Core Insights - The Chinese kitchen appliance market is expected to show a diversified competitive landscape by 2025, driven by consumption upgrades and technological iterations [1] - Young consumer groups are contributing nearly half of the market growth, becoming the core driving force behind the expansion [1] - Brand competition has shifted from functional comparisons to deep emotional value connections, with leading companies restructuring user needs and brand value through scenario-based content marketing and product innovation [1] Company Performance - Vatti Corporation (华帝股份) reported a gross margin of 43.29% in Q3 2025, an increase of 2.79 percentage points from 40.50% in Q3 2024, positioning itself as a benchmark enterprise in the kitchen appliance market [1][2] - The significant improvement in gross margin is attributed to Vatti's dual-driven strategy focusing on technology and marketing [2] Technological Innovation - Vatti has accumulated 4,690 national-level patents, including 835 invention patents, by June 2025, leveraging platforms like the National Industrial Design Center [2] - The company has developed high-end products such as the beauty bath water heater with "high透活肌科技" and the embedded steam oven with "晶焰聚能烤" technology, driving gross margin growth through innovation [2] Marketing Strategy - Vatti is aligning with the emotional value binding trend of young consumers through scenario-based content marketing [2] - The company launched the industry’s first AI short drama "灶火纪：2079的文明回声," integrating high-end product features into the storyline to reach young users effectively [2] - Offline, Vatti engages with young consumers through events like the "华帝之夜" music gala and collaborations with influencers, enhancing its image as a "kitchen appliance fashion brand" [2] Market Positioning - In a volatile and diverse kitchen appliance industry, Vatti's actions reflect a strategy of anchoring user emotions to navigate challenges [2] - As the brand continues to deepen its strategy of "fashionable scientific kitchen appliances," its competitive advantage in the diversified kitchen appliance market is expected to expand further [2]

Investment Rating - The investment rating for the company is "Buy" with a target price not specified [6][4]. Core Views - The company reported a revenue of 4.16 billion yuan for the first three quarters of 2025, a year-on-year decrease of 9.1%, and a net profit attributable to the parent company of 360 million yuan, down 11.9% year-on-year [1]. - The decline in revenue is attributed to weakening sales in the home appliance market and the impact of reduced national subsidies, particularly affecting the kitchen appliance sector [2]. - Despite the revenue pressure, the company has improved its gross margin to 42.8%, an increase of 2.7 percentage points year-on-year, indicating better profitability through product upgrades and brand strategies [3]. Financial Performance Summary - For 2025, the company expects net profits of 440 million yuan, 530 million yuan, and 600 million yuan for the years 2025, 2026, and 2027 respectively, with corresponding dynamic P/E ratios of 12.2x, 10.2x, and 9.0x [4][5]. - The company’s revenue for 2025 is projected to be 6.02 billion yuan, reflecting a decline of 5.52% compared to 2024 [5]. - The gross margin is expected to improve gradually, reaching 41.69% by 2027 [12]. Market Context - The kitchen appliance industry is currently in a low cycle, influenced by a decline in residential construction area, which fell by 17.1% year-on-year [2]. - The company is focusing on channel management and product innovation to enhance competitiveness and profitability in a challenging market environment [4].

Core Viewpoint - The kitchen and bathroom appliance sector experienced a slight decline of 0.06% on October 28, with Aopu Technology leading the losses. The Shanghai Composite Index closed at 3988.22, down 0.22%, while the Shenzhen Component Index closed at 13430.1, down 0.44% [1]. Group 1: Market Performance - Zhejiang Meida saw the highest increase in the sector, with a closing price of 7.93, up 9.99% and a trading volume of 271,300 shares, amounting to 212 million yuan [1]. - The overall trading volume for the kitchen and bathroom appliance sector was significant, with major stocks like Rishidongfang and Huoxingren also showing positive performance, increasing by 2.15% and 1.46% respectively [1]. - Aopu Technology, however, faced a notable decline, closing at 11.28, down 5.69% with a trading volume of 68,200 shares, totaling 77.73 million yuan [1]. Group 2: Capital Flow - The kitchen and bathroom appliance sector saw a net inflow of 88.5 million yuan from institutional investors, while retail investors experienced a net outflow of 61.83 million yuan [1]. - Zhejiang Meida attracted the most institutional investment, with a net inflow of 86.66 million yuan, accounting for 40.90% of the total [2]. - Aopu Technology had a net outflow of 13.39 million yuan from retail investors, indicating a negative sentiment among smaller investors [2].

