Summary of Jack Company Conference Call Industry Overview - The global apparel manufacturing industry is undergoing significant demand for intelligent upgrades, with approximately 80 million workers facing recruitment challenges, driving the need for smart sewing equipment. With a 30% penetration rate and an average price of 100,000 yuan per machine, the new market space exceeds 800 billion yuan [2][4][10]. - The sewing machine industry is cyclical, with the last downturn hitting bottom in 2023, and a rebound expected in 2024-2025. Domestic demand is anticipated to significantly increase by 2026, while exports will benefit from domestic substitution, with inventory levels currently at a low point [2][8][12]. Company Positioning - Jack Company specializes in sewing machinery and apparel equipment, gradually expanding into humanoid robotics. It holds a leading position in the global sewing equipment market, maintaining the highest sales for 14 consecutive years [3][10]. - Jack Company occupies a competitive advantage in the sewing equipment industry, with the top three companies holding a market share of 48%. As the only private enterprise, Jack demonstrates efficiency advantages, with steadily increasing market share, average selling price (ASP), and gross margin [2][10]. Technological Advancements - Jack Company is actively advancing the development of intelligent sewing machines, integrating robotics and AI. The company plans to release an AI intelligent sewing machine in 2025, significantly enhancing production efficiency and product value, with ASP expected to rise to 4,000-5,000 yuan [5][16]. - The company has launched an AR sewing machine prototype in 2024 and plans to introduce a humanoid robot for self-sewing operations by 2026, indicating a strong commitment to technological innovation [6][18]. Market Demand and Inventory - The demand for sewing equipment in 2025 is expected to be stable, with high inventory levels. However, improvements in overall demand are anticipated due to the significant weight of U.S. end demand, especially with the implementation of interest rate cuts and tax reductions [9][12]. - The sewing machine industry is characterized by a clear cyclical pattern, with the next expected growth phase starting in 2026, driven by both domestic and export markets [8][12]. R&D and Innovation - Jack Company maintains a strong focus on R&D, with a research and development expense ratio of 7-8%, ensuring continuous product optimization and enhancement of market competitiveness [5][19]. - The company has established 14 global R&D centers, emphasizing long-term planning and resource integration to drive technological innovation [22][23]. Future Outlook - Revenue growth for Jack Company is projected to remain around 10% from 2025 to 2027, with gross margins consistently above 35% and expected to accelerate in 2026 [24][25]. - The company is well-positioned to lead the intelligent upgrade of the sewing industry, with significant potential in the humanoid robotics sector, driven by unique data, high yield models, and strong customer willingness to pay [11][14][23].

Core Viewpoint - Jack Co., Ltd. is a leading company in the sewing equipment industry, focusing on the development, production, and sales of sewing machines and related products, with recent advancements in AI technology [1] Company Overview - As of August 7, 2025, Jack Co., Ltd. reported a stock price of 42.82 yuan, a decrease of 0.56% from the previous trading day [1] - The trading volume for the day was 33,742 lots, with a total transaction amount of 146 million yuan [1] - The company's main products include industrial sewing machines, cutting tables, and fabric laying machines, widely used in the apparel, footwear, and bag industries [1] Technological Advancements - Jack Co., Ltd. has made progress in the application of AI technology, planning to launch a high-end AI intelligent sewing machine in September 2025 [1] - The AI intelligent sewing machine will feature automatic parameter adjustment to accommodate different fabrics and will be equipped with a camera to record standard operating gestures [1] - The company also plans to explore the application of humanoid robots in template machine settings and other areas in the second half of 2026 [1]