Core Insights - The company is enhancing its retail operations through the introduction of smart delivery lockers in its mobile digital member stores, improving delivery efficiency and customer satisfaction [1] - The implementation of AI tools, such as the "Qiancheng Cloud AI Intelligent Model," is streamlining inventory management and marketing strategies for member store owners, significantly increasing operational efficiency [3] - The company is deepening partnerships with leading brands like Apple and Oulin, resulting in increased customer traffic and sales during promotional events, with a notable 20% increase in store repurchase rates compared to the previous year [4] Group 1: AI Integration - The company launched the "Qiancheng Cloud AI Intelligent Model" in April, which has been actively utilized in various operational aspects, including intelligent product selection and marketing [3] - Member store owners are now using AI as a daily operational tool, allowing for streamlined ordering processes based on specific requirements [3] - The average service volume for member stores has exceeded 2000 interactions per day since the AI model's release [3] Group 2: Supply Chain and Partnerships - The company is enhancing its supply chain by collaborating with top brands, which has positively impacted customer engagement and sales performance [4] - The integration of online, offline, and community-based strategies has led to significant improvements in customer traffic and sales during major promotional events [4] - The company plans to deploy over 10,000 member stores across 15 key provinces, focusing on smart home products and promotional activities [4]

Group 1 - The company has integrated mainstream large models like DeepSeek and launched "AI employees" in February, marking a significant step in its AI+ strategy [1] - In April, the company officially released its AI+ strategy and product matrix, including the self-developed "Qiancheng Cloud AI Smart Model" and "Qiancheng AI Super Store Manager" APP [1] - The company aims to enhance efficiency in the supply chain and industry chain through its platform, targeting the lower-tier markets to facilitate better management for member stores [1] Group 2 - The newly revamped "Qiancheng AI Super Store Manager" APP integrates over 15 intelligent agents, with an upcoming version set to launch in June featuring a "Qiancheng AI" super entry [2] - The app is designed to help store owners utilize AI functionalities with zero barriers, thereby improving operational efficiency [2] Group 3 - The company's AI+ strategy will focus on three main directions: "AI+ industrial platform," "AI+ SaaS," and "AI+ smart terminals," aiming for a comprehensive digital upgrade from factories to member stores [4] - This strategy is expected to activate vast transaction data assets in lower-tier markets and promote innovative supply chain models to enhance domestic demand and economic circulation [4]

Core Viewpoint - The company HuTongDa Network (09878) is experiencing significant growth driven by its self-owned brand strategy and the launch of its energy-efficient air conditioning products under the brand "AltiSha" [1][2] Group 1: Company Performance - HuTongDa's stock price increased by 4.45%, reaching 18.3 HKD with a trading volume of 37.49 million HKD [1] - The AltiSha brand's new product line, the Fengshen series of energy-saving air conditioners, has seen a sales surge, particularly during the 618 e-commerce promotion, with order volume increasing by over 100% year-on-year [1] Group 2: Product and Market Strategy - The Fengshen series air conditioners exceed national energy efficiency standards by over 15%, catering to consumer demand for energy-saving appliances [1] - The AltiSha brand has achieved over 10,000 overseas orders, marking a breakthrough in international markets, with plans to expand into Eastern Europe and Middle Eastern countries [2] - The rapid growth of AltiSha in both domestic and international markets aligns with HuTongDa's "one main, two auxiliary" strategy, focusing on lower-tier market services and cross-border e-commerce [2]

