HUIDA SANITARY WARE(SH:603385) Zheng Quan Shi Bao Wang·2026-01-22 12:48Core Viewpoint - The bathroom brand Huida Sanitary Ware is undergoing significant transformation in response to challenges such as declining demand in the home industry, changes in channel structure, and concentrated cost pressures, indicating a willingness to endure short-term pain for long-term gains [1][2]. Group 1: Financial Performance and Strategic Adjustments - Huida Sanitary Ware expects a net profit attributable to shareholders of the parent company to be between -216 million yuan and -180 million yuan for the year 2025, reflecting the pain of transformation [1]. - The main reasons for the performance changes in 2025 include international geopolitical conflicts, industry cycle fluctuations, and market environment changes, leading to strategic business adjustments and increased asset impairment losses [2]. - The company is focusing on deep transformation and long-termism, viewing the financial figures as a necessary cost for achieving substantial change [2]. Group 2: Market Trends and Product Focus - The demand for new homes is slowing, with stock updates and improvement needs becoming mainstream, while the smart bathroom market is growing rapidly at over 20% annually, expected to reach a trillion yuan scale in the coming years [2]. - Consumer demand is shifting from basic functionality to health, comfort, and integrated experiences, with smart toilets achieving over 40% penetration in first-tier cities and rapidly spreading nationwide [2]. Group 3: Organizational and Technological Enhancements - Huida Sanitary Ware is optimizing its organization and talent structure in 2025, introducing professionals from various industries to enhance team expertise and innovation [4]. - The company is transitioning from a "manufacturing-driven" model to a "research and development-driven" and "user value-driven" approach, focusing on smart toilets as a core growth point for the next five to ten years [3]. - A digital transformation strategy is being implemented to upgrade the operational system, including the construction of core systems like ERP and MES, and establishing an integrated product development system [4]. Group 4: Commitment to Sustainability and Social Responsibility - In 2025, Huida Sanitary Ware achieved several accolades, including recognition in the Asia 500 and IF Design Awards, showcasing its product and innovation strength [5]. - The company is deeply integrating sustainable development into its strategy, focusing on green ecology and energy conservation, with initiatives like a 14-megawatt solar power station that reduces carbon emissions by approximately 12,000 tons annually [5]. - Huida Sanitary Ware is actively participating in social responsibility initiatives, including educational philanthropy and rural revitalization, investing over 5 million yuan in campus public welfare activities [5].