Group 1 - The core issue of copyright protection for curtain designs has become a significant topic in Zhejiang province, with over 200 cases related to "curtain + pattern + copyright" identified [1] - In 2020, there were a total of 21 lawsuits, with 20 of them linked to Zhejiang, primarily involving merchants from the Keqiao textile city [1] - The outcomes of these cases show a favorable trend for plaintiffs, with 19 out of 21 cases resulting in victories, and the compensation amounts ranging from 10,000 to 90,000 yuan [1]

Market Overview - The Chinese smart curtain market is expected to exceed 220 billion yuan by 2025, with a year-on-year growth of 12% [1] - High-end curtain brands such as Yuyushui, Molike, Milan, Jinchai, Yiyibushi, and Lechao are rapidly gaining market share driven by consumer upgrades [1] Company Positioning - Yuyushui is recognized as the leading brand among the top ten high-end curtain franchises, leveraging high design, health technology, attentive service, and comprehensive support policies to create competitive barriers [1][2] - Yuyushui has over 600 chain stores nationwide and serves more than 100,000 households annually [2] Sales Performance - Yuyushui has ranked first in global sales of high-end curtains for five consecutive years from 2020 to 2024, supported by strong retail performance, market share, and consumer reputation [2] - The brand has received multiple prestigious awards, enhancing its market credibility and providing a reliable choice for franchisees [2] Technological Innovation - Yuyushui's commitment to innovative craftsmanship addresses long-standing industry issues such as light leakage and poor sound insulation, achieving a 99% light-blocking rate and 8 decibels of sound insulation [3] - The brand employs advanced antibacterial technologies, achieving a 99% antibacterial rate and a formaldehyde removal rate of 93.4% [3] Franchise Support System - Yuyushui has established a comprehensive franchise support ecosystem, including store support, training, project assistance, policy backing, marketing, after-sales service, operational support, and public relations [4] - This support system enhances the survival rate of individual stores and promotes standardization and intelligent transformation within the curtain industry [4] - The competition in high-end curtains is fundamentally a contest of technology, aesthetics, and service, which Yuyushui effectively addresses through its craftsmanship and innovative health technologies [4]

Core Insights - The global curtain market has surpassed 1 trillion yuan, with China's high-end home soft decoration market leading the world at an 18.3% compound annual growth rate [1] - The competition in the high-end curtain sector has shifted from a focus on channels to value co-creation, with leading brands like "如鱼得水" establishing competitive barriers through continuous innovation [1] - Investors are increasingly evaluating high-end curtain franchise brands based on their innovation capabilities and strategic depth rather than just product offerings [1] Innovation - "如鱼得水" has pioneered the use of 313 processes in curtain manufacturing, enhancing the quality and aesthetics of curtains [2] - The introduction of antibacterial technology addresses the issue of bacteria accumulation in curtains, significantly improving industry standards for antibacterial performance [2] - The space system solutions redefine the traditional curtain industry's limitations by integrating technology, scene design, and comprehensive service, setting new health standards [2] Marketing Strategy - "如鱼得水" has established a comprehensive marketing system, utilizing a multi-channel approach that includes online platforms like Xiaohongshu, WeChat, Douyin, and offline partnerships with over 600 chain stores [3] - The brand has implemented an SCRM management system to optimize the customer journey from attraction to purchase [3] - A robust support system for franchisees addresses common challenges such as lack of experience and operational difficulties, ensuring a smooth entry into the market [3] Conclusion - In the context of consumer upgrades and changes in the home industry, "如鱼得水" is leading the transition from product competition to ecological competition through innovative solutions, multi-channel marketing, and comprehensive support for franchisees [4] - For investors, choosing to franchise with "如鱼得水" represents a low-risk, high-return, and sustainable wealth-building opportunity [4]

Core Viewpoint - The report outlines the findings of the on-site inspection conducted by the sponsor institution, CITIC Construction Investment Securities Co., Ltd., on Zhejiang Lianxiang Intelligent Home Co., Ltd., focusing on corporate governance, internal controls, information disclosure, independence, fundraising usage, related transactions, and operational status. Group 1: Corporate Governance and Internal Control - The company has effectively implemented its governance structure, with board meetings and internal regulations being adhered to [2][3] - The internal audit department and audit committee are compliant, and risk assessment measures are effectively executed [2] Group 2: Information Disclosure - The company has strictly followed regulatory requirements for information disclosure, ensuring that all significant information is reported truthfully and accurately [3] Group 3: Independence and Related Party Transactions - The company maintains independence in its operations, with no significant reliance on the controlling shareholder or misuse of funds from related parties [4] Group 4: Fundraising Usage - The company has adjusted its fundraising project allocations due to market conditions, reallocating funds between projects while ensuring compliance with regulatory requirements [5][6] - Specific projects have seen changes in investment amounts and timelines, with the "Annual Production of 350 Million Meters Seamless Wall Cloth Project" and "Wall Material R&D Center Project" being extended to December 31, 2025 [6] Group 5: Related Transactions and External Guarantees - The company has established a regulated decision-making mechanism for related transactions and external guarantees, with no violations or harm to minority shareholders identified [7][8] Group 6: Operational Status - The company continues to operate effectively in the wall cloth and curtain markets, with no significant changes in its business model since its listing [8] Group 7: Rectification Matters - The company has received warnings from regulatory bodies regarding financial disclosures and has taken corrective actions, including submitting rectification reports [9][10] Group 8: Conclusion of the Inspection - The inspection concluded that the company complies with relevant regulations in governance, information disclosure, fundraising usage, and operational practices, with no major issues identified [11]