Investment Rating - The industry rating is "Outperform the Market" [8] Core Insights - The sports brands reported steady growth in Q2 2025, with Anta Sports, Li Ning, and other brands showing varying degrees of year-on-year growth [3][14] - Anta's retail sales for its main brand, FILA, and other brands grew by low single digits, mid single digits, and 50-55% respectively, although there was a slight slowdown compared to Q1 [3][14] - Li Ning's overall sales (excluding Li Ning YOUNG) achieved low single-digit growth, with a net increase of 11 stores in Q2 [3][14] - Xtep International's main brand saw low single-digit growth, while Saucony exceeded 20% growth [3][14] - 361 Degrees reported approximately 10% growth for its main brand and children's clothing, with e-commerce growth around 20% [3][14] Summary by Sections Weekly Investment Insights - The consumer sector is expected to benefit from policy support and a recovery in domestic demand, with recommendations to focus on major home appliances, pet products, small appliances, and brand apparel [5][20] - Key companies to watch include Midea Group, Haier Smart Home, Gree Electric, Anta Sports, Li Ning, and 361 Degrees [5][20] Market Data - The home appliance sector saw a weekly increase of 1.5%, with specific segments like white goods and small appliances showing positive growth [21] - The textile and apparel sector increased by 0.24%, with cotton prices rising by 1.59% to 15,508 RMB per ton [23][21] Industry News - Pop Mart, a trendy toy company, announced a significant increase in revenue and net profit for Q2, while Ciele Athletics entered the Chinese market through a partnership with a major sports retailer [37][39] Upstream Tracking - The report includes tracking of raw material prices and shipping trends, which are crucial for understanding cost pressures in the industry [6.1][6.2][6.3]

Core Viewpoint - The AI Fund, CITIC Prudential Dividend Select A (008091), reported a profit of 329,100 yuan for Q2 2025, with a weighted average profit per fund share of 0.0235 yuan. The fund's net value growth rate was 1.57%, and its total scale reached 22.47 million yuan by the end of Q2 2025 [3][16]. Fund Performance - As of July 17, the fund's unit net value was 1.633 yuan. Over the past year, the fund achieved a cumulative net value growth rate of 10.38%, ranking it highest among its peers, while CITIC Prudential New Blue Chip had the lowest at -0.2% [3]. - The fund's net value growth rates over different periods are as follows: 4.51% over the last three months (ranked 543/615), 4.91% over the last six months (ranked 480/615), and 14.74% over the last three years (ranked 29/324) [4]. Investment Strategy - In Q2 2025, the fund adjusted its holdings towards high-dividend stocks, slightly increasing the concentration of its portfolio. The external environment has become more complex, with increasing trade barriers, but the overall economic operation in China remains stable and improving [3]. Risk and Return Metrics - The fund's Sharpe ratio over the past three years is 0.4308, ranking 17/319 among comparable funds. The maximum drawdown over the same period was 14.64%, with the largest single-quarter drawdown occurring in Q1 2022 at 14.53% [10][12]. Portfolio Composition - The average stock position of the fund over the past three years was 88.66%, compared to the industry average of 83.13%. The fund reached a peak stock position of 92.3% in mid-2021 and a low of 70.57% in Q1 2020 [15]. - As of Q2 2025, the top ten holdings of the fund included Midea Group, Yangtze Power, Bank of Communications, Hangzhou Bank, Industrial and Commercial Bank of China, Jiangsu Bank, China Merchants Bank, Gree Electric Appliances, Daqin Railway, and Industrial Bank [19].

