Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, indicating challenges in the market while also highlighting strategic upgrades across its business segments [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 1.469 billion yuan, a year-on-year decrease of 3.37%, and a net profit attributable to shareholders of 64 million yuan, down 8.37% [1]. - In Q2 2025, the company recorded revenue of 882 million yuan, a slight increase of 0.26% year-on-year, while net profit attributable to shareholders was 29 million yuan, reflecting a decline of 13.01% [1]. Group 2: Strategic Upgrades - The company undertook a comprehensive upgrade of its "four horses" strategy (retail, home decoration, refined decoration, and overseas), with revenues from these segments being 820 million, 292 million, 439 million, and 151 million yuan respectively, showing year-on-year growth of 20.27%, 30%, -26.94%, and -8.96% [2]. - The retail segment is advancing with a new retail strategy, establishing a four-tier store system to enhance traffic conversion and revenue growth [2]. - In the home decoration sector, the company positioned itself as a "first partner" through digital empowerment and supply chain support, achieving approximately 30% growth [2]. - The refined decoration segment is facing challenges due to a sluggish real estate market, prompting the company to seek new channels to enhance business resilience [2]. - The overseas market, particularly the U.S., is experiencing uncertainty due to tariff policies, but emerging markets are showing strong growth, which helps offset performance [2]. Group 3: Product Structure and Profitability - The company’s cabinet, wardrobe, and wooden door segments generated revenues of 785 million, 515 million, and 107 million yuan respectively, with year-on-year changes of -17.13%, +23.18%, and +16.56% [3]. - The cabinet business is under pressure from downstream demand, while the wardrobe and wooden door segments continue to show robust growth [3]. - The gross margin for H1 2025 was 27.84%, an increase of 1.13 percentage points year-on-year, while the net profit margin was 4.33%, a decrease of 0.24 percentage points [3]. - In Q2 2025, the gross margin was 26.42%, up 0.71 percentage points year-on-year, and the net profit margin was 3.26%, down 0.5 percentage points [3].

Core Viewpoint - The company reported a steady growth in revenue and net profit for 2024, with significant advancements in high-end product offerings and international market expansion [1][2][3] Financial Performance - In 2024, the company achieved a revenue of 16.83 billion yuan, a year-on-year increase of 7.2%, and a net profit of 4.27 billion yuan, up 10.4% year-on-year [1] - For Q4 2024, revenue was 4.23 billion yuan, a 3.4% increase year-on-year, while net profit was 1.01 billion yuan, down 4.6% year-on-year [1] - In Q1 2025, revenue reached 3.92 billion yuan, a 3.1% increase year-on-year, and net profit was 970 million yuan, up 4.9% year-on-year [1] Business Segments - The company deepened its high-end product layout across three main business segments: electrical connection products (7.68 billion yuan, +4.0%), smart electrical lighting products (8.33 billion yuan, +5.4%), and new energy products (780 million yuan, +104.8%) [1] - The new energy business saw a significant increase, with its revenue share rising by 2.2 percentage points to 4.6% in 2024, driven by self-developed charging solutions and expansion into large operator clients [1] International Expansion - The company has established a presence in over 20 countries, including Southeast Asia, the Americas, and the Middle East, with a focus on promoting mature products like switches and lighting [2] - In 2024, domestic revenue was 16.55 billion yuan (+6.8%), while international revenue was 240 million yuan (+36.8%) [2] - The company is enhancing its overseas expansion in converter, electrical connections, power tools, and smart lighting categories, with breakthroughs in the European home energy storage market [2] Channel Strategy - The company is implementing a comprehensive channel strategy to drive high-quality growth, focusing on hardware channels and digital marketing to enhance sales conversion [2] - The digital channel is expanding into convenience stores and leveraging online platforms to strengthen market competitiveness and user engagement [2] Profitability - The company maintained a gross margin of 43.3% in 2024, with a net profit margin of 25.4%, reflecting a year-on-year increase of 0.8 percentage points [3] - In Q4 2024, the net profit margin was 21.3%, down 5.1 percentage points due to rising costs, while Q1 2025 saw a slight recovery to 21.8% [3] Investment Outlook - The company is expected to continue its channel development and product innovation, with projected EPS for 2024-2026 at 3.58, 3.88, and 4.19 yuan respectively [3] - The closing price on April 25 was 72.02 yuan, corresponding to PE ratios of 20, 19, and 17 for the respective years [3]