Core Viewpoint - The report outlines the ongoing supervision and compliance issues faced by Shenzhen Beiqing Technology Co., Ltd. (倍轻松) under the guidance of Guotou Securities, highlighting significant financial irregularities and the company's efforts to rectify them. Group 1: Continuous Supervision - Guotou Securities has established a continuous supervision plan for Beiqing Technology, ensuring compliance with relevant regulations and agreements [1][2][3] - The company has been reported for providing guarantees for personal loans of its actual controller, Ma Xuejun, and for occupying 54 million yuan of company funds [2][10] - Guotou Securities conducted a special on-site inspection and urged the company to implement effective corrective measures [2][10] Group 2: Financial Performance - In 2024, the company reported a revenue of 1,085.12 million yuan, a decrease of 14.88% compared to 2023 [15] - The net profit attributable to shareholders was 1,025.32 million yuan, indicating a turnaround from previous losses [15][16] - The basic earnings per share increased to 0.12 yuan, a 120% rise year-on-year [16] Group 3: Core Competitiveness - The company has established a strong core competitiveness through technological innovation and a differentiated strategy combining traditional Chinese medicine with modern technology [17][19] - It has developed a comprehensive product line covering various body parts and has launched multiple innovative products in 2024 [18][22] - The company emphasizes a robust research and development framework, with a focus on user experience and safety [28][30] Group 4: Market Position and Global Strategy - Beiqing Technology has positioned itself as a leading player in the smart portable massager industry, with a strong brand presence both domestically and internationally [19][20] - The company has implemented a dual-driven overseas expansion strategy, resulting in significant growth in international revenue [21][22] - It has established a multi-channel sales network, integrating online and offline strategies to enhance customer engagement [21][22] Group 5: Compliance and Regulatory Issues - The company has faced scrutiny from regulatory bodies due to its financial practices, particularly concerning the personal loan guarantees and fund occupation [10][11] - Guotou Securities has reported that the company has rectified the identified issues, with the guarantees lifted and funds returned as of April 2025 [11][12] - The company has complied with fundraising regulations, ensuring proper use and disclosure of raised funds [32]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8] Core Insights - In 2024, the company achieved operating revenue of 1.085 billion yuan, a year-on-year decline of 14.88%. The net profit attributable to the parent company was 10.25 million yuan, marking a return to profitability. However, the net profit after deducting non-recurring items was -3.28 million yuan, a reduction in loss of 52.72 million yuan year-on-year [2][5] - In Q4 2024, the company reported operating revenue of 249 million yuan, down 25.38% year-on-year, with a net profit of -2.85 million yuan, a reduction in loss of 31.69 million yuan year-on-year [2][5] - For Q1 2025, the company recorded operating revenue of 197 million yuan, a decline of 32.83% year-on-year, with a net profit of -1.83 million yuan, a year-on-year decline of 111.74% [2][5] Summary by Sections Revenue Performance - The company's revenue decreased by 14.88% in 2024, with specific product categories showing varied performance: eye products down 33.88%, neck products down 26.95%, and scalp products up 43.65% driven by the new Scalp 3S product. Domestic sales fell by 16.44%, while overseas sales grew by 9.49% due to increased investment in overseas online platforms [10] Profitability Analysis - The gross margin increased by 1.86 percentage points in 2024, with variations across product categories. The sales expense ratio decreased by 3.18 percentage points, while management and R&D expense ratios increased due to rising employee compensation and consulting fees. The operating profit showed a reduction in loss of 35.84 million yuan year-on-year [10] Future Outlook - The company is focused on the smart portable massager market with its brands "Breo" and "倍轻松". It aims to launch new products and optimize channel strategies, which are expected to drive high-quality growth. Projected net profits for 2025-2027 are estimated at 53 million, 85 million, and 112 million yuan respectively [10]