Core Viewpoint - The company Saint-O is adapting its cross-border e-commerce strategy in response to changing global trade conditions, focusing on improving inventory management and leveraging government support to enhance operational efficiency [1][2][3]. Group 1: Business Strategy and Adaptation - Saint-O has experienced a rebound in order volume after initially facing challenges due to global trade complexities and inventory shortages in the U.S. market [1][2]. - The company has shifted its strategy to enhance responsiveness by seeking better suppliers and utilizing big data models to analyze market demand and predict order trends, thereby reducing inventory risks [1][3]. - The establishment of a cross-border e-commerce team in 2019 marked a significant turning point, leading to over 8 million yuan in sales that year [2]. Group 2: Government Support and Policy Environment - The local government has provided substantial support through training programs on international business management, tax compliance, and marketing, which has facilitated the company's cross-border operations [1][2]. - The implementation of the cross-border e-commerce comprehensive pilot zone 2.0 in Hangzhou has improved payment and settlement processes, further aiding the company's growth [1]. Group 3: Market Expansion and Operational Efficiency - Saint-O's cross-border e-commerce now accounts for one-third of its overseas business, with products available on major platforms like Amazon [3]. - The company has adopted a new model where third-party platforms place orders directly, reducing inventory pressure and logistics costs, which will be expanded to key markets in Europe and Japan [3]. - Future plans include using historical sales data and predictive analytics to optimize inventory turnover and create a more agile cross-border operation system [3].

Financial Data and Key Metrics Changes - The company reported a 7% revenue growth in Q1, with adjusted earnings per share of $0.20, up 25% year-over-year [6][16] - Adjusted operating margin for Q1 was 5%, an increase of 110 basis points compared to the previous year, driven by The Americas which posted a 6.7% margin [6][17] - Gross margin continued to expand for the twelfth consecutive quarter, with a 170 basis points improvement in Q1 [13] Business Line Data and Key Metrics Changes - In The Americas, orders from large corporate customers grew, while there was a less than 1% decline in total orders compared to the prior year [6][19] - The international segment experienced a 1% organic revenue decline, with growth in India, the UK, and China offset by declines in Germany and France [17][20] - Orders in The Americas were split with one-third coming from education and government sectors, and two-thirds from large corporate and other vertical markets [25][26] Market Data and Key Metrics Changes - The Americas saw strong order growth from large technology customers, while education and government sectors faced declines due to changes in federal funding policies [7][12] - Internationally, growth was hindered by macroeconomic challenges in Germany and France, impacting small to mid-sized businesses [20] Company Strategy and Development Direction - The company is focused on leading the transformation of the workplace, particularly for large corporate customers [8][11] - Strategic pillars include expanding market reach, supporting education amidst funding uncertainties, and strengthening profitability through cost reduction efforts [12][13] - The company is prioritizing investments in strategic growth initiatives while navigating tariff and trade policy uncertainties [14][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the momentum in large corporate customer investments, despite macroeconomic challenges [23][60] - The company anticipates continued strength in large corporate demand, driven by the need for workplace transformation [41][62] - Future guidance includes expectations for mid-single-digit organic revenue growth and expanded adjusted operating margins [32][33] Other Important Information - The company incurred $9 million in restructuring costs related to the exit of approximately 85 salaried employees [18] - Cash flow from operating activities showed a use of $141 million, primarily due to seasonal disbursements [19] Q&A Session Summary Question: Impact of education sector on orders - Management indicated that about one-third of orders in Q1 came from education and government, with the remaining two-thirds from corporate and other sectors [25][26] Question: Future order patterns in education - Education orders are expected to remain significant early in Q2 but will have less impact in the latter half of the year [27] Question: Pricing strategies and demand pull forward - A tariff recovery charge was implemented, leading to a pull forward of orders, but no significant orders were pulled from Q2 into Q1 [28][30] Question: Full year guidance and momentum - Management remains optimistic about mid-single-digit organic revenue growth, despite challenges in the education sector and international markets [31][32] Question: Profitability of international segment - The company is targeting consistent profitability in the international segment, with ongoing restructuring efforts [37] Question: Resilience of large corporate demand - Management noted that large corporate clients are investing in workplace transformation, reflecting a shift in work dynamics [40][62] Question: Conference room demand and future opportunities - There is significant opportunity to update the installed base of conference rooms, which have not kept pace with current technologies [48][49] Question: Gross margin expectations for Q2 - Guidance for Q2 gross margin is lower due to tariff impacts and expected declines in the education sector [50][51] Question: Future pricing increases - The company will continue to manage inflation through pricing increases if necessary, following historical patterns [56]

Core Viewpoint - The company focuses on creating a "formaldehyde-free" office environment through the use of green raw materials and innovative processes, aiming to promote health and sustainability in the workplace [1]. Group 1: Green Materials - The company utilizes its self-developed "Clear Core Board" as the main material, combining natural wood and environmentally friendly MDI glue, eliminating the use of formaldehyde adhesives found in traditional boards [2]. - The technology was developed in collaboration with Wanhua Chemical, which has extensive research and intellectual property in reducing formaldehyde emissions, providing technical support for enhancing the environmental performance of the boards [2]. Group 2: Smart Manufacturing - The company has introduced advanced technologies such as 3D laser edge banding and 7-PLUS water-based coatings to optimize the manufacturing process for "formaldehyde-free" products [4]. - A CNAS-certified laboratory conducts over 200 tests on raw materials, production processes, and finished products to ensure environmental standards are maintained throughout the product lifecycle [4]. Group 3: Industry Collaboration - The company actively collaborates with various enterprises, including Fenglin Wood Industry, Huafu Decorative Board, and Jinfat Technology, to establish the "Office Commercial Low Carbon Alliance," aimed at reducing product carbon footprints and promoting a low-carbon model in the industry [5]. - The alliance supports member companies in achieving green development goals by introducing eco-friendly carbon reduction technologies and sharing low-carbon experiences and results [5]. - The company remains committed to developing and producing high-quality office furniture using environmentally friendly materials, striving to create healthier and more comfortable office environments while promoting sustainable development in the office furniture industry [5].