Summary of Macro Hua Digital Technology Conference Call Company Overview - **Company**: Macro Hua Digital Technology - **Industry**: Digital Printing Equipment and Ink Key Financial Performance - **Q1 2025 Revenue Growth**: Revenue increased by 30%, but profit growth was impacted by share-based payment expenses. Excluding these expenses, profit growth is expected to align with revenue growth at approximately 30%-35% [2][4][3] - **2024 Revenue Trends**: Revenue from digital transfer printers remained flat year-on-year, while direct spray equipment saw over 44% growth, driven by strong domestic demand for digital transformation [2][5] - **Ink Sales**: Ink sales exceeded 11,000 tons in 2024, a year-on-year increase of over 30%. However, due to price declines, total revenue growth was around 20% [2][6] Market Dynamics - **Competitive Pressure**: The company faces competitive pressure in accounts receivable, with peers using price cuts or extended credit terms to capture market share. The company is managing risks through credit insurance and plans to enhance collection efforts [2][7] - **Digital Printing Growth**: The digital printing business is expected to grow rapidly in 2024, with export gross margins higher than domestic. The impact of US-China tariffs is minimal, with direct effects almost negligible [2][8][9] Product Insights - **Equipment Growth Targets**: The company aims for over 40% growth in equipment sales and approximately 20% growth in ink sales by 2025, targeting an overall increase of around 30% [3][22] - **Single Pass Equipment**: The Single Pass equipment is favored for its efficiency and high output, with expected growth rates surpassing other equipment types due to domestic market demand [5][25] Cash Flow and Receivables - **Cash Flow Concerns**: The company’s cash flow situation is under pressure due to increased accounts receivable. Measures are being taken to ensure the safety of receivables, including risk management for clients with poor credit [7][4] Future Outlook - **Profit Margin Expectations**: The company anticipates a slight decline in overall gross margins but aims to stabilize net profit levels through increased sales volume [5][20] - **Market Acceptance of Coating Machines**: Coating machines are widely accepted in the home textile industry due to their environmental advantages, contributing about one-third of total sales in 2024 [11] Customer Insights - **Downstream Market Conditions**: Downstream printing factories are facing challenges with order sizes and profitability. However, ink sales are increasing due to higher penetration rates [12][28] - **Customer Purchase Behavior**: Some domestic customers are exhibiting hesitation in placing orders due to recent tariff policies, impacting their decision-making process [23][18] Strategic Considerations - **New Product Development**: The company is exploring new digital dyeing equipment, which is still in the early stages of market penetration but has begun to receive orders [17] - **Acquisition Strategy**: The company is not actively seeking acquisitions unless a target possesses unique competitive advantages in niche markets [29] Conclusion - Macro Hua Digital Technology is positioned for growth in the digital printing sector, with strong revenue targets and a focus on managing competitive pressures and cash flow challenges. The company is adapting to market dynamics and customer needs while exploring new product opportunities.