Core Insights - 汇通达网络 received the "Sustainable Impact Pioneer Award" at the "Sustainable Value Hong Kong Summit" held on May 9, recognizing its commitment to sustainable practices and digital empowerment in rural markets [1][2] Group 1: Environmental Initiatives - The company focuses on optimizing supply chain efficiency and collaborates with partners to fulfill environmental responsibilities, implementing the "Three Major Supply Chain Projects" this year [1] - 汇通达 adopts a b2F reverse supply chain model to enhance supply-demand matching efficiency and reduce production capacity waste [1] Group 2: Social Responsibility - 汇通达 has pioneered the "platform + member store" business model, serving nearly 250,000 rural family stores and conducting extensive training programs to help over 100,000 stores achieve digital transformation [1] - The company aligns its efforts with national policies aimed at promoting consumption and expanding domestic demand [1] Group 3: Governance and Strategy - 汇通达 has established a sustainable development committee to enhance its ESG governance framework and integrate ESG strategies into its overall business strategy [1] - The company aims to drive high-quality and sustainable development for itself and its stakeholders [1][2] Group 4: Future Directions - With the widespread application of AI technology, 汇通达 plans to innovate its service models and technology applications to create greater value for rural family stores and industry partners [2] - The company's mission is to improve the lives of farmers while building a more intelligent and sustainable platform infrastructure for urban-rural circulation [2]

Group 1 - The 25th China Retail Industry Expo (2025 CHINASHOP) will be held in Shenzhen from May 8 to May 10, 2025, showcasing the "Qiancheng AI Super Store Manager" software and hardware products by Huitongda Network [1] - Huitongda's Vice President and CEO of Huitong Data, Sun Chao, stated that the company is upgrading its products and services from SaaS+ to AI+ to enhance efficiency across the supply chain [1] - The "Qiancheng AI Super Store Manager" features over 15 AI Agent assistants designed to improve daily management in retail stores across eight operational scenarios, including product management and marketing content creation [1] Group 2 - Huitong Data's products are applicable not only to rural family stores within its system but also to retail stores in higher-tier markets [2] - The company aims to leverage its accumulated technology, operations, and service capabilities in the retail market to create a more diverse and open smart supply chain platform [2] - This initiative is intended to provide a richer selection of products and more efficient supply-demand matching, contributing to stimulating domestic demand and boosting consumption [2]

Core Viewpoint - Huitongda Network (09878) emphasizes its commitment to integrating ESG principles into its operations while driving rural revitalization and urban-rural integration in China, leveraging digital technology and supply chain capabilities to empower township businesses [1][2]. Environmental Aspects - The company is enhancing the use of clean energy and reducing carbon emission intensity to support climate action goals. It is also implementing sustainable supply chain management in collaboration with upstream and downstream partners, improving supply-demand matching efficiency and reducing capacity and related losses through innovative supply chain models [1]. Social Responsibility - Huitongda Network serves 248,000 township businesses nationwide, providing extensive free training to support rural prosperity and development. The company has transformed over 100,000 township stores into AI-enabled smart stores, aligning with national strategies for consumption promotion and rural technology integration, while also supporting UN sustainable development goals such as poverty alleviation and gender equality [2]. Governance - The company has established a sustainable development (ESG) committee to enhance its ESG governance framework. Huitongda Network aims to deepen its ESG strategy by integrating sustainable development concepts into strategic decision-making and business operations, collaborating with stakeholders for a better future [2]. Recognition - Recently, Huitongda Network received several accolades in the ESG field, including the "ESG100 Green Development Award - Annual Outstanding Value Award" and "Annual Excellent ESG Demonstration Enterprise," reflecting its commitment to sustainable high-quality development [2].

Core Viewpoint - Huitongda Network (9878.HK) has released its 2024 ESG report, highlighting its clear development path and significant value space driven by AI+SaaS, smart supply chain, and corporate social responsibility [1] Group 1: Technology and Supply Chain Upgrades - The company is focusing on upgrading its technology and supply chain starting in 2024, with significant advancements expected [1] - In the technology dimension, Huitongda is transitioning from SaaS to AI+SaaS, launching three major projects: "AI+ Industry Platform," "AI+SaaS Services," and "AI+Smart Terminal" [1] - Over 50 AI Agents have been deployed in its supply chain and retail applications to enhance the intelligence and efficiency of the entire circulation process [1] Group 2: Commitment to Social Responsibility - Huitongda is increasingly emphasizing its corporate responsibility under the themes of "rural revitalization," "urban-rural integration," and "domestic economic circulation" [2] - The company has launched initiatives such as the "Foreign Trade Quality Products Online" section and the "National Subsidy" section to connect policies with platform resources for rural retail stores and businesses transitioning from foreign trade to domestic sales [2] - The ESG report indicates that Huitongda will integrate sustainable development concepts into its strategic decision-making and business operations, aiming to build a high-speed circulation channel between urban and rural areas [2]

