FF301 第 1 頁 共 10 頁 v 1.1.1 FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 00303 | 說明 | | | | | | | | | | 已發行股份（不包括庫存股份）數目 | | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | | 253,109,133 | | 0 | | 253,109,133 | | 增加 / 減少 (-) | | | | | | | | | | 本月底結存 | | | | 253,109,133 | | 0 | | 253,109,133 | 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | | | | 狀態: 新提交 | | --- | --- | --- | --- | --- | --- | | ...

Key Points - The top three companies with net inflows from southbound funds are Xiaomi Group-W (01810) with 1.665 billion, Tencent Holdings (00700) with 830 million, and Alibaba-W (09988) with 747 million [1] - The companies with the highest net outflows are Pop Mart (09992) with -354 million, China Life (02628) with -351 million, and Kingsoft Cloud (03896) with -300 million [1] - In terms of net inflow ratio, Qin Port Co. (03369) leads with 78.68%, followed by Reshaping Energy (02570) with 76.94%, and Cang Port Railway (02169) with 65.01% [1] - The companies with the highest net outflow ratios include Chongqing Rural Commercial Bank (03618) at -61.37%, Bank of China Aviation Leasing (02588) at -53.31%, and Swire Properties (01972) at -45.99% [1] Net Inflow Rankings - Xiaomi Group-W (01810) had a net inflow of 1.665 billion, representing a 12.37% increase [2] - Tencent Holdings (00700) saw a net inflow of 830 million, with an 8.94% increase [2] - Alibaba-W (09988) recorded a net inflow of 747 million, reflecting a 10.60% increase [2] - The highest net inflow was observed in CSPC Pharmaceutical Group (01093) with 654 million and a 21.81% increase [2] Net Outflow Rankings - Pop Mart (09992) experienced a net outflow of -354 million, with a -10.47% decrease [2] - China Life (02628) had a net outflow of -351 million, reflecting a -11.90% decrease [2] - Kingsoft Cloud (03896) recorded a net outflow of -300 million, with a -24.18% decrease [2] - Meituan-W (03690) also saw a significant outflow of -291 million, representing a -5.32% decrease [2] Net Inflow Ratio Rankings - Qin Port Co. (03369) leads with a net inflow ratio of 78.68% and a net inflow of 340,000 [3] - Reshaping Energy (02570) follows with a net inflow ratio of 76.94% and a net inflow of 10.53 million [3] - Cang Port Railway (02169) has a net inflow ratio of 65.01% with a net inflow of 4.3967 million [3] - Other notable companies include Meizhong Jiahe (02453) with a 61.71% net inflow ratio [3] Net Outflow Ratio Rankings - Chongqing Rural Commercial Bank (03618) has the highest net outflow ratio at -61.37% with a net outflow of -1.04 billion [3] - Bank of China Aviation Leasing (02588) follows with a net outflow ratio of -53.31% and a net outflow of -15.3728 million [3] - Swire Properties (01972) has a net outflow ratio of -45.99% with a net outflow of -29.4662 million [3]

Core Viewpoint - The Hong Kong Dividend Low Volatility ETF (520890) has experienced a significant decline in both share count and total assets in 2024, indicating potential challenges in attracting investment [1][2]. Group 1: Fund Overview - The Hong Kong Dividend Low Volatility ETF (520890) was established on September 4, 2024, with an annual management fee of 0.50% and a custody fee of 0.10% [1]. - As of July 8, 2024, the fund had a total of 47.508 million shares and a total size of 66.131 million yuan, down from 123 million shares and 146 million yuan at the end of 2024, representing a 61.38% decrease in shares and a 54.81% decrease in size year-to-date [1]. Group 2: Liquidity and Performance - The cumulative trading amount for the ETF over the last 20 trading days was 150 million yuan, with an average daily trading amount of 7.4938 million yuan [1]. - The current fund manager, Li Qian, has managed the fund since its inception, achieving a return of 39.20% during her tenure [1]. Group 3: Top Holdings - The ETF's top holdings include Far East Horizon, Shougang Resources, Chongqing Rural Commercial Bank, VTECH Holdings, Kerry Properties, Minsheng Bank, Henderson Land, China Petroleum, Sinopec, and Fufeng Group, with respective holding percentages and market values detailed [2]. - The largest holding is Far East Horizon at 3.78%, followed closely by Shougang Resources at 3.72% [2].

