Group 1: Financial Performance Overview - In 2024, the total revenue reached CNY 6.469 billion, with tile products contributing CNY 5.387 billion. The net profit attributable to shareholders was CNY 328 million, and the net cash flow from operating activities was CNY 859 million [3] - The profit distribution plan proposes a cash dividend of CNY 2.50 per 10 shares, amounting to CNY 283 million, which represents 86% of the net profit [6] - The company maintained a strong cash flow, with operating cash flow being 2.61 times the net profit [3] Group 2: Cost Management and Efficiency - Sales expenses decreased by 15.17% year-on-year, while management expenses fell by 0.12%. R&D investment grew by 1.07% [3] - Total period expenses dropped by 11.27%, with sales expense ratio and management expense ratio decreasing by 2.25 and 1.42 percentage points, respectively [9] - The unit manufacturing cost of tile products was reduced by 3.1 percentage points through effective supply chain management and lean manufacturing practices [5] Group 3: Market Position and Growth Strategies - Despite industry challenges, the company increased its market share, adding 188 retail stores in 2024 and maintaining a leading position in e-commerce platforms [3][8] - The company launched high-end product lines and established strategic partnerships with luxury brands to enhance its market presence [4] - The company is focusing on high-margin segments and has adjusted its business structure to prioritize retail over engineering projects [8] Group 4: Investment and Future Outlook - The company is exploring investments in high-end equipment manufacturing and new information technology sectors, with a target investment scale of CNY 500 million [7] - The 2025 market outlook suggests potential stabilization due to government policies aimed at stimulating demand in the real estate sector [11] - The company plans to maintain a stable cash dividend policy while focusing on capital expenditures primarily for technological upgrades [28] Group 5: Risk Management and Financial Health - The asset-liability ratio was 36.29%, a decrease of 1.67 percentage points year-on-year, indicating improved financial stability [3] - The company reported a 29.36% reduction in impairment losses through stringent credit policies and inventory management [3][16] - The company has a robust risk control policy in place for its strategic engineering business, ensuring high-quality project responses [15]

Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - The company achieved an annual revenue of 4.6 billion yuan, a year-on-year decrease of 22%. The net profit attributable to shareholders was 120 million yuan, down 53% year-on-year, while the net profit excluding non-recurring items was approximately 100 million yuan, down 58% year-on-year [2][4]. - In the first quarter, the company reported a revenue of 700 million yuan, a year-on-year decline of 16%, with a net profit of -60 million yuan, a decrease of 715% year-on-year, and a net profit excluding non-recurring items of approximately -70 million yuan, down 870% year-on-year [2][4]. - The company is expected to achieve net profits of approximately 200 million yuan and 250 million yuan in 2025 and 2026, respectively, corresponding to valuations of 18 and 15 times [6]. Summary by Sections Revenue and Profitability - The company’s revenue for 2024 is projected to decline by 22% due to weak terminal demand and intensified price competition, with tile sales expected to drop by 16% to approximately 120 million square meters. The average price of tiles is anticipated to decrease by about 7% year-on-year, cumulatively down 19% compared to 2021 [10]. - The gross margin is expected to continue its downward trend, decreasing from 29.5% in 2023 to 27.3% in 2024, with the distribution channel gross margin declining from 28.3% to 25.7% [10]. - The company’s revenue from distribution channels is expected to be around 3.5 billion yuan, down 7% year-on-year, while revenue from engineering channels is projected to be about 1.1 billion yuan, down 48% year-on-year [10]. Cost and Expenses - The company’s period expense ratio is expected to increase by 0.6 percentage points year-on-year, with management expenses rising by 1.9 percentage points due to weakened scale effects, while financial expenses are expected to decrease by 1.3 percentage points [10]. - The net profit margin for 2024 is projected to be approximately 2.7%, a decrease of 1.8 percentage points year-on-year [10]. Cash Flow and Financial Health - The company has shown strong cash flow performance, with cash collection ratios over the past three years being 1.12, 1.08, and 1.15. The cash flow from operating activities for 2024 is expected to be 810 million yuan [10]. - By the end of 2024, accounts receivable and notes are expected to be 700 million yuan, primarily due to a high retail proportion and a continuous contraction in the real estate business [10]. Industry Outlook - The supply exit in the tile industry is significant, with the production of building ceramics expected to be around 5.91 billion square meters in 2024, a year-on-year decrease of 12% [10]. - The number of large-scale enterprises in the industry has decreased from 1,048 in 2021 to 993 in 2024, with approximately 55 enterprises exiting the market [10].

Group 1: Guobo Electronics - Guobo Electronics has improved its gross margin through cost control and product structure adjustments, despite revenue fluctuations due to macroeconomic factors [1] - The company reported a normal increase in inventory as part of production reserves, with stable prices for mainstream products and good capacity utilization [1] - Guobo is actively participating in key projects and is expanding into satellite and low-altitude fields, with RF chips already applied in drone products to meet the demands of next-generation mobile communication technologies [1] Group 2: Lege Co., Ltd. - In 2024, Lege Co., Ltd. faced a challenging environment with a revenue growth of 45.33% but a net profit decline of 46.99%, primarily due to reduced non-recurring income and increased R&D investment [2] - The company has expanded its overseas warehouse operations to 662,100 square meters, serving 1,175 enterprises and shipping over 11 million items, with a capacity utilization rate of 60%-70% [2] - Lege plans to maintain steady progress in 2025, focusing on smart home and overseas warehouse dual main businesses while enhancing brand building and talent optimization [2] Group 3: Baike Biotech - Baike Biotech experienced significant declines in performance in 2024 and the first quarter of 2025, with decreases of 32.64% and 39.96% respectively, mainly due to the impact on shingles vaccine sales [3] - The company aims to enhance market awareness of the shingles vaccine and solidify its position in the chickenpox vaccine market while expanding into international markets [3] - Baike anticipates an increase in R&D investment and sales expense ratios in 2025, followed by a gradual decrease [3] Group 4: Mona Lisa - Mona Lisa is facing multiple challenges in 2024 due to changes in trade environments and real estate adjustments, leading to a 16.34% decline in sales volume and revenue [4] - The company has seen a 20.72% decrease in operating costs, primarily due to lower direct material and fuel costs, and has implemented cost reduction and efficiency measures [4] - Looking ahead to 2025, the industry faces challenges from weakened demand, but urbanization and stock housing renovations present new opportunities [4]