Summary of the Conference Call Company and Industry Overview - The conference call involved **Miao Exhibition**, a leading company in the exhibition industry, particularly in overseas exhibitions. The discussion highlighted the challenges and opportunities within the **service consumption sector**, specifically focusing on the exhibition segment, which is considered a significant part of this industry [1][3]. Key Points and Arguments 1. **Economic Environment and Financial Performance**: - The overall economic environment has been challenging, leading to a slight increase in revenue but a significant decline in profit. The company reported a profit drop of over 20% when excluding non-recurring items, indicating that revenue growth does not directly translate to profit growth [3][4]. - The gross margin decreased by over 2 percentage points, reflecting the difficulties in maintaining profitability despite revenue increases [4]. 2. **AI Exhibition Launch**: - In January, the company launched an **AI Exhibition**, upgrading its previous digital exhibition services. This upgrade included significant software enhancements and the introduction of hardware like VR glasses. However, the sales performance in this area was not ideal due to delays in completing all functionalities until mid-year [4][5]. 3. **Industrial Exhibition in Indonesia**: - The company hosted an industrial exhibition in Indonesia in June, which saw a significant increase in the number of exhibition booths from 500 to nearly 1200, indicating strong growth potential in this sector [6][7]. - A new exhibition model was introduced, utilizing a "wolf-sheep" theory to attract buyers and sellers, enhancing the effectiveness of the exhibition [7][9]. 4. **Market Expansion and Future Prospects**: - The company is focusing on the industrial machinery sector, which is expected to grow rapidly, particularly in the context of China's foreign trade [6][10]. - The company plans to leverage its recent listing on the Hong Kong Stock Exchange to enhance its international market presence and capitalize on the growing demand for exhibitions in emerging markets [10][11]. 5. **Geopolitical Risks**: - The ongoing geopolitical tensions, particularly between the U.S. and Iran, pose significant risks to the company's operations in the Middle East. The potential for prolonged conflict could severely impact exhibition attendance and revenue [24][30]. - The company is monitoring the situation closely, with contingency plans in place should the conflict escalate [24][33]. 6. **Government Support and Subsidies**: - There is limited government support for exhibition companies compared to domestic events, where subsidies are more common. The focus is primarily on supporting participating enterprises rather than the exhibition companies themselves [39][40]. - The overall subsidy landscape is stable, with some adjustments based on geopolitical factors and market conditions [41][42]. 7. **Future Events and Strategic Adjustments**: - The company is preparing for upcoming exhibitions, including a major event in Dubai, while also considering the implications of current geopolitical tensions on attendance and participation [26][30]. - There is a recognition of the need to adapt to changing market conditions, including the potential for online exhibitions if necessary [37][38]. Additional Important Content - The company has established a supply chain company to address challenges faced by small buyers in developing countries, facilitating their ability to purchase products showcased at exhibitions [14][16]. - The recent exhibition in Saudi Arabia set a record with over 1500 booths, indicating strong market potential in the region [17][18]. - The company is exploring the possibility of online exhibitions as a contingency plan, although it acknowledges the challenges in achieving the same scale and profitability as physical events [37][38].