Guangdong Vanward New Electric Co., Ltd. issued an internal open letter acknowledging that the company is at the most severe survival juncture in its history and announcing a drastic organizational overhaul. This follows its 2025 annual report showing net profit attributable to the parent company plunged 67.21 percent year-on-year to 216 million yuan, and first-quarter net profit this year fell a further 55.60 percent to 79.61 million yuan. The open letter attributed the difficulties to the kitchen and bathroom appliance industry entering an ice age, as well as the company's own insufficient anticipation of market risks and loose cost controls. Selling expenses rose 18.30 percent against the trend in 2025, while asset impairments and fair value losses together exceeded 115 million yuan. The overhaul plan includes consolidating redundant departments, cutting non-core positions, and reducing non-production spending across all links. It also revealed that some colleagues will be leaving the company, and those who remain will face stricter performance assessments.
Guangdong Vanward New Electric Co LtdNet profit plunged 67% in 2025 and 55.6% in Q1 2026, with rising selling expenses and asset impairments.