Summary of Conference Call Records Industry and Companies Involved - **Industry**: Manufacturing, specifically focusing on export-oriented companies affected by tariffs - **Companies**: 永艺股份 (Yongyi Co.), 浩洋股份 (Haoyang Co.) Key Points and Arguments Tariff Impact on Export Companies - The U.S. has imposed a 30% tariff on Chinese goods, which includes a 20% increase and an additional 10% tariff. China has also imposed a 10% tariff on U.S. goods. This has short-term operational impacts on export companies, but costs can be shared with downstream customers or passed on to end consumers. [3][4] - After tariffs return to a reasonable level, domestic shipping schedules are expected to normalize, with a recovery in orders anticipated in Q2. However, downstream companies are cautious about inventory levels due to previous high stock phases. [1][4] Company-Specific Insights - **永艺股份 (Yongyi Co.)**: - Holds an irreplaceable position in the office chair segment, with a strong supply chain that creates customer barriers. Recent orders are optimistic, with the Vietnam factory ramping up shipments to take advantage of tariff windows. Profit margins remain largely unaffected. [1][8] - The 2025 profit forecast is approximately 380 million yuan, with a current valuation of 10 times earnings, indicating a high cost-performance ratio within the export chain. The company is seen as a resilient choice with a dividend yield exceeding 4%. [10] - **浩洋股份 (Haoyang Co.)**: - Demonstrates cost efficiency and product innovation in stage lighting and performance equipment manufacturing. The company is actively developing new products, such as laser light sources, which are expected to drive long-term growth. [1][11] - The 2025 profit forecast is slightly above 300 million yuan, with a current valuation of about 14 times earnings, which is considered low compared to historical levels. The sentiment in U.S. business is improving, which is a positive factor for overall export sentiment. [13][14] Long-term Outlook and Valuation - Export companies are experiencing a valuation drop due to tariff pressures, but those with strong core advantages and a high proportion of overseas factories, like Yongyi and Haoyang, are less affected. Their valuations are now aligned with growth potential, making them suitable for long-term investment. [5][12] - The long-term growth drivers for Haoyang are expected to shift more towards proprietary brands and laser products rather than OEM business, which will enhance profitability and optimize product structure. [12] Additional Considerations - The overall sentiment regarding orders is improving as the actual burden of tariffs on end consumers is expected to be minimal. This could lead to a further recovery in order expectations in the short term. [9] - The selection of export chain companies should prioritize those with high growth potential, especially in the context of changing tariff environments. [15]

永艺家具股份有限公司 2024年年度股东大会 会 议 资 料 现场会议时间：2025年5月15日下午14:00 网络投票时间：采用上海证券交易所网络投票系统，通过交易系统投票平台的 投票时间为股东大会召开当日的交易时间段，即9:15-9:25，9:30-11:30， 13:00-15:00；通过互联网投票平台的投票时间为股东大会召开当日的9:15-15:00。 签到时间：2025年5月15日下午13:00-14:00 现场会议地点：浙江省安吉县灵峰街道永艺西路1号三楼会议室 二〇二五年五月 | 2024 | | | 年年度股东大会会议议程 1 | | | --- | --- | --- | --- | --- | | 2024 | | | 年年度股东大会会议须知 3 | | | 2024 | | | 年年度股东大会会议议案 5 | | | 议案一: | 关于 | 2024 | 年度董事会工作报告的议案 | 5 | | 议案二: | 关于 | 2024 | 年度监事会工作报告的议案 | 13 | | 议案三: | 关于 | 2024 | 年年度报告及摘要的议案 | 17 | | 议案四: | 关于 | 2024 ...

