Core Viewpoint - HanShuo Technology (301275) emphasizes its commitment to deepening its presence in the domestic market by providing self-developed digital solutions to support the upgrade and development of the domestic retail industry [1] Group 1 - The company is recognized as a global provider of digital solutions for store digitization [1] - The focus is on leveraging proprietary technology to enhance the retail sector in China [1]

Core Viewpoint - HanShuo Technology reported a decline in revenue and net profit for the first three quarters of 2025, indicating short-term performance pressure due to various factors including margin compression and investment losses [1][2]. Financial Performance - For Q1-Q3 2025, the company achieved revenue of 2.809 billion yuan, a year-on-year decrease of 11.04% [1]. - The net profit attributable to shareholders was 314 million yuan, down 40.51% year-on-year [1]. - The net profit excluding non-recurring items was 366 million yuan, a decrease of 27.55% year-on-year [1]. - In Q3 2025, revenue was 835 million yuan, a year-on-year decline of 19.79% [1]. - The net profit for Q3 was 93 million yuan, down 37.50% year-on-year [1]. Margin and Cost Analysis - The gross margin for Q1-Q3 2025 was 32.88%, a decrease of 3.28 percentage points year-on-year [2]. - The gross margin for Q3 2025 was 35.94%, an increase of 1.98 percentage points year-on-year and 5.23 percentage points quarter-on-quarter [2]. - The company reported a fair value loss of 16.9069 million yuan for Q1-Q3 2025, compared to a gain of 1.851 million yuan in the same period last year [2]. - Investment income for Q1-Q3 2025 was -58.5536 million yuan, down from a profit of 7.4568 million yuan in the previous year [2]. - The expense ratio for Q1-Q3 2025 was 15.49%, a decrease of 0.67 percentage points year-on-year [2]. Competitive Advantages - The company has developed a proprietary HiLPC communication protocol that enhances network performance and efficiency [3]. - It has released over 40 electronic price tag products and more than 20 iterations of its system software since 2013, maintaining a leading position in the industry [3]. - The company is leveraging Microsoft Azure for technological support and has developed digital solutions for retail clients [3][4]. - The company is actively managing its domestic supply chain and promoting domestic chip substitution to maintain cost advantages [4]. Client and Market Expansion - HanShuo Technology has established a global presence with subsidiaries in over 70 countries and regions, serving more than 500 clients [4]. - The company collaborates with major global retailers such as Auchan, Aldi, and Woolworths, contributing to its revenue growth [4]. Investment Outlook - The revenue forecasts for 2025-2027 have been adjusted to 3.812 billion, 4.679 billion, and 5.768 billion yuan, reflecting a year-on-year decline of 15.0% in 2025, followed by growth in subsequent years [5]. - The net profit forecasts for the same period are 449 million, 604 million, and 832 million yuan, with a significant decline in 2025 [5]. - The earnings per share (EPS) estimates are 1.06, 1.43, and 1.97 yuan for 2025-2027 [5].

Core Viewpoint - Han Shuo Technology reported a decline in revenue and net profit for the first half of 2025, attributed to factors such as U.S. tariffs, project delivery delays, and a decrease in gross margin [2][3]. Group 1: Financial Performance - Total assets reached 6.345 billion, an increase of 22.52% year-on-year [2] - Operating revenue was 1.974 billion, a decrease of 6.73% year-on-year [2] - Net profit attributable to shareholders was 222 million, down 41.68% year-on-year [2] - Net profit excluding non-recurring gains and losses was 287 million, a decline of 20.40% year-on-year [2] Group 2: Reasons for Performance Decline - U.S. tariffs have slowed customer demand in the U.S. market, which is a significant growth area [3] - Delays in project acceptance have postponed revenue recognition, expected to be realized in subsequent quarters [3] - Gross margin decreased to 31.59%, down 5.66 percentage points year-on-year, due to increased competition and lower margins on electronic price tags [3] Group 3: Market and Customer Situation - Demand in the European market is steadily increasing, particularly in Eastern and Southern Europe, as well as the UK [4] - The North American market shows good potential for customer acquisition, with clarified tariff policies aiding demand planning [4] - Penetration rates in Japan, Australia, Southeast Asia, the Middle East, and West Asia are continuously improving [4] Group 4: Product Layout and Market Strategy - The company has developed a core technology system for electronic price tags based on high-performance IoT wireless communication protocols [5] - A complete digital store solution product portfolio has been established, including AI cameras, inspection robots, and smart shopping carts [5] - The company is deepening its globalization strategy, focusing on a balanced market presence among leading global retail brands [5] Group 5: U.S. and Domestic Market Situation - The U.S. market is expected to provide strong support for revenue over the next 2-3 years [6] - Domestic electronic price tag solution penetration is below the global average, but demand from well-known retail clients is clear [6] - In 2024, domestic revenue is projected to reach 265 million, a year-on-year increase of 63.58% [6] - Global retail digitalization demand continues to grow, with electronic price tag shipments expected to reach 120 million, a year-on-year increase of 56% [6]

Core Viewpoint - HanShuo Technology reported a decline in revenue and net profit for the first half of 2025, indicating short-term performance pressure due to various factors including a slight decrease in gross margin and losses from fair value changes [1][2]. Financial Performance - For the first half of 2025, the company achieved revenue of 1.974 billion yuan, a year-on-year decrease of 6.73% [1] - The net profit attributable to shareholders was 222 million yuan, down 41.68% year-on-year, while the net profit excluding non-recurring items was 287 million yuan, a decrease of 20.40% [1] - In Q2 2025, revenue was 993 million yuan, a decline of 13.10% year-on-year, and net profit was 72 million yuan, down 65.90% year-on-year [1] Performance Drivers - The gross margin for H1 2025 was 31.59%, a decrease of 5.66 percentage points year-on-year, primarily due to changes in product structure [2] - Fair value changes resulted in a loss of 62 million yuan in H1 2025, compared to a gain of 13 million yuan in the same period last year, attributed to floating losses in foreign exchange hedging [2] - The company’s expense ratio decreased to 11.01%, down 4.95 percentage points year-on-year, with financial expenses significantly increasing due to foreign exchange gains from the rising euro [2] Competitive Advantages - The company has developed a proprietary HiLPC communication protocol that enhances network architecture, providing strong anti-interference capabilities and high throughput [3] - Since 2013, the company has launched over 40 electronic price tag products and continuously optimized its hardware and software solutions, maintaining a leading position in the industry [3] - The company is actively managing its domestic supply chain and promoting domestic chip substitution to maintain cost advantages, with gross margins consistently leading the global industry [4] Client Relationships - The company has established a global presence with subsidiaries in over 70 countries and regions, collaborating with major retail clients such as Auchan, Aldi, and Woolworths [4] - This extensive client base and partnerships are expected to drive continued revenue growth [4] Investment Outlook - The company has adjusted its revenue forecasts for 2025-2027, expecting revenues of 4.562 billion, 5.594 billion, and 6.886 billion yuan respectively, with year-on-year growth rates of 1.7%, 22.6%, and 23.1% [5] - The net profit forecasts for the same period are 652 million, 899 million, and 1.200 billion yuan, with expected year-on-year changes of -8.2%, +37.9%, and +33.4% [5] - The closing price on August 25, 2025, was 59.22 yuan, corresponding to P/E ratios of 38.36x, 27.81x, and 20.85x for the respective years [5]