innovation	Insufficient brand premium capability
Joyoung Co., Ltd.	Revenue decline of 7.57%-34.07%, facing growth bottlenecks	Lagging product innovation

The percentage gap between the global manufacturing share and retail share of Chinese home appliance enterprises has not narrowed. In mature markets such as Europe and the US, the retail share of Chinese brands remains low (about 7% in Western Europe)[2]. Core dilemmas faced by enterprises:

• Conflict Between OEM and Brand
  : In the process of transforming to OBM, interest conflicts arise with original OEM customers, leading to great pressure on short-term interest losses
• Insufficient Brand Awareness
  : Chinese home appliance products with the same configuration are priced lower than Japanese and Korean brands, but consumer trust is insufficient
• Channel Inadaptation
  : Traditional overseas offline channels are fragmented with entrenched interests, making them extremely difficult to break into[2]

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• Increase R&D investment to build a technological moat. Comparing with Gree Electric’s R&D expenses of 5.622 billion yuan in the first three quarters of 2025,
  accounting for 4.10% of revenue
  [4]
• Accelerate layout in the application of emerging technologies such as AI and IoT; Midea’s AI technology has covered multiple categories including dishwashers and water heaters[4]
• Shift from “parameter stacking” to “experience differentiation” to build perceptible user experience barriers

• Product Side
  : Launch high-end products adapted to local needs; for example, focusing on energy-efficient air conditioners and heat pump products in response to Europe’s energy-saving policies[2]
• Brand Side
  : Learn from Daikin Industries’ long-termist brand strategy, focus on core business, and firmly expand globally; its overseas revenue share has continued to rise to over 85%[2]
• User Side
  : Strengthen quality, technology, and experience to meet the demands of consumers in mature markets who value comprehensive value more

Market Type	Strategy Focus	Implementation Path
Mature Markets (Europe, US)	Mergers & Acquisitions + Localized Operations	Quickly acquire channel resources by acquiring local well-known brands; revitalize local brands while retaining their core advantages[2]
Emerging Markets (Southeast Asia, Latin America)	Branding Blue Ocean	Break supply constraints with localized production capacity, and reach core users through precise channel coverage[2]
Differentiated Markets (Middle East, Africa)	Engineering + Customization	Win bids for large-scale engineering projects, and achieve breakthroughs through customized products[4]

: Promote the construction of “Dong Mingzhu Healthy Home” experience stores, planning to renovate 3,000 stores in 2025, and centrally display whole-house health home appliances through scenario-based experiences, intelligent interaction, etc.[4]

• Accelerate online channel layout and increase online sales share
• Transform from “product sales” to “solution provision”
• Achieve integrated online and offline development

Current Issue                          Optimization Direction
──────────────────────────────────────────────────────────────
99.93% export OEM ratio     →       Increase OBM proportion and build independent brands
18.62% export gross profit margin → Increase proportion of high-margin products
2.09% R&D investment ratio → Increase R&D investment to over 4%
99.8% dividend payout ratio → Balance dividend distribution and reinvestment
50% online sales share      → Increase to industry average of 80%

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The dilemma faced by Supor is essentially the combined effect of the

and . To break through the current bottleneck, the enterprise needs to:

1. Short Term
   : Optimize the cooperation model with SEB Group, strive for more favorable OEM terms, and at the same time increase efforts to expand the domestic market
2. Mid Term
   : Increase the proportion of R&D investment, accelerate the layout of intelligent and high-end products, and reshape brand competitiveness
3. Long Term
   : Establish an independent brand system, gradually reduce dependence on SEB Group, and achieve transformation from an “OEM factory” to a “brand operator”

For the entire small home appliance industry, the core of breaking into the high-end market lies in

, and building sustainable competitive advantages through technological innovation, brand upgrading, and global layout.

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[1] Pedaily - “Supor, Falling from the Altar?” (https://news.pedaily.cn/202510/556620.shtml)
[2] Sina Finance - “Midea, Haier, Hisense, TCL: A War That Will Determine the Fate of the Next Decade” (https://finance.sina.com.cn/cj/2025-12-31/doc-inhervys6699650.shtml)
[3] Eastmoney - “Cold Wave Arrives! Sales of Heating Appliances Bring a ‘Warm Current’ as the Small Home Appliance Industry Fights for Incremental Space” (https://finance.eastmoney.com/a/202512183595167928.html)
[4] Caifuhao - “Dong Mingzhu Bets Big on ‘Healthy Home’: How Far is Gree from the Next 100 Billion Track?” (https://caifuhao.eastmoney.com/news/20251217104434391613230)