Core Viewpoint - The overall retail sales of home appliances are expected to decline by at least 16.4% year-on-year from September to December, while Vatti's third-quarter financial report shows strong performance with a revenue of 4.158 billion yuan and a gross margin of 43.29% [1][2] Group 1: Industry Trends - The kitchen appliance industry is under pressure with weak market demand, leading to a competitive environment [1] - The trend of consumption upgrading has shifted consumer demand from basic cooking needs to enhanced lifestyle experiences, emphasizing intelligent cooking, healthy dietary management, and aesthetic design [1][2] Group 2: Company Strategy - Vatti has adopted a high-end, intelligent, and youthful strategy to capture the consumption upgrade trend, resulting in stable operational performance [1] - The company has accelerated AI integration, creating a smart experience system that allows users to control devices remotely through an app, enhancing user interaction and convenience [1] Group 3: Product Innovations - Vatti has introduced several health-focused technologies, such as low-oxygen steaming and low-fat baking, achieving a 93% retention rate of anthocyanins in steamed purple sweet potatoes and a 90.9% fat reduction in micro-frying [2] - The launch of the fifth-generation surfing steam washing technology addresses the cleaning challenges of Chinese kitchens, achieving a 99.2% cleaning rate with a one-button operation [2] Group 4: Aesthetic Integration - Vatti's products integrate functionality with aesthetic design, offering a comprehensive kitchen solution that includes a range of appliances seamlessly connecting with cabinetry [2] - The company's focus on user value transformation has allowed it to maintain brand premium and product competitiveness, achieving gross margin growth even in a downturn [2]

Core Insights - The company reported a total revenue of 4.158 billion yuan and a net profit of 356 million yuan for the first three quarters of 2025, with a gross margin of 43.29% [1] - Despite intense competition in the domestic kitchen and bathroom appliance sector, the company's gross margin improved by 2.79 percentage points year-on-year, indicating a robust performance [1] - The company has successfully optimized its product structure, leading to a year-on-year increase in gross margin, demonstrating the sustainability of its value enhancement strategy [1] Company Strategy - The company has focused on upgrading kitchen experience standards with products like the GW6i beauty gas water heater and VB50 micro-steaming oven, accumulating a total of 4,690 patents by June this year [2] - High-end products are becoming a new growth driver for the company, enhancing its brand image among consumers [2] - The company aims to deepen its high-end transformation strategy through technological innovation and product upgrades, emphasizing a "fashionable scientific brand" positioning to uncover deeper user value [2] Market Context - The kitchen appliance market faces challenges such as real estate regulation and recovering consumer confidence, yet the company's third-quarter report sends a positive signal about its high-end transformation strategy [2] - The company's focus on user-centric approaches and technology as a support system is seen as a way to seek stable and sustainable growth amid market fluctuations [2]

