Group 1 - The core viewpoint of the news is that the private equity firm Xiangju Capital has conducted research on the listed company Lehui International, revealing insights into its financial performance and strategic direction for 2024 and beyond [1] Group 2 - Lehui International's projected revenue for 2024 is 1.49 billion yuan, representing a year-on-year decline of 9.77%, while the net profit attributable to shareholders is expected to be 21.1 million yuan, an increase of 7.16% [1] - The operating cash flow for Lehui International is reported at 334 million yuan, showing a significant increase of 5,321.62% [1] - The equipment segment remains stable with a profit of 96.38 million yuan, showing consistent annual growth [1] - The fresh beer segment is projected to incur a loss of 75.28 million yuan in 2024, despite a sales growth of 33.36%, which aligns with expectations [1] - In the first quarter of 2025, Lehui International's revenue reached 206 million yuan, with a net profit of 8.94 million yuan, marking a substantial increase of 160.61% compared to the same period in 2023 [1] - The fresh beer segment achieved an EBITDA profit of 2.02 million yuan [1] - The company is focusing on developing markets with breweries, launching self-developed fresh beer machines, and expanding its small tavern business through comprehensive franchising [1] - Lehui International is establishing a "fresh beer 30-kilometer" barrier, continuously investing in brand content, and promoting at store terminals [1] - The equipment segment has a clear development direction, aiming to expand into overseas markets and diversify horizontally, with beer equipment revenue now accounting for approximately 60% [1] - The company achieved an EBITDA profit of 2 million yuan in the first quarter through cost reduction and efficiency improvement, with future focus on effective expansion and maintaining profitability [1] - The first phase of the Wuhan factory has been put into production, and construction has started for factories in Kunming and Changchun, with capital expenditures aligned with sales and profit conditions [1] - Lehui International is advancing its whiskey and brandy business, having completed a domestic whiskey line project [1] - The company aims to secure better contract terms and has dedicated personnel to monitor receivables, enhancing cash flow management efficiency [1] - The Nanjing company is one of the few domestic suppliers of log6 level sterile filling equipment, primarily serving beverage and liquor filling enterprises [1]

Summary of Lehui International Conference Call Company Overview - **Company**: Lehui International - **Industry**: Beer Equipment and Craft Fresh Beer Key Points and Arguments Financial Performance - In 2024, Lehui International's beer equipment business maintained a profit of approximately 96 million yuan, while the craft fresh beer segment incurred losses but is expected to turn profitable by 2025 [2][4] - The net cash flow reached 330 million yuan in 2024 and 175 million yuan in Q1 2025, indicating significant financial improvement [3] Business Segments - The beer equipment segment is stable, while the craft fresh beer segment has shown excellent development despite initial losses [2][4] - The company has established five large-scale factories in major cities and plans to replicate its successful business model in the craft fresh beer market [2][6] Market Position and Strategy - Lehui International has positioned itself as a leader in the cold chain short-term preservation fresh beer sector, with a unique business model and technological advantages [2][11] - The company employs a high-end pricing strategy, with fresh beer prices 50%-60% higher than mainstream premium beers, which has been well-received in the market [5][13] Growth Potential - The fresh beer market currently holds less than 1% market share but is viewed as a future trend, with major groups launching fresh beer products [11][12] - The company anticipates significant growth in the fresh beer segment, with a target to increase sales through direct-to-consumer channels and franchise models [10][17] Operational Improvements - Cash flow improvements are attributed to enhanced project execution quality, diversified market structure, and dedicated management of receivables [8][9] - The company plans to transition from direct operation to franchising to reduce asset depreciation costs and improve profitability [10] Challenges and Future Goals - The fresh beer segment's losses in 2024 were due to high asset depreciation and fixed personnel costs, but these are expected to stabilize as sales scale up [10] - The goal for 2025 is to achieve breakeven, focusing on sustainable growth rather than aggressive sales tactics [30][31] ODM and Equipment Business - The ODM business is progressing well, focusing on high-quality clients and maintaining reasonable profit margins [22] - The equipment segment has seen significant advancements, with a strong market presence and plans for further technological improvements [23][24] Market Trends and Competitive Landscape - The fresh beer market is expanding, with a growing acceptance of draft beer machines, which enhance customer experience [20][21] - Lehui International is well-positioned to capitalize on the increasing demand for high-quality domestic products amid international competition [25] Investor Outlook - Despite a low current market valuation, the company has a solid foundation and clear future plans, making it an attractive investment opportunity [26] Revenue and Sales Channels - In 2024, the company achieved revenues of 140 million yuan, with a notable increase in sales through distributor channels [27][28] - The first quarter of 2025 showed promising results, with beer business losses decreasing and new partnerships established in the packaging equipment sector [29] Additional Important Insights - The company maintains a focus on long-term growth strategies, avoiding short-term promotional tactics that could undermine sustainable development [30][31] - Lehui International's commitment to quality and innovation positions it favorably in the competitive landscape of the beer industry [24][25]