Company Performance - In the third quarter of 2025, the company achieved operating revenue of 6.196 billion yuan, representing a year-on-year growth of 3.68% [1] - The net profit attributable to shareholders reached 399 million yuan, with a year-on-year increase of 6.45% [1] AI Strategy and Product Development - The company has intensified its AI sleep technology initiatives, advancing its "AI companionship" strategy and creating a product matrix covering high-end and mid-range markets [1] - The "aise宝褓" series of smart sleep ecological products has been launched in over 200 retail stores in major cities and is available on major e-commerce platforms such as Tmall, JD.com, and Douyin [1] - New product lines, including the aise宝褓 cloud enjoyment series and the 喜临门 AI净眠 E series, were introduced in the first half of 2025, further enriching the AI product matrix [1] - The company collaborated with Qiangnao Technology to launch the world's first AI mattress "宝褓BrainCo," which integrates non-invasive brain-machine interface technology, marking a significant advancement from "smart" to "intelligent" sleep products [1] Industry Outlook - There is a growing consumer demand for health sleep products, indicating a broad development prospect for the industry [2] - The release of the "14th Five-Year Plan" has highlighted the integration of artificial intelligence with various sectors, which is expected to empower numerous industries comprehensively [2] - The company is positioned to accelerate its development in the AI home industry amid the ongoing wave of AI applications [2]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [4] Core Views - The company reported better-than-expected performance with a revenue of 2.29 billion yuan in Q2 2025, up 4.3% year-on-year, and a net profit of 200 million yuan, up 22.4% year-on-year [1] - The company is focusing on AI smart sleep solutions, enhancing its product matrix and establishing a strategic partnership with Tsinghua University to optimize sleep algorithms [3] - The company has a robust online and offline retail presence, with over 5,000 proprietary brand stores and a strong performance on e-commerce platforms [2] Financial Performance - In H1 2025, the company achieved a revenue of 4.02 billion yuan, a 1.6% increase year-on-year, and a net profit of 270 million yuan, a 14.0% increase year-on-year [1] - The gross margin for Q2 2025 was 38.4%, an increase of 2.6 percentage points year-on-year, while the net profit margin was 8.5%, up 1.3 percentage points year-on-year [1] - The company declared a cash dividend of 104 million yuan in H1 2025, with a payout ratio of 39% [1] Market Position and Strategy - The company is leveraging national policies to enhance its competitive advantage, particularly through the "old-for-new" policy, which has led to a significant increase in customer transaction values [2] - The AI product line, including the "aise 宝褓" series, has been successfully launched in major cities and is available on major e-commerce platforms [3] - The company is expected to continue its growth trajectory in the second half of 2025, supported by the resumption of national subsidies and seasonal demand [1]

Core Viewpoint - The company Xilinmen has been awarded the China Patent Excellence Award for its innovative "adjustable elastic pneumatic spring" technology, marking a significant recognition of its capabilities in smart technology development [1][3]. Group 1: Patent and Innovation - Xilinmen's patented technology has been successfully integrated into its new smart sleep brand "aise宝褓," which includes AI smart mattresses and electric frames, featuring 107 patented technologies [3]. - The technology provides four personalized sleep experiences and utilizes advanced AI algorithms to analyze user sleep habits, aiming to revolutionize sleep from "passive" to "active" [3]. Group 2: Digital Transformation and Manufacturing - Xilinmen has established China's first 5G industrial internet platform in the furniture industry, addressing traditional manufacturing challenges such as mobility, latency, precision, and reliability [4]. - The company has integrated various digital management systems (CRM, SAP, MES, SRM) to create a seamless process from order reception to logistics delivery, enhancing efficiency in smart manufacturing [4]. Group 3: Research and Development Investment - Over the past decade, Xilinmen has invested more than 1.2 billion yuan in product research and design innovation, applying for 2,441 patents and holding 1,928 effective patents as of May 2025 [5][6]. - The company has established a collaborative research model by founding the Xilinmen Sleep Research Institute and partnering with academic institutions, including Tsinghua University, to enhance its R&D capabilities [6]. Group 4: Global Presence and Future Vision - Xilinmen operates nine production bases globally, with over 5,600 stores and partnerships with more than 3,000 star-rated hotels, serving 60 million families [8]. - The company aims to leverage patent innovation to integrate smart sleep technology into various life scenarios, aspiring to become a global leader in the mattress industry [8].