Air Conditioner Demand Rises as Taiwan Stocks Cool
Taiwan stocks weakened recently, with the weighted index falling below the half-year moving average. Shangyang operates across laundry, air conditioning, and home appliances. CEO Wu Guohua said on the 4th that Taiwan stocks have been relatively calm recently, with capital flowing into other markets. While he would not say the housing market is recovering, air conditioner products have already clearly shown increased demand.
one-meter Brings Company Closer to Consumers
To get closer to consumers, Shangyang has been actively promoting its lifestyle appliance brand one-meter, hoping perceptions of Shangyang will no longer be limited to a traditional industrial company in the Wugu Industrial Park. Shangyang originally focused on large white goods, while products under one-meter focus on things encountered within one meter in daily life, emphasizing a lifestyle brand positioning.
one-meter products range from kitchen appliances to lifestyle appliances, including glass air fryers as well as electric shavers, hair dryers, and health food processors. Shangyang recently built a brand-new physical experience center for one-meter in Taipei City, hoping to narrow the distance with consumers and establish a venue for regular interaction.
Small Appliances Still a Small Share, Targeting High Growth
one-meter accounts for a small share of Shangyang revenue. Wu Guohua admitted revenue is about 2% to 3%, and hopes to maintain the past product-development growth target of 20% to 50% growth. Shangyang strategy targets small lifestyle appliances with short life cycles, hoping to sustain growth momentum with a large number of products, rather than established appliances such as electric rice cookers that focus on long life cycles.
Optimistic About Second Half, Expanding New Businesses
Looking toward the fourth quarter, Wu Guohua said the company remains relatively optimistic about continued revenue growth and profit performance in the second half. In the recent third and fourth quarters, demand for medium and large air conditioners has also increased, with newly built residences and new completions driving demand even outside the peak season. The commercial laundry segment has been less affected by the economic climate, and the overall outlook remains optimistic.
There were more new business investments this year, and existing operations will be expanded next year, including new products under the imported Japanese air-conditioning and appliance brand AQUA. In commercial laundry, the subsidiary Toyo Laundry is expected to announce good news next year, signing contracts with well-known star-rated hotels in Asia, with revenue expected to climb.