Group 1: Company Overview - The company is Zhejiang Jiayi Thermal Insulation Technology Co., Ltd., with stock code 301004 and bond code 123250 [1] - The investor relations activity was recorded on November 10, 2025, at the Jiayi Vietnam company meeting room [3] Group 2: Production and Supply Chain in Vietnam - The production efficiency at the Vietnam facility is improving steadily, with certifications for quality, social responsibility, safety, and environmental systems completed [3] - The localization rate of raw materials at the Vietnam base has reached a high level, with key materials like stainless steel and silicone sourced locally [3] - The Vietnam facility has comparable equipment and process levels to the Chinese base, with some processes previously outsourced now being self-manufactured [3] Group 3: Strategic Rationale for Overseas Expansion - Vietnam's cultural, geographical, and logistical similarities to China facilitate management and communication, making it an ideal location for overseas capacity [4] - The establishment of the Vietnam factory aligns with the company's strategic goals for internationalization and enhancing global market competitiveness [5] Group 4: Financial Planning and Future Outlook - The company plans to maintain a steady capital expenditure approach while focusing on improving the efficiency and management of the Vietnam factory [6] - A high dividend payout ratio has been maintained in recent years, with a commitment to sustainable shareholder returns [6] Group 5: Industry Trends - The thermal insulation cup manufacturing industry is undergoing a global supply chain restructuring, with a shift from cost-driven competition to a focus on manufacturing systems and local supply chain capabilities [7] - Companies with stable overseas production and quick customer response capabilities will be better positioned in the industry's trend towards high-end, diversified, and international development [8]

Group 1 - The eighth China International Import Expo (CIIE) is being held in Shanghai from November 5 to 10, attracting 43 trading groups and over 700 sub-groups, with Zhejiang's "buyer group" signing procurement contracts worth 14.5 billion yuan, signaling openness [1] - The consumer goods exhibition area remains a highlight, featuring brands like the Bulgarian skincare brand "Bafushi," which has gained popularity and established a presence at the expo thanks to the efforts of local entrepreneurs [2] - The expo showcases a mix of high-tech innovations and artisanal products, with brands like Temeike leveraging the event's "premiere effect" to launch new products and enhance brand visibility [3] Group 2 - The expo has introduced a "cross-border e-commerce preferred platform" and service area, with Tmall International providing one-on-one support for international brands, facilitating their entry into the Chinese market [6] - Companies like Dian Diagnostics have participated in the expo for eight consecutive years, using it as a platform to introduce advanced technologies and promote innovation, while also expanding their export business [7] - Zhejiang enterprises are increasingly becoming participants and co-builders in the global innovation ecosystem, with companies like Yigao Group showcasing cutting-edge technologies and fostering international collaboration [8]

Core Insights - Both leading companies in the thermal cup industry, Jiayi Co., Ltd. and Hars, reported a decline in net profits for Q3 2025, reflecting the challenges faced by thermal cup manufacturers amid tightening external environments and industry transitions [1][2] Financial Performance - Hars reported Q3 revenue of 866 million yuan, a year-on-year decrease of 11.19%, with net profit dropping to 8.77 million yuan, down 90.89% year-on-year. Cumulatively, net profit for the first three quarters fell to 100 million yuan, a decline of 55.49% [1] - Jiayi Co., Ltd. achieved Q3 revenue of 430 million yuan, a year-on-year decline of 47.68% and a quarter-on-quarter decline of 36.81%. Net profit for Q3 was 62.93 million yuan, down 70.56% year-on-year and 58.81% quarter-on-quarter [1] Profit Margin Analysis - Hars experienced a gross margin of 23.60% in Q3, a decrease of 6.68 percentage points year-on-year, with an overall gross margin of 26.90% for the first three quarters, down 3.07 percentage points [1][2] - Jiayi Co., Ltd. reported a gross margin of 31.86% for the first three quarters, a decline of 7.68 percentage points year-on-year, with Q3 gross margin at 25.83%, down 13.52 percentage points year-on-year [2] Operational Challenges - Hars attributed its profit decline to slowed revenue growth and fluctuations in gross margin, exacerbated by increased supply chain and labor costs due to overseas base construction [2] - Jiayi Co., Ltd. cited two main factors for its performance drop: delays in order delivery due to production capacity in Vietnam and a conservative inventory reduction strategy adopted by major clients in response to market demand uncertainties [2] Strategic Responses - Both companies are focusing on overseas factory construction as a key strategy to overcome industry challenges. Jiayi Co., Ltd. has streamlined its production system in Vietnam, with increasing order volumes and plans for further automation upgrades [3] - Hars has fully launched its first phase in Thailand and is accelerating the transition of new product molds and raw material reserves to mitigate uncertainties in overseas capacity and ensure high-quality, timely deliveries [3]