Summary of Key Points from the Conference Call Company Overview - The company discussed is **VTech**, a leading player in the traditional infant toy industry, focusing on IP and AI-related business breakthroughs [1][10]. Financial Performance - For the fiscal year 2025, VTech reported a total revenue growth of **1% year-on-year**, with electronic learning products growing by **2%**. However, the EMS (Electronic Manufacturing Services) business declined due to weak demand [1][2]. - The company has maintained a **high dividend payout ratio** of nearly **100%** over the past five years, with a current dividend yield of approximately **9%**, indicating stable core business operations [1][4][11]. Market Position - VTech holds a **global market share of nearly 2%**, ranking **sixth** in the toy industry. This is significantly lower than leading competitors like LEGO and Mattel, which have market shares exceeding **10%** [1][5][10]. Regional Revenue Contributions - The majority of VTech's revenue comes from the **European and North American markets**, which together account for about **85%** of total revenue. In fiscal year 2025, Europe saw an **8% revenue increase**, while North America experienced a slight decline of **3%** [2][3]. Production and Supply Chain Strategy - In response to tariff impacts, VTech is diversifying its production bases and plans to complete the transfer of production capacity related to the U.S. market by **2026**. New production facilities have been established in **Malaysia, Mexico, and Germany** [1][6]. Business Outlook for Fiscal Year 2026 - VTech anticipates that the electronic learning products segment will be negatively impacted by U.S. tariffs, although sales outside the U.S. are expected to rise. The telecommunications products segment is projected to grow due to synergies from a recent acquisition, while the EMS business is expected to remain under pressure [1][8]. AI and IP Collaborations - VTech is actively expanding into the **AI toy sector**, with products like the **five-in-one exploration robot** launched by the end of **2024** and plans for an **AI baby monitor** by **September 2025**. The company is also collaborating with well-known IPs such as **Paw Patrol** and **Disney** to diversify its product offerings [1][9]. Conclusion - VTech, as a leading infant toy company, faces operational fluctuations due to tariff policies but is expected to stabilize its traditional business as production capacity transfers are completed [1][7].

Financial Performance - For the fiscal year ending March 31, 2025, the group's revenue increased by 1.5% to $2,177.2 million, up from $2,145.7 million in the previous year[26]. - The gross profit rose by 8.2% to $686.8 million, compared to $634.9 million in the prior year, resulting in a gross margin of 31.5%[10]. - The profit attributable to shareholders decreased by 5.9% to $156.8 million, down from $166.6 million, with basic earnings per share falling by 6.1% to 62.0 cents[10][26]. - Operating profit declined by 3.8% to $188.7 million, influenced by increased operating expenses due to the integration of Gigaset Technologies GmbH[10][25]. - The EBITDA margin decreased by 0.5 percentage points to 11.2%[10]. - The return on equity for shareholders was 24.3%, down from 25.8% in the previous year[10]. - Gross margin is expected to remain stable, but labor and production costs are projected to rise, alongside increased logistics costs[44]. - Cash generated from operating activities decreased by 31.5% to $25.55 million in the fiscal year ending March 31, 2025, down from $37.31 million[67]. - As of March 31, 2025, the total shareholder equity was $644.4 million, a decrease of 0.1% from $645.0 million in the previous fiscal year[62]. - The net cash held by the group increased by 4.2% to $335.6 million as of March 31, 2025, compared to $322.1 million a year earlier[62]. Capital Expenditures and Investments - Capital expenditures increased significantly by 61.1% to $52.2 million, while research and development expenses rose by 12.5% to $91.9 million[10]. - Capital expenditure for the fiscal year ending March 31, 2025, was $52.2 million, funded entirely from internal resources[75]. - The group anticipates capital commitments of $42 million for the fiscal year 2026, also funded from internal resources[77]. Market Performance and Sales - The integration of Gigaset contributed to increased sales in Europe, offsetting declines in North America and the Asia-Pacific region[25]. - Sales of electronic learning products increased, primarily driven by growth in the US market, reflecting successful restructuring efforts and new sales strategies[30]. - Independent product sales accounted for approximately 89% of total revenue from electronic learning products, with growth driven by LeapFrog and VTech products[33]. - The integration of Gigaset contributed to a rise in household phone revenue, with household phones now representing about 46% of total telecommunications product revenue, up from 40% in the previous fiscal year[34]. - The group faced challenges in Europe