Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company's profitability has significantly improved in Q1 2025, with a revenue increase of 14.75% year-on-year, and a net profit increase of 26.48% year-on-year [2][6]. - The company is focusing on optimizing product categories and promoting business globalization, which is expected to enhance market share [2][11]. - The industry structure is becoming more balanced, with growth in sectors such as 3C mobile phones, automotive, and semiconductors, offsetting declines in new energy lithium batteries and photovoltaics [11]. Financial Performance Summary - In 2024, the company achieved a revenue of 2.504 billion yuan, a decrease of 13.08% year-on-year, and a net profit of 404 million yuan, down 25.87% year-on-year [2][6]. - For Q1 2025, the company reported a revenue of 620 million yuan, up 14.75% year-on-year, and a net profit of 122 million yuan, up 26.48% year-on-year [2][6]. - The gross margin for Q1 2025 reached 38.1%, an increase of 3.1 percentage points year-on-year, while the net profit margin was 19.64%, up 1.82 percentage points year-on-year [11]. Business Strategy and Growth - The company is enhancing its one-stop procurement service and has made significant progress in the intelligent construction of its FB business, improving efficiency and product quality [11]. - The company is advancing its global business strategy, having established operations in over 30 countries and regions, including new entities in Vietnam, Hong Kong, and Japan [11]. - The company expects to achieve net profits of 500 million, 610 million, and 730 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 29, 24, and 20 [11].

Group 1: Financial Performance - The company's photovoltaic revenue decreased by over 60% year-on-year, primarily due to the impact of restructuring [3] - Fixed asset and inventory impairment provisions amount to approximately 800 million, raising concerns about further impairment risks [5] - The revenue share from the top five customers increased year-on-year, indicating a focus on maintaining key client relationships [5] Group 2: Restructuring and Investment - The company is currently in a restructuring phase, with all funds from participating investors fully in place [2] - The restructuring plan was completed by the end of 2024, with a focus on restoring production capacity [2] - There is no confirmed strategic investor with clear funding intentions at this time [2] Group 3: Market Strategy and Operations - The company plans to continue its dual-core business strategy of "photovoltaics + cables," despite the challenges faced in the photovoltaic sector [3] - There is no substantial impact on overseas business from the European anti-dumping investigation on Chinese photovoltaic products [2] - The company is actively optimizing its product structure and market layout to enhance competitiveness and risk resistance [2] Group 4: Future Outlook - Future growth drivers include the empowerment from new controlling shareholders and a focus on global R&D and service capabilities [3] - The company has not yet entered the production of ultra-high voltage cables but is monitoring opportunities in smart grid renovation orders [4]

Core Viewpoint - The company demonstrated robust revenue growth in 2024, with a notable increase in new customers, channels, and projects, while maintaining a strong performance in both domestic and international markets [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 4.749 billion, net profit attributable to shareholders of 296 million, and net profit excluding non-recurring items of 293 million, reflecting year-on-year changes of +34%, -1%, and +40% respectively [1]. - For Q4 2024, the company reported operating revenue of 1.359 billion, net profit attributable to shareholders of 71 million, and net profit excluding non-recurring items of 69 million, with year-on-year changes of +31%, -18%, and +391% respectively [1][2]. - In Q1 2025, the company achieved operating revenue of 1.010 billion, net profit attributable to shareholders of 58 million, and net profit excluding non-recurring items of 54 million, with year-on-year increases of 18%, 35%, and 26% respectively [1][4]. Revenue Breakdown - In 2024, the company’s revenue from external sales increased by 37%, while domestic sales grew by 26%. Revenue from proprietary brands rose by 31%, and non-proprietary brands increased by 35% [2]. - Online sales grew by 8%, while offline sales surged by 38%. The North American trade team contributed significantly to revenue growth, and domestic proprietary brands experienced rapid growth [2]. - Product-wise, revenue from office chairs, sofas, massage chairs, and height-adjustable desks increased by 34%, 20%, 1%, and 138% respectively, accounting for 72%, 14%, 5%, and 2% of total revenue [2]. Profitability Metrics - The gross profit margin for 2024 was 21.6%, a decrease of 1.2 percentage points, primarily due to intense competition in the sofa market and cross-border e-commerce [3]. - The company optimized its expense ratios, with total sales, management, and R&D expense ratios decreasing by 2.4 percentage points. The net profit margin attributable to shareholders decreased by 2.2 percentage points to 6.2% due to a high base effect from government subsidies in 2023 [3]. - In Q4 2024, the gross profit margin decreased by 3.4 percentage points, with variations in expense ratios across sales, management, R&D, and financial expenses [3]. Future Outlook - The revenue growth in Q1 2025 aligns with expectations, with a gross profit margin of 20.6%, down 1.5 percentage points due to a decline in the delivery volume of high-margin products [4]. - The company is focusing on global capacity and business expansion, aiming to enhance its competitive advantage through increased market share overseas and the growth of domestic proprietary brands [4]. - The company plans to actively address losses in specific segments and leverage its experience in the Vietnam base to cover all U.S. business needs, while also expanding into non-U.S. markets [4]. Dividend Policy - The company maintained a stable dividend policy, distributing 152 million in cash dividends for 2024, with a dividend payout ratio of 51.44% [5]. - A mid-term dividend plan for 2025 has been established, with expectations of a dividend yield exceeding 5.5% based on projected net profits [5].

Investment Rating - The investment rating for the company is "Buy" and is maintained [9]. Core Views - The company's performance in 2024 is in line with expectations, with revenue, net profit attributable to the parent, and net profit excluding non-recurring items reaching 4.749 billion, 296 million, and 293 million yuan respectively, representing year-on-year growth of 34%, -1%, and 40% [2][6]. - In Q4 2024, the company achieved revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 1.359 billion, 71 million, and 69 million yuan, showing year-on-year growth of 31%, -18%, and 391% [2][6]. - For Q1 2025, the company reported revenue, net profit attributable to the parent, and net profit excluding non-recurring items of 1.010 billion, 58 million, and 54 million yuan, with year-on-year increases of 18%, 35%, and 26% [2][6]. Summary by Sections Financial Performance - The company expects steady revenue growth in 2024, with foreign sales and domestic sales increasing by 37% and 26% respectively. The revenue from self-owned brands and non-self-owned brands grew by 31% and 35% respectively [12]. - The company achieved a gross profit margin of 21.6% in 2024, a slight decrease of 1.2 percentage points year-on-year, primarily due to intense competition in the sofa market and cross-border e-commerce [12]. - The net profit margin attributable to the parent company decreased by 2.2 percentage points to 6.2% in 2024, influenced by a high base from government subsidies and compensation income in 2023 [12]. Globalization and Competitive Advantage - The company is enhancing its global capacity and customer base, with expectations for rapid growth in its Romanian base and standing out in overseas markets [12]. - The company is focusing on expanding its market share in the top ten GDP countries and key customers, while also promoting domestic self-owned brand sales through both online and offline channels [12]. Dividend Policy - The company maintains a stable dividend policy, distributing 152 million yuan in cash dividends in 2024, with a dividend payout ratio of 51.44%. A mid-term dividend plan for 2025 is also in place, aiming to increase the frequency of dividends [12].