WONLY(SH:605268) 2 1 Shi Ji Jing Ji Bao Dao·2025-04-30 06:15Core Insights - The Chinese smart lock market is experiencing significant growth, with online retail volume reaching 1.79 million units and retail revenue at 1.8 billion yuan in Q1 2025, both showing over 20% year-on-year growth, continuing the trend from 2024 [1] - The market is shifting towards consumer (C-end) sales, which have now surpassed business (B-end) sales for the first time, becoming the main driver of industry growth [1][6] - The average price of smart locks is declining, with online prices dropping from 1,301 yuan in 2021 to 913 yuan in 2024, leading to increased competition and impacting profit margins for many companies [2][3] Market Dynamics - The smart lock market is undergoing a transformation due to various factors, including fluctuations in the real estate sector, which have led to a significant shift in sales channels and product structures [1] - The introduction of new subsidy policies in many regions is expected to sustain high growth in the smart lock market, alongside improvements in the real estate sector [1] - The competitive landscape is becoming more complex, with smaller brands being pushed out of the market as larger companies consolidate their market share [4][5] Sales Performance - In 2024, the revenue for Wangli Security reached 3.122 billion yuan, a year-on-year increase of 2.57%, while net profit surged by 154.09% to 139 million yuan [1] - Conversely, companies like Apac TianNeng and Top Solid experienced declines in both revenue and profit, with Apac TianNeng's revenue falling by 25.84% to 157 million yuan and a net loss of 32 million yuan [2] Consumer Trends - The C-end market's sales proportion exceeded 54.6% in 2024, marking a 12 percentage point increase from 2023, driven primarily by online retail growth [6] - The demand for mid-to-high-end smart locks is increasing, with sales in the 1,500-1,999 yuan, 2,000-2,499 yuan, and 3,000-3,499 yuan price segments growing by 31.7%, 42.1%, and 27.5% respectively [3][6] Competitive Landscape - The market is characterized by a low market share among leading brands, indicating significant potential for market share growth [4] - The ongoing price war is intensifying, particularly in the low-end segment, while high-end products maintain stable revenue [3][8] - The R&D investments of listed companies in the smart lock sector have been affected by market fluctuations, with Wangli Security, Top Solid, and Apac TianNeng investing 78 million, 38 million, and 14 million yuan respectively in 2024 [8]