Summary of Conference Call Notes Industry Overview - The focus is on the new consumption sector, which is expected to experience a structural bull market due to anticipated economic recovery and policy support in the fourth quarter of 2024. [1][2] - The new consumption sector is characterized by a three-year investment cycle influenced by supply-demand dynamics and social changes. [4] Key Directions in New Consumption - Four main directions in the new consumption sector are identified: emotional value, overseas consumption, shared value, and channel transformation. [3] - Companies like Pop Mart, Ruoyuchen, and Wanren Group have shown exceptional performance since mid-2024, making them noteworthy investment targets. [1][3] Investment Strategy - The strategy for the second half of 2025 involves holding high-conviction leading companies while also focusing on emerging companies that may outperform the leaders. [11] - The investment approach combines Beta (market trends) and Alpha (individual company performance) to identify opportunities. [7][8] Market Dynamics - The new consumption sector is expected to transition through three stages: thematic investment, institutional comfort, and potential bubble formation. [5] - Traditional consumption sectors may present rebound opportunities, especially if they align with leading companies' performance. [6][17] Specific Investment Opportunities - Notable companies for investment include Pop Mart, Chaohongji, and Chenguang, which are expected to benefit from market recovery and structural opportunities. [12] - Emotional consumption companies with strong safety margins and good odds are also highlighted as potential investments. [13] Functional Value and Channel Transformation - AI integration in consumer products is identified as a strong trend, with companies like Kande Optical and Mousse showing promise in this area. [14] - Channel transformation is segmented into online channels, discount retail, and quality retail, with companies like Meituan and Hailan Home being key players. [15] Brand Expansion - Brand expansion is categorized into independent brand growth and OEM chain expansion, with companies like Hisense and TCL benefiting from increased market penetration. [16] - The potential for companies like Simoer International to enhance their market value through successful product reception in Japan is noted. [16] Economic Outlook - The overall economic environment is expected to weaken, leading to a shift in investment focus from Alpha to Beta for domestic demand and vice versa for external demand. [20] - The potential for price increases in consumer goods is highlighted, particularly if CPI returns to a normal range of 2-3%. [19] Future Investment Themes - Observing primary market investments can provide insights into emerging consumption themes for the secondary market. [23] - The third quarter is seen as a time for dividend opportunities, while the fourth quarter may yield excess returns across both traditional and emerging sectors. [22]

Summary of Conference Call Records Industry Overview - The home appliance industry index has declined by 2.7% year-to-date, with significant differentiation within the sector. Appliance components have benefited from the robotics concept, rising nearly 12%, while major appliances, particularly white goods, have faced a 5% decline [1][2][3]. - The valuation of the home appliance sector is at a ten-year low, with the Shenyin Wanguo home appliance PE (TTM) dropping below 15 times, lower than the historical average [4]. Sales Performance - From January to May 2025, domestic online sales of home appliances grew by 14%, while exports increased by 6%. The North American market is under pressure, but the European market shows good demand, and emerging markets continue to grow rapidly [5]. Policy Impact - The national "old for new" policy has consumed approximately 160 billion yuan of its 300 billion yuan budget, with some provinces controlling the issuance of subsidies. However, the policy will continue throughout the year, expected to support demand in the second half [6]. Market Dynamics - The panoramic camera market is dominated by Xi'an Catering, which holds a 70% revenue share in 2023, with industry growth exceeding 30%. The entry of DJI is expected to aid industry development, but Xi'an Catering maintains a leading advantage [1][9][10]. - The sweeping robot market is competitive, with Chinese brands dominating. Stone Technology's floor washing machine business is expected to improve profit margins, with accelerated growth anticipated in Q3 and Q4 [1][14][15]. Investment Opportunities - The core investment themes for the home appliance industry include: 1. New consumer trends in home appliances, focusing on handheld smart imaging products and smart appliances. 2. New manufacturing trends, favoring quality companies with solid fundamentals and robotics initiatives. 3. Strong growth potential in leading black and white appliance companies, with white goods offering high dividend yields and low valuations, while black goods benefit from product upgrades [3][20]. Competitive Landscape - The air conditioning market is experiencing price competition primarily in mid-to-low-end products, with controlled impacts on leading companies' profits. Market share is expected to recover [2][21]. - Stone Technology is positioned to enhance its profit margins through accelerated growth in its washing machine segment, with a focus on quality growth and market share [15][17]. Future Growth Potential - Eu Sheng Electric has a competitive advantage in overseas production capacity, particularly in Malaysia, benefiting from lower tariffs and established relationships in the elderly care robot market, which has significant long-term growth potential [1][18]. - The black appliance sector is seeing product structure upgrades, particularly in Mini LED technology, which is expected to drive price increases and market share growth for leading companies like Hisense and TCL [19]. Conclusion - The home appliance industry is characterized by a mix of challenges and opportunities, with specific segments showing resilience and growth potential. The ongoing policy support and evolving consumer preferences are likely to shape the market dynamics in the coming quarters.

