JINHUI(SH:603919) Mei Ri Jing Ji Xin Wen·2025-04-14 13:49Core Viewpoint - The company reported a decline in growth rates for both revenue and net profit in Q1 2025, marking the lowest growth rates in the past five years, despite achieving record high revenues in 2024 [1][2]. Revenue Performance - In Q1 2025, the company achieved revenue of 1.108 billion yuan, a year-on-year increase of 3.04%, and a net profit of 234 million yuan, up 5.77% [1]. - The first quarter typically contributes about 35% of the company's annual revenue, indicating its importance in overall performance [2]. Product Segmentation - Revenue from products priced above 300 yuan reached 245 million yuan in Q1 2025, a year-on-year increase of 28.14%, while products priced between 100-300 yuan generated 630 million yuan, up 14.24%. However, products below 100 yuan saw a significant decline of 31.72% [3]. - The company has been focusing on increasing the sales proportion of high-end products since 2016, with 70.75% of revenue coming from mid to high-end products in 2024 [5]. Profitability and Cost Management - Despite revenue growth, the contribution from high-end products remains low, with only 18.75% of revenue from products priced above 300 yuan in 2024 [6]. - The company has not met its net profit targets for two consecutive years, with management expenses rising significantly, impacting overall profitability [7]. Market Expansion - The company has seen growth in its provincial and out-of-province revenues, with out-of-province revenue reaching 238 million yuan in Q1 2025, a year-on-year increase of 9.48% [8]. - The number of out-of-province distributors has increased significantly, from 163 in 2019 to 673 in Q1 2025, indicating efforts to expand market reach [8]. Strategic Goals - The company aims to achieve a revenue target of 3.28 billion yuan and a net profit of 408 million yuan for 2025, having completed 33.78% and 28.75% of these targets in Q1 2025, respectively [9].