Core Viewpoint - OgaHua is facing significant challenges in its business performance, particularly in the massage chair segment, with declining revenues and increasing operational pressures due to reliance on overseas markets and changing consumer demand [1][2][3]. Financial Performance - OgaHua's revenue has declined from approximately 60.24 billion in 2022 to about 50.3 billion in 2023, with Q1 2023 revenue at around 10.51 billion, representing an 11.15% year-on-year decrease [1][2]. - The company reported a net profit of approximately 499.7 million in Q1 2023, largely due to non-operating income, while the adjusted net profit showed a loss of about 996 million, marking the first loss in three years [2]. Market Dynamics - The massage chair market is currently facing a downturn, with OgaHua lagging behind competitors like Rongtai Health, which reported a slight revenue increase of 3.86% in Q1 2023 [2]. - OgaHua's international sales accounted for 68.94% of its total revenue, with significant reliance on markets in Europe, North America, and Southeast Asia, which are currently experiencing weak demand [2][3]. Strategic Initiatives - OgaHua plans to expand its market presence in countries along the "Belt and Road" initiative and enhance its cross-border e-commerce channels to mitigate current challenges [4]. - The company is also focusing on diversifying its product offerings beyond massage chairs to include health-related appliances, which previously helped maintain revenue during the pandemic [6]. Operational Challenges - The marketing pressure for massage chairs is high due to their non-essential nature and high price points, leading to longer consumer decision-making processes [5]. - OgaHua is reducing operational costs, with sales expenses down by 2.47% and R&D expenses down by 9.57% in 2023, indicating a need to manage financial strain amid declining revenues [4].

Core Viewpoint - Rongtai Health reported a decline in revenue and net profit for 2024, with a significant drop in Q4 and Q1 of 2025, while maintaining a high dividend payout ratio of 59.3% [1][4] Financial Performance - 2024 revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 1.6 billion, 190 million, and 160 million yuan, respectively, representing year-on-year declines of 14%, 5%, and 12% [1] - Q4 2024 figures were 430 million, 50 million, and 40 million yuan, with year-on-year declines of 22%, 3%, and 30% [1] - Q1 2025 figures were 390 million, 40 million, and 30 million yuan, with year-on-year changes of -1%, -30%, and -47% [1] Sales Performance - In 2024, revenue from massage chairs, small massage appliances, and experiential massage services were 1.52 billion, 50 million, and 5 million yuan, with year-on-year changes of -14%, -29%, and +0.8% [2] - Domestic and overseas market revenues in 2024 were 650 million and 920 million yuan, with year-on-year declines of 20% and 10% [2] - The overseas market showed mixed results, with declines in Korea and the US, while Europe and the Middle East saw stable growth [2] Profitability Metrics - Gross margin for 2024 and Q1 2025 were 31.7% and 32.5%, with year-on-year changes of +1.1 and -3.0 percentage points [3] - Expense ratios for sales, management, R&D, and financial expenses in 2024 were 11.3%, 5.4%, 5.0%, and -1%, with year-on-year changes of +0.5, +1.2, +0.7, and -0.2 percentage points [3] - Net profit margin for 2024, Q4 2024, and Q1 2025 were 12%, 11.4%, and 11.1%, with year-on-year changes of +1.1, +2.3, and -4.5 percentage points [3] Investment Outlook - The company is a leader in the domestic massage chair industry, focusing on channel reform and online content investment, with expected benefits from national subsidy policies in 2025 [4] - The company is expanding overseas and exploring new business areas such as automotive lightweight massage components and smart home devices [4] - The new employee stock ownership plan reflects long-term confidence in development, with projected net profits of 210 million and 240 million yuan for 2025 and 2026, corresponding to EPS of 1.2 and 1.3 yuan [4]