Financial Data and Key Metrics Changes - Net sales increased by 11% year-over-year to $684 million, with homes sold rising by 4% to 6,771 homes [5][10] - Consolidated gross profit rose by 13% to $188 million, with gross margin expanding to 27.5%, an increase of 50 basis points from the prior year [12][13] - Net income attributable to the company increased by $3 million to $58 million, resulting in earnings of $1.03 per diluted share compared to $0.94 per diluted share in the same period last year [13] Business Line Data and Key Metrics Changes - Sales through independent retail channels grew compared to the prior year, supported by effective marketing and digital capabilities [6] - Captive retail sales increased due to the acquisition of Eisman Homes and a shift towards more multi-section homes [6][7] - Community channel sales were down slightly due to inventory balancing and softening consumer confidence, while builder-developer channel sales grew [8][10] Market Data and Key Metrics Changes - U.S. factory-built housing revenue increased by 11%, with the average selling price per U.S. home sold rising by 7% to $98,700 [10][11] - Canadian revenue increased by CAD 26 million, representing a 10% increase in homes sold, with the average home selling price rising by 7% to CAD 133,300 [11] Company Strategy and Development Direction - The company continues to focus on customer-centric strategic priorities, including product innovation and advocacy for off-site-built homes [3][4] - Collaboration with local governments, such as the New York State Homes and Community Renewal, reflects the company's commitment to affordable housing solutions [4][5] - The company is monitoring legislative developments, such as the Road to Housing Act, which could enhance market opportunities for off-site-built homes [4][36] Management's Comments on Operating Environment and Future Outlook - Management anticipates third-quarter revenue to be flat compared to the previous year, influenced by external factors such as hurricanes affecting sales [17] - The company remains confident in its strategies and the broader trends supporting off-site-built homes, despite cautious consumer sentiment [17][36] Other Important Information - Manufacturing backlog at the end of September totaled $313 million, with an average backlog lead time of eight weeks [6][10] - The company returned $50 million to shareholders through share repurchases, reflecting confidence in its cash generation capabilities [15][16] Q&A Session Summary Question: Can you explain the trends in the community and builder-developer markets? - Community sales were down due to inventory adjustments and softening markets, while builder-developer sales grew, indicating a positive pipeline [20][21] Question: What is the impact of the average selling price (ASP) increase? - Approximately 37% of sales went through captive retail stores, up from 34% last year, contributing to the ASP increase driven by a shift to multi-section homes [22][23] Question: How are orders trending as of October? - Reports indicate good traffic and order encouragement, but production rates are being adjusted based on market conditions [29][30] Question: What are the expectations for ASPs and sales in Q3? - ASPs are expected to remain stable, but sales may decline mid-single digits due to community channel impacts [41][42] Question: What are the implications of the Road to Housing Act? - The legislation could open up opportunities in municipalities and enhance product offerings, but full benefits will take time to materialize [36][60]

Core Viewpoint - Hongji Group (02535.HK) reported a 3.6% decrease in revenue to approximately HKD 166 million for the six months ending June 30, 2025, with a profit attributable to shareholders of about HKD 10.8 million, down from HKD 13.4 million for the same period in 2024 [1] Financial Performance - Revenue decreased by 3.6% to approximately HKD 166 million [1] - Profit attributable to shareholders was approximately HKD 10.8 million, compared to HKD 13.4 million for the same period in 2024 [1] - Basic earnings per share were approximately HKD 0.54, down from HKD 0.81 for the same period in 2024 [1] - The board decided not to recommend an interim dividend for the six months ending June 30, 2025 [1] Business Strategy - The company remains focused on its core business strengths while exploring new opportunities [1] - Recognizing the growth potential in the solar energy sector, the company has established a subsidiary to enter the solar panel market [1] - The company aims to leverage opportunities in the sustainable energy field and build a business presence in this industry [1] - From the second quarter of 2025, the company has identified a growing demand for prefabricated housing, structures, and materials [1] - After multiple discussions with industry participants, the company is considering expanding into the prefabricated housing and building materials business to provide customizable eco-friendly prefabricated solutions for residential, commercial, and industrial sectors [1]

Financial Data and Key Metrics Changes - In fiscal year 2025, the company sold over 26,000 homes, a 19% increase year over year, with revenue growth of 23%, totaling $2.5 billion [5] - Fourth quarter net sales increased 11% to $594 million, with homes sold increasing 6% to 6,171 units [9][17] - Consolidated gross profit rose 55% to $152 million, with gross margin expanding by 740 basis points to 25.6% [20] - Net income for the fourth quarter increased by $33 million to $36 million, or earnings of $0.63 per diluted share [22] Business Line Data and Key Metrics Changes - U.S. factory-built housing revenue increased by 10%, with homes sold rising 5% to 5,941 homes [18] - Canadian revenue was $25 million, representing a 22% increase in homes sold, although the average selling price decreased by 9% to $110,600 [20] - Sales to independent retail channels and captive retail stores both increased compared to the prior year [10] Market Data and Key Metrics Changes - The backlog at the end of the year was $343 million, up 9% from the previous year and 10% sequentially [9] - Average backlog lead time was eight weeks, within the target range of four to twelve weeks [9] Company Strategy and Development Direction - The company is focused on expanding retail capabilities and investing in new products and services, including the acquisition of Eisman Homes [6][15] - The strategy includes navigating market uncertainties while maintaining a focus on customer-centric growth and operational efficiency [8][26] - The company aims to leverage regulatory changes to enhance market opportunities for manufactured housing [46] Management's Comments on Operating Environment and Future Outlook - Management noted that demand has been less predictable compared to a normal spring selling season, with a shift towards smaller floor plans [13] - The company anticipates low single-digit revenue growth for Q1 of fiscal 2026, reflecting mixed consumer sentiment and demand [12][25] - Management remains confident in the long-term outlook, emphasizing the need for affordable housing across the U.S. and Canada [25] Other Important Information - The effective tax rate for the quarter was 17.1%, down from 19.2% in the prior year, primarily due to increased tax credits [21] - The company returned $20 million to shareholders through share repurchases and refreshed its $100 million share repurchase authority [24] Q&A Session Summary Question: Can you elaborate on discussions with customers in retail and community markets? - Management noted mixed in-store traffic but an increase in digital leads, indicating more serious buyers in the market [28][29] Question: What is the impact of SG&A increases despite revenue decline? - Management indicated that the increase was due to cyclical industry shows and would not recur as strongly in the first half of the fiscal year [35] Question: How is the company approaching share repurchases? - Management expressed a balanced capital allocation strategy and indicated they would be opportunistic based on share performance [38][40] Question: Were there any shipping issues due to weather conditions? - Management acknowledged slower markets in Texas and parts of the South, impacting shipping and order fulfillment [42] Question: What are the dynamics of manufactured housing and potential share gains? - Management highlighted the importance of customer experience and regulatory changes that could enhance market opportunities [46][48] Question: What is the outlook for gross margins? - Management expects near-term gross margins in the 25% to 26% range but anticipates structural margins to return to 26% to 27% in the long term [56] Question: How will the removal of the permanent chassis requirement impact costs? - Management indicated it would allow for more flexible designs and potentially lower transport costs, enhancing product offerings [59][60] Question: What is the status of FEMA orders? - Management confirmed no orders from FEMA yet but is prepared for future opportunities [97] Question: How is credit availability for chattel loans? - Management reported stable credit availability, with rates still higher than traditional fixed-rate mortgages [98]