Core Insights - Huati Co., Ltd. reported a revenue of approximately 4.158 billion yuan and a net profit attributable to shareholders of 356 million yuan for the first three quarters of 2025, with a net cash flow from operating activities of 300 million yuan [1] Group 1: Sales Performance - The offline sales channels of Huati are showing steady improvement, with a strong performance in high-end product promotion and bundled sales [1] - The company has established a robust offline sales network, including specialty stores and flagship stores, which provides consumers with an irreplaceable experiential value [1][2] - Despite increasing competition in offline channels, Huati's well-constructed sales network creates a strong market moat, enhancing customer experience and driving conversion rates [1][2] Group 2: Strategic Initiatives - Huati is focusing on lower-tier markets with strategies such as "upgrading terminal image + sales activation + deepening store visits + retail transformation," resulting in the establishment of over 1,000 new retail stores on platforms like JD.com and Tmall [2] - The company maintains a high gross margin in its offline business despite industry price wars, attributed to streamlining inefficient SKUs and focusing on high-end breakthroughs in core categories like kitchen appliances [2] - The offline network serves not only as a sales channel but also as a core platform for building emotional connections with users and conveying brand value propositions [2]

Group 1 - Vatti Corporation (002035.SZ) reported its Q3 2025 results, with 10 institutional investors holding a total of 251 million shares, representing 29.60% of the total share capital [1] - The top ten institutional investors collectively hold 29.60% of Vatti's shares, with a decrease of 3.66 percentage points compared to the previous quarter [1] Group 2 - In the public fund sector, three funds reduced their holdings compared to the previous quarter, with a total reduction rate of 0.50% [2] - One new public fund was disclosed during this period, namely the Invesco Great Wall Competitive Advantage Mixed Fund [2] - One foreign fund, Hong Kong Central Clearing Limited, also reduced its holdings by 1.08% compared to the previous quarter [2]

华帝股份有限公司 第九届董事会第四次会议决议公告 证券代码：002035 证券简称：华帝股份 公告编号：2025-030 三、备查文件 1、华帝股份有限公司第九届董事会第四次会议决议； 2、华帝股份有限公司第九届董事会审计委员会 2025 年第三次会议记录。 本公司及董事会全体成员保证信息披露内容的真实、准确、完整，没有虚假记载、误导性陈 述或重大遗漏。 一、董事会会议召开情况 华帝股份有限公司（以下简称"公司"）第九届董事会第四次会议通知于 2025 年 10 月 20 日以书面及电子邮件形式发出，会议于 2025 年 10 月 27 日上午 10:00 以通讯表决的方式召开。 会议应出席董事 7 名，实际出席董事 7 名。会议由公司董事长潘叶江先生主持，参加会议的 董事符合法定人数，会议的召集、召开及表决程序符合《公司法》和《公司章程》的有关规 定。 二、董事会会议审议情况 1、以 7 票同意、0 票反对、0 票弃权，审议通过了《2025 年第三季度报告》。 公司董事、高级管理人员出具了关于公司 2025 年第三季度报告的书面确认意见，作为公 司的董事、高级管理人员，保证公司 2025 年第三季度报告内容 ...

