Performance Summary - In the first three quarters of 2025, the company achieved operating revenue of 2.809 billion yuan, a year-on-year decrease of 11%, and a net profit attributable to the parent company of 314 million yuan, a year-on-year decrease of 41% [1] - In Q3 2025, the company reported operating revenue of 835 million yuan, a year-on-year decrease of 20% and a quarter-on-quarter decrease of 16%, with a net profit of 93 million yuan, a year-on-year decrease of 38% but a quarter-on-quarter increase of 28% [1] - The gross profit margin for Q3 2025 was 35.94%, an increase of 5.23 percentage points from Q2 2025, and the net profit margin was 11.08%, an increase of 3.82 percentage points from Q2 2025, indicating a recovery in overall profitability [1] Cost Structure - For the first three quarters of 2025, the sales expense ratio was 8.32%, an increase of 1.54 percentage points compared to the first three quarters of 2024; the R&D expense ratio was 4.99%, an increase of 0.17 percentage points; and the management expense ratio was 6.86%, an increase of 1.59 percentage points [1] Capital Management - As of the end of Q3 2025, the company's working capital was 3.172 billion yuan, a decrease of 32 million yuan compared to the end of Q2 2025, indicating relative stability [1] Industry Positioning - The company focuses on the digitalization of the retail industry, building a business system centered around electronic price tag systems and SaaS cloud platform services [2] - The company has developed a high-density low-power cellular wireless communication protocol (HiLPC protocol) based on its technology accumulation in the IoT wireless communication field and has implemented an international strategic layout [2] - According to ePaper Insight, the global electronic shelf label (ESL) module shipment volume in the first half of 2025 was 248 million pieces, a year-on-year increase of 56%, with some growth coming from the North American market [2] Growth Outlook - The company is expected to achieve operating revenues of 4.056 billion yuan, 4.787 billion yuan, and 5.747 billion yuan from 2025 to 2027, maintaining a "buy" rating [2]

Core Viewpoint - Hanshuo Technology Co., Ltd. reported steady growth in its 2024 annual performance, with significant increases in revenue, net profit, and operating cash flow, indicating a robust business trajectory since its market debut [1] Financial Performance - The company achieved an operating revenue of 4.486 billion yuan, representing a year-on-year increase of 18.84% [1] - The net profit attributable to shareholders was 710 million yuan, up 4.81% year-on-year [1] - Operating cash flow net amount reached 1.032 billion yuan, marking a substantial increase of 62.29% [1] - Total assets at the end of 2024 amounted to 5.179 billion yuan, reflecting a growth of 36.99% year-on-year [1] Business Model and Product Development - Hanshuo Technology focuses on digital solutions for retail stores, leveraging IoT wireless communication technology [2] - The company has developed a comprehensive business system centered around electronic price tag systems and SaaS cloud platform services [2] - The latest HiLPC protocol allows a single store to support hundreds of cellular network base station devices, achieving an industry-leading concurrency level [2][3] - The company has launched over 40 electronic price tag products, demonstrating continuous innovation [2][3] Market Position and Competitive Advantage - Hanshuo Technology holds a 62% market share in the domestic electronic price tag market, ranking first in China and third globally [3] - The company invested 198 million yuan in R&D in 2024, a 17.34% increase, with 308 R&D personnel, accounting for 32.08% of the workforce [3] - The company aims to become a global leader in retail store digital solutions, focusing on R&D-driven growth [3] Global Expansion Strategy - The global market for electronic price tags is expected to reach 34.9 billion yuan by 2028, indicating significant growth potential [4] - Since 2014, the company has established a global sales and service network, partnering with major international retailers across over 70 countries [4] - In 2024, the company expanded its presence in markets such as Spain, Portugal, Poland, Canada, and Southeast Asia, contributing to revenue growth [4][5] Domestic Market Performance - The domestic revenue for 2024 was 264 million yuan, showing a remarkable year-on-year growth of 63.58% [5] - Support from national policies for digital economy and retail digitalization has created a favorable environment for business development [5] Future Outlook - The company plans to focus on optimizing organization, continuous innovation, and deepening market presence as core strategies [6] - Emphasis will be placed on the innovation of core technologies and products, particularly in AIoT and new energy sectors [6] - The goal is to enhance both the scale and profitability of core and innovative businesses through improved supply chain resilience and product competitiveness [6]