Summary of Key Points from Conference Call Records Industry Overview - **Consumer Sector**: The consumer sector in China is currently facing challenges due to a lack of growth engines, but there are signs of recovery driven by export growth and improvements in domestic economic activities. [1][4] - **Retail Sector**: The retail sector is experiencing supply surplus and insufficient demand, necessitating a focus on new demand opportunities, including traditional channel transformations and the rise of instant retail. [1][7] Core Insights and Arguments - **Economic Recovery**: The recovery of exports is expected to positively impact domestic economic activities and consumption, with a notable rebound in personal income tax indicating a gradual recovery in residents' income. [1][4] - **Investment Strategy**: In July, the investment strategy should avoid liquidity-driven assets and focus on service consumption and high-turnover goods that are less affected by liquidity pressures. [1][4] - **New Consumption Trends**: New consumption is identified as a key growth driver for the next two to three years, emphasizing the creation of new consumption scenarios and business models, particularly in high-turnover and low-leverage service consumption. [1][5][6] Specific Areas of Focus - **Service Consumption**: Investment opportunities in the consumer sector are concentrated in emotional value consumption (e.g., trendy toys, pets) and functional value consumption (e.g., AI-related products). [6] - **Cross-Border Trade**: Companies engaged in cross-border trade should focus on supply chain management, brand premium capabilities, and channel premium capabilities due to tightening trade policies. [8] - **E-commerce Performance**: The 2025 618 e-commerce promotion met expectations, with Douyin's growth exceeding forecasts, highlighting a trend of collaboration across platforms. Instant retail channels performed exceptionally well during this event. [9][10] Additional Important Insights - **Tobacco Industry**: The tobacco industry is showing a stable upward trend, with new products like Glohilo from British American Tobacco expected to perform well in Japan. [3][11][12] - **Home Appliances**: The home appliance sector is expected to see double-digit growth driven by national policy support, with leading companies using pricing strategies to enhance market share. [3][22] - **Household Goods**: The household goods sector is stabilizing at the bottom, with a focus on companies that can demonstrate alpha capabilities. [3][13] - **Competition in Cleaning Appliances**: The competition in the cleaning appliance sector is easing, benefiting companies like Roborock and Ecovacs, with expectations of rising industry profit margins. [3][20] Conclusion The conference call highlighted the complexities and opportunities within various sectors of the Chinese economy, particularly in consumer and retail markets. The focus on new consumption trends, service-oriented products, and strategic adjustments in response to economic conditions will be crucial for navigating the current landscape.

Market Overview - The A-share market shows mixed performance with the Shanghai Composite Index closing at 3424.23, down 0.70%, while the Shenzhen Component Index rose by 0.34% to 10378.55 [2][3] - The total market capitalization of the Shanghai Composite Index is 6648.58 billion, with a price-to-earnings (PE) ratio of 12.27 and a price-to-book (PB) ratio of 1.27 [3] Industry Dynamics - BOE Technology Group showcased a glass-based Micro LED display at the International Display Week in San Jose, which is expected to change industry competition rules due to its lightweight and high brightness features [39] - Innovent Biologics received approval for its dual receptor agonist injection for long-term weight control, marking a significant advancement in obesity treatment [41] - Guangxi Petrochemical completed the trial operation of its 1.2 million tons/year ethylene unit, part of a larger integrated refining and chemical project [43] - The first batch of units from the 850,000 kW offshore wind power project by Guoxin Dafeng successfully connected to the grid, marking a significant milestone in Jiangsu's offshore wind power development [45] - Germany plans to build a 1.8 GWh battery storage project, which will enhance its energy storage capacity significantly [47] - The photovoltaic industry is experiencing price pressure following a surge in installations, with prices for silicon wafers declining [49] Company Tracking - Youyan New Materials announced the transfer of its lithium sulfide business assets, including patents and technology, to optimize its business focus [55] - Huadian New Energy plans to raise approximately 18 billion for wind and solar power projects as it prepares to list on the Shanghai Stock Exchange [57] - Spring Wind Power's new factory in Tongxiang aims to produce 3 million two-wheeled vehicles annually, marking a significant investment in the electric vehicle sector [59] - Taotao Industry has successfully developed its first humanoid robot prototype, indicating a strategic move into advanced manufacturing [61]

