Core Viewpoint - Jiangshan Oupai (603208.SH) reported a significant decline in revenue and net profit for the first half of 2025, primarily due to shrinking industry demand, intensified product price competition, and delayed adjustments in fixed costs [1] Financial Performance - Revenue for the first half of the year was 868 million yuan, a year-on-year decrease of 39.82% [1] - Net profit fell to 10.08 million yuan, a dramatic drop of 90.39% [1] - Operating cash flow showed improvement with a net amount of -98.56 million yuan [1] Strategic Developments - The company is focusing on a product strategy centered around wooden doors, expanding into whole-house decoration, and launching new product lines including metal doors and windows, as well as cabinet products [1] - New scene-based solutions for hotels and wellness sectors have been introduced [1] Market Expansion - The overseas market is identified as a new growth point, with the establishment of a subsidiary in Saudi Arabia and accelerated expansion into the Middle East and Southeast Asia [1] Management Changes - Management changes occurred in July and August, with the resignation of Vice Chairman and General Manager Wang Zhong, and Vice General Managers Liu Jiji and Lu Jianhui [1] - Founder Wu Shuigen has resumed the role of General Manager, while his son Wu Ziyang has been appointed as a new director [1] - The CFO Wu Shuiyan reduced her holdings by 4.394 million shares, amounting to approximately 65.9 million yuan [1]

Core Insights - The implementation of personal consumption loan interest subsidy policy starting from September 2025 is expected to stimulate demand for home decoration, particularly benefiting innovative building materials and leading brands like Lamett [1][14] - Lamett has established a strong brand presence and market position through a significant brand endorsement partnership and over 40 years of technical expertise [2][3] Brand Strategy - Lamett officially announced its first global brand ambassador, actor and singer Xiao Zhan, in July this year, aligning his positive image with the brand's values of health, safety, comfort, and environmental friendliness [3][5] - The brand endorsement has led to a rapid increase in brand awareness, with significant advertising exposure in major cities and extensive discussions on social media platforms, resulting in increased foot traffic and customer inquiries at retail locations [3][6] Product Innovation - Founded in 1985, Lamett is a high-end whole-house decoration brand that pioneered the global first stone crystal floor in 2016, addressing traditional flooring issues such as formaldehyde, waterproofing, wear resistance, slip resistance, sound insulation, and compatibility with underfloor heating [6][16] - In 2024, Lamett developed the world's first stone crystal cabinet board, expanding the application of stone crystal materials to various home spaces, including wardrobes, cabinets, and bathrooms, thus redefining whole-house decoration standards [6][16] Supply Chain and Local Investment - Lamett has established a global supply chain with over 10 factories and sales offices across countries, ensuring standardized production and efficient cost management [10][13] - The company has invested in local production capabilities in China, acquiring over 800,000 square meters of land for modern production bases and R&D centers, enhancing service efficiency and customer satisfaction [13][14] Market Position and Recognition - Lamett has received industry recognition, including the 2025 Forbes "Design Leading Brand" award, reinforcing its position as a market leader and providing confidence to partners [7][14] - The company is actively seeking partnerships in the burgeoning stone crystal market, positioning itself as an innovator and leader in the industry [14]