Summary of Hailong Cold Chain Conference Call Company Overview - **Company**: Hailong Cold Chain - **Industry**: Cold Chain Equipment Manufacturing Key Points and Arguments Financial Performance - **Q3 2025 Revenue**: - Frozen domestic sales revenue reached 281 million CNY, a year-on-year increase of 25.79% driven by strong ice cream sales and increased equipment deployment [2][4] - Cold storage business grew over 20% in the first three quarters, attributed to new customer acquisition and increased supply share, particularly with major clients like Coca-Cola and Pepsi [2][12] - Supermarket domestic sales revenue surged 140% to 130 million CNY, mainly due to increased orders from traditional clients and new partnerships in the snack wholesale sector [2][19] Market Challenges and Opportunities - **North American Market**: - Faced challenges due to tariffs and prior customer stockpiling, leading to poor performance this year. However, recovery is expected next year as the Indonesian factory can provide lower tariff supply channels (19%) [2][8] Gross Margin Analysis - **Gross Margin Decline**: - Overall gross margin decreased due to changes in product mix, particularly in frozen products where margins fell by approximately 2 percentage points [2][13] - Cold storage domestic gross margin improved to 14.5%, while external gross margin decreased to 22.8%, down 4 percentage points year-on-year due to customer stockpiling and tariff pressures [15] Future Outlook - **Optimistic Projections**: - The company maintains a positive outlook for all business segments, expecting a recovery in North American orders and continued growth in domestic markets, particularly in ice cream sales [9][11] - The Indonesian factory is on track for trial production by the end of November, with a first-year target capacity of 100,000 units and a long-term goal of 500,000 units [2][17] Sales and Marketing Strategy - **Sales Expense Management**: - Sales expenses have remained stable, with a slight increase of about 1 million CNY compared to last year, indicating effective cost management despite growth initiatives [18] Product Development and Market Expansion - **Smart Cabinet Market**: - Demand for smart cabinets is expected to grow, although competition for prime locations has intensified, leading to short-term fluctuations in deployment [21] - **Pharmaceutical Cabinet Development**: - The pharmaceutical cabinet business is in early stages, with product trials ongoing but expected to take time before generating significant revenue [24][25] Dividend Policy - **Dividend Commitment**: - The company plans to maintain a dividend policy of no less than 50% [3][28] Conclusion - **Growth Strategy**: - The company is focused on expanding its market presence, particularly in Southeast Asia, and enhancing its product offerings to maintain competitive advantages in both domestic and international markets [16][22]