due to economic weakness and a strong US dollar, impacting retail sales and inventory control[30]. - In the fiscal year 2025, the group's revenue in North America decreased by 3.2% to $889.31 million, primarily due to a decline in telecommunications products and contract manufacturing services, offsetting the increase in e-learning product sales[83]. - E-learning product revenue in North America rose by 7.0% to $444.90 million, with the U.S. and Canada experiencing sales growth due to a stabilized toy market in 2024[83]. - In Europe, the group's revenue increased by 8.2% to $960.70 million, making it the largest market, accounting for 44.1% of total revenue[94]. - Revenue from electronic learning products in Europe decreased by 2.7% to $370 million, with declines in independent and platform products due to slow economic growth and a weak euro[96]. - Revenue in the Asia-Pacific region fell by 5.3% to $30.9 million, with declines across all three product categories, representing 13.8% of the group's total revenue[106]. Product Development and Innovation - The company will launch AI-enabled baby monitors by September 2025 to strengthen its market leadership[45]. - New product innovations will support global sales growth, including an expanded core learning product category and new interactive systems[44]. - The group introduced several new products at the 2025 Toy Fair, enhancing its commitment to developmental play through innovative learning tools[86]. - Gigaset added three new SIP desktop phone models to its professional series in Q4 of the fiscal year 2025, enhancing its product range for professional users in office, service, and industrial environments[196]. Awards and Recognition - The group received over 100 awards and recommendations for its electronic learning products globally in the fiscal year 2025[32]. - The company’s electronic learning products received over 100 awards from industry experts and associations in the fiscal year 2025[187]. - Vtech and LeapFrog's baby care products received a total of 22 awards from trusted parenting websites and industry recognitions in the fiscal year 2025[198]. - The group maintained its position as the number one baby monitor brand in the U.S. and Canada, receiving multiple awards for its products[90]. Strategic Initiatives - The company continues to diversify its production bases globally to mitigate the impact of recent tariffs imposed by the U.S.[25]. - The group aims to complete the relocation of production for products exported to the US away from China by 2026, in response to increased tariffs[29]. - The company plans to mitigate tariff impacts by accelerating production shifts to Malaysia, Mexico, and Germany, and is negotiating tailored pricing strategies with retailers in the US[42]. - The company is actively assisting affected clients in relocating production to its facilities in Malaysia and Mexico, with plans to expand its facility in Malaysia to meet demand[46]. - The company aims for sustainable growth supported by a strong financial position, global production bases, and a diversified product portfolio[46]. Challenges and Outlook - The company anticipates a decline in revenue for the fiscal year 2026 due to a generally weak global economy and increased geopolitical uncertainty[46]. - The company aims to expand its market share globally despite anticipated revenue declines in FY2026 due to US tariff policies[44]. - The group experienced a 10.7% decline in contract manufacturing services revenue in Europe, totaling $442.3 million, with drops in professional audio equipment and communication products offsetting growth in IoT and automotive products[102].

Financial Performance - VTech's revenue increased by 1.5% to US$2,177.2 million, compared to US$2,145.7 million in the previous year[5] - Gross profit rose by 8.2% to US$686.8 million, with the gross profit margin improving to 31.5% from 29.6%[5, 13] - Profit attributable to shareholders decreased by 5.9% to US$156.8 million[5] - Total dividend per share decreased by 6.2% to 61 US cents[5] Regional Performance - Europe became VTech's largest market, with revenue increasing by 8.2% to US$960.7 million, representing 44.1% of group revenue[7, 36] - North America's revenue decreased by 3.2% to US$893.1 million, accounting for 41.0% of group revenue[7, 21] - Asia Pacific's revenue fell by 5.3% to US$300.9 million, making up 13.8% of group revenue[7, 52] - Other Regions' revenue increased significantly by 31.6% to US$22.5 million, contributing 1.1% of group revenue[7, 63] Product Line Performance in North America - ELPs revenue in North America increased by 7.0% to US$444.9 million[20, 21] - TEL products revenue in North America fell by 11.0% to US$178.8 million[20, 29] - CMS revenue in North America decreased by 11.9% to US$269.4 million[20, 33] Product Line Performance in Europe - TEL products revenue in Europe increased significantly by 173.8% to US$211.4 million[35, 42] - ELPs revenue in Europe fell by 2.7% to US$307.0 million[35, 36] - CMS revenue in Europe decreased by 10.7% to US$442.3 million[35, 45]