Financial Performance - The company reported a revenue of RMB 1.2 billion for the fiscal year, representing a year-over-year increase of 15%[10]. - The company reported a total revenue of RMB 60.06 billion for the year ended December 31, 2024, a decrease of 27.0% compared to RMB 82.43 billion in 2023[11]. - The company achieved a net profit of RMB 461.77 million for the year, down from RMB 697.30 million in 2023[11]. - Net profit decreased by 33.8% to RMB 461.8 million in 2024, down from RMB 697.3 million in 2023[56]. - The company reported a net profit margin of 18%, an improvement from 15% in the previous year[10]. - Cash flow from operations increased by 30% to RMB 400 million, indicating strong operational efficiency[10]. - The effective tax rate slightly decreased from 12.5% in 2023 to 11.1% in 2024, with income tax expenses falling by 42.4% to RMB 57.5 million[52][53]. User and Market Growth - User data showed an increase in active users to 5 million, up 20% from the previous year[10]. - The number of registered retail member stores reached 248,560, representing a year-over-year growth of 4.8%[12]. - Active retail member stores increased to 95,111, up 4.9% from the previous year[12]. - The total number of SaaS and subscription users was 107,929, a decrease from 131,810 in 2023[12]. Strategic Initiatives - The company provided guidance for the next fiscal year, expecting revenue growth of 10% to 12%[10]. - Market expansion efforts are focused on Southeast Asia, with a target of entering three new countries by the end of the fiscal year[10]. - The company is investing RMB 200 million in R&D for AIaaS technologies over the next two years[10]. - The company plans to enhance its supply chain capabilities by establishing strategic partnerships with over 100 leading brands and aims to develop 5 to 10 additional top brands in high-growth categories by 2025[30][31]. - The company is focusing on new growth strategies, including new product categories, channels, and business models, to enhance market resilience and expand its ecosystem[34]. Acquisitions and Partnerships - The company completed an acquisition of a local tech firm for RMB 500 million to enhance its service offerings[10]. - The company acquired 100% equity of Nanjing Haoxiangjia Engineering Technology Co., Ltd. and has profit commitments for the fiscal years ending December 31, 2023, 2024, and 2025, with promised net profits of RMB 64.78 million, RMB 77.80 million, and RMB 83.97 million respectively[183]. Technology and Innovation - The company is focusing on AI applications, enhancing its SaaS+ platform with features like AI-driven marketing and customer service, which is expected to improve operational efficiency and customer satisfaction[27]. - The company is committed to leveraging technology to drive efficiency and create value in the supply chain, aligning with its mission to improve the lives of farmers[35]. Financial Management and Capital Structure - Cash and cash equivalents decreased to RMB 2.78 billion from RMB 3.75 billion in 2023[11]. - The company's capital debt ratio as of December 31, 2024, was 14.5%, calculated as total borrowings divided by equity[70]. - The group’s bank loans and other borrowings amounted to RMB 1,297.7 million as of December 31, 2024, primarily at fixed interest rates[122]. Governance and Leadership - Mr. Sun Chao has been appointed as Executive Director since February 2023 and has extensive experience in retail operations management[84]. - The company has seen significant leadership changes, with various board members bringing diverse expertise in investment and corporate management[85][86][90]. - The management team has a strong academic background, with degrees from prestigious institutions such as Fudan University and the University of Pennsylvania[87][89]. - The company is committed to improving its governance structure by including independent non-executive directors with extensive industry experience[88][90]. Risks and Compliance - Major risks include the potential loss of existing customers or failure to attract new ones, which could adversely affect financial conditions and business operations[111]. - The company has not faced significant environmental risks and has not incurred fines or penalties for non-compliance with environmental regulations during the reporting period[114]. - The company has confirmed compliance with the disclosure requirements of the Listing Rules regarding related party transactions for the fiscal year ending December 31, 2024[187]. Employee and Social Responsibility - The group employed 3,845 full-time employees, with a gender distribution of approximately 49.08% male and 50.92% female[115]. - The company made charitable donations totaling approximately RMB 23,000 for the year ending December 31, 2024[151]. - The group is committed to maintaining and promoting employee diversity, particularly gender diversity, as part of its sustainable development goals[115]. Shareholder Information - The board of directors has decided not to recommend a final dividend for the year ending December 31, 2024, consistent with the previous year[110]. - The total number of issued shares is 562,569,837, comprising 180,266,339 H-shares and 382,303,498 domestic shares[179]. - The total percentage of shares held by major shareholders, including Alibaba and its affiliates, indicates significant control over the company[180].

