Summary of the Conference Call for Rabbit Baby (兔宝宝) Company Overview - **Company**: Rabbit Baby (兔宝宝) - **Industry**: Wood-based panel and home furnishing industry Key Points Financial Performance - In the first three quarters of 2025, Rabbit Baby's overall performance remained stable despite a decline in panel business revenue. The sales volume of particleboard significantly increased to nearly 11 million sheets, with an expected annual total of 15-16 million sheets [2][4][5] - Revenue from auxiliary materials, such as edge banding strips, grew by 28.7% to 270 million yuan, while other decorative materials increased by 12.3% to 1.74 billion yuan [2][4] - The home furnishing segment saw a nearly 10% growth, with full-house customization products increasing by 5.5%, and significant growth in flooring brand usage fees (up 181%) and A-class wooden doors (up 80%) [2][4] Challenges Faced by Qingdao Yufeng - Qingdao Yufeng faced significant operational pressure, with a 61.2% year-on-year revenue decline to 102 million yuan and a net loss exceeding 100 million yuan. The company is expected to see a 50%-60% drop in annual sales [2][6] Market Trends and Product Strategy - The demand for particleboard is rapidly increasing, particularly in the full-house customization sector. Rabbit Baby launched the Cool Baby Financial Edition and Pure Core Edition series, achieving 2-3 times growth in regions like Hebei, Shanxi, and Inner Mongolia [2][9] - The company plans to increase particleboard sales to over 20 million sheets by 2026 and 30 million sheets by 2027, while multi-layer and ecological boards are expected to face varying degrees of decline [2][10] Supply Chain and Production Adjustments - Rabbit Baby is focusing on optimizing its product system and enhancing quality standards in response to challenges in raw materials and production equipment upgrades. The company has implemented strict controls on the supply chain, particularly for substrates and paper [3][15] - The particleboard market currently experiences oversupply, with actual demand around 40-45 million cubic meters against a production capacity of nearly 70 million cubic meters. The company is adopting a centralized procurement model rather than building its own factories [17][18] Competitive Landscape - Particleboard is increasingly used in full-house customization, especially in northern markets, where consumer preferences are shifting towards environmental performance and design aesthetics. Rabbit Baby aims to enhance its competitiveness by offering a range of products that meet diverse consumer needs [19] Auxiliary Materials Growth Potential - The growth of auxiliary materials, such as edge banding strips, is significant, with a current usage rate of 11-12%. The company aims to increase this to 16% [25][28] - The overall performance of auxiliary materials is expected to improve, with a focus on promoting hardware products, although their profit margins are relatively low (15%-20%) [25] Future Outlook - The company anticipates that the particleboard sales will reach approximately 15 million sheets in 2025, with a target of over 20 million sheets in 2026. Multi-layer and ecological boards are expected to decline by single-digit percentages and over 10%, respectively [10][29] Conclusion - Rabbit Baby is navigating a challenging market environment with strategic adjustments in product offerings, supply chain management, and a focus on enhancing quality and competitiveness in the particleboard sector. The company is well-positioned to capitalize on the growing demand for customized home furnishing solutions while addressing the challenges faced by its subsidiary, Qingdao Yufeng.

Core Viewpoint - The company held a performance briefing on November 6, 2025, to discuss its third-quarter results and address investor concerns, emphasizing its commitment to stable development and shareholder returns [1][2]. Group 1: Performance and Financial Measures - The company has completed two share repurchase plans using its own funds, with a total transaction amount of 329 million yuan (approximately 3.29 billion) [2]. - The company has received authorization from the 2024 annual general meeting to develop a mid-term dividend plan for 2025, which will be implemented based on market conditions [3]. Group 2: Business Operations and Strategy - The "pre-receipts" on the balance sheet refer to amounts received from customers before a formal contract is established, indicating a focus on customer payments prior to service delivery [3]. - Changes in the "contract liabilities" on the balance sheet are influenced by multiple factors, including customer prepayments, order confirmations, and fulfillment of performance obligations [4]. - The company aims to enhance its "whole home" strategy, focusing on organizational reforms and improving delivery capabilities while optimizing brand development [7]. Group 3: Market Environment and Challenges - The company anticipates significant uncertainty in the external business environment for 2026, with challenges in macroeconomic conditions and consumer confidence recovery [8]. - The company plans to counteract industry pressures through efficiency improvements and the implementation of its "whole home" strategy [8]. Group 4: Inventory Management - The company has seen a gradual decrease in inventory levels due to industry trends and operational efficiency improvements, with a focus on aligning inventory structure with business development needs [9].

Core Viewpoint - The company held a performance briefing on November 6, 2025, to discuss its third-quarter results and address investor concerns regarding stock price stability, dividend plans, and operational strategies [1][2][3]. Group 1: Performance Briefing Details - The performance briefing took place on November 6, 2025, from 15:00 to 16:00 [1]. - The meeting was conducted via an online text interaction platform [1]. - Key executives, including the Chairman and President, independent directors, and financial officers, participated in the briefing [1]. Group 2: Investor Questions and Company Responses - The company has executed two share repurchase plans totaling 329 million yuan, emphasizing its commitment to investor returns [2]. - The board has been authorized to develop a mid-term dividend plan for 2025, pending market conditions [3]. - "Prepayments" on the balance sheet refer to amounts received from customers before a formal contract is established [4]. - Changes in "contract liabilities" are influenced by multiple factors, including customer prepayments and order confirmations [5]. - The company does not currently disclose the revenue split between new and old home customers but aims to provide tailored products based on customer preferences [6]. - The company’s strategic vision is to become a world-class home furnishing enterprise, focusing on a "big home" strategy and enhancing operational capabilities [7]. - The company anticipates challenges in the external environment for 2026, including economic uncertainties and potential reductions in policy-driven demand [7]. - The decline in inventory levels is attributed to industry trends and improved operational efficiency, with ongoing efforts to optimize inventory management [7]. Group 3: Additional Information - Investors can access the performance briefing details and further communications through the company's investor relations channels [8].