Investment Rating - The report does not explicitly state an investment rating for the industry or specific companies [1]. Core Insights - The report highlights a significant increase in social financing in China, with an increment of 16.34 trillion yuan in the first four months of the year, which is 3.61 trillion yuan more than the same period last year [3]. - The broad money supply (M2) reached 325.17 trillion yuan, reflecting an 8% year-on-year growth, while the narrow money supply (M1) increased by 1.5% to 109.14 trillion yuan [3]. - A reduction in the reserve requirement ratio by 0.5 percentage points is expected to inject approximately 1 trillion yuan of long-term liquidity into the market [3]. - The establishment of a "National Venture Capital Guidance Fund" aims to support high-level technological self-reliance and innovation [3]. Summary by Sections Market Performance - The Hang Seng Index closed at 23,640.65, up by 2.30% [2]. - The US Dow Jones Index decreased by 0.21% to 42,051.06, while the Nasdaq Index increased by 0.72% to 19,146.81 [2]. Company News - Tencent reported a net profit of 478.21 billion yuan for the first quarter, marking a 14.2% year-on-year increase [5]. - Weida's annual revenue was reported at 2.177 billion USD, a 1.5% increase year-on-year, while net profit decreased by 5.9% to 157 million USD [5]. - The demand for storage chips has surged, leading to rapid growth in the packaging substrate business [5].

Financial Performance - Group revenue increased by 1.5% to $2,177.2 million, driven by the integration of Gigaset sales[3] - Gross profit margin improved from 29.6% in the previous fiscal year to 31.5%[3] - Profit attributable to shareholders decreased by 5.9% to $156.8 million[4] - Operating profit was $188.7 million, down from $196.2 million in the previous year[4] - The company reported a total comprehensive income of $161.9 million for the year ending March 31, 2025, compared to $158.3 million in the previous year, reflecting an increase of 1.4%[7] - Cash generated from operating activities was $225.3 million, down from $355.2 million in the previous year, indicating a decrease of 36.6%[8] - The company’s total tax expense for fiscal year 2025 was $30.6 million, compared to $24.1 million in fiscal year 2024, reflecting an increase in both Hong Kong and overseas tax liabilities[4] - The net profit attributable to shareholders was $156.8 million, down $9.8 million or 5.9%, with a net profit margin decreasing from 7.8% to 7.2%[67] Dividends - Final dividend per share was 44.0 cents, with a total annual dividend of 61.0 cents, a decrease of 6.2% compared to the previous fiscal year[3] - The company declared a final dividend of $121.5 million for the previous year and an interim dividend of $43.0 million for the current year[8] - The company declared an interim dividend of $0.17 per share for fiscal year 2025, consistent with the previous year, while the proposed final dividend decreased to $0.44 per share from $0.48 per share in fiscal year 2024[28][37] Assets and Liabilities - Total assets less current liabilities amounted to $775.0 million, slightly down from $789.1 million[6] - Cash and cash equivalents increased to $335.6 million from $322.1 million[6] - The total liabilities for the company as of March 31, 2025, amount to $674.8 million, compared to $617.3 million in the previous year[24] - The total equity attributable to shareholders increased to $645.0 million as of April 1, 2024, from $634.7 million a year earlier, marking a growth of 1.9%[7] Inventory and Accounts Receivable - Inventory rose to $360.8 million from $348.0 million, indicating a 4.8% increase[6] - The company experienced a significant increase in inventory, with a decrease of $12.8 million compared to an increase of $127.5 million in the previous year[8] - As of March 31, 2025, the company’s accounts receivable totaled $331.2 million, an increase from $283.7 million as of March 31, 2024, with net accounts receivable at $267.8 million[32] - The aging analysis of accounts receivable as of March 31, 2025, showed that $161.8 million was within 0 to 30 days, compared to $136.0 million in the previous year, indicating improved collection efficiency[33] Market Performance - Total revenue for the fiscal year ending March 31, 2025, is $2,177.2 million, with North America contributing $893.1 million, Europe $960.7 million, Asia-Pacific $300.9 million, and other regions $22.5 million[12] - The revenue from electronic learning products is $830.0 million, with North America at $444.9 million, Europe $307.0 million, Asia-Pacific $68.8 million, and other regions $9.3 million[12] - The company has a diversified customer base, with one customer accounting for 14% of total revenue for the fiscal year ending March 31, 2025, up from 13% in the previous year[14] - Revenue in North America decreased by 3.2% to $893.1 million, accounting for 41.0% of total group revenue[85] - In the fiscal year 2025, the group's revenue in Europe increased by 8.2% to $960.7 million, making it the largest market, accounting for 44.1% of total