Summary of Conference Call on Saitex New Materials Industry Overview - The new refrigerator energy efficiency standards will be implemented on June 1, 2026, significantly raising efficiency level requirements. The previous national standard's first-level efficiency will only correspond to the fifth level under the new standards, prompting refrigerator manufacturers to adopt VIP (Vacuum Insulation Panels) to enhance volume efficiency and insulation performance. [2][4][11] Key Points and Arguments - The new standards introduce the concept of volume efficiency, directly impacting refrigerator energy consumption calculations and increasing the application of VIP panels, which are essential for high-efficiency refrigerators. Each refrigerator requires approximately 2-5 square meters of VIP material, depending on size and efficiency level. [2][6][7] - There is a significant difference in VIP panel penetration rates between domestic and international markets, with Japan and South Korea at 70%-80%, Europe and the US at 40%-50%, and China at only 20%-30%. The new standards are expected to gradually increase the average usage area of VIP panels in domestic refrigerators. [2][8] - Existing compressor and electronic control technologies have limited potential for improving energy efficiency. Saitex New Materials, as a VIP panel supplier, stands to benefit from the new energy efficiency standards, as its products can effectively support refrigerator manufacturers in meeting these standards. However, there has not yet been a large-scale production line commitment from refrigerator manufacturers to produce new models incorporating Saitex products. [2][3][17] Market Dynamics - Saitex New Materials holds a significant market share among leading refrigerator manufacturers, with some being sole suppliers, reflecting recognition of its product quality and scale advantages. However, the overall market share has not yet reached 50%. [3][18][19] - Sales and order conditions for VIP versions have remained strong in the first five months of the year, driven by energy efficiency improvements, an increase in innovative products, and national subsidy policies. [20] - The production capacity utilization rate for Saitex in the first five months of the year was nearly full, with the Anhui production base's utilization rate improving but not yet reaching headquarters levels. [21][22] Future Developments - Saitex currently operates three vacuum glass production lines, with an expected annual capacity of 500,000 pieces in the second half of the year, primarily focused on home appliances and construction materials. [23] - The company plans to expand into new areas over the next three to five years, including insulation for new energy vehicle batteries, industrial equipment, and construction materials, aiming for diversification in products and customers to promote revenue and profit growth. [24] Additional Insights - The new energy efficiency standards will not require major adjustments in refrigerator manufacturing processes, as Saitex's VIP panels are integrated into the internal structure of refrigerators, necessitating only minor procedural adjustments. [15] - The acceptance of VIP panels among mid-range refrigerator manufacturers remains low, with high-end models (priced above 5,000 yuan) being more likely to adopt VIP technology due to cost considerations. [15][16]

Core Insights - The company, Ainia Electronics, has successfully penetrated the African market with its solar-powered energy-saving fans, achieving annual sales exceeding 100 million yuan over ten years, despite initial challenges [1][6][17] Market Environment - The African market is characterized by extreme conditions, including high temperatures and security risks, necessitating the use of armed security for business operations [2][5] - Local economic conditions are challenging, with an average monthly salary of 200 yuan, making the 300 yuan fans a significant investment for consumers [6] Product Offering - The solar-powered fans are designed for efficiency, capable of charging quickly and providing long usage times, which appeals to cost-conscious consumers [6] - The company offers a two-year warranty on its products, which is a competitive advantage over local brands that typically do not provide such guarantees [6] Operational Challenges - After-sales service presents significant difficulties due to logistical challenges and high costs associated with local operations [7][8] - The company has implemented strategies to improve after-sales support by training local personnel [9] Financial Risks - Currency devaluation poses a substantial risk, with the Nigerian Naira depreciating by four to five times, leading to potential financial losses if investments are not managed carefully [10] - The company has explored strategies to mitigate currency risks, such as bartering and direct currency exchanges to avoid losses associated with currency conversion [11] Cultural Insights - Local work habits include strict adherence to work hours, with employees not willing to work overtime, which can impact project timelines [14] - The local dining customs also differ, with many clients not taking lunch breaks, affecting meeting schedules [16] Entrepreneurial Insights - The CEO emphasizes the high risks associated with entrepreneurship, noting that only 1 in 100 startups may succeed, highlighting the importance of having a diverse skill set [17] - The company operates with a flexible work schedule, often extending beyond typical business hours to meet operational demands [18]

