Summary of Conference Call Notes Company Overview - The company is involved in the exhibition industry, focusing on trade shows and events, particularly in the Middle East and industrial sectors. Key Points Industry and Market Dynamics - The company anticipates a net increase of over 1,000 exhibition spaces in 2025, representing a year-on-year growth of 10%-20%, although a decline in unit prices is expected to lead to a gross margin decrease of over 2 percentage points [2][3] - The Middle East market is identified as a core profit area, with a combined total of 5,500 exhibition spaces in Dubai and Saudi Arabia in 2025, contributing approximately 150 million RMB in gross profit at a margin close to 55% [2][8] - The company faces potential risks of losses in 2026 if geopolitical conflicts persist throughout the year [2][8] Financial Performance - In 2025, the company achieved a slight revenue growth of about 4%, but profits declined due to lower sales prices per exhibition space, leading to a gross margin drop [3][4] - Sales expenses increased due to higher employee salaries and bonuses related to the increase in exhibition spaces, while R&D expenses rose by approximately 3 million RMB [3] Strategic Initiatives 1. **AI Exhibition Product Development**: - Launched AI Exhibition 1.0 in January 2025, with sales reaching approximately 56-57 million RMB and a coverage rate of nearly 50% [3][14] - The 2.0 version is expected to achieve a 60% coverage rate and sales of 80 million RMB in 2026 [2][14] 2. **Industrial Exhibition Strategy**: - The company elevated industrial exhibitions to a strategic level, increasing exhibitors from 500 in 2024 to nearly 1,200 in 2025 [4][7] - Plans to expand the "product-to-product" matching model to countries like Vietnam and Brazil in 2026 [2][4] 3. **Hong Kong Stock Exchange Listing**: - The company initiated its listing application in December 2025, with expectations for substantial progress in the second half of 2026 [2][4] 4. **Supply Chain Company Formation**: - A joint venture was established in November 2025 to address procurement challenges for small B customers in Indonesia and Brazil, with significant revenue contributions expected in the second half of 2026 [2][5][14] 5. **Successful Saudi Exhibition**: - The inaugural Saudi exhibition in December 2025 achieved over 1,500 exhibition spaces, setting a record for the company in new markets [5] Future Projections - For 2026, the company aims for a 20% increase in exhibition spaces and a corresponding revenue growth of 20%, with profit growth projected at around 30% [2][10] - Specific targets include approximately 1,700 to 1,800 exhibition spaces in Saudi Arabia and over 3,500 in Dubai for the second half of the year [11][12] Risk Management - The company plans to implement measures to control discounting practices that were prevalent in 2025, including setting annual discount limits for management [3][13] Supply Chain Business Focus - The supply chain business will primarily target Indonesia and Brazil, with expectations for minimal revenue in the first half of 2026 but significant contributions anticipated in the latter half [14] Additional Insights - The company recognizes the dual nature of current geopolitical tensions, presenting both risks and opportunities depending on the resolution timeline [8][9][10]

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].

Group 1 - The core viewpoint of the article discusses the business transformation of Beichen Real Estate, highlighting its revenue growth in the exhibition and commercial sectors despite a loss of 2.174 billion yuan in the first three quarters of 2025 [1] - The company reported a 32% year-on-year revenue increase in its exhibition and commercial segments, indicating a strategic shift towards new business areas such as robotics, energy storage, and AI exhibitions [1] - Beichen Group, the controlling shareholder, has increased its stake in A-shares by 35.0575 million yuan from September 2025 to January 2026, reflecting long-term confidence in the company's prospects [1] Group 2 - The stock price has shown narrow fluctuations over the past week, closing at 0.80 HKD on February 16 and 0.81 HKD on February 20, with a price range fluctuation of 2.47% [1] - Technical indicators show that the MACD histogram has turned positive to 0.002, suggesting a slight improvement in short-term momentum, although trading volume remains low [1] - The market participation is characterized by net outflows from retail investors, indicating low market engagement [1]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but expects recovery in the second half due to an increase in exhibition projects and the implementation of AI technologies [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 241 million yuan, a year-on-year decrease of 7.43%, and a net profit attributable to shareholders of 16 million yuan, down 61.84% [1]. - In Q2 2025, the company reported revenue of 224 million yuan, an increase of 21.49% year-on-year, and a net profit of 52 million yuan, up 45.74% year-on-year [1]. Project and Revenue Outlook - The decline in revenue and profit in H1 2025 was primarily due to a reduction in the number of projects from 6 to 5, as well as increased investments in AI and foreign trade support policies [2]. - The company anticipates a total of 10 exhibitions in the second half of 2025, an increase of 2 from the previous year, which is expected to drive revenue and profit recovery [2]. AI Integration and Innovation - The company has developed the "AI Hui Zhan" system, which integrates intelligent matching algorithms and wearable AI glasses to enhance the exhibition experience for buyers and exhibitors [3]. - The AI glasses, developed in collaboration with Li Weike Technology Co., incorporate behavior sensing, multi-modal interaction, and data management capabilities, aiming to break down language barriers and facilitate cross-border trade [3]. Data Strategy and Ecosystem Development - The company is focusing on a three-pronged approach involving data standardization, dedicated operational platforms for VIP clients, and localized operational centers to enhance service delivery and reduce communication costs [4]. - The strategy aims to transition the exhibition industry from a "traffic economy" to an "algorithm economy," leveraging technology, data, and practical scenarios [4]. Dividend Policy - The company announced a profit distribution plan for H1 2025, proposing a cash dividend of 0.67 yuan per 10 shares, totaling approximately 19.79 million yuan, which represents 100% of the distributable profit [5]. - The company operates on a light asset model, ensuring sufficient cash flow and maintaining a high dividend payout ratio since 2023 [5]. Investment Forecast - The company maintains its previous profit forecast, expecting revenues of 1.06 billion yuan, 1.39 billion yuan, and 1.58 billion yuan for 2025 to 2027, with net profits of 270 million yuan, 370 million yuan, and 430 million yuan respectively [6]. - The earnings per share (EPS) are projected to be 0.91, 1.24, and 1.44 yuan for the same period [6]. Valuation Metrics - As of August 29, 2025, the closing price was 15.99 yuan per share, corresponding to a price-to-earnings (PE) ratio of 18x, 13x, and 11x for the years 2025, 2026, and 2027 respectively [7].