展望后市，星石投资表示，短期看，海外风险边际下行，行业亮点不断，股市活跃资金偏多的背景下， 市场情绪有望延续修复。即将进入7月，中报预告叠加市场预期7月底或有新的政策定调，预计后续业绩 端和政策端对市场的影响或有所加大。 □本报记者 王宇露 中期视角下，星石投资认为，虽然海外关税因素尚未完全明确，但国内政策发力应对是较为确定的。随 着宏观政策持续为经济复苏提供助力，国内经济基本面预期逐步改善，中期股市情绪中枢也不弱,叠加 当前股市估值并不算高，A股权益类资产依旧具有较强的中长期投资性价比。 上周市场上涨，中证新华社民族品牌工程指数（简称"品牌工程指数"）上涨2.17%，报1627.35点。从成 分股的表现看，恒生电子、东方财富、新宝股份等成分股上周表现强势；年初以来，信立泰、安集科 技、丸美生物等成分股涨幅居前。展望后市，机构认为，随着宏观政策持续为经济复苏提供助力，国内 经济基本面预期逐步改善，叠加当前股市估值并不算高，A股权益类资产依旧具有较强的中长期投资性 价比。 相聚资本研究总监、基金经理余晓畅认为，下半年经济本身不是决定股市走向的胜负手，而是可能出现 的变局点，也对应着股市的变盘。宏观经济之外，新兴 ...

Group 1 - The core viewpoint of the articles highlights the strong performance of innovation drug-themed funds, with the Huatai-PineBridge Hong Kong Advantage Select Fund leading the pack with a return of 89.15% as of June 29, 2023 [2][3] - A total of 40 funds have achieved a return exceeding 50% this year, with 16 out of the top 20 funds being innovation drug-themed [2][3] - The AI-themed funds have underperformed significantly, with losses exceeding 20% for the bottom-performing funds [1][3] Group 2 - The active equity funds have generally shown a recovery in performance, with nearly 80% of active equity funds achieving positive returns this year, and over 1,000 funds seeing net value increases of over 10% [4][5] - The market has experienced structural volatility, with different themes impacting fund performance directly, necessitating precise market timing from fund managers [3][4] - The long-term performance of the Huatai-PineBridge North Exchange Innovation Small and Medium Enterprises Select Fund has yielded a cumulative return of 177.04% over the past three years, significantly outperforming its peers [3] Group 3 - The innovation drug sector is currently experiencing a surge, with funds in this category dominating the performance rankings, while the humanoid robot sector has seen a decline from its previous highs [2][7] - The market outlook for the second half of the year suggests a mix of opportunities and risks, with low overall valuation levels and supportive macroeconomic policies being key factors [8][9] - Key investment areas identified include dividend assets, technology sectors with strong policy support, and high-potential domestic demand sectors [9]

Group 1 - The core viewpoint of the article highlights the performance of various sectors such as innovative drugs, humanoid robots, the Beijing Stock Exchange, and new consumption trends, which have driven market momentum and generated significant investment returns [1] - Notably, many actively managed equity funds have demonstrated a remarkable turnaround in performance, with nearly a hundred funds reaching their highest net value since inception in June [1]

