Xin Lang Cai Jing·2025-05-06 02:48Core Viewpoint - The company's Q1 2025 performance met expectations, maintaining a "Hold" rating and target prices of HKD 29 for Hong Kong shares and RMB 40 for A-shares [1][3]. Revenue Performance - Q1 2025 revenue reached RMB 526 million, representing a 59.2% year-over-year increase and a 4.9% quarter-over-quarter increase, primarily driven by revenues from products RC18 and RC48 [1]. - The Q1 2025 revenue accounted for approximately 24% of the company's full-year revenue guidance of 30% year-over-year growth, aligning with expectations [1]. Cost Management and Net Loss - R&D expenses for Q1 2025 were RMB 329 million, a decrease of 0.7% year-over-year and 14.9% quarter-over-quarter, representing 25% of the annual guidance of under RMB 1.3 billion [2]. - Sales expenses were RMB 251 million, up 33.7% year-over-year but down 23.1% quarter-over-quarter, with a sales expense ratio of 47.7%, consistent with the guidance of keeping it below 50% [2]. - Management expenses were RMB 90 million, increasing by 21.4% year-over-year but decreasing by 7.1% quarter-over-quarter, with a management expense ratio reduced to 17.1% [2]. - The net loss attributable to the parent company for Q1 2025 was RMB 254 million, a reduction of 27.2% year-over-year and 0.9% quarter-over-quarter, in line with expectations [2]. Cash Flow and Financial Strategy - As of March 31, the company had cash and cash equivalents of RMB 722 million, a slight decrease from RMB 762 million at the end of 2024, indicating that most cash outflows are covered by commercial revenues [3]. - The company plans to apply for a total credit facility of up to RMB 5.5 billion from banks and other financial institutions in 2025, suggesting a reliance on bank credit for cash flow supplementation [3]. Valuation and Future Outlook - The company maintains a "Hold" rating and target prices of HKD 29 for Hong Kong shares and RMB 40 for A-shares, with slight adjustments to net loss forecasts for 2025E/2026E/2027E due to minor revenue and gross margin adjustments [3]. - The current valuation is considered reasonable, with potential for stock price upgrades if the product Tai Tasi Pu successfully expands internationally [3].