Core Viewpoint - The China Securities Regulatory Commission has confirmed the overseas listing applications for three companies: Aux, Bama Tea, and Dahang Technology, all of which are set to list in Hong Kong, bringing the total number of companies that have completed the filing for Hong Kong listings to 174 [1][3]. Group 1: Aux - Aux plans to issue no more than 517,500,000 shares of overseas listed common stock and list on the Hong Kong Stock Exchange [1]. - Aux Electric is one of the top five air conditioning providers globally, focusing on the design, research and development, production, sales, and service of household and central air conditioning, with operations in over 150 countries and regions [3]. - Financial performance for Aux shows revenues of 19.528 billion yuan, 24.832 billion yuan, and 24.278 billion yuan for the years 2022, 2023, and the first nine months of 2024, respectively, with corresponding net profits of 1.442 billion yuan, 2.487 billion yuan, and 2.716 billion yuan [3]. Group 2: Bama Tea - Bama Tea plans to issue no more than 29,133,400 shares of overseas listed common stock and list on the Hong Kong Stock Exchange [1]. - The company focuses on the high-end tea market, offering a full range of tea products including Oolong, black, red, green, white, and yellow teas, as well as tea utensils and food [6]. - As of September 30, 2024, Bama Tea operates 3,498 stores in China, including 274 direct-operated stores and 3,224 franchised stores [6]. - Financial performance for Bama Tea shows revenues of 1.818 billion yuan, 2.122 billion yuan, and 1.647 billion yuan for the years 2022, 2023, and the first nine months of 2024, respectively, with corresponding net profits of 166 million yuan, 206 million yuan, and 208 million yuan [6]. Group 3: Dahang Technology - Dahang Technology plans to issue no more than 9,100,000 shares of overseas listed common stock and list on the Hong Kong Stock Exchange [1]. - The company is a global leader in folding bicycles, offering over 70 models and holding 108 patents in mainland China, along with 22 patents in the United States, Europe, and Japan [7]. - Financial performance for Dahang Technology shows revenues of 254 million yuan, 300 million yuan, and 352 million yuan for the years 2022, 2023, and the first nine months of 2024, respectively, with corresponding net profits of 31.43 million yuan, 34.85 million yuan, and 45.84 million yuan [7].

Core Viewpoint - The article discusses the opportunities and challenges faced by Chinese enterprises in overseas mergers and acquisitions (M&A) by 2025, highlighting the impact of global trade changes, geopolitical factors, and regulatory compliance on these strategies [2][4]. Summary by Sections Event Overview - The "Chinese Enterprises Overseas M&A Strategy" closed-door exchange meeting was successfully held in Beijing, featuring experts from various fields to discuss the theme of opportunities and challenges in overseas M&A for Chinese enterprises by 2025 [1][2]. M&A Market Insights - In the first half of 2025, the global M&A market showed significant recovery, with a total transaction value of $1.98 trillion, a year-on-year increase of 33%. However, the number of transactions decreased by 10%, indicating that larger deals are dominating the market [7]. - The Chinese mainland's M&A total reached $252 billion, a staggering increase of 130% year-on-year, accounting for 13% of the global market share, with transaction numbers increasing by 13% [7]. Challenges in Overseas M&A - Chinese enterprises face complex acquisition processes and diverse stakeholder demands, particularly in Southeast Asia, where legal systems vary significantly and foreign investment restrictions exist [5][6]. - Regulatory challenges include the need for compliance with new policies, such as the "M&A Six Guidelines," which have increased regulatory inclusivity but also present operational ambiguities [11][12]. Strategic Innovations - Companies are adopting innovative strategies to navigate global trade tensions, such as "nearshore manufacturing + local delivery" and brand acquisitions to mitigate tariffs [14]. - The introduction of geopolitical due diligence systems and digital tools for real-time monitoring of tariff policies is helping companies shorten decision-making cycles by an average of 35% [14]. Future Investment Strategies - Chinese enterprises are employing a three-dimensional investment framework to adapt to a fragmented global landscape, focusing on resilience, symbiotic logic, and innovative approaches [16]. - The differentiation in overseas direct investment (ODI) is evident, with Asia accounting for 52.3%, Europe 19.8%, and Africa 13.1% of the total investment, reflecting targeted sectoral strategies [16].