Investment Rating - The report emphasizes a strong hold on high-conviction new consumption leaders, focusing on themes such as emotional consumption, functional value, channel transformation, and brand expansion abroad [2][8] Core Insights - The new consumption sector is expected to see a rise, with a focus on both established leaders and traditional companies adopting new consumption strategies [2][8] - The report suggests that Q3 will present structural opportunities, while Q4 is anticipated to see leading companies reaching new highs [2][8] - The light industry manufacturing sector is highlighted for its growth potential, particularly in new tobacco products and the home goods market [3][16] - The textile and apparel industry is advised to focus on differentiated companies with high growth potential [5][20] - The beauty and personal care sector remains robust, with recommendations for high-value stocks [5][21] - The home appliance sector shows strong performance in sales, particularly during the 618 shopping festival [5][22][23] - The retail sector is experiencing a shift, with online sales stabilizing and offline stores undergoing significant transformations [5][24][25] Summary by Sections New Consumption - Focus on holding high-conviction new consumption leaders and exploring traditional companies with new consumption mindsets [2][8] - Q3 is seen as a period for structural opportunities, while Q4 may bring valuation shifts for leading companies [2][8] Light Industry Manufacturing - New tobacco products are on an upward trend, with significant market expansion expected [3][16] - The home goods market is stabilizing, with a focus on companies showing signs of recovery [3][16] Textile and Apparel - The sector is advised to prioritize companies with unique advantages and high growth potential [5][20] Beauty and Personal Care - The sector remains high in demand, with recommendations for companies showing strong performance and recovery potential [5][21] Home Appliances - The sector has shown excellent sales performance, particularly during promotional events, with a notable increase in production [5][22][23] Retail Sector - The online retail landscape is stabilizing, with significant changes in offline retail strategies [5][24][25]

Core Viewpoint - The article highlights the latest trends and developments in the new consumption sector, focusing on product launches, collaborations, and significant industry events that indicate growth and innovation in the market [3][4][5]. New Product Launches - Jasmine Milk White has introduced a summer product, "Mascarpone Salty Cheese Milk," which reinterprets the classic tiramisu dessert [4]. - Mengniu has launched a new product, "Freshly Squeezed Corn Milk," made from whole sweet corn and 100% fresh milk [5]. - YiLi has released a new "Small Milk Jug" yogurt, featuring 100% fresh milk and a clean label with high protein content [5]. - Hey Tea has introduced a seasonal product, "Strange Fragrant Yellow Skin Peach," using fresh local fruit [7]. - DQ plans to open 800 new stores within three years, expanding its brand presence [14]. Collaborations and Partnerships - Luckin Coffee has partnered with the series "Chang'an's Lychee" to launch a new product line featuring lychee-infused beverages [10][12]. - The hand-crafted lemon tea brand, Ningji, has collaborated with "Junji Ito's Horror Collection" to launch summer drinks [4]. Financing and Investments - The mathematician coffee brand has completed a new round of financing, raising several million yuan [20]. - Anxin Fresh Life has successfully completed a 28 million yuan financing round to enhance its supply chain and expand its store network [22]. - Saint Bella has officially listed on the Hong Kong Stock Exchange, with significant oversubscription in its IPO [20]. Industry Events - Farmer Spring has officially entered the Hong Kong market, with plans to distribute its products across over 3,500 sales points [13]. - Decathlon has opened a new store in Hangzhou, utilizing an innovative operational model to enhance customer experience [13]. - Sasa International announced the closure of all its mainland stores, shifting focus to online business [36].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report emphasizes the importance of focusing on bottom opportunities in the liquor sector while pursuing growth in consumer goods. The liquor industry is currently experiencing a downturn, particularly in high-end consumption scenarios, leading to a decline in demand. The report suggests that leading liquor companies with strong brands and distribution channels are likely to adapt and transform successfully [3][11][12] Summary by Sections Weekly Insights - From June 23 to June 27, the food and beverage index declined by 0.9%, ranking 28th among primary sub-industries, underperforming the CSI 300 by approximately 2.8 percentage points. The health products (+3.6%), baked goods (+2.7%), and seasoning and fermentation products (+1.2%) sectors performed relatively well [11][13] Market Performance - The liquor sector remains at a low point, with the impact of the "ban on alcohol" still felt. The lack of high-end consumption scenarios has further depressed industry demand. The report anticipates increased pressure on liquor companies' performance in the second quarter due to sluggish terminal sales and high channel inventory levels [3][11][12] Upstream Data - Some upstream raw material prices have decreased, which may alleviate cost pressures for companies in the beverage sector. For instance, the price of imported barley fell by 4.3% year-on-year in May 2025, and the quantity imported dropped by 47.8% [31][33] Recommended Companies - The report recommends gradually increasing positions in liquor stocks at low valuations, particularly focusing on leading companies such as Guizhou Moutai and Shanxi Fenjiu. It also highlights opportunities in consumer goods companies like Ximai Food, Youyou Food, Wancheng Group, and Bairun Shares, which are expected to benefit from new consumption trends [4][12][46]