Group 1 - The company, Xiaogoods City, stated that its main business includes market operations, trade services, supporting services, and commodity sales, with no direct sales to the EU market at present [2] - The company is actively expanding its overseas market presence through various strategies such as "overseas sub-markets, overseas warehouses, overseas showrooms, overseas exhibitions, and overseas stations" [2] - The company is advancing its "brand going abroad" initiative to deepen its international market penetration [2]

Core Viewpoint - The company has successfully developed and launched the "World Yiwu" trade model in collaboration with Alibaba Cloud, marking a significant advancement in its AI capabilities and service offerings [1] Group 1: Development and Launch - The "World Yiwu" trade model was officially launched in December 2025, completing the necessary registration for large-scale and standardized application [1] - The company has developed 14 proprietary AI applications centered around the core capabilities of the trade model [1] Group 2: Service Offerings - The AI applications cover the entire trade chain, providing services such as intelligent style generation in the production design phase [1] - In the content generation phase, the applications enable efficient production of product images, text, and multilingual marketing videos [1] - The applications optimize customer acquisition and conversion paths in the traffic management phase [1] - In the transaction matching phase, the efficiency of supply and demand matching is enhanced [1] - The applications also offer government service consulting in the government cluster phase [1] - In the AI education phase, the tools assist business operators in quickly mastering the use of intelligent tools [1]

Core Viewpoint - The company has successfully developed and launched the "World Yiwu" trade model in collaboration with Alibaba Cloud, marking a significant advancement in its AI capabilities and service offerings [1] Group 1: Development and Launch - The "World Yiwu" trade model was officially launched on December 23, 2025, after completing the necessary filing, indicating readiness for large-scale and standardized application [1] - The company has developed 14 proprietary AI applications centered around the core capabilities of the trade model [1] Group 2: Service System - The AI applications create a comprehensive service system that spans the entire trade chain, including: - Intelligent style generation services in the production design phase [1] - Efficient production of product images, text, and multilingual marketing videos in the content generation phase [1] - Optimization of precise customer acquisition and conversion paths in the traffic acquisition phase [1] - Enhanced supply-demand matching efficiency in the transaction matching phase [1] - Provision of government service consultations in the government cluster phase [1] - Support for business owners to quickly master the use of intelligent tools in the AI teaching phase [1]

Core Viewpoint - The report from Guosheng Securities highlights that Xiaogoods City possesses both the high prosperity of Yiwu trade and the dual strengths of high growth potential and scarcity of AI application scenarios, making it a rare core asset [1] Group 1: Company Transformation - The company has transitioned from a traditional foreign trade platform to an AI-driven digital trade ecosystem [1] - AI application penetration and effectiveness verification are currently in an accelerated release phase [1] Group 2: AI Integration and Partnerships - Xiaogoods City has established a complete closed loop from AI tool development to the implementation of trade scenarios [1] - Ongoing deepening collaborations with Alibaba and Tongyi Model have led to significant AI application results, enhancing merchant operational efficiency and platform value [1] Group 3: Financial Projections - Considering the performance increment from the opening of six districts in Q4 2025 and the sustained high growth of the trade service sector, the company’s projected net profit attributable to shareholders for 2025-2027 is estimated to be 4.24 billion, 5.76 billion, and 6.91 billion yuan, representing year-on-year growth of 37.9%, 35.9%, and 20.0% respectively [1] - The report maintains a "buy" rating for the company [1]

