Core Viewpoint - The company emphasizes its commitment to research and development (R&D) innovation since its establishment, focusing on cutting-edge technologies in the health industry [1] Group 1: R&D and Innovation - The company has maintained high levels of R&D investment for many years [1] - It possesses globally leading core technology in massage machine components [1] - The company integrates emerging technologies such as AI and IoT to innovate and accelerate the "AI + massage" smart upgrade of its products [1] Group 2: Product Development - The company aims to build sustainable product innovation capabilities and technological barriers [1]

Core Viewpoint - Guangzhou Tenglong Health Industry Co., Ltd. successfully completed its listing on the New Third Board, becoming the first company in the Guangzhou Development Zone and the second in Guangzhou to utilize the "green channel" mechanism for listing [1][5]. Group 1: Company Overview - Tenglong Health was established on December 1, 2006, and is registered in the Guangzhou Development Zone, focusing on the research, design, production, and sales of spa massage tub accessories [1][5]. - The company's main products are categorized into massage products, water treatment products, lighting products, and accessory products, and it is recognized as a provincial-level specialized and innovative small and medium-sized enterprise [1][5]. Group 2: Listing Process - The company entered the Guangdong "specialized and innovative" board on July 9, 2025, and submitted its application for New Third Board listing on September 30, 2025, which was accepted after two rounds of inquiries, taking a total of 55 trading days to complete the listing [1][5]. - The "green channel" mechanism significantly expedited the listing review process, demonstrating its effectiveness in enhancing efficiency [1][5]. Group 3: Support and Collaboration - The successful listing of Tenglong Health is a practical implementation of the work plan by the Guangzhou Municipal Government for enterprises to list on the national stock transfer system and the Beijing Stock Exchange [2][5]. - During the nurturing and guidance period, the Guangdong Equity Exchange Center collaborated closely with the Guangzhou Municipal Financial Office and other relevant entities to provide efficient and convenient listing services [2][6]. Group 4: Broader Industry Context - Guangzhou has established a multi-party collaborative service model for listing, involving local government, regulatory bodies, and stock exchanges, aimed at supporting specialized and innovative enterprises [3][7]. - The "green channel" initiative serves as an important measure for connecting the New Third Board with regional equity markets, providing expedited review processes for specific categories of enterprises [3][7]. Group 5: Future Plans - Moving forward, the Guangdong Equity Exchange Center will continue to work with various stakeholders to promote a collaborative listing service model, focusing on cultivating strategic emerging industry leaders with significant influence in the industrial chain [4][8]. - The goal is to expand the breadth and depth of capital market services and accelerate the listing of high-quality enterprises that meet the conditions for the New Third Board and the Beijing Stock Exchange [4][8].

Core Viewpoint - The continuous appreciation of the RMB is prompting foreign trade companies to expedite their currency settlement to mitigate losses from exchange rate fluctuations, which poses challenges for small and medium-sized enterprises in maintaining their price competitiveness [1][3]. Group 1: Currency Settlement Practices - Many foreign trade operators are adopting a strategy of settling currency immediately upon receipt of funds to avoid losses due to RMB appreciation [1][3]. - Small and medium-sized enterprises prefer timely currency settlement to maintain cash flow, often avoiding hedging strategies like locking in exchange rates [1][3]. - The recent trend of RMB appreciation has led to immediate currency settlement becoming a common practice among exporters, as they seek to minimize potential losses [1][3]. Group 2: Impact of RMB Appreciation - The RMB has reached a 14-month high, which is negatively impacting export companies by reducing the amount of RMB received from USD settlements [1][3]. - Companies may face immediate exchange losses, and raising product prices to protect profit margins could weaken their competitive pricing in the manufacturing sector [1][3]. - Increased demand for currency settlement at year-end may further drive RMB appreciation, creating additional pressure on exporters [1][3]. Group 3: Market Trends and Predictions - Analysts predict that the RMB may enter a "6 era" in the long term, with expectations of continued appreciation driven by seasonal capital flows and increased currency settlement needs as the Chinese New Year approaches [5][6]. - The RMB's recent strength is attributed to a decline in the USD index and increased settlement demand from companies as the year-end approaches [6][10]. - The Chinese government is focusing on stabilizing the RMB exchange rate to create a favorable trading environment for foreign trade enterprises, rather than allowing rapid appreciation [9][10]. Group 4: Trade and Economic Growth - China's goods trade maintained positive growth, with exports increasing by 6.2% and imports by 0.2% in the first eleven months of the year [7]. - The shift from price competition to brand and technology diversification is expected as companies adapt to exchange rate pressures, aligning with government initiatives to support service exports and digital trade [7][9]. - The overall economic strategy emphasizes boosting domestic consumption and enhancing the supply of quality goods and services, which is supported by a stronger RMB [6][7].