Core Viewpoint - The furniture industry in Anji is facing challenges due to the ongoing tariff war with the United States, leading companies to consider relocating production to Vietnam to maintain competitiveness and meet customer demands [1][2][3]. Industry Overview - Anji is recognized as the "hometown of Chinese chairs," with over 1,200 chair manufacturing enterprises and 313 large-scale companies as of 2022. The annual output value of the chair industry exceeds 40 billion yuan, accounting for one-third of the domestic market and half of the national export volume [2][3]. - The chair production process involves 35-55 components, including various materials such as steel, plastic, and wood [2]. Market Dynamics - The share of exports to the U.S. is significant, with approximately 30% of Anji's orders coming from this market. However, companies are currently experiencing order suspensions due to tariff uncertainties [2][3]. - The industry has seen a decline in output value, dropping from a peak of 53 billion yuan in 2020 to around 35-38 billion yuan in recent years, partly due to competition from lower-end products produced in Hebei [2][3]. Competitive Landscape - Anji's chair industry is facing competition from regions like Guangdong and Zhejiang, where production standards vary. Guangdong's products are often more expensive, while Zhejiang's are competitively priced [3]. - There is a growing concern that the production chain may shift to Vietnam, as clients are increasingly exploring alternatives to Chinese manufacturing [3][4]. Production Challenges - Despite concerns about production efficiency in Vietnam, the younger workforce there is seen as a potential advantage. However, the supply chain in Vietnam is still developing, with certain manufacturing processes lacking [4][5]. - Companies are hesitant to invest in Vietnam due to past experiences of difficulties and uncertainties in production timelines and material availability [6]. Government Support - The local government is actively promoting export-to-domestic sales strategies and providing support for businesses to adapt to changing market conditions. This includes training programs and financial subsidies for participation in international trade events [7][8]. - However, there is skepticism about the effectiveness of transitioning to domestic sales, as the market is already dominated by established brands [8][9]. Future Outlook - The industry is exploring new markets and platforms, such as Alibaba's international trade initiatives, to reach consumers directly and improve profit margins [9][10]. - Companies like Henglin Co. have established a strong presence in international markets, which may insulate them from the impacts of the tariff war [10]. - The overall sentiment in the industry is cautious, with many companies waiting to see how the tariff situation evolves before making significant changes to their operations [11][12].

Core Viewpoint - The company demonstrated robust revenue growth in 2024, with a notable increase in new customers, channels, and projects, while maintaining a strong performance in both domestic and international markets [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 4.749 billion, net profit attributable to shareholders of 296 million, and net profit excluding non-recurring items of 293 million, reflecting year-on-year changes of +34%, -1%, and +40% respectively [1]. - For Q4 2024, the company reported operating revenue of 1.359 billion, net profit attributable to shareholders of 71 million, and net profit excluding non-recurring items of 69 million, with year-on-year changes of +31%, -18%, and +391% respectively [1][2]. - In Q1 2025, the company achieved operating revenue of 1.010 billion, net profit attributable to shareholders of 58 million, and net profit excluding non-recurring items of 54 million, with year-on-year increases of 18%, 35%, and 26% respectively [1][4]. Revenue Breakdown - In 2024, the company’s revenue from external sales increased by 37%, while domestic sales grew by 26%. Revenue from proprietary brands rose by 31%, and non-proprietary brands increased by 35% [2]. - Online sales grew by 8%, while offline sales surged by 38%. The North American trade team contributed significantly to revenue growth, and domestic proprietary brands experienced rapid growth [2]. - Product-wise, revenue from office chairs, sofas, massage chairs, and height-adjustable desks increased by 34%, 20%, 1%, and 138% respectively, accounting for 72%, 14%, 5%, and 2% of total revenue [2]. Profitability Metrics - The gross profit margin for 2024 was 21.6%, a decrease of 1.2 percentage points, primarily due to intense competition in the sofa market and cross-border e-commerce [3]. - The company optimized its expense ratios, with total sales, management, and R&D expense ratios decreasing by 2.4 percentage points. The net profit margin attributable to shareholders decreased by 2.2 percentage points to 6.2% due