Core Viewpoint - Qingdao Haier's drum washing machine has significantly improved its global market share by 3.2 percentage points through the industrialization of patents, particularly focusing on the duplex partition washing technology [1] Group 1: Patent Industrialization - Patent industrialization is a crucial process for transforming innovative results into productivity, with enterprises being the main entities for patent output and conversion [1] - In 2024, the effective invention patent industrialization rate in the industry reached 53.3%, marking a continuous five-year growth [1] - Small and micro enterprises achieved invention patent industrialization rates of 61.4% and 36.7% respectively, both setting new highs during the "14th Five-Year Plan" period [1] Group 2: Challenges in Patent Conversion - Companies face challenges in patent conversion, including difficulties in financing, poor matching, and challenges in identifying the correlation between patents and technology or products [1] - Issues such as varying patent quality and a lack of high-quality patents hinder the transformation of innovative results from laboratories to the market [1] Group 3: Recommendations for Improvement - Companies are encouraged to establish market-oriented R&D systems, increase R&D investment, and analyze industry technology trends to capture user pain points [1] - A multi-dimensional patent value assessment system should be developed to cultivate high-value patents for conversion [1] - Companies should address conversion bottlenecks by cultivating or attracting interdisciplinary talents and exploring new financing avenues for intellectual property [1]

Core Insights - Shenzhen's Jin Ying Home Appliances Co., Ltd. is experiencing a surge in production, with a focus on exporting fans, air conditioners, and refrigerators, achieving a total export value of 16.224 billion yuan from January to May, representing a year-on-year growth of 3.82% [1] Group 1: Company Performance - Jin Ying Home Appliances has successfully exported approximately 470,000 fans in the first five months of the year, receiving positive feedback from overseas customers, which has boosted their production confidence [2] - The company is facing challenges related to packaging compliance and varying certification requirements for energy efficiency and noise levels in different countries, which can impact order delivery [1] Group 2: Customs Support - Shenzhen Customs is actively assisting home appliance companies by providing guidance on international standards for fan products, helping them optimize product management and comply with certifications such as EU ERP and CE [2] - The customs authority has implemented measures such as paperless declarations, intelligent reviews, and self-service printing to facilitate rapid customs clearance for "cooling appliances" [2] Group 3: Market Trends - There is a growing demand for multifunctional new-type fans in overseas markets, with companies like Shenzhen Aniya Electronics Technology Co., Ltd. reporting over 200% year-on-year growth in overseas markets for their energy storage fans [2] - The customs authority is promoting logistics models like "China-Europe Railway Express" and "sea-air combined transport" to enhance export efficiency for cooling appliances [2]

Core Viewpoint - Huikang Technology is aiming to become the "first ice machine stock" in China, with significant revenue from its ice machine and home appliance business, but faces risks due to its heavy reliance on the U.S. market and family control issues [2][3]. Financial Performance - The company reported annual revenues of 3 billion yuan, with projected net profit of 450 million yuan for 2024, marking it as a "single champion" in the ice machine sector [3]. - Revenue from 2022 to 2024 is expected to grow from 1.93 billion yuan to 3.20 billion yuan, representing a year-on-year growth of 28.49% in 2024 [5]. - Net profit is projected to increase from 197 million yuan in 2022 to 451 million yuan in 2024, with a year-on-year growth of 33.61% [5]. Product Segmentation - Ice machines are the main revenue driver, with sales expected to rise from 1.36 billion yuan in 2022 to 2.58 billion yuan in 2024, increasing its revenue share from 70.83% to 81% [6]. - The average selling price of ice machines is declining, from 435.22 yuan in 2022 to 385.9 yuan in 2024, due to market demand for smaller products and competitive pricing strategies [7]. Debt and Liabilities - The company's liabilities are projected to reach 1.82 billion yuan in 2024, a 15.96% increase from the previous period, with accounts payable being a significant contributor [8][9]. Market Exposure and Risks - The U.S. market accounts for 60% of the company's revenue, raising concerns about potential risks from U.S.-China trade tensions [9][11]. - The company plans to establish a factory in Thailand to mitigate risks associated with trade disputes and to create a dual supply chain system [14][15]. Ownership and Governance - The company is controlled by the Chen family, with significant family involvement in management and board positions, raising concerns about governance and potential conflicts of interest [16][19]. - Prior to the IPO, the company distributed 209 million yuan in dividends over two years, impacting its cash flow [22][23].

Product Overview and Industry Distribution - Indoor heaters, commonly known as heating appliances, include types such as oil-filled heaters, far-infrared heaters, PTC warm air fans, and halogen tube heaters, all of which require CCC certification [3][4] - Oil-filled heaters typically cost between 400 to 500 yuan and are suitable for use in living rooms, bedrooms, and hallways, especially in homes with elderly or children [3] - Far-infrared heaters are less common in the market, priced around 100 yuan, and are used for localized heating [4] - PTC warm air fans range from 200 to 600 yuan and are ideal for portable home heating due to their quick heating and automatic temperature control features [4] - Halogen tube heaters are priced between 100 to 200 yuan and are effective for personal heating in small rooms [4] - Jiangsu province has about 40 indoor heater manufacturers, primarily small to medium-sized enterprises, with 8 certified companies in Suzhou, of which only 3 are currently operational [4] Inspection Basis and Key Projects - The quality supervision inspection is based on GB 4706.1-2005 and GB 4706.23-2007 standards, focusing on safety and specific requirements for indoor heaters [5] - Key inspection items include protection against electric shock, input power and current, heating performance, leakage current, moisture resistance, mechanical strength, and grounding measures [5][6] Supervision Inspection Results - A total of 15 batches of indoor heaters were inspected, with 2 batches found to be non-compliant, resulting in a non-compliance rate of 13.3% [5] - Specific non-compliance issues included inadequate protection against electric shock, discrepancies in input power and current, structural design flaws, unreliable power connections, and grounding issues [6][7][8][9][10]

