Cosonic(SZ:300793) Quan Jing Wang·2025-09-15 11:08Core Viewpoint - The announcement of share reduction by the controlling shareholder of Jiahe Intelligent is perceived as a warning sign for the company's financial health, especially following a significant decline in profitability and shareholder confidence [1][2]. Company Performance - Jiahe Intelligent's controlling shareholder, Dongguan Wenfu Investment Co., Ltd., plans to reduce its stake by up to 6 million shares, representing 1.59% of the total share capital [1]. - The company reported a net profit decline of over 90% in the first half of 2025, with a net profit of only 2.51 million yuan, indicating severe profitability issues [4]. - In 2023, despite a revenue increase of 9.44%, the net profit fell by 23.58% to 133 million yuan, with a net profit margin decrease of 2.41 percentage points to 5.58% [2]. Industry Context - The consumer electronics sector, particularly in audio products, is facing intense competition, leading to a significant drop in Jiahe Intelligent's gross margin, which fell to 14.07% in the first half of 2025, down 4.11 percentage points from 2023 [3]. - The company's reliance on ODM (Original Design Manufacturer) business model has resulted in weak bargaining power, primarily serving clients like Harman and Beats, while competitors like Edifier have successfully leveraged their own brands for higher margins [3][5]. - The market for TWS (True Wireless Stereo) earphones is experiencing a slowdown, with global shipment growth declining, further exacerbating the company's challenges [5][6]. Future Outlook - The company faces multiple risks, including a high concentration of revenue from a few major clients, which increases vulnerability to order reductions or price cuts [5][6]. - Emerging business segments, such as smart wearables, contribute minimally to overall revenue, with smart wearables accounting for only 10.08% of revenue in the first half of 2025 [7]. - The reduction in R&D expenses may further weaken the company's competitive position, as it struggles to innovate in a rapidly evolving market [6][7].