Is the Integrated Stove Industry Facing Its "Darkest" Hour, and Can Cross-Industry Self-Rescue Turn the Tide?

On July 22, 2025, media reported that a notice of bankruptcy liquidation application from a well-known integrated stove company in Shengzhou, Zhejiang, had been released. This news sparked heated discussions. However, as the case is not yet concluded, the name of the company is temporarily not being disclosed.

The difficult days for integrated stove companies are far from over. Recently, Zhejiang Meida and Shuai Feng Electric, two listed integrated stove companies, successively released their performance forecasts for the first half of 2025. On the basis of a net profit decline of over 70% last year, both companies are still showing signs of an expanding downward trend in the first half of 2025. Why has the growth of this once highly sought-after "new hotspot" come to a halt, and how are companies currently "saving themselves"?

Zhejiang Meida's half-year performance forecast shows that the net profit for the first half of the year is expected to be between 11.5 million yuan and 15.5 million yuan, representing a decline of 84.11% to 88.21% compared to the same period last year; the net profit after deducting non-recurring gains and losses is expected to be between 10 million yuan and 14 million yuan, a decrease of 85.59% to 89.71% compared to the same period last year.

The two companies believe that the external reasons for the decline in performance include the impact of the overall market situation, the continued downturn in the real estate market, and the weakening of consumer spending power. The internal reasons include adjustments in the company's product structure and a decrease in average product prices.

According to data from Aowei Cloud Network, the retail sales of China's home appliance market (excluding 3C products) reached 453.7 billion yuan in the first half of 2025, a year-on-year increase of 9.2%. However, integrated stoves have continued to perform poorly, with retail sales of 6.6 billion yuan in the first half of the year, a year-on-year decrease of 27.6%, and retail volume of 780,000 units, a year-on-year decline of 24.1%.

Since 2022, the integrated stove industry has suddenly shifted from rapid growth to continuous decline. Besides the unfavorable external factors mentioned by the aforementioned companies, during the rise of integrated stoves, many enterprises entered the market in a rush, causing product and functional homogenization. To compete for market share, many companies resorted to price competition. These factors have made the integrated stove industry struggle to move forward. Taking the gross profit margin data of Zhejiang Meida, Mars, and Yitian Intelligent as examples, from 2020 to 2024, Zhejiang Meida’s integrated stove gross profit margin dropped from 56.52% to 42.02%, Mars’ integrated stove gross profit margin decreased from 52.06% to 44.07%, and Yitian Intelligent’s integrated stove gross profit margin fell from 46.29% to 41.88%. It is not difficult to see the intense competition in the integrated stove industry from these figures.

The former "Four Little Dragons" of the integrated stove industry are now without exception deep in the mire. In addition, more small and medium-sized enterprises are struggling, with companies like Zhejiang Alien Appliance Co., Ltd., Shengzhou Yiduo Kitchen Appliance Co., Ltd., and Shengzhou Kushino Appliance Co., Ltd., which have declared bankruptcy in the past two years, all having been part of the integrated stove industry.

Faced with a harsh reality, listed integrated stove companies have also begun to vigorously pursue "side businesses."

Yitian Intelligent recently announced that it has jointly invested with two other enterprises to establish Shanghai Deshu Cloud Private Equity Fund Partnership (Limited Partnership). The total committed capital of the partnership is planned to be 2 billion RMB, of which Yitian Intelligent and its related parties intend to commit 998 million RMB. The fund’s primary investment directions include technology innovation enterprises in the fields of artificial intelligence, big data, computing power, IDC, information industry, and advanced manufacturing.

Zhejiang Meida announced its plan to invest 110 million yuan to acquire a 4.8657% equity stake in Magic Vision Intelligent Technology (Shanghai) Co., Ltd., officially entering the intelligent driving sector.

Martian has officially entered the fields of general artificial intelligence (AGI) and humanoid robots by taking stakes in Beijing Stardust Era Technology and Daimeng (Shenzhen) Robotics Technology.

Suenfon Electric Appliances established a new media technology company and a green gold mine recycling resources company successively in May and June of this year.

It is evident that these companies are targeting currently hot sectors. However, can cross-industry expansion truly reverse the downward trend? This "invest in whatever is popular" strategy also reveals the anxiety of manufacturing enterprises. The integrated stove market continues to face pressure, with multiple challenges from traditional range hoods, stoves, and integrated cooking centers, while price wars erode profits. For companies to survive, transformation seems imperative. However, these sideline businesses, which have little relation to their main operations, not only have low relevance to the existing kitchen appliance industry and fail to create complementary synergies within the industrial chain, but the aforementioned integrated stove companies also face various challenges in talent, resources, and other aspects in technological fields such as artificial intelligence and intelligent driving.

"The crossover of integrated stove enterprises seems more like a helpless move rather than a strategic upgrade. If they cannot establish a second growth curve in their main business, these investments are likely to become financial games," an unnamed industry insider admitted.

Despite the industry downturn, only companies that combine technological accumulation with genuine user needs can weather the cycle. Integrated stove companies should not only seek survival externally but also rethink their value positioning and how to achieve long-term growth through innovation in their main business.