to a high base effect from government subsidies in 2023 [3]. - In Q4 2024, the gross profit margin decreased by 3.4 percentage points, with variations in expense ratios across sales, management, R&D, and financial expenses [3]. Future Outlook - The revenue growth in Q1 2025 aligns with expectations, with a gross profit margin of 20.6%, down 1.5 percentage points due to a decline in the delivery volume of high-margin products [4]. - The company is focusing on global capacity and business expansion, aiming to enhance its competitive advantage through increased market share overseas and the growth of domestic proprietary brands [4]. - The company plans to actively address losses in specific segments and leverage its experience in the Vietnam base to cover all U.S. business needs, while also expanding into non-U.S. markets [4]. Dividend Policy - The company maintained a stable dividend policy, distributing 152 million in cash dividends for 2024, with a dividend payout ratio of 51.44% [5]. - A mid-term dividend plan for 2025 has been established, with expectations of a dividend yield exceeding 5.5% based on projected net profits [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company's performance in 2024 is in line with expectations, with revenue, net profit attributable to the parent, and net profit excluding non-recurring items reaching 4.749 billion, 296 million, and 293 million yuan respectively, representing year-on-year growth of 34%, -1%, and 40% [2][6]. - In Q4 2024, the company achieved revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 1.359 billion, 71 million, and 69 million yuan, showing year-on-year growth of 31%, -18%, and 391% [2][6]. - For Q1 2025, the company reported revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 1.010 billion, 58 million, and 54 million yuan, with year-on-year increases of 18%, 35%, and 26% [2][6]. Summary by Sections Financial Performance - The company expects steady revenue growth in 2024, with foreign sales and domestic sales increasing by 37% and 26% respectively. The revenue from self-owned brands and non-self-owned brands grew by 31% and 35% respectively [12]. - The company achieved a gross profit margin of 21.6% in 2024, a slight decrease of 1.2 percentage points year-on-year, primarily due to intense competition in the sofa market and cross-border e-commerce [12]. - The net profit margin attributable to the parent company decreased by 2.2 percentage points to 6.2% in 2024, influenced by a high base from government subsidies and compensation income in 2023 [12]. Globalization and Competitive Advantage - The company is enhancing its global capacity and customer base, with expectations for rapid growth in its Romanian base and standing out in overseas markets [12]. - The company is focusing on expanding its market share in the top ten GDP countries and key customers, while also promoting domestic self-owned brand sales through both online and offline channels [12]. Dividend Policy - The company maintains a stable dividend policy, distributing 152 million yuan in cash dividends in 2024, with a dividend payout ratio of 51.44%. A mid-term dividend plan for 2025 is also in place, aiming to increase the frequency of dividends [12].

Core Viewpoint - The company reported strong revenue growth for 2024, with a total revenue of 4.75 billion, reflecting a year-on-year increase of 34.2%, while net profit slightly decreased by 0.6% to 296 million [1] Revenue Performance - The company achieved 3.606 billion in overseas sales for 2024, a year-on-year increase of 36.8%, with a gross margin of 20.98%, down by 1.81 percentage points [2] - Domestic sales reached 1.122 billion in 2024, up 26% year-on-year, with a gross margin of 23.84%, an increase of 0.89 percentage points [4] Product Performance - In 2024, revenue from various product categories included 3.416 billion from office chairs, 645 million from sofas, and 910 million from height-adjustable desks, with significant growth in height-adjustable desks at 137.6% year-on-year [5] Cost and Profitability - The company's gross margin for 2024 was 21.64%, a decrease of 1.24 percentage points, influenced by currency fluctuations and declining margins in sofa products [6] - The adjusted net profit margin improved to 6.16% in 2024, an increase of 0.26 percentage points [6] Future Outlook - The company forecasts revenues of 5.7 billion, 6.74 billion, and 7.72 billion for 2025 to 2027, with corresponding net profits of 380 million, 480 million, and 580 million, indicating a positive growth trajectory [7]