revenue[93] Integration and Strategic Initiatives - Successful integration of Gigaset has contributed positively to the overall performance[3] - The integration of Gigaset has positioned the group as a global leader in the home phone market, with home phones accounting for approximately 46% of telecommunications product revenue in the fiscal year 2025[48] - The group aims to complete the relocation of production for products exported to the U.S. away from China by 2026, in response to expanded U.S. tariffs[43] - The company is actively assisting affected clients in relocating production to its facilities in Malaysia and Mexico, with plans to expand its facility in Malaysia to meet demand[60] Challenges and Future Outlook - The company continues to face challenges in the market, with cautious consumer spending and strict inventory control by retailers impacting overall business operations[44] - The company anticipates a decline in revenue for the fiscal year 2026 due to the impact of US tariff policies, with cautious ordering from clients and a focus on essential purchases by US consumers[57] - Revenue from electronic learning products is expected to decline in fiscal year 2026 due to US tariff policies, despite anticipated growth in sales outside the US[58] Research and Development - Research and development expenses rose by 12.5% to $91.9 million, representing 4.2% of total revenue, primarily due to the integration of Gigaset-related R&D costs[66] Governance and Compliance - The company’s board of directors includes a majority of independent non-executive directors, ensuring a balance of power and authority distribution[111] - The audit committee reviewed the consolidated financial statements for the fiscal year ending March 31, 2025, and found no objections[112] - The company’s governance practices comply with the corporate governance code as per the listing rules, with a focus on sustainable development and long-term shareholder interests[111]

Financial Data and Key Metrics Changes - Group revenue increased by 1.5% to $2,177.2 million, driven by higher sales in Europe and other regions, offsetting declines in North America and Asia Pacific [4][6] - Gross profit rose by 8.2% to $686.8 million, with gross profit margin improving from 29.6% to 31.5% due to lower material costs and favorable product mix [5][6] - Operating profit decreased by 3.8% to $188.7 million, with operating profit margin declining from 9.1% to 8.7% due to increased advertising and promotional expenses [5][6] - Profit attributable to shareholders fell by 5.9% to $156.8 million, with net profit margin decreasing from 7.8% to 7.2% [6] - Basic earnings per share reduced by 6.1% to $0.63, with total dividend per share for the year at $0.61 [6] Business Line Data and Key Metrics Changes - North America sales decreased by 3.2% to $893.1 million, primarily due to lower telecom product sales [6][16] - European market sales increased by 8.2% to $960.7 million, mainly driven by higher telecom product sales following the Gigaset acquisition [7][30] - Asia Pacific revenue fell by 5.3% to $300.9 million, with declines across all product lines [8][36] - Other regions saw a significant increase in revenue by 31.6% to $22.5 million, attributed to higher sales of electronic learning products and telecom products [9][40] Market Data and Key Metrics Changes - North America accounted for 41% of group revenue, while Europe became the largest market, contributing 44.1% [16][26] - The Asia Pacific region represented 13.8% of group revenue, with sales declines noted in Australia, Hong Kong, and South Korea [36] - Revenue from telecom products in Europe surged by 173.3% to $211.4 million, driven by the Gigaset acquisition [30] Company Strategy and Development Direction - The company is focusing on diversifying its manufacturing footprint to mitigate tariff impacts, with production being relocated from China to Malaysia, Mexico, and Germany [15][42] - Plans to enhance product offerings in the telecom segment with new high-end residential phones and Gigaset smartphones are underway [46] - The company aims to maintain its leadership in the baby monitor market by introducing AI features in new models [46] Management Comments on Operating Environment and Future Outlook - Management expressed concerns over the impact of US tariff policies on revenue, forecasting a decline in the financial year 2026 due to cautious customer ordering behavior [43][44] - The company remains resilient due to its vertical integration and global manufacturing capabilities, allowing for effective supply chain realignment [42][60] - Management highlighted the importance of monitoring various factors, including tariff negotiations and shipping conditions, to navigate the evolving market landscape [63] Other Important Information - The company reported an increase in stock balance to $360.8 million, with stock turnover days rising to 106 days [9][10] - Trade debt balance increased to $267.8 million, with turnover days decreasing to 56 days [10] Q&A Session Summary Question: Manufacturing capacity