HIKING(SH:600735) Zheng Quan Zhi Xing·2025-08-26 12:17Core Viewpoint - The report highlights a significant decline in the company's financial performance for the first half of 2025, with a notable decrease in revenue and net profit compared to the same period in the previous year, attributed to increased competition and external economic factors [1][2][10]. Company Overview and Financial Indicators - Company Name: Shandong Xinhua Jin International Co., Ltd. - Stock Code: 600735 - Total Revenue for H1 2025: 668.87 million RMB, down 24.92% from 890.87 million RMB in H1 2024 [2][3]. - Total Profit: 48.60 million RMB, a decrease of 34.49% from 74.19 million RMB [2][3]. - Net Profit attributable to shareholders: 12.87 million RMB, down 39.45% from 21.25 million RMB [2][3]. - Net Cash Flow from Operating Activities: 77.26 million RMB, down 19.06% from 95.45 million RMB [2][3]. - Total Assets: 1.85 billion RMB, down 2.73% from 1.90 billion RMB [2][3]. Business Segments New Trade - Import and Export Business - The company focuses on the production and sales of hair products, with major export markets in North America, Europe, and Japan [3][10]. - The global wig market is projected to grow from 7.62 billion USD in 2022 to 13.28 billion USD by 2026, indicating a robust demand for hair products [3][10]. - The company faced challenges due to increased tariffs and inflation in key markets, leading to a decline in revenue from hair products by 11.29% [10][11]. Textile and Apparel Business - The textile and apparel segment primarily operates on an OEM basis, exporting to markets such as Japan, Europe, and the United States [3][10]. - In H1 2025, China's textile and apparel exports reached 143.98 billion USD, showing a slight increase of 0.76% year-on-year [3][10]. - The company is adapting to market changes by diversifying its export markets and enhancing customer relationships [10][11]. Cross-Border E-commerce - The cross-border e-commerce segment reported a revenue of 142.94 million RMB, down 28.56% due to currency fluctuations and geopolitical uncertainties [10][12]. - The company is investing in AI technology to enhance its e-commerce capabilities and improve marketing strategies [12][13]. New Materials - Graphite Business - The company operates two graphite mines, focusing on the extraction and processing of natural flake graphite [6][7]. - China holds 27.86% of the world's graphite reserves, and the company aims to leverage its resource advantages for future growth in the graphite sector [6][7]. Elderly Care and Health Business - The company has established a light-asset operation model in the elderly care sector, providing comprehensive consulting and operational services [8][9]. - The aging population in China is expected to drive growth in the silver economy, with significant government support for the industry [8][9].