Investment Rating - The report maintains a "Buy" rating for the company, with a target price not specified [6]. Core Views - The company has demonstrated strong revenue growth, with a 34.2% year-on-year increase in revenue for 2024, reaching 4.75 billion yuan, while net profit slightly decreased by 0.6% to 300 million yuan [1][10]. - The company is focusing on high-quality development, aiming to achieve sales targets and expand its customer base, channels, and projects [1]. - The global capacity layout is expected to mitigate tariff impacts, with significant investments in production bases in Vietnam and Romania [3][4]. Revenue Breakdown - In 2024, the office chair segment generated 3.4 billion yuan, up 33.5% year-on-year, with a gross margin of 25% [2]. - Sofa revenue reached 650 million yuan, a 19.6% increase, with a gross margin of 9.1% [2]. - The height-adjustable desk segment saw a remarkable growth of 137.6%, generating 90 million yuan in revenue [2]. Operational Efficiency - The company's gross margin for 2024 was 21.6%, a decrease of 1.2 percentage points year-on-year, while the net profit margin was 6.2%, down 2.2 percentage points [3]. - The company is implementing advanced management systems to enhance operational efficiency and is focusing on local supply chain development [3]. Export and Domestic Sales Strategy - Export revenue for 2024 was 3.61 billion yuan, up 36.8% year-on-year, with a gross margin of 21% [4]. - Domestic sales reached 1.12 billion yuan, a 25.9% increase, with a gross margin of 23.8% [5]. - The company plans to strengthen brand building and product innovation to drive domestic sales growth [5]. Financial Forecast - The company expects net profits of 370 million yuan, 440 million yuan, and 510 million yuan for 2025, 2026, and 2027 respectively, with corresponding P/E ratios of 9X, 7X, and 6X [6][10].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 4.749 billion yuan in 2024, representing a year-on-year growth of 34.22%, while the net profit attributable to shareholders was 296 million yuan, a slight decline of 0.56% year-on-year. In Q4 2024, the revenue reached a historical high of 1.359 billion yuan, with a year-on-year increase of 30.94%, but the net profit decreased by 17.67% year-on-year. In Q1 2025, the revenue was 1.01 billion yuan, up 17.93% year-on-year, and the net profit increased by 34.81% year-on-year [3][4][5] Summary by Sections Financial Performance - In 2024, the company achieved revenue of 47.49 billion yuan, with a year-on-year growth of 34.22%. The net profit attributable to shareholders was 2.96 billion yuan, down 0.56% year-on-year. The Q4 2024 revenue was 13.59 billion yuan, up 30.94% year-on-year, while the net profit was 0.71 billion yuan, down 17.67% year-on-year. For Q1 2025, the revenue was 10.1 billion yuan, up 17.93% year-on-year, and the net profit was 0.58 billion yuan, up 34.81% year-on-year [3][4] Sales Growth - The company experienced strong sales growth driven by new customers, channels, and projects. In 2024, the revenue from various product lines included office chairs (3.416 billion yuan), sofas (645 million yuan), massage chairs (240 million yuan), and others, with significant year-on-year increases across the board. Domestic revenue was 1.122 billion yuan, up 25.89%, while overseas revenue was 3.606 billion yuan, up 36.83% [4][5] Strategic Investments - The company is strategically investing in brand development and new business areas, which has temporarily impacted net profit margins. The gross margin for 2024 was 21.64%, down 1.24 percentage points year-on-year. The net profit margin was 6.24%, down 2.18 percentage points year-on-year. The first quarter of 2025 saw a gross margin of 20.65%, down 1.47 percentage points year-on-year, but the net profit margin improved to 5.7%, up 0.71 percentage points year-on-year [5][6] International Expansion - The company has established two overseas production bases in Vietnam and Romania, enhancing its competitive advantage. The Vietnam base, operational since 2018, has matured in terms of customer resources and production capacity. The Romanian base, operational since 2023, is expanding its capacity to support market growth in Europe and the U.S. [6][7] Future Outlook - The company is transitioning from a primarily export-oriented model to a balanced approach of domestic and international sales, alongside developing its own brand. Revenue projections for 2025-2027 are 56.25 billion yuan, 64.25 billion yuan, and 71.16 billion yuan, respectively, with corresponding net profits of 3.63 billion yuan, 4.39 billion yuan, and 5.18 billion yuan [8][10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a revenue of 4.749 billion yuan in 2024, representing a year-on-year growth of 34.22%, while the net profit attributable to the parent company was 296 million yuan, a slight decline of 0.56% year-on-year. In Q4 2024, the revenue reached a historical high of 1.359 billion yuan, with a year-on-year increase of 30.94%, but the net profit decreased by 17.67% year-on-year. In Q1 2025, the revenue was 1.01 billion yuan, up 17.93% year-on-year, and the net profit increased by 34.81% year-on-year [3][4] Summary by Sections Financial Performance - In 2024, the company achieved revenues of 4.749 billion yuan, with a year-on-year growth of 34.22%. The net profit attributable to the parent