Core Viewpoint - The electronic barcode scale market in China is experiencing a transitional phase, with a decline in sales revenue from $73.46 million in 2020 to an expected $63.50 million in 2024, primarily due to macroeconomic fluctuations and competition from alternative weighing devices [6][9]. Market Overview - The electronic barcode scale market in China is projected to have a compound annual growth rate (CAGR) of 1.75% from 2025 to 2031, indicating a shift towards maturity with limited growth potential [6]. - The market is divided into traditional button-type scales, which will account for approximately 66% of total revenue in 2024, and automatic identification scales, which are rapidly gaining market share [6][7]. Product Structure - Traditional button-type scales are widely used in small to medium-sized supermarkets and retail outlets due to their low cost and ease of use, but their revenue has been declining since 2020 [6]. - Automatic identification scales are expected to capture about 34% of the market by 2024, driven by features such as AI visual recognition and integrated label printing [7]. Competitive Landscape - Key players in the Chinese electronic barcode scale market include Mettler-Toledo, Top Electronic, Shanghai Dahua Electronic Scale Factory, Xiamen Hanprint Co., Ltd., and Teraoka Seiko Co., Ltd. [7]. - The top three manufacturers are projected to hold a market share of 40.83% in 2024, indicating a moderately concentrated market [7]. Customer Applications - The primary customers for electronic barcode scales are large chain supermarkets and small to medium-sized retail outlets, with large chains showing a higher demand for advanced automatic identification scales [8]. - The digital transformation in retail is pushing for the adoption of smart barcode scales, while traditional supermarkets are still reliant on basic models due to cost considerations [8]. Industry Drivers - The demand for fresh produce and the need for accurate pricing and labeling in supermarkets are significant drivers for the barcode scale market [11][12]. - The digital transformation in retail is reshaping the market, with retailers seeking smarter, interconnected solutions to enhance efficiency and customer engagement [14][15]. Industry Constraints - The offline supermarket sector is facing challenges from e-commerce and community group buying, leading to a slowdown in growth and reduced demand for barcode scales [17]. - Market saturation and homogeneous competition are increasing, as many small enterprises can enter the market with lower costs, leading to price competition and reduced profit margins [18]. Threat of Substitutes - The emergence of integrated weighing and cash register machines poses a significant threat to traditional barcode scales, as these devices streamline the checkout process and eliminate the need for physical labels [19].

Summary of Conference Call Records Company and Industry Overview 1. Company: Sanwei Chemical (三维化学, 002469) - Industry: Chemical Manufacturing 2. Company: Hanshuo Technology (汉朔科技, 301275) - Industry: Electronic Price Tag Technology Key Points and Arguments Sanwei Chemical 1. **Business Expansion and Growth Potential** - Acquired Nuoao Chemical in 2020, expanding into chemical product sales, benefiting from product price increase logic [1][3][5] - Chemical production lines can quickly switch to high-efficiency products, mitigating price volatility impacts on profitability [3][5] 2. **Revenue and Profit Forecast** - Expected net profits for 2025-2027: 3.8 billion, 4.9 billion, and 6 billion CNY, with growth rates of 43.69%, 30.23%, and 22.07% respectively [1][3] - Projected P/E ratios for the same period: 15.11, 11.60, and 9.51 [1][3] 3. **Production Capacity and Projects** - Leading in sulfur recovery device business, with revenue recognition peak expected in Q2 and Q3 of this year [1][7] - Ongoing construction of 50,000 tons/year isooctanoic acid and 15,000 tons/year cellulose capacity, expected to contribute to performance [1][3] 4. **Financial Data** - Revenue forecast for 2023-2027: 2,657.45 million, 2,554.29 million, 3,676.37 million, 4,213.36 million, and 4,816.81 million CNY [4] - Net profit forecast for the same period: 282.18 million, 262.65 million, 377.41 million, 491.49 million, and 599.97 million CNY [4] Hanshuo Technology 1. **Market Position and Technology** - Leading player in the electronic price tag industry with a comprehensive software and hardware technology system [2][11] - Developed key communication protocol HiLPC, enhancing software-hardware synergy [11][16] 2. **Market Penetration and Growth Forecast** - Global market penetration for electronic price tags in supermarkets is approximately 15%, with strong relationships with major clients ensuring stable order flow [2][11][13] - Expected net profits for 2025-2027: 8.18 billion, 9.68 billion, and 11.66 billion CNY, with growth rates of 15.2%, 18.3%, and 20.4% respectively [2][11] 3. **Financial Data** - Revenue forecast for 2023-2027: 3,775 million, 4,486 million, 5,160 million, 6,091 million, and 7,311 million CNY [12] - Net profit forecast for the same period: 678 million, 710 million, 818 million, 968 million, and 1,166 million CNY [12] Other Important Insights 1. **Risk Factors** - For Sanwei Chemical, risks include unexpected fluctuations in raw material prices [1][3] - For Hanshuo Technology, risks involve lower-than-expected downstream demand [2][11] 2. **Strategic Partnerships** - Both companies emphasize strong partnerships with major clients to ensure stable growth and market presence [11][14] 3. **Industry Trends** - Sanwei Chemical benefits from domestic production of acetate cellulose amid global trade uncertainties [3] - Hanshuo Technology is positioned to leverage digital transformation trends in the retail sector [11][16]