Vanward Electric has issued an all-staff letter stating that the company is at the most severe survival juncture since its founding, with some colleagues set to leave and those who stay facing stricter performance assessments. The letter bluntly notes that the kitchen and bathroom appliance industry has entered an ice age, as the deep adjustment in the real estate market has sharply contracted demand for new-home installations, while the replacement market has become a red ocean of fierce competition. Upstream raw material prices are volatile, downstream customer acquisition costs are rising, and the industry price war is intensifying, repeatedly breaking through profit bottom lines. The company reflected on its own insufficient anticipation of market risks, delayed crisis response, and lax cost controls, and announced it will push forward a drastic organizational overhaul, consolidating overlapping departments, eliminating non-core redundant positions, and cutting non-production and non-operational expenses across the entire chain. It will strictly control soft costs such as administrative logistics and welfare subsidies, while tilting resources toward core technology R&D and frontline market offensives. In the first quarter of 2026, Vanward Electric achieved total operating revenue of 2.171 billion yuan, down 5.40 percent year-on-year, with net profit attributable to shareholders of 79.61 million yuan, a decline of 55.60 percent.
Guangdong Vanward New Electric Co LtdCompany reports sharp revenue and profit decline due to real estate downturn and weak demand.