Group 1: Investor Relations Activity Overview - The investor relations activity was a site visit held on July 16, 2025, at the company meeting room [3] - Attendees included representatives from various investment firms such as Guoyuan Securities, Linrui Investment, and others [3] - Company representatives included Chairman and General Manager Mr. Hu Xiang, Vice President Ms. Chen Yin, and Financial Officer Mr. Wang Xiaozhi [3] Group 2: Core Competitiveness - The company possesses modular supply capabilities with a diverse product range, including mold design, metal structural parts, and precision machining [5] - Established stable partnerships with major appliance manufacturers like Haier, Midea, and BOE, providing a reliable income source [5] - A highly skilled customer service team enhances customer satisfaction and loyalty through tailored services [5] - Geographical advantage as part of the largest white goods base in China, benefiting from regional industrial collaboration [5] Group 3: Fundraising Project Status - Fundraising projects have entered the trial production phase, with full production expected by the end of the year, focusing on high-precision metal structural components [6] Group 4: Future Development Plans - The company has established a sliding rail division targeting the home appliance, automotive, and server sectors [7] - Plans to manufacture various refrigerator models, including commercial and ecological planting refrigerators, with production expected to commence by year-end [7] Group 5: Equity Incentive Plan - Details regarding the equity incentive plan will be provided in the company's official announcements [8]

7月16日，武汉持续高温，但在位于武汉经开区的武汉海尔空调生产车间内，生产的热度更胜一筹。四条总装柔性生产线全速运转， 机械臂精准挥舞，传送带高速流转，平均每8秒就有一台空调下线。18000台——这是工厂每天向酷暑递交的"清凉答卷"。 编辑：胡之澜 供电公司员工用红外测温仪对低压柜的电缆发热情况进行测量。 在厂区10千伏配电房，武汉经开区供电公司客户经理吴杰、马彩莲正用红外测温仪检测变压器运行状态。"电缆温度56℃，在安全阈值 内。"他和同事每周三次上门服务，将电网维护从产权分界点延伸至企业内部设备。 海尔空调生产线"火力全开"，企业确保高效运转和员工健康。 "175名电力人员24小时轮值，300余人抢修队伍随时待命。"区供电公司营销运营及稽查检查班班长吕国昭介绍，武汉经开区组建了"迎 峰度夏"应急工作专班，全体领导和中层岗位人员24小时在岗值班，建立"企业—园区—部门"三级响应机制，确保企业用电无忧。 "全国多地持续高温，空调订单量同比上涨了33%。"工厂负责人王雷指着实时数据屏介绍，订单就是命令，已经全员进入"战时状 态"。为保障生产效率和员工健康，工厂采取了一系列措施：不仅将中央空调直吹每个工位，还每日 ...

Core Viewpoint - The Chain Expo has emerged as a pivotal platform for enhancing global supply chain collaboration and accelerating technological innovation, attracting international institutions and foreign enterprises to explore cooperation opportunities in China [1][2]. Group 1: Supply Chain Development - The Chain Expo is recognized as the world's first national-level supply chain exhibition, facilitating global industrial collaboration [1]. - China's continuously innovating and upgrading supply chain is seen as a catalyst for global progress, providing more collaboration opportunities for international entities [1]. - The supply chain in China is increasingly robust and upgraded, with many products being developed and manufactured domestically for both local and global markets [1]. Group 2: International Participation - The participation of foreign exhibitors at the Chain Expo is growing, indicating a shift in perception towards China as a global supply chain hub [2]. - The event fosters personal relationships and trust among participants, encouraging not only contract signings but also potential investments [2]. - Small enterprises are also establishing partnerships at the Chain Expo, highlighting its significance beyond just multinational corporations [2].

Core Viewpoint - The article emphasizes the significance of supply chains and advanced manufacturing chains in connecting global resources and enhancing production efficiency, showcasing their integral role in everyday life and industry innovation [1][5][7]. Group 1: Supply Chain Definition and Importance - Supply chain encompasses the entire process from raw material procurement to production, sales, and consumption [1]. - Advanced manufacturing chain includes aspects such as R&D design, new material application, key components, smart manufacturing, and advanced equipment, highlighting its role in industrial upgrading and international competitiveness [5][7]. Group 2: Real-World Applications - The article illustrates how supply chains operate in daily life, from breakfast production to public transportation and computer assembly, demonstrating their omnipresence and complexity [5][7]. - A case study of a washing machine factory in Tianjin showcases a sustainable lighthouse factory that efficiently integrates advanced manufacturing processes with environmental protection [7][11]. Group 3: Advanced Manufacturing Process - Upon receiving an order, the factory's system quickly communicates with over 250 upstream and downstream enterprises, managing inventory and generating precise supply instructions [9][11]. - The production line can manufacture a washing machine in as little as 38 minutes, utilizing advanced technologies such as laser welding and a sophisticated logistics system powered by 5G [11][13][15].