Summary of Yiwu Small Commodity City Conference Call Company Overview - **Company**: Yiwu Small Commodity City - **Industry**: International Trade and Digital Commerce Key Points Digital Trade Initiatives - Yiwu Small Commodity City is actively advancing digital trade, aiming to complete the digital transformation of International Trade City Zones 1-5 within three years, utilizing AI tools that have served over 288,000 users [2][3][4] - The collaboration with Alibaba has led to the development of a unique vertical model in the trade sector, which is registered with the National Cyberspace Administration [3][4] Financial Services and Currency Internationalization - Yi Pay, the only state-owned third-party payment provider in Zhejiang, has obtained Hong Kong MSO and TCSP licenses, facilitating the internationalization of the Renminbi [2][6] - The company plans to integrate with the central bank's digital currency system, enhancing cross-border settlement capabilities [4][6] International Market Expansion - Yiwu Small Commodity City has over 70 projects covering 700,000 square meters, with plans to replicate its model overseas [2][7] - In 2025, exports to the US increased by 28%, with ongoing efforts to expand into Africa, Southeast Asia, and the Middle East [3][10] AI Technology Utilization - AI technology has significantly improved operational efficiency, reducing design cycles from over ten days to three to four days [5][12] - AI translation supports 116 languages, facilitating real-time communication and reducing marketing costs by approximately 50% [5][12] Import Trade Development - As a pilot enterprise for national import trade reform, Yiwu aims to capture 30%-40% of the national health product registration market by 2026 [2][8] - The approval process for health products has been expedited, reducing the registration time from 2-3 years to under one year [8] Response to Global Economic Uncertainty - The company has developed strategies to mitigate risks associated with global economic uncertainties, focusing on essential goods that are less susceptible to market fluctuations [9][10] - The diversification of market presence helps reduce reliance on any single market, thus spreading risk [10] Digital Experience Enhancement - The implementation of an AI navigation and shopping guide system aims to improve procurement efficiency and customer experience [11][12] - Collaboration with tourism and immigration departments is intended to attract more customers and optimize traffic operations [11] Future Revenue Projections - The projected revenue for the AI business in 2026 is expected to triple compared to 2025, with significant profit growth anticipated [19] - The company has established a dual fee structure for services, including basic and deep service fees, to enhance revenue streams [19][20] Strategic Land Acquisition - The acquisition of land for the seventh district is viewed as strategically important despite high costs, with plans to recover costs through service fees [21][22] R&D and Innovation Competitions - Plans for 2026 include hosting various competitions to foster technological and industrial innovation, including a global e-commerce conference and an AI innovation competition [15][16] Conclusion - Yiwu Small Commodity City is positioned to leverage digital transformation, AI technology, and strategic international expansion to enhance its role as a comprehensive trade service provider while navigating global economic challenges and regulatory changes [2][3][4][9]

Investment Rating - The report maintains a "Buy" rating for the company [3][5]. Core Insights - The company is transitioning from a traditional foreign trade platform to an AI-driven digital trade ecosystem, with significant growth potential and a unique application of AI [1]. - The collaboration with Alibaba is deepening, with a complete closed-loop system established from AI tool development to trade scene implementation, significantly enhancing merchant operational efficiency and platform value [1]. - The "World Yiwu" trade model, developed in partnership with Alibaba, is tailored for the Yiwu market, integrating 13 self-developed AI tools into the World Yiwu APP, leading to centralized and intelligent service upgrades [2]. Financial Performance - The CG platform achieved revenue of 257 million yuan and a net profit of 155 million yuan in the first half of 2025, marking a 110% increase [3]. - The company projects net profits for 2025-2027 to be 4.24 billion yuan, 5.76 billion yuan, and 6.91 billion yuan, respectively, with year-on-year growth rates of 37.9%, 35.9%, and 20.0% [3]. - Financial forecasts indicate a steady increase in operating revenue from 11.3 billion yuan in 2023 to 33.42 billion yuan in 2027, with a compound annual growth rate of 48.3% in 2023 [4]. AI Application Impact - AI tools have significantly reduced costs and improved efficiency for merchants, with over 280,000 users benefiting from AI products by the end of October 2025 [2]. - The "Small Business AI Design" tool has shortened the design cycle from nearly one month to 7-10 days, reducing overall operating costs by approximately 30% [2].

Summary of Conference Call for Xiaogoods City Company Overview - Xiaogoods City is positioned as a core enterprise in China's outbound system, serving as a hub for RMB internationalization and the "Belt and Road" initiative through its China goods and Yiwu配 platforms, with ongoing policy support expected to drive performance [3][10] Key Financial Projections - Xiaogoods City anticipates a 40% growth in performance for 2026, with net profit expected to reach between 4.3 billion to 4.5 billion RMB [2][8] - The company projects a net profit exceeding 6 billion RMB by 2027, with a stable growth rate of over 30% expected for 2026, despite fourth-quarter impacts from new market listing costs [2][8] Business Segments and Growth Drivers - The wearable device segment is expected to grow over 100% in 2026, potentially generating profits exceeding 400 million RMB [2][5] - The China goods service is benefiting from the establishment of a global digital trade center and increased service fees in the six district markets, with fees rising to 8,000 RMB per person annually, compared to 3,000 RMB in traditional areas [2][5] Import Business Developments - Xiaogoods City successfully completed its first import pilot for cosmetics and health products under the Yiwu import positive list in September and October 2026, with potential for expansion to a market size of 200-300 billion RMB [2][6] Yiwu配 Platform Progress - The Yiwu配 platform achieved approximately 6 billion USD in cross-border transaction volume in 2025 and aims for 10 billion USD in 2026, representing a growth of 60%-70% [2][7] - The platform has become the first to support the settlement of 1,039 market procurement trades, which constitutes 60%-70% of the transaction volume in the Yiwu Xiaogoods City market [2][7] Market and Stock Performance - Xiaogoods City's stock price increased from 65 billion RMB at the beginning of 2025 to 90 billion RMB by the end of the year, reflecting a growth of approximately 30%-40%, although it experienced a recent correction due to market adjustments in performance and valuation [4] - The company is motivated to conduct buybacks, dividends, or equity incentives to stabilize investor confidence, especially as its current market value is below the buyback cost of 104 billion RMB [2][9] Management Changes - Recent management changes are attributed to normal official appointments and are not expected to significantly impact company operations [2][9]