Core Viewpoint - The continuous appreciation of the RMB poses challenges for small and medium-sized foreign trade enterprises, leading them to adopt more timely settlement practices to mitigate exchange rate losses [3][5][6]. Group 1: Impact of RMB Appreciation - The RMB has reached a 14-month high, causing immediate exchange losses for export companies as the amount of RMB received from USD settlements decreases [3][5]. - Companies are increasingly settling their foreign exchange as soon as payments are received to maintain cash flow, rather than using hedging strategies [3][5][6]. - The appreciation of the RMB may force companies to raise product prices, potentially diminishing their competitive pricing advantage in the manufacturing sector [3][5]. Group 2: Market Trends and Predictions - Analysts predict that the RMB may enter the "6 era" in the long term, with expectations of continued appreciation driven by seasonal capital flows and increased foreign exchange inflows [9][12]. - The recent increase in the RMB's value is attributed to the decline in the US dollar index and heightened settlement demands as the year-end approaches [11][12]. - The Chinese government emphasizes the importance of boosting consumption and trade innovation, which aligns with the ongoing appreciation of the RMB [13]. Group 3: Recommendations for Enterprises - Experts suggest that companies should consider using financial derivatives like forward contracts to lock in favorable exchange rates during the RMB appreciation phase [15]. - The need for timely settlements is underscored by the current market conditions, where companies face pressure to manage their financial costs effectively [15].

Core Viewpoint - The company has a strong technical foundation in the field of skin detection but currently does not incorporate facial recognition in its massage products [1] Group 1 - The company has significant technological expertise in skin detection [1] - There is no involvement of facial recognition technology in the company's massage products at this time [1]

Core Viewpoint - The company is currently engaging in diverse collaboration models with various electric vehicle manufacturers, focusing on the development of massage products for automotive applications [1] Group 1: Collaboration Models - The primary collaboration model is centered around the development of aftermarket premium massage products [1] - The company is also exploring the development of multifunctional massage products tailored for in-car scenarios [1] Group 2: Product Development - There is an emphasis on creating interconnected products based on existing hardware massage offerings [1] - The company plans to investigate health-oriented massage solutions for smart cockpit environments in the automotive pre-installation market [1]

Summary of Delmar's Conference Call Company Overview - **Company**: Delmar - **Industry**: Home Appliances, Water Health, Personal Care Key Points and Arguments Financial Performance - In 2024, Delmar benefited from national subsidy policies, achieving nearly 30% revenue growth and doubling net profit, setting a new quarterly record [2][3] - Revenue for 2024 surpassed 3.5 billion yuan, with a net profit increase exceeding 30% [3] - The first quarter of 2025 continued the growth trend, driven by strategic market insights and effective execution [3] Business Segments - **Water Health**: - Achieved double-digit growth in 2024 and Q1 2025, with flagship countertop water purifiers solidifying market leadership [2][7] - The new product "New Ice Fun" added ice-making features, enhancing its appeal [2][7] - **Personal Care**: - Experienced mid-to-high-speed growth in 2024, but faced a decline in Q1 2025 due to adjustments in e-commerce channels [2][8] - OEM business saw double-digit growth in 2024 and rapid growth in Q1 2025, benefiting from brand popularity and deepened partnerships [2][9] Regional Performance - Domestic business grew approximately 10% in 2024, with the cleaning segment under pressure but other segments showing growth [4] - International business accounted for nearly 20% of revenue in 2024, with a 20% year-on-year increase [5] - Q1 2025 saw a slight decline in international business, but water health and massage products continued to grow [5] Product Strategy and Market Position - The cleaning business faced challenges, prompting a strategic review and new product planning for 2025, focusing on enhancing product value and consumer trust [6][23] - Delmar maintains a leading market share despite competition, driven by continuous product iteration and effective channel promotion [14] - The company plans to enhance its product line in the under-sink category, which has significant market potential [15] Market Trends and Challenges - The small appliance industry is seeing improved competition, but cost reductions are not solely due to this; they are also linked to product strength and effective marketing [12] - The water purification industry is attracting many brands, necessitating strong product capabilities to maintain market position [22] Future Outlook - Domestic market demand for cleaning appliances and water health products is expected to grow due to national subsidy policies [19] - The company is cautious about the impact of U.S. tariffs on its North American market strategy, focusing instead on strengthening its presence in Europe and Southeast Asia [20][21] - Delmar aims to optimize its overseas channel structure while enhancing resource allocation for better market penetration [21] Innovation and Technology - Delmar emphasizes user insights and experience in product development, aiming for a competitive edge through innovation [13] - The company plans to transition the production of its flagship product "New Ice Fun" to an in-house supply chain in the future [18] Conclusion - Delmar's strategic focus on innovation, market expansion, and effective resource allocation positions it well for continued growth in the competitive home appliance market [27]