Summary of Delmar's Conference Call Company Overview - **Company**: Delmar - **Industry**: Home Appliances and Health Products Key Points and Arguments Financial Performance - In the first half of 2025, Delmar achieved revenue of 1.686 billion yuan, a year-on-year increase of approximately 4% [3] - Net profit attributable to shareholders was 69 million yuan, indicating stable growth [3] - Domestic business grew by about 6%, driven by contributions from Philips water health and ODM businesses [3] Revenue Composition - Overseas revenue accounted for approximately 17%, showing a slight decline due to channel adjustments in the overseas market for cleaning appliances [2][3] - ODM business exhibited high double-digit growth, benefiting from brand popularity and collaboration with Mijia on kitchen appliances [5] Product Performance - Delmar's cleaning business faced pressure, leading to product and channel adjustments, with plans to launch new products [4] - Philips water health business saw double-digit growth, with the introduction of new ice-making products and cost reduction initiatives [2][4] - Philips personal care health experienced a slight decline due to domestic channel adjustments affecting Douyin revenue, while overseas markets grew rapidly [2] Margin Analysis - Delmar brand gross margin slightly decreased in the first half of 2025 [6] - Philips water health gross margin increased by approximately 5 percentage points due to new product launches [6] - Philips personal care health gross margin decreased by about 1 percentage point due to channel structure adjustments [6] Market Position and Strategy - Philips water purifier maintained its leading position in the domestic market, with continuous product iterations planned for at least three years [7] - Delmar maintained its number one market share from 2024 to 2025, responding to competition through product upgrades and cost reduction strategies [8][9] - The company aims to deepen existing channels in overseas markets and gradually enhance product strength [11] Future Outlook - The company plans to continue product adjustments and channel integration, focusing on enhancing product capabilities [10] - There is an expectation for increased demand for water health products as consumer health awareness rises [22] - The cleaning business is anticipated to grow in scale and sales volume, while personal care health may see declines in certain categories [22] Operational Challenges - Operating cash flow decreased year-on-year due to increased salary expenses, but no ongoing issues are anticipated [12] - Price competition in the domestic cleaning machine market has eased, but uncertainties remain regarding national subsidy policies [13] New Opportunities - Potential growth areas in the cleaning category include floor washing machines, mite removers, vacuum cleaners, and robotic vacuums [14] - The ODM business with Mijia is expected to continue its double-digit growth trajectory [19] Channel Performance - Online channels saw a decline due to proactive adjustments in distribution structure, while offline channels achieved double-digit growth [20] - The highest online sales share comes from JD.com, followed by Douyin and Taobao, with JD.com experiencing a decline due to adjustments in the distribution structure [20] Regional Performance - Differences in operating rates between Shanghai and Guangdong subsidiaries are attributed to adjustments during the restructuring process [25] Product Development - The massage product line from Philips saw fewer new launches in the first half of 2025, with a focus on enhancing user experience and product differentiation [27] Additional Important Insights - The company is not rushing to enter new markets but is focused on deepening existing market presence and expanding new channels [11] - The overall strategy emphasizes product upgrades and effective marketing to capture market share amidst competition [13][14]

Financial Performance - The company's main revenue for the first half of 2025 was 385 million yuan, a year-on-year decrease of 36.22% [1] - The net profit attributable to shareholders was -36.11 million yuan, down 238.19% year-on-year [1] - The non-recurring net profit was -37.01 million yuan, reflecting a decline of 253.57% year-on-year [1] - In Q2 2025, the company's single-quarter main revenue was 188 million yuan, a decrease of 39.42% year-on-year [1] - The single-quarter net profit attributable to shareholders was -34.28 million yuan, down 425.76% year-on-year [1] - The single-quarter non-recurring net profit was -34.71 million yuan, a decline of 507.94% year-on-year [1] Financial Ratios - The company's debt ratio stood at 54.29% [1] - The investment income was -198,500 yuan, and financial expenses amounted to 544,200 yuan [1] - The gross profit margin was 62.63%, showing an increase of 1.30% year-on-year [6] Earnings Per Share - The earnings per share were -0.43 yuan, a year-on-year decrease of 238.70% [6] - The operating cash flow per share was -0.24 yuan, down 135.32% year-on-year [6] - The net asset value per share was 3.51 yuan, reflecting a decrease of 23.11% year-on-year [6]

Core Viewpoint - The company reported a significant decline in revenue and incurred a net loss for the first half of 2025, indicating potential challenges in its financial performance [2] Financial Performance - The company's revenue for the first half of 2025 was approximately 385 million yuan, representing a year-on-year decrease of 36.22% [2] - The net loss attributable to shareholders was around 36.11 million yuan [2] - The basic earnings per share showed a loss of 0.43 yuan [2]

Core Viewpoint - The company reported a significant decline in revenue and a net loss for the first half of 2025, indicating potential challenges in its financial performance [1] Financial Performance - The company achieved an operating revenue of 385 million yuan, representing a year-on-year decrease of 36.22% [1] - The net profit attributable to shareholders was a loss of 36.11 million yuan [1] - The basic earnings per share were reported at -0.43 yuan [1]

Financial Performance - The company reported a basic earnings per share of 0.1200 yuan for 2024, a significant increase of 120% compared to -0.6000 yuan in 2023 [1] - The net profit for 2024 was 0.1 billion yuan, showing a remarkable recovery from a loss of -0.51 billion yuan in 2023, representing a 119.61% increase [1] - Operating revenue decreased by 14.9% to 10.85 billion yuan in 2024 from 12.75 billion yuan in 2023 [1] - The return on equity improved to 2.72% in 2024 from -11.75% in 2023, indicating a positive turnaround [1] Shareholder Structure - The top ten unrestricted shareholders hold a total of 58.365 million shares, accounting for 67.92% of the circulating shares, with a decrease of 1.8675 million shares compared to the previous period [1] - Major shareholder Ma Xuejun holds 34.7879 million shares, representing 40.48% of the total share capital, with no change in holdings [2] - New entrants among the top shareholders include Baoying Core Advantage Mixed A and Li Hu, while Shenzhen Hongjun Capital Management and Guangdong Wuwen Private Securities Fund Management have exited the top ten [2] Dividend Distribution - The company has announced no dividend distribution or capital increase for the current period [3]