Summary of the Conference Call for Bear Electric (小熊电器) Company Overview - **Company**: Bear Electric (小熊电器) - **Industry**: Home Appliances Key Points and Arguments Organizational Restructuring and Efficiency - Bear Electric has integrated its kitchen divisions to optimize resource allocation and enhance operational efficiency, establishing five main divisions: kitchen, lifestyle, various households, emerging categories, and overseas [2][4] - The restructuring aims to improve decision-making efficiency and reduce costs, particularly in channel expenditure [4][5] Focus on Emerging Categories - The company plans to increase investment in emerging categories, particularly in maternal and infant products, aiming for a growth rate of 30-40% in the first three quarters of 2026 [7][10] - Bear Electric is also exploring other emerging areas such as pet products and will seek complementary acquisitions [7] Overseas Market Strategy - Bear Electric will promote its own brand distribution in Southeast Asia and has established a self-operated team in Indonesia to manage business development [11] - The company’s overseas strategy includes a balanced approach between revenue and profit, avoiding a sole focus on profitability to ensure reasonable growth [12] Acquisition of Roman - The acquisition of Roman has shown positive performance, with significant growth attributed to its R&D advantages and client expansion capabilities [8][19] - Bear Electric aims to leverage the integration experience from Roman for future acquisitions, focusing on retaining the strengths of acquired teams while providing necessary guidance [19][20] Economic Environment and Challenges - The home appliance industry is currently facing a weak overall market, prompting Bear Electric to adjust its strategies, including organizational changes and resource allocation [6][9] - The company is also focusing on profit-oriented strategies, reducing low-margin SKUs, and optimizing channel expenses in response to economic pressures [9] Research and Development Investment - Bear Electric plans to gradually increase R&D personnel and funding to meet the growing consumer demands, emphasizing design and quality in product development [3][14][15] - The company recognizes the need for enhanced product quality and emotional value, especially in a competitive market [15] Incentive Measures and Capital Expenditure - In 2026, Bear Electric plans to implement an equity incentive program to retain talent and provide reasonable market guidance, although specific timelines are pending [3][18] - The company currently does not foresee significant capital expenditures but may consider long-term overseas factory plans [18] Pricing Strategy and Subsidy Adjustments - Bear Electric has adjusted its pricing strategy in response to subsidy policies, with approximately 10% of total revenue coming from subsidies [13] - The company is closely monitoring competitor policies to make necessary adjustments in pricing and marketing strategies [13] Additional Important Insights - The company is aware of the competitive landscape and is taking proactive measures to enhance its market position through acquisitions and strategic adjustments [6][9] - Bear Electric's focus on the maternal and infant product category is driven by strong demand and consumer willingness to pay a premium for quality [17]

Core Viewpoint - The company reported strong performance growth in the first three quarters of the year due to proactive internal adjustments [1] Group 1: Sales Performance - In Q3, categories such as pots, kettles, electric products, and maternal and infant products showed significant growth [1] - The company successfully guided product structure enhancement, leading to improvements in product volume, pricing, and gross margin [1]

Core Viewpoint - The company has a diversified product matrix, with a focus on kitchen appliances, home appliances, and other products, including maternal and infant products, which are expected to enhance market share and product variety in the future [1] Group 1: Product Categories - The company's products are categorized into three main types: kitchen appliances (68.42% of sales), home appliances (17.37% of sales), and other products (12.39% of sales) for the year 2024 [1] - Maternal and infant products include items such as milk warmers, formula dispensers, complementary food makers, and sterilizers [1] Group 2: Sales Performance - The sales revenue distribution for 2024 indicates a strong emphasis on kitchen appliances, which dominate the sales figures, while maternal and infant products are part of the smaller segment [1] - The company aims to consolidate its existing advantages in kitchen appliances while introducing innovative products to meet market demands and increase the variety of its offerings [1]