in China, Malaysia, Mexico, and Germany - The total manufacturing capacity outside China is currently about 25%, expected to increase to over 30% as expansions in Malaysia and Mexico continue [52][53] Question: Efficiency comparison of manufacturing sites - China remains the most efficient, followed closely by Malaysia and Mexico, with Germany also performing comparably due to high automation [54][56] Question: Impact of tariffs and future monitoring - The tariff situation is evolving, with VTech positioned to adapt by relocating production to lower-tariff countries [60][62] Question: Production relocation and delivery for the Christmas season - The company is fulfilling US orders through domestic shipments and has built up inventory to meet demand [90][92] Question: Market share development in toys and phones in the US - The company gained market share in toys and plans to continue this trend despite tariff challenges [93] Question: Gigaset product launch plans - Plans to introduce Gigaset's multicell products to the US market remain unchanged, as they are manufactured in Germany [97] Question: Gigaset acquisition performance - Integration of Gigaset is proceeding as planned, with performance exceeding initial expectations [98]

Financial Performance - The group's revenue increased by 1.5% to $2,177.2 million, driven by higher sales in Europe and other regions, which offset lower sales in North America and Asia Pacific [4][6] - Gross profit rose by 8.2% to $686.8 million, with gross profit margin improving from 29.6% to 31.5%, attributed to lower material costs and a favorable product mix [5][6] - Operating profit decreased by 3.8% to $188.7 million, with operating profit margin declining from 9.1% to 8.7%, mainly due to increased advertising and promotional expenses [5][6] - Profit attributable to shareholders fell by 5.9% to $156.8 million, with net profit margin decreasing from 7.8% to 7.2% [6] Business Line Performance - North America sales decreased by 3.2% to $893.1 million, primarily due to lower telecom product sales, despite growth in electronic learning products [6][16] - European market revenue increased by 8.2% to $960.7 million, driven by higher telecom product sales following the Gigaset acquisition [7][26] - Asia Pacific revenue fell by 5.3% to $300.9 million, with declines across all product lines [7][36] - Other regions saw a significant increase in revenue by 31.6% to $22.5 million, attributed to higher sales of electronic learning and telecom products [8][40] Market Performance - North America accounted for 41% of group revenue, while Europe became the largest market, contributing 44.1% [16][26] - The Asia Pacific region represented 13.8% of total revenue, with sales declines in Australia, Hong Kong, and South Korea [36] - Other regions, including Latin America, the Middle East, and Africa, accounted for 1.1% of group revenue, with notable growth in electronic learning products [40] Company Strategy and Industry Competition - The company is focusing on diversifying its manufacturing footprint to mitigate tariff impacts, with production being relocated from China to Malaysia, Mexico, and Germany [15][42] - The strategy includes enhancing product offerings in the telecom sector, particularly leveraging synergies with Gigaset [46] - The company aims to maintain its market share in the US despite challenges posed by tariffs and economic conditions [43][93] Management Commentary on Operating Environment and Future Outlook - Management expressed concerns about the impact of US tariffs and the overall economic outlook, forecasting a decline in revenue for the financial year 2026 [43][44] - The company plans to pass some tariff costs onto customers through higher prices while maintaining a stable profit margin [44][75] - There is an emphasis on expanding in emerging markets and enhancing product lines to drive growth [42][47] Other Important Information - The company remains debt-free with a strong financial position, reporting a net cash balance increase to $335.6 million [10] - Inventory levels increased significantly, with stock turnover days rising to 106 days, indicating a need for better inventory management [8][9] Q&A Session Summary Question: Manufacturing capacity in different regions - The total manufacturing capacity outside China is currently about 25%, expected to increase to over 30% as expansions in Malaysia and Mexico continue [52][53] Question: Impact of tariffs on operations - The company is well-positioned to adapt to changing tariffs due to its vertical integration and global manufacturing sites, with ongoing monitoring of the tariff situation [59][62] Question: Sales impact due to production relocation - There are no expected sales misses as the company has sufficient inventory to meet demand until June, with plans to supplement shipments from Malaysia thereafter [70][71] Question: Gigaset product strategy and integration - The plan to introduce Gigaset's multicell products to the US remains unchanged, with the integration of Gigaset performing better than anticipated [96][97]