Financial Performance - The company's revenue for Q3 2025 was ¥1,357,836,624.53, a decrease of 7.93% compared to the same period last year[5] - Net profit attributable to shareholders was ¥83,716,563.62, down 19.66% year-on-year[5] - The basic earnings per share decreased by 19.70% to ¥0.1007[5] - Total operating revenue decreased to ¥4,157,645,421.56 from ¥4,575,581,449.41, representing a decline of approximately 9.1% year-over-year[17] - Net profit attributable to shareholders decreased to ¥355,759,635.70 from ¥403,791,138.21, reflecting a decline of approximately 11.9% year-over-year[18] - Basic and diluted earnings per share decreased to ¥0.4281 from ¥0.4848, a drop of about 11.6% year-over-year[18] Assets and Liabilities - Total assets at the end of the reporting period were ¥6,992,901,181.79, a decline of 4.18% from the previous year[5] - The total assets decreased from CNY 7,298,082,229.49 to CNY 6,992,901,181.79, reflecting a decline of approximately 4.2%[14] - Current assets decreased from CNY 5,045,816,848.08 to CNY 4,716,193,827.23, a reduction of about 6.5%[14] - Total liabilities decreased from CNY 3,474,111,500.18 to CNY 3,063,256,574.01, a decline of around 11.9%[15] - Accounts payable decreased from CNY 771,677,085.74 to CNY 615,324,964.89, a reduction of about 20.3%[15] Cash Flow - Cash flow from operating activities for the year-to-date was ¥299,536,385.94, down 19.54% compared to the previous year[9] - Cash flow from operating activities generated ¥299,536,385.94, down from ¥372,278,733.70, a decrease of approximately 19.5% year-over-year[20] - Cash and cash equivalents at the end of the period decreased to ¥812,923,651.24 from ¥1,039,658,497.13, a decline of about 21.8%[22] - The company experienced a 35.30% decrease in cash and cash equivalents, totaling ¥1,081,511,620.80, primarily due to changes in financial product principal[9] Shareholder Information - The company has a total of 35,516 common shareholders at the end of the reporting period[11] - The company repurchased a total of 16,589,882 shares, accounting for 1.96% of the current total share capital[12] Contract Liabilities - The company reported a significant increase in contract liabilities by 66.95% to ¥360,813,720.69, attributed to increased prepayments from promotional activities[9] - The company's contract liabilities increased from CNY 216,118,143.96 to CNY 360,813,720.69, reflecting an increase of about 67%[15] Expenses - Total operating costs reduced to ¥3,812,128,674.03 from ¥4,231,827,707.73, a decrease of about 9.9% year-over-year[17] - Research and development expenses decreased to ¥171,833,062.82 from ¥196,394,411.76, a reduction of approximately 12.5% year-over-year[17] - Other income decreased to ¥45,091,856.92 from ¥84,359,808.73, a decline of about 46.4% year-over-year[17] Investment and Financing Activities - Investment activities resulted in a net cash outflow of ¥596,106,152.43, compared to a smaller outflow of ¥248,805,555.66 in the previous period[21] - Financing activities generated a net cash outflow of ¥235,075,576.82, an improvement from a larger outflow of ¥316,864,439.41 in the previous period[22] Additional Information - The third quarter financial report of Vatti Co., Ltd. has not been audited[23] - The new accounting standards will be implemented starting from 2025[23] - The financial statement items related to the first year of the new accounting standards will be adjusted[23] - The board of directors of Vatti Co., Ltd. issued the report on October 28, 2025[23]

Core Viewpoint - The event "Vatti Clean Music Festival - 2025 Vatti Night Chongqing Station" hosted by Vatti, a leading brand in high-end kitchen appliances in China, successfully combined music and brand promotion, enhancing the concept of quality living in Chongqing [1][8]. Product Highlights - Vatti showcased a range of stylish and technologically advanced kitchen appliances, including the A500 integrated drinking center, QH1i wall-mounted boiler with 108% thermal efficiency, B6S dishwasher with first-class cleaning coverage, GW6i beauty bath water heater, QX01 multi-functional cooking device, and J6230ZS range hood with high airflow and static pressure [3][5]. Brand Commitment - Vatti has been committed to user-centric principles for nearly 30 years in the Sichuan-Chongqing region, focusing on delivering high-quality kitchen appliances and the concept of "serious living" to households [5][10]. - The company has evolved from a gas stove manufacturer to a comprehensive kitchen and bathroom expert over 33 years, expanding its product range to include various kitchen appliances [5]. Event Significance - The "Vatti Night" has transformed into a long-term activity IP that connects the brand with users, moving beyond traditional promotional events to create emotional connections through music [8][10]. - The event serves as a platform for Vatti to express its value proposition, emphasizing that kitchen appliances are not just functional tools but also guardians of a high-quality lifestyle [10]. Market Impact - The event aims to invigorate the market by showcasing products in real-life scenarios, appealing to consumers' desires for quality and experience rather than mere functionality [10]. - Vatti's ongoing "Vatti Night" events, from Taiyuan to Chongqing, are expected to further enhance brand engagement and provide innovative, creative, and youthful ideas for brand building in the kitchen appliance industry [10].