company was 296 million yuan, down 0.56% year-on-year. The Q4 2024 revenue was 1.359 billion yuan, up 30.94% year-on-year, while the net profit was 71 million yuan, down 17.67% year-on-year. For Q1 2025, the revenue was 1.01 billion yuan, up 17.93% year-on-year, and the net profit was 58 million yuan, up 34.81% year-on-year [3][4] Sales Growth - The company experienced sustained high demand with new customers, channels, and projects accelerating. In 2024, the revenue from various product lines included office chairs (3.416 billion yuan), sofas (645 million yuan), massage chairs (240 million yuan), and others, showing significant year-on-year growth rates [4] Strategic Investments - The company is strategically investing in building its own brand and developing new businesses, which has temporarily impacted the net profit margin. The gross margin for 2024 was 21.64%, down 1.24 percentage points year-on-year. The net profit margin was 6.24%, down 2.18 percentage points year-on-year [5] International Expansion - The company has established two overseas production bases in Vietnam and Romania, enhancing its competitive advantage. The Vietnam base has been operational since 2018, while the Romania base began production in 2023, supporting the company's ability to meet global customer demands [6][7] Future Outlook - The company is transitioning from a primarily export-oriented model to a balanced approach of domestic and international sales, along with a focus on its own brand. Revenue projections for 2025-2027 are 5.625 billion yuan, 6.425 billion yuan, and 7.116 billion yuan, respectively, with corresponding net profits of 363 million yuan, 439 million yuan, and 518 million yuan [8][10]

Investment Rating - The investment rating for Yongyi Co., Ltd. (603600) is not explicitly stated in the provided documents, but the report indicates a positive outlook on the company's performance and growth potential. Core Viewpoints - Yongyi Co., Ltd. reported a revenue of 4.749 billion yuan in 2024, representing a year-on-year increase of 34.2%, while the net profit attributable to the parent company was 296 million yuan, a slight decrease of 0.6% year-on-year. The first quarter of 2025 showed a revenue of 1.010 billion yuan, up 17.9% year-on-year, with a net profit of 58 million yuan, an increase of 34.8% year-on-year [1][4]. - The company is expanding its overseas channels and product matrix, with office chairs and sofas generating revenues of 3.416 billion yuan and 645 million yuan respectively in 2024, showing growth rates of 33.5% and 20.2% year-on-year. The new category of height-adjustable desks saw a revenue of 91 million yuan, a significant increase of 137.6% year-on-year [2]. - The overseas production capacity is robust, with strategic locations in Vietnam and Romania. The Vietnam base is enhancing production efficiency and is expected to capture more market share in the U.S. The Romanian base is set to accelerate production in 2025 [3]. - The company's own brand revenue reached 933 million yuan in 2024, reflecting a growth of 30.9%. The domestic online and offline brands are expected to maintain high growth, while cross-border e-commerce faces some pressure [3]. - The gross profit margin for Q1 2025 was 20.7%, a decrease of 1.5 percentage points year-on-year, while the net profit margin increased by 0.7 percentage points to 5.7% [4]. - The company forecasts net profits of 380 million yuan, 490 million yuan, and 590 million yuan for 2025, 2026, and 2027 respectively, with corresponding price-to-earnings ratios of 8.6X, 6.7X, and 5.6X [4]. Summary by Sections Financial Performance - In 2024, Yongyi Co., Ltd. achieved total revenue of 4.749 billion yuan, with a year-on-year growth of 34.2%. The net profit attributable to the parent company was 296 million yuan, showing a slight decline of 0.6% year-on-year. The first quarter of 2025 reported a revenue of 1.010 billion yuan, up 17.9% year-on-year, and a net profit of 58 million yuan, an increase of 34.8% year-on-year [1][4]. Product and Market Expansion - The company has successfully expanded its product offerings, with office chairs and sofas generating revenues of 3.416 billion yuan and 645 million yuan respectively in 2024. The height-adjustable desks category saw a remarkable growth of 137.6% year-on-year, indicating strong market demand [2]. Overseas Strategy - Yongyi Co., Ltd. has established a strong overseas production capacity, particularly in Vietnam and Romania, which are expected to enhance production efficiency and market share in the U.S. market [3]. Brand Development - The company's own brand revenue reached 933 million yuan in 2024, with expectations for continued high growth in domestic online and offline sales channels [3]. Profitability Metrics - The gross profit margin for Q1 2025 was reported at 20.7%, while the net profit margin improved to 5.7%. The company anticipates significant growth in net profits over the next few years [4].