Summary of 9号公司 Conference Call Company Overview - **Company**: 9号公司 - **Industry**: Electric two-wheelers and robotic lawn mowers Key Points Growth Projections - **Store Expansion**: Expected store area growth of 20% by 2026, with same-store sales growth in double digits and overall sales growth exceeding 30% driven by new store openings and increased store efficiency [2][3][5] - **Software Service Revenue**: Projected revenue from two-wheeler software services to reach 150 million RMB in 2025, with a potential doubling to 300 million RMB in 2026, significantly enhancing revenue and profit [2][3][5][17] - **Lawn Mower Business**: Anticipated operating profit margin of over 20% in 2025, expected to maintain around 15% in 2026 despite increased price competition [2][3][6][28] Market Position and Performance - **High-End Market**: Strong performance in the mid-to-high-end market (above 3,000 RMB), with online channel share increasing from 39% in Q2 2021 to 79% in Q2 2025 [2][8] - **Market Share**: Expected sales of 300,000 robotic lawn mowers in 2025, capturing approximately 40% of the market share, with significant growth potential in a projected market of 5 million units [2][28] Competitive Landscape - **Challenges**: The electric two-wheeler industry faces challenges such as new national standards and reduced subsidies, but these have not significantly impacted 9号公司 due to its growth strategies [5][11] - **Price Competition**: Despite anticipated price competition in the lawn mower sector, 9号公司 is expected to maintain a competitive edge with a projected profit margin of around 15% [6][29] Financial Outlook - **Profit Projections**: Expected profit of approximately 2 billion RMB in 2025, with revenue nearing 3 billion RMB and profit also close to 3 billion RMB in 2026 [4][31] - **Cost Control**: Effective cost management and high profit margins provide substantial operational flexibility, allowing the company to sustain growth and profitability even in a competitive environment [4][31] Product Development and Innovation - **New Product Launches**: Plans to introduce multiple new products, expanding SKU offerings to 6-7 models, and entering offline channels in the U.S. market [3][6][12] - **Segway Brand**: Development of the Segway brand targeting higher-end markets, with plans to open 1,000-2,000 stores and achieve sales of 1-2 million units [16] Channel Strategy - **Channel Advantages**: Strong presence in European offline channels due to product quality and early market entry, leveraging brand reputation from the scooter business to support lawn mower expansion [4][24] Market Trends - **Lawn Mower Market Growth**: The robotic lawn mower market is expected to grow significantly, with a projected total market size of around 500 million units [25][26] - **Technology Adoption**: The industry is likely to see a mix of technology solutions, with different user needs driving the adoption of various technical paths [22][23] Conclusion - **Investment Recommendation**: The company is viewed as a strong investment opportunity due to its robust growth strategies, market positioning, and financial health, with a reasonable valuation amidst industry challenges [31]