Summary of Conference Call Notes Company Overview - The company is involved in the exhibition industry, focusing on trade shows and events, particularly in the Middle East and industrial sectors. Key Points Industry and Market Dynamics - The company anticipates a net increase of over 1,000 exhibition spaces in 2025, representing a year-on-year growth of 10%-20%, although a decline in unit prices is expected to lead to a gross margin decrease of over 2 percentage points [2][3] - The Middle East market is identified as a core profit area, with a combined total of 5,500 exhibition spaces in Dubai and Saudi Arabia in 2025, contributing approximately 150 million RMB in gross profit at a margin close to 55% [2][8] - The company faces potential risks of losses in 2026 if geopolitical conflicts persist throughout the year [2][8] Financial Performance - In 2025, the company achieved a slight revenue growth of about 4%, but profits declined due to lower sales prices per exhibition space, leading to a gross margin drop [3][4] - Sales expenses increased due to higher employee salaries and bonuses related to the increase in exhibition spaces, while R&D expenses rose by approximately 3 million RMB [3] Strategic Initiatives 1. **AI Exhibition Product Development**: - Launched AI Exhibition 1.0 in January 2025, with sales reaching approximately 56-57 million RMB and a coverage rate of nearly 50% [3][14] - The 2.0 version is expected to achieve a 60% coverage rate and sales of 80 million RMB in 2026 [2][14] 2. **Industrial Exhibition Strategy**: - The company elevated industrial exhibitions to a strategic level, increasing exhibitors from 500 in 2024 to nearly 1,200 in 2025 [4][7] - Plans to expand the "product-to-product" matching model to countries like Vietnam and Brazil in 2026 [2][4] 3. **Hong Kong Stock Exchange Listing**: - The company initiated its listing application in December 2025, with expectations for substantial progress in the second half of 2026 [2][4] 4. **Supply Chain Company Formation**: - A joint venture was established in November 2025 to address procurement challenges for small B customers in Indonesia and Brazil, with significant revenue contributions expected in the second half of 2026 [2][5][14] 5. **Successful Saudi Exhibition**: - The inaugural Saudi exhibition in December 2025 achieved over 1,500 exhibition spaces, setting a record for the company in new markets [5] Future Projections - For 2026, the company aims for a 20% increase in exhibition spaces and a corresponding revenue growth of 20%, with profit growth projected at around 30% [2][10] - Specific targets include approximately 1,700 to 1,800 exhibition spaces in Saudi Arabia and over 3,500 in Dubai for the second half of the year [11][12] Risk Management - The company plans to implement measures to control discounting practices that were prevalent in 2025, including setting annual discount limits for management [3][13] Supply Chain Business Focus - The supply chain business will primarily target Indonesia and Brazil, with expectations for minimal revenue in the first half of 2026 but significant contributions anticipated in the latter half [14] Additional Insights - The company recognizes the dual nature of current geopolitical tensions, presenting both risks and opportunities depending on the resolution timeline [8][9][10]