Core Viewpoint - The company Aishida (002403.SZ) plans to invest in Vietnam to establish modern cookware, small appliances, and industrial robot R&D and production, with a total investment not exceeding 150 million RMB [1] Investment Details - The investment amount will primarily be used for setting up a foreign subsidiary, leasing factory space, and constructing production lines and supporting facilities [1] - The stated investment amount is a budget figure, with the actual investment to be determined based on real expenditures [1] Strategic Implications - This investment aims to enhance the company's global layout and increase its market share in overseas markets [1] - The move is also intended to help the company mitigate potential adverse impacts from fluctuations in the global macroeconomic environment [1]

Core Viewpoint - The company plans to establish a subsidiary in Vietnam through its wholly-owned subsidiary, aiming to invest in cookware, small appliances, and industrial robotics projects with a total investment not exceeding 150 million RMB (approximately 20.84 million USD) [1] Investment Strategy - The investment is intended to expand the company's presence in Southeast Asia and the European and American markets [1] - The funding for the investment will come from the company's own funds or self-raised funds, ensuring that it will not affect the normal operation of its existing main business [1]

Group 1: Overall Production Trends - In June 2025, the total production of air conditioners, refrigerators, and washing machines reached 35.15 million units, a 7.3% increase compared to the same period last year [1] - The production of household air conditioners in June was 20.5 million units, up 11.5% year-on-year; refrigerators produced 7.9 million units, a 3.6% increase; and washing machines remained flat at 6.75 million units [1] Group 2: Air Conditioner Market Insights - Domestic air conditioner production surged, with June 2025 figures showing 13.66 million units, a 29.3% increase year-on-year; July saw 11.37 million units, up 22.8%; however, August experienced a decline to 6.938 million units, down 9.2% [2] - Export production for air conditioners in June was 6.84 million units, an 18.3% decrease year-on-year, with July and August also showing declines of 16.9% and 6.6% respectively [2] Group 3: Refrigerator Market Insights - Domestic refrigerator production in June 2025 was 3.34 million units, a 4.3% increase year-on-year, driven by promotional activities and government subsidies [4] - Export production for refrigerators in June was 4.56 million units, down 6.6% year-on-year, influenced by fluctuating global trade conditions and tariff policies [5] Group 4: Washing Machine Market Insights - Domestic washing machine production in June 2025 was 2.93 million units, a 1.0% increase year-on-year, but the market is entering a traditional off-season with declining growth [6] - Export production for washing machines in June was 3.82 million units, a slight decrease of 0.9% year-on-year, following two years of high growth [7]

Financial Performance - In 2024, the company's operating revenue was CNY 1,945.80 million, with a net profit attributable to shareholders of CNY 102.08 million [2] - For Q1 2025, the operating revenue was CNY 441.21 million, and the net profit attributable to shareholders was CNY 19.04 million [2] - The total cash dividend for 2024 is expected to be CNY 361.88 million, accounting for 35.45% of the net profit attributable to shareholders [3] Dividend Distribution - For the 2024 profit distribution, the company plans to distribute CNY 1.20 per 10 shares, totaling CNY 219.65 million [3] - The previous distribution was CNY 0.80 per 10 shares, totaling CNY 142.23 million [3] Business Development - The PCBA business generated revenue of CNY 19.37 million in 2024, following the acquisition of a controlling subsidiary [3] - The subsidiary has 15 production lines and holds 10 patents and 27 software copyrights, indicating strong technical capabilities [3] Industry Outlook - The company maintains a positive outlook on the home appliance market, driven by increasing consumer demand and product upgrades [4] - The company plans to enhance its competitiveness through technology development and market expansion [4] Shareholder Actions - Major shareholders have announced plans to reduce their holdings, but no reductions have commenced as of the latest update [5][6] Operational Status - As of Q1 2025, the company reported a 1.14% increase in operating revenue compared to the previous year, and an 8.31% increase in net profit [6] - The company is focused on upgrading existing refrigerator products and developing differentiated offerings [6] Stock Compensation - The estimated stock compensation expense for 2025 is CNY 21.15 million, with CNY 3.44 million already recognized in Q1 [6]