Core Viewpoint - The international trade environment is undergoing significant changes, prompting Jiangsu province to strengthen its foreign trade and investment efforts while accelerating the integration of domestic and foreign trade [1] Group 1: Company Initiatives - Huaitongda Network launched the "Orange Easy Procurement" platform and initiated two major activities: "Foreign Trade Quality Products Online" and "418 Town Market Shopping Festival" to help foreign trade enterprises tap into domestic markets [1][2] - The company has been focusing on the lower-tier markets since 2012, utilizing a "platform + membership store" model to serve rural retail outlets [2][3] - Huaitongda aims to provide a one-stop procurement platform and a smart distribution platform for upstream factories, targeting a million retail stores nationwide [3] Group 2: Market Opportunities - The lower-tier markets are seen as a new avenue for foreign trade enterprises, with Huaitongda setting up a dedicated area for foreign trade quality products to penetrate these markets [2][5] - Jiangsu province has established 34 county-level e-commerce industrial clusters to enhance the integration of local industries and e-commerce, boosting the efficiency and scale of county-level e-commerce [5] - The furniture industry in Suining has developed a significant e-commerce presence, with a product scale of 19 billion yuan and 25,000 online stores, indicating strong potential for domestic market expansion [6] Group 3: Strategic Collaborations - Companies like Huosheng Taigu Smart Technology are adjusting their strategies to enhance domestic sales and are looking to collaborate with platforms like Huaitongda for long-term strategic partnerships [7][8] - Many foreign trade enterprises are actively seeking new growth points through technological innovation and collaboration with e-commerce platforms, demonstrating resilience in challenging market conditions [10]

Core Viewpoint - Huitongda Network officially launched the "Orange Easy Procurement" mall and initiated two special activities, marking the full implementation of its new strategic layout of "3 major supply chain projects + 3 major AI projects" aimed at enhancing domestic and foreign trade in lower-tier markets [1][4]. Group 1: Supply Chain Strategy - The launch of the "Orange Easy Procurement" mall is part of Huitongda's innovative supply chain projects, which include "Brand Express," "Self-owned Brand Ecosystem," and "Smart Supply Chain" [4]. - Huitongda's strategy focuses on creating a dual-driven industrial internet version 2.0, leveraging digital technology and smart supply chains to serve lower-tier market member stores and industry partners [4][5]. - The company emphasizes three characteristics of its platform: openness, short-chain logistics, and intelligence, aiming to reduce costs and improve efficiency in the supply chain [4][5]. Group 2: Market Expansion Initiatives - In response to challenges in foreign trade, Huitongda is promoting the "Foreign Trade Quality Products Online" initiative and the "Township Market Shopping Festival" to facilitate the transition of exports to domestic sales [6]. - The company aims to build a commercial ecosystem in lower-tier markets that can withstand cyclical shocks, fostering collaboration among producers, distributors, and retail stores [6]. Group 3: AI Integration - The "Orange Easy Procurement" platform provides a one-stop procurement solution for nearly 250,000 member stores and offers a smart distribution platform for upstream factories [9]. - Huitongda plans to utilize AI capabilities to enhance procurement efficiency and supply chain turnover, aiming to provide a richer and more cost-effective product offering to retail stores across the country [9].