Summary of the Conference Call for Miao Exhibition Industry and Company Overview - The conference call focuses on Miao Exhibition, a company involved in organizing trade shows and exhibitions, particularly in emerging markets like India, Southeast Asia, and the Middle East [2][3][4]. Key Points and Arguments 1. **Impact of Indian Visa Policy**: The reopening of Indian tourist visas is expected to facilitate business visas, providing Miao Exhibition with opportunities to host events in India, which was the company's second-largest revenue source before the pandemic [2][3]. 2. **Upcoming Events in India**: Miao Exhibition plans to host a major event in December 2025 with 1,000 booths, with the potential to expand to 2,000 booths. The company has secured venues and established good relationships with local suppliers [2][3][4]. 3. **Performance in Q2 2025**: The company completed approximately 4,450 booths across events in Japan, Vietnam, Indonesia, and Dubai. However, a planned event in the U.S. was canceled due to tariff issues, leaving around 2,800 booths in Brazil, Mexico, and South Africa for Q3 [2][5]. 4. **Significance of Q4 2025**: The success of the Indian event in Q4 is crucial, as it is expected to account for over 60% of the company's annual revenue [2][5]. 5. **Shift in Market Focus**: Due to U.S.-China trade tensions, companies are increasingly looking towards emerging markets in the Middle East, ASEAN, and Latin America. The number of booths planned for Saudi Arabia has increased from 1,000 to 1,500-1,600, indicating a strategic shift [2][6]. 6. **AI Exhibition Product**: The AI exhibition product launched in January 2025 has improved visitor experience and efficiency, with expectations of significant revenue growth from its application this year [2][7]. 7. **Sales Performance**: In Q2 2025, the company achieved a significant onsite transaction amount of $90 million at the Vietnam exhibition, despite overall sales being under pressure due to a shift in focus towards profitability [2][8][9]. 8. **Future Plans for 2026**: Miao Exhibition aims to expand its exhibition scale in existing countries, particularly in the industrial machinery sector, with a focus on Indonesia, Saudi Arabia, Brazil, and Mexico [2][10][12]. 9. **Vietnam Exhibition Strategy**: In 2025, exhibitions in Vietnam will focus on consumer trade, while the industrial machinery exhibition will move to Hanoi in 2026 due to the concentration of factories in that area [2][11]. 10. **Middle East Market Development**: The company plans to expand its exhibition scale in Dubai and aims to host 1,500-1,600 booths in Saudi Arabia in 2025, increasing to at least 2,500 booths by 2026 [2][12]. 11. **Global Development Focus**: The company's global strategy for the next two years will concentrate on Southeast Asia and the Middle East, with plans to diversify and increase the number of exhibitions in these regions [2][13][14]. Other Important Insights - The company has established a mature buyer network pre-pandemic and has maintained connections through online exhibitions during the pandemic, which is expected to help in recovering and expanding its buyer base [2][4]. - The cost structure in India is favorable, with higher profit margins compared to Dubai, making successful exhibitions in India critical for overall profitability [2][4].