Core Viewpoint - The company held an earnings briefing on May 6, 2025, to discuss its 2024 annual and 2025 Q1 performance, emphasizing its strategies to enhance operational efficiency and adapt to market challenges [1][2]. Group 1: Financial Performance - Despite a challenging real estate market, the company reported improvements in gross margin and net margin for 2024 and Q1 2025, attributed to cost control measures and operational efficiency enhancements [2][3]. - The company implemented a dynamic monitoring mechanism for raw material prices, which helped maintain reasonable procurement costs [5][17]. Group 2: Strategic Initiatives - The company plans significant capital expenditures in 2025, focusing on the construction of new bases and upgrading production equipment to enhance efficiency and product quality [4][5]. - The company is committed to a management strategy aimed at improving operational efficiency through organizational restructuring and digital transformation [3][10]. Group 3: Market Adaptation - The company is responding to the ongoing adjustments in the real estate sector by diversifying its business model, including exploring non-real estate projects and enhancing its supply chain management [10][17]. - The company is actively engaging in the transformation of its retail partners to adapt to the integrated home furnishing model, which requires a comprehensive upgrade in capabilities [6][7]. Group 4: Policy Impact - Recent government policies promoting consumption and home renovation have positively influenced market demand, aligning with the company's long-term strategies focused on sustainability and innovation [5][6]. - The company anticipates that the impact of national subsidies will stabilize its accounts receivable credit impairment losses, as the real estate sector receives more support [5][6]. Group 5: Future Outlook - The company aims to enhance its operational quality and scale through a "land to household" reform, focusing on precise responsibility allocation and profit-sharing mechanisms [7][8]. - The company is exploring opportunities in the overseas market while maintaining a cautious approach to resource allocation [13][14].