Group 1 - The Ministry of Industry and Information Technology and other departments have included brain-computer interfaces (BCI) as a key focus for future industries, outlining a dual strategy for both implantable and non-implantable device development [1] - The domestic market for non-invasive BCIs is rapidly expanding in medical rehabilitation and emotional management, with significant potential in the sleep health sector [1][2] - The collaboration between Xilinmen and Qiangnao Technology has led to the creation of the world's first AI mattress incorporating brainwave technology, aiming to enhance sleep quality [1][2] Group 2 - The "Baobao·BrainCo" mattress utilizes multi-modal data sensing to capture brainwaves and physiological signals, establishing a dynamic intervention mechanism for sleep management [2] - Xilinmen has invested 1.1 billion yuan in R&D over the past decade, resulting in 2,441 patents and the establishment of nine global production bases, demonstrating a commitment to leveraging technology for sleep improvement [2] - The introduction of the Ministry of Industry and Information Technology's guidelines is expected to energize the entire BCI industry chain, leading to a technological revolution in sleep health [2] Group 3 - The market demand for brain-computer applications is projected to grow, with estimates suggesting that the Chinese BCI market will exceed 6 billion yuan by 2028 [3] - Companies like Xilinmen, which combine manufacturing expertise with innovative BCI technologies, are positioned to convert technological advantages into widespread benefits for consumers seeking quality sleep [3]

Investment Rating - The report maintains a "Buy" rating for the company [7] Core Insights - The company reported a revenue of 1.73 billion in Q1 2025, showing a year-on-year decrease of 1.76%, while the net profit attributable to the parent company was 71 million, down 4.02% [1] - The retail segment demonstrated strong e-commerce growth, with online retail revenue increasing by 29.1% to 390 million, while offline retail revenue decreased by 5.8% to 650 million [2] - The company is focusing on AI sleep technology, collaborating with Tsinghua University to enhance its product offerings [4] - Financial metrics indicate a gross margin of 33.44%, with an increase in operating expenses [5] Summary by Sections Revenue and Profitability - In Q1 2025, the company achieved a revenue of 1.73 billion, with a net profit of 71 million and a non-recurring net profit of 60 million, reflecting a decline of 4.02% and 19.31% respectively compared to the previous year [1] Retail Segment Performance - The retail business generated 1.08 billion in revenue, with online sales growing by 29.1% to 390 million, while offline sales fell by 5.8% to 650 million [2] Manufacturing and Overseas Operations - The OEM business reported a revenue of 480 million, with international sales at 360 million, showing a growth of 2.8% [3] - The cross-border e-commerce segment saw a revenue decline of 22.9% to 60 million due to strategic adjustments [3] Product Categories - Mattress revenue reached 1.13 billion, up 10% year-on-year, with proprietary brand mattresses contributing 770 million, an 18% increase [4] Financial Metrics - The gross margin stood at 33.44%, with an increase in operating expenses, including a rise in sales and financial expense ratios [5] - The company is projected to achieve revenues of 9.46 billion, 10.26 billion, and 11.15 billion for 2025, 2026, and 2027 respectively, with net profits expected to grow significantly [6]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company demonstrates operational resilience and is actively expanding its overseas business and integrating AI technology [3] - The company is a leading player in the domestic mattress industry, benefiting from increasing consumer acceptance of mid-to-high-end soft bed products [5] - The company plans to distribute a cash dividend of 10.0 yuan per 10 shares, totaling an expected cash dividend distribution of 394 million yuan [2] Financial Performance Summary - In 2024, the company achieved revenue of 5.603 billion yuan, a year-on-year increase of 0.43%, and a net profit of 767 million yuan, a year-on-year decrease of 4.36% [2] - The company's cash flow from operating activities was 1.091 billion yuan, a year-on-year decrease of 43.63% [2] - The gross margin for 2024 was 50.08%, a decrease of 0.21 percentage points year-on-year, while the net margin was 13.70%, a decrease of 0.69 percentage points year-on-year [4] Product and Market Analysis - The company's main business in furniture manufacturing generated revenue of 5.522 billion yuan in 2024, contributing 98.56% to total revenue [3] - The mattress segment achieved revenue of 2.679 billion yuan, a year-on-year increase of 3.78%, while the bed frame segment saw a slight decrease in revenue [3] - The company reported a 61.07% increase in overseas revenue, reaching 155 million yuan, indicating successful overseas market expansion [3] Future Outlook - The company has adjusted its revenue forecasts for 2025-2027 to 6.017 billion yuan, 6.436 billion yuan, and 7.011 billion yuan respectively [5] - Earnings per share (EPS) estimates for 2025-2027 are adjusted to 1.99 yuan, 2.15 yuan, and 2.30 yuan respectively [5] - The company is expected to maintain a stable gross margin around 51.1% in 2025 [7]