Group 1 - Midea Group officially became the official sponsor of the 2025 Africa Cup of Nations, indicating a commitment to deepen its presence in the African market [2] - Midea plans to invest at least $50 million in Egypt by early 2026 for localized production of home appliance components, aiming to reduce import volumes [2] - The company has increased its investment in the Sadat City Industrial Park from $105 million to $150 million, with new washing machine and refrigerator factories expected to start production in August and November 2025, respectively [2] Group 2 - The African market shows strong consumer potential, with low penetration rates for major appliances, making it an attractive target for Chinese home appliance manufacturers [3] - Other Chinese companies, such as Haier and Hisense, are also investing in Africa, indicating a trend of increased investment in the region by Chinese home appliance firms [3] - Sports marketing is seen as a strategic move for Midea to enhance its brand presence overseas, aligning with trends among other leading Chinese brands sponsoring major international sports events [3]

Summary of Conference Call on Home Appliance Exports Industry Overview - The conference focused on the home appliance export data for April, highlighting a decline in export value and mixed performance across different product categories and regions [1][2]. Key Points 1. **Overall Export Performance** - In April, the total export value of home appliances was 60.3 billion RMB, a decrease of 1.7% - Export volume reached 385 million units, showing a year-on-year increase of 1.5% - The overall export performance lagged behind the industry average, which had seen a 93% year-on-year growth in previous months [1]. 2. **Impact of Tariffs on Exports to the U.S.** - The imposition of tariffs led many appliance companies to halt exports to the U.S., resulting in a significant drop in exports to this market - The decline in exports to the U.S. was a major factor contributing to the slowdown in the overall export growth of the home appliance sector [2]. 3. **Air Conditioner Exports** - Air conditioner exports in April saw a value increase of 11.9% and a volume increase of 12.1% - Despite this growth, there was a noticeable slowdown compared to the first quarter of the year - Production forecasts for air conditioners from May to July indicated a decline of 2%, 12%, and 17% respectively [3][4]. 4. **Refrigerator Exports** - Refrigerator exports experienced a decline, with April showing a growth rate of only 0.8% in value and 2.8% in volume - This marked the end of a 24-month growth streak for refrigerator exports - Production forecasts for refrigerators from May to July indicated declines of 8%, 10%, and 7% respectively [4][5]. 5. **Regional Export Trends** - North America saw a significant drop in exports, with air conditioner exports down 27% and refrigerators down 19% - Other regions like Asia and Latin America maintained higher growth rates, while Europe showed mixed results with some countries experiencing declines [6][7]. 6. **Future Outlook for North American Exports** - With a temporary 90-day tariff exemption, companies are beginning to resume shipments to North America - There is an expectation of recovery in exports to North America starting in May [6][8]. 7. **Company-Specific Insights** - Different companies have varying exposures to U.S. market risks, with some able to cover their U.S. revenue through overseas production facilities - For example, one company has about 8% of its revenue from the U.S., while another has around 2% [9][10]. 8. **Growth Opportunities** - New customer acquisitions and order transfers in Canada are contributing to significant growth for some companies, with one reporting a 60% year-on-year revenue increase in Q1 [11]. 9. **Risk Mitigation Strategies** - Companies are leveraging production facilities in countries with lower tariff rates to mitigate risks associated with U.S. tariffs [12]. Additional Important Information - The conference emphasized the importance of monitoring tariff policies and their potential impact on future export performance - Participants were reminded that the content of the call is confidential and should not be disclosed [13].