Group 1 - The Chengdu exhibition market is experiencing a surge ahead of the upcoming holidays, with multiple large-scale exhibitions opening to stimulate consumer spending and prepare for the National Day and Mid-Autumn Festival economy [1][2] - The 13th TOPS Chengdu Pet Expo features over 500 exhibitors and more than 4,500 pet brands, covering the entire industry chain from food to medical supplies, creating an immersive experience for pet owners and their pets [1] - The first "Chengdu Enjoy Life Expo and Rongcheng Shopping Season" showcases a variety of experiences, including brand salons and health lectures, focusing on four key areas: maternity and baby, tourism, jewelry, and oral health [1] Group 2 - The 25th Sichuan Mid-Autumn Food Expo and Mooncake Culture Festival features nearly 200 enterprises and over 2,000 products, promoting rich Mid-Autumn flavors through various cultural activities [2] - The 4th Chengdu Huaxia Home Expo spans 22,000 square meters, attracting 107 well-known home brands and is expected to draw 25,000 visitors, directly generating approximately 80 million yuan in consumption [2] - Industry insiders believe that these series of exhibitions effectively showcase the vitality of the Chengdu consumer market and play a significant role in promoting holiday economy and urban consumption prosperity [2]

Core Insights - The company is launching the 12th season of the "National Kuka Day" event, emphasizing attractive products, services, and prices to reward consumers [2] - The event continues the tradition of deepening the understanding of home and enhancing the connection between Kuka Home and consumers [2] Group 1: Event Highlights - The "National Kuka Day" features a variety of quality products across different home spaces, focusing on technological innovation to enhance comfort [4] - The event includes a "Heartfelt Price Guarantee," allowing consumers to claim a price difference if the same product is sold at a lower price in the same store during the guarantee period [5] - Kuka Home has introduced electronic contracts to ensure transparency and security in transactions, reducing the risk of disputes and counterfeit products [5] Group 2: Delivery and Service Innovations - The company is redefining home delivery experiences through smart manufacturing and optimized supply chain management, ensuring faster and more accurate product delivery [7] - Kuka Home has achieved rapid delivery for certain products, with orders processed efficiently and shipped as quickly as the next day [7] - The company aims to provide a seamless experience from selection to installation, allowing consumers to focus on their needs without worrying about logistics [7] Group 3: Consumer Engagement - The event is designed to empower consumers' pursuit of quality living with significant discounts and enhanced service offerings [9]

Group 1: Shareholder and Stock Performance - The total number of shareholders as of March 31, 2025, is 9,882 [3] - The stock price fluctuations are influenced by market conditions, macroeconomic factors, and investor sentiment, with no undisclosed negative information affecting the company [2][5] - The major shareholder's share transfer is ongoing and has not yet been completed [1] Group 2: Financial Performance - In 2024, the company achieved a revenue of 885.88 million CNY, with a net profit attributable to shareholders of -374.76 million CNY, indicating a decline due to industry conditions and market competition [4] - The overall furniture manufacturing industry in China reported a revenue of 677.15 billion CNY in 2024, with a year-on-year growth of 0.4% and a profit total of 37.24 billion CNY, down 0.1% from the previous year [5] Group 3: Strategic Initiatives - The company plans to enhance its brand positioning in the mid-to-high-end market, improve product quality, and optimize customer revenue structure by focusing on quality real estate developers [4][6] - The introduction of advanced production lines and lean manufacturing principles aims to improve production efficiency and product quality [5] - The company is expanding its sales channels through a combination of direct sales and partnerships with real estate clients, aiming for a comprehensive marketing service network [6] Group 4: Market Outlook - The ongoing urbanization and renovation demands are expected to provide structural growth opportunities for the industry [5] - The custom furniture market is in a growth phase with significant potential for increased market concentration due to evolving consumer preferences and diversified channels [5]

Investment Rating - The report does not explicitly state an investment rating for the home decoration and building materials industry or the specific company involved. Core Insights - The joint venture established by the company aims to create a smart home IoT open platform, integrating resources from all parties involved to enhance consumer experience and product offerings [9][10]. - The company anticipates a revenue growth target of 10%-16% for 2025, based on the employee stock ownership plan performance assessment [11]. - The company is focusing on optimizing its store network, with a trend of increasing store numbers after closing underperforming locations [15]. Summary by Sections Joint Venture Overview - The company signed an investment cooperation agreement to establish a joint venture with Bee Assistant and Good Wife, with a registered capital of 50 million yuan, where the company holds a 50% stake [9]. - The joint venture will leverage the company's full-house customization products and digital resources to develop smart home products [9]. Investor Q&A - The joint venture's business model focuses on developing smart home products and creating an open platform for digital goods, providing diverse options for consumers [10]. - Initial sales strategies will include both online and offline channels, targeting both C-end consumers and B-end enterprise clients [11]. - The joint venture will utilize existing channels from the company and Good Wife for rapid market penetration [11]. Market Trends and Goals - The company expects a gradual recovery in order trends influenced by national subsidy policies and seasonal factors [11]. - The company plans to maintain steady growth in bulk channels, which are seen as a major contributor to revenue [15]. - The shift in channel structure is expected to impact the overall gross margin, but individual channel margins are projected to remain stable [15]. Store Network and Sales Strategy - The company is optimizing its store network by closing underperforming locations while opening new, strategically located stores [15]. - The sales expense ratio may not decrease significantly due to the costs associated with opening new stores [15].