Core Insights - The company reported significant revenue growth in 2024, achieving 1.79 billion yuan, a year-on-year increase of 42.3%, driven by market expansion and technological innovation [1] - The company’s net profit for 2024 was 410 million yuan, up 27.4% year-on-year, with a cash flow from operating activities of 160 million yuan, reflecting a 4.6% increase [1] - The company’s gross margin for its main business was 44.6%, a decrease of 1.9 percentage points compared to the previous year [1] Revenue Growth and Profitability - In Q4 2024, the company achieved revenue of 530 million yuan, a year-on-year increase of 39.8%, with a net profit of 104 million yuan, up 21.5% [1] - For Q1 2025, the company reported revenue of 480 million yuan, a year-on-year increase of 29.8%, and a net profit of 108 million yuan, reflecting a 25.2% increase [1] - The gross margin for Q1 2025 was 42.8%, down 2.8 percentage points year-on-year but up 1.5 percentage points quarter-on-quarter [1] Product Performance - In 2024, the company’s digital printing equipment and ink generated revenues of 910 million yuan and 520 million yuan, respectively, accounting for approximately 80% of total revenue, with year-on-year growth rates of 47.8% and 26.2% [2] - The company sold 1,159 units of digital printing equipment in 2024, a year-on-year increase of 37.8%, and ink sales reached 11,423 tons, up 38.2% [2] - The revenue from digital printing equipment grew significantly, reaching 140 million yuan in 2024, a year-on-year increase of 115%, with a gross margin of 50.1%, up 6.4 percentage points [2] Market Trends and R&D Investment - The penetration rate of digital printing in the textile industry has increased from 2.1% in 2015 to 18.2% in 2023, with an annual growth rate of 37.4% [3] - The company’s R&D investment reached 120 million yuan in 2024, accounting for 6.8% of revenue, reflecting a year-on-year increase of 34.74% [3] - The company applied for 52 new patents in 2024, enhancing its R&D capabilities and focusing on stability, print quality consistency, precision, and efficiency [3] Product Development - The company has developed high-concentration inks and is continuously optimizing formulations to improve ink-saving effects [4] - New products include high-temperature dispersible inks and coating inks that meet various fabric requirements and environmental standards [5] Future Projections - The company is expected to achieve revenues of 2.4 billion yuan, 3.2 billion yuan, and 4.3 billion yuan from 2025 to 2027, with corresponding net profits of 550 million yuan, 720 million yuan, and 940 million yuan [5] - The company is positioned to capture more market share in the digital printing sector due to its technological advantages and the growing demand for personalized consumption [5]

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][9]. Core Views - The company has demonstrated rapid revenue growth, achieving 1.79 billion yuan in revenue for 2024, a year-on-year increase of 42.3%, and a net profit of 414 million yuan, up 27.4% year-on-year [2][9]. - For Q1 2025, the company reported revenue of 478 million yuan, a 29.79% increase year-on-year, with a net profit of 108 million yuan, reflecting a 25.2% year-on-year growth [2][9]. - The company is expanding its industrial chain and downstream applications, leveraging the digital transformation in traditional industries [2][9]. Financial Performance Summary - In 2024, the company achieved a gross margin of 44.95%, a slight decrease of 1.59 percentage points year-on-year [8]. - The revenue from digital printing equipment, ink, and automation sewing equipment grew significantly, with digital printing equipment revenue reaching 905 million yuan, up 47.84% year-on-year [8]. - The company’s net profit margin for 2024 was 23.15%, down 2.7 percentage points year-on-year [8]. Revenue and Profit Forecast - The revenue forecast for 2025-2027 is adjusted to 2.335 billion yuan, 2.978 billion yuan, and 3.616 billion yuan, representing year-on-year growth rates of 30.4%, 27.5%, and 21.4% respectively [9][10]. - The net profit forecast for the same period is set at 530 million yuan, 679 million yuan, and 824 million yuan, with growth rates of 27.9%, 28.1%, and 21.4% respectively [9][10]. Valuation - The target price for the company is set at 79.73 yuan, based on a 27 times price-to-earnings ratio for 2025 [4][9].

Core Viewpoint - The company, Hangzhou Honghua Digital Technology Co., Ltd., is preparing to hold an earnings briefing for the 2024 annual report and the first quarter of 2025, aiming to enhance communication with investors and address their concerns [8][9]. Financial Data - The financial statements for the first quarter of 2025 have not been audited [3]. - The company reported that there were no significant changes in the net profit of merged entities, with both the current and previous periods showing a net profit of 0 yuan [6]. Shareholder Information - The company assures that the quarterly report is accurate and complete, with no false records or omissions [2][4]. - The total number of ordinary shareholders and the top ten shareholders' holdings will be disclosed [4]. Earnings Briefing Details - The earnings briefing is scheduled for May 14, 2025, from 11:00 to 12:00, to be held at the Shanghai Stock Exchange Roadshow Center [7][9]. - Investors can submit questions from May 7 to May 13, 2025, through the Roadshow Center's website or via the company's email [9][10]. Participation Information - Key personnel attending the briefing include the Chairman and General Manager, Jin Xiaotuan, and the financial officer, Yu Jianli [9]. - Investors can participate online and will receive timely responses to their questions during the briefing [10].

