Core Viewpoint - Nanshing Co., Ltd. has experienced a significant decline in profitability and shareholder confidence, yet its stock has seen consecutive trading limits, raising questions about the underlying reasons for this market behavior [1]. Group 1: Financial Performance - The company's revenue from 2021 to 2024 was 2.777 billion, 2.96 billion, 3.629 billion, and 3.332 billion yuan, indicating a downward trend starting in 2023 [4]. - The gross profit margin has consistently decreased from 23.48% in 2021 to 18.99% in 2024, with a further drop to 16.3% in the first half of 2025 [6]. - Nanshing's net profit attributable to shareholders was 291 million, 290 million, 173 million, and -175 million yuan from 2021 to 2024, showing a continuous decline in profitability [11]. - The company reported a net profit forecast for 2025 between 90 million and 120 million yuan, a significant improvement from a loss of 175 million yuan in the previous year [10]. Group 2: IDC Business and Market Position - Nanshing Co. aims to enhance its performance through its IDC and cloud computing services, which have grown to account for 53.96% of its revenue by the first half of 2025, up from 0.52% in 2020 [14]. - Despite the increase in revenue share, the IDC business has a low gross profit margin of around 10%, which is significantly below the industry average of 30%-35% for major players [14]. - The company has faced challenges in integrating its acquired IDC subsidiary, leading to substantial asset impairment losses, which reached 385 million yuan in 2024 [7]. Group 3: Shareholder Dynamics - The proportion of shares held by the top ten shareholders decreased from 46.33% to 41.64% in 2025, indicating a significant exit of institutional investors [19]. - The company's stock price has been under pressure, with a notable reduction in shareholding by key stakeholders, including a recent sale by the vice president [20].

Core Viewpoint - Nanshing Co., Ltd. has experienced a significant decline in profitability, with its core subsidiary facing substantial impairment losses and institutional shareholders withdrawing, yet the company has recently seen a series of stock price increases despite a generally rising market in 2025 [1] Financial Performance - The company's revenue from 2021 to 2024 was 2.777 billion, 2.96 billion, 3.629 billion, and 3.332 billion respectively, indicating a decline post-2023 [3] - Gross margin has consistently decreased from 23.48% in 2021 to 18.99% in 2024, further dropping to 16.3% in the first half of 2025 [4] - Net profit attributable to shareholders from 2021 to 2024 was 291 million, 290 million, 173 million, and -175 million respectively, showing a continuous decline in profitability [6] Impairment and Subsidiary Performance - The company has faced significant asset impairment losses, with 385 million in 2024 attributed to the underperformance of its IDC subsidiary, Guangdong Unique Network Technology Co., Ltd. [5] - Despite a forecasted net profit of 90 million to 120 million for 2025, a substantial decline of 55.69% in net profit for the first three quarters of 2025 compared to the previous year indicates ongoing challenges [7] IDC Business Outlook - Nanshing Co., Ltd. aims to enhance performance through its IDC and cloud computing services, which have grown to account for 53.96% of total revenue by the first half of 2025, up from 0.52% in 2020 [8] - However, the IDC business has a low gross margin of around 10%, significantly below the industry average of 30%-35% for major operators [8] - The company faces intense competition from larger firms, which have established scale advantages and higher margins, leading to a challenging environment for smaller players like Nanshing [9] Shareholder Sentiment - The proportion of shares held by the top ten shareholders decreased from 46.33% to 41.64% in 2025, indicating a withdrawal of institutional investors amid concerns over the company's performance [9] - Recent insider selling, including the vice president's sale of shares, has further fueled investor skepticism regarding the company's future prospects [10]

Core Viewpoint - The company is strategically positioning its new factory in Foshan as a high-end equipment R&D and production base, focusing on various furniture machinery products to enhance competitiveness in the smart manufacturing sector [1] Group 1: Company Strategy and Operations - The Foshan new factory will primarily produce CNC panel saws, intelligent processing centers, one-person lines, sanders, packaging lines, and multi-axis machining centers [1] - The company is committed to continuous R&D for product technological innovation and actively expanding both domestic and international markets to respond to changes in the industry and increase market share [1] - The company adjusts its production schedule dynamically based on order conditions, ensuring normal and orderly production operations [1] Group 2: Product Applications and Market Engagement - The products from Danqi Precision Engineering have potential applications in various fields, and the company has initiated discussions and collaborations with downstream customers [1] - Some business areas are still in the cultivation and development stage, with expectations for them to become new growth points in the future [1] - The company will continue to focus on its core business and actively enhance operational performance to provide returns to investors [1]

Group 1: Company Performance and Strategy - The company has maintained stable performance despite challenges in the real estate and home decoration industries, primarily through technological advancements and market expansion [2][3]. - The company exports to over 70 countries, with a low revenue share from the U.S. market, indicating a strategic focus on international market development [3]. - The company plans to utilize new production capacity over the next 3-5 years, aiming for growth despite current market constraints [3][4]. Group 2: Financial Metrics and Shareholder Returns - The company has distributed over 1.353 billion CNY in cash dividends since its listing, emphasizing a commitment to shareholder returns [4]. - The company is actively managing its 600 million CNY convertible bonds, ensuring timely repayment and compliance with regulations [4]. - The company reported a 34% share of overseas business, with minimal impact from recent tariff policies [4]. Group 3: Product Development and Market Trends - The new composite drilling and milling center has shown good market acceptance, addressing complex production needs in the custom furniture sector [3][5]. - The company is focusing on smart manufacturing solutions to enhance production efficiency and meet the growing demand for customized products [5][6]. - The furniture equipment industry is undergoing a transformation towards intelligent manufacturing, with the company positioned as a leader in this transition [5][6]. Group 4: Market Outlook and Competitive Position - The overall industry is experiencing revenue contraction and profit pressure, yet the company has managed to increase its market share and maintain relatively good performance [6]. - Future growth will be driven by expanding into emerging markets and increasing the proportion of mid-to-high-end products [5][6]. - The company is committed to continuous innovation and product upgrades to support sustainable industry development [5][6].