Economic Performance - In the first quarter of 2025, GDP in Jinyun County grew by 8.1% year-on-year, with industrial added value increasing by 14.2% and industrial electricity consumption rising by 51.1% [1] - Jinyun County is recognized as an industrial stronghold in Lishui, Zhejiang, and is adapting to complex international market conditions under the guidance of the "Eight Eight Strategy" [1] Technological Advancements - Zhejiang Jingrui Mold Co., Ltd. is constructing a new production base for high-temperature alloys and titanium alloys, with an average annual R&D investment of 20 million yuan since 2015 [1] - Zhejiang Kexiong Intelligent Technology Co., Ltd. has developed over 200 patents in the smart lock sector, showcasing advanced technology with products like the Kexiong No. 11 smart lock [2] - Zhejiang Jinmason Intelligent Manufacturing Co., Ltd. reported a 50% increase in signed contracts from January to May 2025, with expected contract orders of approximately 270 million yuan for the year [2] Market Expansion - Companies in Jinyun are diversifying their export markets to mitigate risks, with firms like Hongli Jian Technology Co., Ltd. successfully entering the Southeast Asian market for insulated cups [3] - Zhejiang Leshang Leisure Products Co., Ltd. is targeting the high-end European market with its electric folding scooters, achieving significant international design awards and securing 100,000 orders [5] - Zhejiang Huayang Racing Co., Ltd. is expanding into emerging markets while maintaining a strong presence in traditional markets like North America and Europe [5] Foreign Trade - Jinyun County's foreign trade exports reached 2.27 billion yuan in the first quarter of 2025, reflecting a year-on-year growth of 4.2% [6] - The county is implementing supportive insurance policies to stabilize foreign trade, with a 7.73% increase in the number of enterprises served by short-term insurance [6] Business Environment - Jinyun County has improved its business environment through streamlined administrative processes, reducing the time for obtaining necessary permits from months to about ten days [8] - The county has developed a service manual for enterprises to efficiently address land use needs, categorizing companies based on urgency and tax contributions [9] - Local government initiatives have successfully resolved operational challenges for businesses, such as the construction of a natural gas pipeline to reduce costs for a leading sawmill company [10]

Investment Rating - The investment rating for the company is "Buy" (maintained) [7] Core Views - The company reported a revenue of 2.836 billion yuan for 2024, representing a year-on-year growth of 59.8%, while the net profit attributable to shareholders was 733 million yuan, up 55.3% year-on-year [7] - The high demand for thermal cups continues, with significant growth from major clients and successful new customer acquisition in Q4 2024 [7][8] - The company is expanding its production capacity in Vietnam to mitigate tariff risks and enhance supply chain efficiency, which is expected to improve profitability in the upcoming quarters [7][8] Financial Data and Profit Forecast - Total revenue projections are as follows: - 2023: 1.775 billion yuan - 2024: 2.836 billion yuan - 2025E: 3.749 billion yuan - 2026E: 4.639 billion yuan - 2027E: 5.552 billion yuan - Year-on-year growth rates for total revenue are projected at 41.0% for 2023, 59.8% for 2024, 32.2% for 2025, 23.7% for 2026, and 19.7% for 2027 [2] - Net profit attributable to shareholders is forecasted as follows: - 2023: 472 million yuan - 2024: 733 million yuan - 2025E: 912 million yuan - 2026E: 1.116 billion yuan - 2027E: 1.377 billion yuan - The projected growth rates for net profit are 73.6% for 2023, 55.3% for 2024, 24.5% for 2025, 22.3% for 2026, and 23.4% for 2027 [2][10] Market Data - The closing price of the stock is 104.90 yuan, with a market capitalization of 10,048 million yuan [3] - The price-to-earnings ratio is projected to decrease from 23 in 2023 to 8 in 2027, indicating an attractive valuation [2][3]