Investment Rating - The report maintains a "Strong Buy" rating for the company, expecting it to outperform the benchmark index by over 20% in the next six months [2][9]. Core Insights - The company reported a revenue of 1.79 billion yuan for 2024, a year-on-year increase of 42.3%, and a net profit attributable to shareholders of 414 million yuan, up 27.4% year-on-year. For Q1 2025, revenue reached 478 million yuan, reflecting a 29.79% year-on-year growth, with a net profit of 108 million yuan, up 25.2% year-on-year [2][9]. - The company is experiencing rapid growth in its digital printing equipment and ink segments, with revenues of 905 million yuan and 518 million yuan respectively for 2024, representing increases of 47.84% and 26.15% year-on-year [8][9]. - The report highlights the company's strategic focus on extending its industrial chain and expanding into downstream application areas, benefiting from the digital transformation of traditional industries [2][8]. Financial Performance Summary - For 2024, the company achieved a gross margin of 44.95%, a slight decrease of 1.59 percentage points year-on-year. The net profit margin was 23.15%, down 2.7 percentage points year-on-year [8][10]. - The company’s revenue and profit forecasts for 2025-2027 have been adjusted upwards, with expected revenues of 2.33 billion yuan, 2.98 billion yuan, and 3.62 billion yuan respectively, reflecting year-on-year growth rates of 30.4%, 27.5%, and 21.4% [9][10]. - The projected net profits for the same period are 530 million yuan, 679 million yuan, and 824 million yuan, with growth rates of 27.9%, 28.1%, and 21.4% respectively [9][10]. Market Position and Strategy - The company is positioned to benefit from the increasing penetration of digital printing technology, which is gradually replacing traditional printing methods due to its efficiency and environmental advantages [8][9]. - The report emphasizes the company's integrated business model of "equipment + ink," which is expected to enhance its competitive edge in the market [8][9].

杭州宏华数码科技股份有限公司 关于召开 2024 年度暨 2025 年第一季度业绩说明会的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要内容提示： http://roadshow.sseinfo.com/） 会议召开方式：上证路演中心网络互动 投资者可于 2025 年 05 月 07 日（星期三）至 05 月 13 日（星期二）前登录 上证路演中心网站首页点击"提问预征集"栏目或通过公司邮箱 honghua01@atexco.cn 进行提问。公司将在说明会上对投资者普遍关注的问题进 行回答。 一、 说明会类型 杭州宏华数码科技股份有限公司（以下简称"公司"）已于 2025 年 04 月 26 日在上海证券交易所网站（www.sse.com.cn）披露公司《2024 年年度报告》， 于 2025 年 04 月 30 日在上海证券交易所网站（www.sse.com.cn）披露公司《2025 年第一季度报告》，为加强与投资者的深入交流，使投资者更加全面、深入地了 解公司情况，公司拟以网络互动的方式召开 2024 年 ...