Group 1 - The core point of the article highlights that the transaction volume of the small commodity city reached 4.852 billion yuan, marking a new high since June 30, 2025 [2] - The latest stock price increased by 3.19%, with a turnover rate of 4.83% [2] - The previous trading day's total transaction volume for the stock was 4.781 billion yuan [2]

Core Viewpoint - The data indicates significant capital inflows into various stocks, highlighting investor interest in specific sectors such as power equipment, communication devices, and gaming [1][2][3] Group 1: Stock Performance and Capital Inflows - TBEA (特变电工) saw a capital inflow of 1.846 billion, with a price increase of 10.01% [2] - Haige Communication (海格通信) experienced a capital inflow of 1.661 billion, with a price increase of 10% [2] - ZQ Game (掌趣科技) had a capital inflow of 0.791 billion, with a notable price increase of 14.91% [2] - Yonyou Network (用友网络) attracted 0.768 billion in capital, with a price increase of 7.87% [2] - Shanghai Construction (上海建工) received 0.603 billion, with a price increase of 10.14% [2] Group 2: Sector Analysis - The power equipment sector, represented by TBEA, shows strong investor confidence with significant capital inflows [2] - The communication device sector, including Haige Communication and Lian Te Technology (联特科技), also reflects positive investor sentiment [2][3] - The gaming industry, represented by ZQ Game and Century Huaman (世纪华通), demonstrates robust growth potential with substantial capital inflows [2][3] - The education sector, represented by Zhonggong Education (中公教育), shows a healthy capital inflow of 0.508 billion, indicating investor interest [2] - The energy metal sector, represented by Ganfeng Lithium (赣锋锂业) and Tianqi Lithium (天齐锂业), continues to attract investment, reflecting ongoing demand in the market [2][3]

Investment Rating - The report maintains an "Outperform" rating for the retail sector [3][56]. Core Insights - The retail sector is expected to benefit from increased policy support, with leading companies poised for growth [1][3]. - The overall consumption environment in 2025 is projected to be stable, with structural highlights emerging, particularly as consumption policies become clearer [1][12]. - The report identifies two main trends for 2026: the continuation of new consumption trends and the anticipated reversal of challenges faced by traditional consumption [2][20]. Summary by Sections Market Performance Review - In 2025, the SW retail index increased by 11.6%, underperforming the CSI 300 index by 6.1 percentage points, while the beauty care index rose by only 0.4%, lagging behind the CSI 300 by 17.35 percentage points [1][16]. - The retail sector's performance was initially strong in the first half of 2025 but faced a decline in the second half due to a shift in market focus towards technology [1][16]. Investment Recommendations - The report suggests several sectors for investment: 1. **Gold and Jewelry**: The sector is entering a consumption peak, with low valuations and expected growth in same-store sales and channel expansion. Recommended companies include潮宏基, 菜百股份, and 周大福 [3][56]. 2. **Beauty and Personal Care**: The sector is returning to low valuations, with traditional leaders showing signs of recovery. Recommended companies include 上美股份 and 珀莱雅 [3][56]. 3. **Offline Retail**: The end of the year is a peak sales period, with potential positive impacts from CPI recovery. Recommended companies include 名创优品 and 永辉超市 [3][56]. 4. **Cross-border E-commerce**: Companies are expected to benefit from reduced external tariff impacts, with recommendations including 小商品城 and 安克创新 [3][56]. Key Company Earnings Forecasts - The report provides earnings forecasts and investment ratings for key companies, all rated "Outperform" for 2025 and 2026, including 潮宏基, 上美股份, and 珀莱雅, with respective PE ratios indicating growth potential [5][59]. Recent Industry Data Tracking - As of November 2025, the total retail sales of consumer goods reached 43,898 billion yuan, with a year-on-year growth of 1.3%. The growth was influenced by high base effects and the timing of promotional events [26][30]. - Online retail sales for the first 11 months of 2025 reached 144,582 billion yuan, growing by 9.1%, with physical goods online retail accounting for 25.9% of total retail sales [28][30]. Policy Support and Future Outlook - Recent policy initiatives emphasize the importance of boosting consumer spending, with a focus on increasing the consumption rate and stabilizing demand through various measures [13][24]. - The report anticipates that traditional consumption leaders will gradually improve their performance as they adapt to new market conditions and innovate their product offerings [24][20].