Group 1: Financial Performance - The company achieved a revenue of 1.339 billion yuan, representing a year-on-year growth of 6.16% [3] - The net profit attributable to shareholders was 31.2508 million yuan, a decline of 45.32% compared to the same period last year [3] Group 2: Domestic Market Conditions - Domestic consumer demand remains weak, leading to a decrease in the procurement needs of existing downstream customers for shoe and bag leather [4] - The company is actively adjusting sales channels and expanding into internet brand customers, resulting in growth for certain clients [4] Group 3: Overseas Market Expansion - The company entered the adidas supply chain in the first half of 2024, with revenue contributions remaining stable [4] - New partnerships with brands like ZARA have been established, and the company is expanding its overseas factories in Indonesia and Vietnam to meet local supply demands [4][5] - The gross margin for overseas products is higher than that of domestic sales, which is expected to enhance profitability as overseas sales increase [4] Group 4: Automotive Interior Leather Performance - The subsidiary, Hongxing Automotive Leather, achieved a revenue of 375 million yuan, a year-on-year increase of 26.95% [6] - The net profit for this segment was 7.65654 million yuan, reflecting a growth of 30.91% [6] - The company is collaborating with various automotive brands, including NIO and Jianghuai Automobile, to supply high-end interior leather products [6]

Group 1: Market Trends - Consumer preferences have shifted towards comfort, functionality, and fashion, leading to a decline in demand for traditional business leather shoes [2] - The demand for natural leather products has decreased domestically, while the overseas market shows signs of recovery, particularly in Europe and the U.S. [2] Group 2: Financial Performance - In 2024, the company achieved a revenue of CNY 2.95 billion, a year-on-year increase of 9.32%, but net profit decreased by 23.97% to CNY 142 million [3] - In Q1 2025, revenue reached CNY 627 million, a 5.04% increase year-on-year, while net profit fell by 45.31% to CNY 18.94 million [3] Group 3: Production and Supply Chain - The company acquired full ownership of a Vietnamese company to enhance production capabilities and meet local supply chain demands [4] - The leather business for shoes and bags is seasonal, with higher revenues expected in the second half of the year; however, domestic demand has weakened [4] Group 4: Automotive Leather Business - The automotive leather segment is expected to grow in 2025, with new customer acquisitions and increased model specifications compared to the previous year [5] - Natural leather remains preferred for mid-to-high-end vehicles due to its luxury attributes, despite the presence of alternative materials like PU and microfiber [6] Group 5: Trade and Tariff Impact - The U.S. has temporarily paused additional tariffs on products exported from Vietnam, which currently does not directly impact the company's operations [6]