Financial Performance - The company's operating revenue for Q1 2025 was CNY 478,277,626.29, representing a year-on-year increase of 29.79% compared to CNY 368,493,182.74 in the same period last year[4]. - Net profit attributable to shareholders was CNY 108,328,394.49, up 25.20% from CNY 86,524,846.42 in the previous year[4]. - Basic earnings per share increased to CNY 0.60, reflecting a growth of 25.00% from CNY 0.48 in the same period last year[4]. - The company reported a net profit margin of approximately 25.2% for Q1 2025, compared to 27.7% in Q1 2024, indicating a slight decrease in profitability[18]. - The net profit for the first quarter of 2025 was CNY 112,679,007.56, representing an increase of 25.5% compared to CNY 89,830,881.46 in the same period of 2024[19]. - The total comprehensive income for the first quarter of 2025 was CNY 114,707,702.64, compared to CNY 88,482,397.47 in the same quarter of 2024, reflecting a growth of 29.6%[20]. Research and Development - The total R&D investment reached CNY 31,011,792.62, an increase of 30.59% compared to CNY 23,747,449.99 in the same period last year[5]. - The proportion of R&D investment to operating revenue was 6.48%, slightly up from 6.44% in the previous year, indicating a stable commitment to innovation[5]. - Research and development expenses increased to CNY 31,011,792.62 in Q1 2025 from CNY 23,747,449.99 in Q1 2024, representing a growth of 30.5%[19]. Cash Flow and Liquidity - The net cash flow from operating activities decreased significantly by 78.25%, amounting to CNY 7,838,608.56, down from CNY 36,040,696.10 in the previous year[4][8]. - The company reported a net cash flow from operating activities of CNY 7,838,608.56 for Q1 2025, a decrease from CNY 36,040,696.10 in Q1 2024[22]. - The company experienced a net cash outflow from financing activities of CNY 99,974,321.37 in Q1 2025, compared to a net outflow of CNY 36,855,729.98 in Q1 2024[23]. - Cash and cash equivalents as of March 31, 2025, amounted to RMB 1,155,884,364.75, a decrease of 5.1% from RMB 1,218,066,541.84 at the end of 2024[14]. - The cash and cash equivalents at the end of Q1 2025 were CNY 874,377,121.63, compared to CNY 829,604,106.71 at the end of Q1 2024[23]. Assets and Liabilities - Total assets at the end of the reporting period were CNY 4,183,596,590.91, a decrease of 2.91% from CNY 4,309,115,661.76 at the end of the previous year[5]. - Total assets decreased to RMB 4,183,596,590.91 as of March 31, 2025, down from RMB 4,309,115,661.76 at the end of 2024, a decline of 2.9%[16]. - Total liabilities as of March 31, 2025, were RMB 822,381,968.11, down from RMB 1,073,922,464.22 at the end of 2024, a reduction of 23.4%[16]. - The company's equity attributable to shareholders increased to RMB 3,268,454,713.94 as of March 31, 2025, compared to RMB 3,146,979,859.56 at the end of 2024, an increase of 3.9%[16]. - Long-term investments rose to RMB 170,043,207.76 as of March 31, 2025, compared to RMB 153,525,422.38 at the end of 2024, reflecting an increase of 10.7%[14]. Operating Costs and Expenses - Total operating costs for Q1 2025 were RMB 357,938,320.14, up 34.4% from RMB 266,229,073.98 in Q1 2024[18]. - Operating income for Q1 2025 was RMB 120,339,306.15, reflecting a growth of 20.5% compared to RMB 102,264,108.76 in Q1 2024[18]. - The total operating expenses for Q1 2025 were CNY 31,373,751.23 in sales expenses, up from CNY 24,771,337.72 in Q1 2024, marking a rise of 26.5%[19].

