Core Viewpoint - OGAWA Intelligent Health Technology Group has showcased its strategic positioning and development in the health industry through recent investor meetings, highlighting its focus on health products and market potential [1] Group 1: Business Overview - The company primarily operates in health massage products, including massage chairs and small massage appliances, as well as health environment products like fresh air systems and air purifiers. In the first half of 2025, the revenue contribution from massage chairs, small massage appliances, health environment, and other categories was 44.23%, 30.64%, 15.30%, and 9.83% respectively [2] - The market potential is significant, particularly in East Asia and Southeast Asia, where traditional massage practices are prevalent. Developed regions like North America and Europe have also begun to recognize the health benefits of these products. The domestic market for massage health products has low penetration and concentration, indicating substantial growth potential as health demands rise and the population ages [2] Group 2: Financial Performance and Strategy - The company has experienced a decline in revenue and net profit due to global economic slowdown and weak consumer demand. However, it has implemented several strategies to enhance performance, including focusing on the health industry, increasing the share of its own brand revenue to over 50%, and achieving significant growth in the "OGAWA" brand [3] - The company is investing in technological innovation, particularly in AI technology and product development, with the introduction of a globally pioneering 5D core technology in high-end massage chairs. It is also expanding its marketing efforts and enhancing online competitiveness through targeted advertising and influencer collaborations [3] Group 3: Production and Innovation - The company’s factory in Vietnam has a production capacity of 5.4 million units per year for small massage appliances and health environment products, catering to overseas ODM clients. The company plans to adjust production based on market conditions [4] - In the AI sector, the company is developing a matrix of innovative technologies and smart products, including precise detection of massage intensity and adaptive control. It is also working on health service robots and new massage chair designs that feature advanced movement capabilities [4] Group 4: Financial Instruments - As of June 30, 2025, the remaining balance of the convertible bonds "OGAWA Convertible Bonds" was 458 million yuan, which is classified as a current liability due to its maturity in February 2026. The company has decided not to adjust the conversion price for the next six months [4]

Market Overview - The domestic massage and health product market has low penetration and concentration, with significant growth potential driven by increasing health demands and an aging population [2] - The "old-for-new" subsidy policy has supported a recovery in the domestic massage chair market in the first half of the year [2] Product Development - The company launched the flagship massage chair OG-9598 in April, featuring the world's first "5D" mechanism, which has seen continuous sales growth [3] - New products are being introduced to diversify the price range of massage chairs, including a collaboration with "LINE FRIENDS" for small massage appliances [3] Marketing Strategy - The company focuses on promoting flagship products through advertising in major urban areas and airports, and has engaged Chinese Olympic champions as product ambassadors [3] - Online sales are boosted by the "old-for-new" subsidy policy, while offline efforts target growth in key channels like Sam's Club and JD [3] Financial Insights - Sales from the U.S. accounted for less than 22% of total revenue, indicating a dominant non-U.S. business [4] - The company has a production capacity of 5.4 million units annually at its Vietnam factory, which is gradually being put into operation [4] Cost Management - High sales expenses are attributed to significant investments in brand recognition and market share across various regions [5] - The company aims to enhance profitability by optimizing product quality and cost through innovative design and material application [5] R&D Investment - R&D investment has consistently exceeded 4% of total revenue, focusing on advanced technologies in health and wellness [6] - The company is the only one in the industry with seven national-level innovation platforms, emphasizing its commitment to R&D [6] Technological Advancements - The company is advancing its AI and IoT capabilities to enhance product innovation, particularly in the massage chair sector [7] - A new massage chair prototype with innovative movement capabilities was introduced at the Canton Fair, showcasing the company's commitment to breaking traditional product boundaries [7]