Core Viewpoint - The company's 2024 annual report meets expectations, showing significant revenue and profit growth across various segments, particularly in digital printing equipment and inks [1][2]. Financial Performance - In 2024, the company achieved revenue of 1.79 billion yuan, a year-on-year increase of 42.3%, and a net profit attributable to shareholders of 414 million yuan, up 27.4% year-on-year [1]. - The fourth quarter of 2024 saw revenue of 525 million yuan, reflecting a 39.8% year-on-year growth, with a net profit of 104 million yuan, up 21.5% [1]. - The overall gross margin for 2024 was 44.2%, a decrease of 1.4 percentage points year-on-year, with ink gross margin at 50.41%, down 3.46 percentage points [2]. Business Segments - Digital printing equipment generated revenue of 905 million yuan in 2024, a 47.84% increase, driven by the acceleration of digital transformation in traditional printing enterprises [1]. - Ink revenue reached 518 million yuan, up 26.15%, with sales volume of 11,000 tons, a 38.21% increase [1]. - The automation sewing equipment segment reported revenue of 145 million yuan, a 37.67% increase, primarily contributed by the German subsidiary Texpa [2]. - Digital printing equipment revenue surged to 136 million yuan, reflecting a 114.66% increase [2]. Development Trends - The company anticipates production capacity ramp-up in 2025, with projects for industrial digital printing equipment and ink production expected to commence in the second half of 2025 [3]. - Efforts to optimize supply chain components and ink formulations are expected to drive long-term cost reduction and efficiency improvements [3]. Profit Forecast and Valuation - The net profit forecasts for 2025 and 2026 have been adjusted downwards by 2.9% and 5.4% to 540 million yuan and 710 million yuan, respectively, with expected year-on-year growth of 30.7% and 30.6% [4]. - The target price has been reduced by 8% to 75.3 yuan, corresponding to price-to-earnings ratios of 25x and 19x for 2024 and 2025, indicating a potential upside of 13.7% [4].

2025年4月26日，宏华数科(688789.SH)发布2024年年度报告。截至2025年4月25日，共有237个机构投资 者披露持有宏华数科A股股份，合计持股量达1.28亿股，占宏华数科总股本的71.40%。其中，前十大机 构投资者包括宁波维鑫企业管理合伙企业(有限合伙)、宁波驰波投资有限公司、漢加發展有限公司、浙 江新湖智脑投资管理合伙企业(有限合伙)、杭州宝鑫数码科技有限公司、香港中央结算有限公司、景顺 长城研究精选股票A、汇添富基金管理股份有限公司-社保基金17022组合、浙商证券资管-光大银行-浙 商金惠科创板宏华数码1号战略配售集合资产管理计划、上海常春藤投资控股有限公司-珠海金藤股权投 资基金合伙企业(有限合伙)，前十大机构投资者合计持股比例达57.95%。相较于上一季度，前十大机构 持股比例合计下跌了0.97个百分点。 公募基金方面，本期较上一期持股增加的公募基金共计1个，即华泰保兴吉年红混合发起A，持股增加 占比小幅上涨。本期较上一季度持股减少的公募基金共计18个，主要包括信澳周期动力混合A、信澳匠 心臻选两年持有期混合、汇添富科创板2年定开混合、汇丰晋信价值先锋股票A、国投瑞银锐意改革混 ...

杭州宏华数码科技股份有限公司 2024 年度独立董事述职报告（陈智敏） 本人作为杭州宏华数码科技股份有限公司（以下简称"公司"）的独立董事， 2024 年度，严格按照《中华人民共和国公司法》（以下简称"《公司法》"）、《中 华人民共和国证券法》（以下简称"《证券法》"）《上市公司治理准则》《上市公司 独立董事管理办法》等法律法规、规范性文件，以及《公司章程》《独立董事工 作制度》等内部制度的有关规定和要求，认真负责，忠实勤勉地履行独立董事的 义务和职责，积极参加公司 2024 年度内召开的股东大会、董事会及董事会各专 门委员会的相关会议，认真审议董事会各项议案，参与公司各项重大经营决策， 发挥专业优势和独立作用，努力维护并有效保障了公司全体股东，尤其是中小股 东的合法权益。现将 2024 年度履行独立董事职责的情况报告如下： 一、独立董事的基本情况 （一）个人工作履历，专业背景以及兼职情况 陈智敏女士，1960 年出生，中国国籍，无永久境外居留权，研究生学历。 1978 年 7 月至 1985 年 3 月就职于杭州九豫丝织厂；1985 年 4 月至 1993 年 3 月 任中国青春宝集团经贸公司财务主管；19 ...