Cre8 Direct(SZ:300703)2025-04-23 05:44Group 1: Company Operations and Production - The Vietnam factory, established in 2019, is projected to reach a production capacity of CNY 330 million by 2024, but has not yet achieved full capacity [3] - A new production base is planned in northern Vietnam for 2025, indicating a potential increase in capacity in Southeast Asia [3] - The company aims to enhance efficiency at the Vietnam base through technical personnel assignments and upgrades in mechanization and automation [6] Group 2: Intellectual Property (IP) Development - The company plans to continue collaboration on existing IP and develop new IP matrices, including national style and overseas IP, in 2025 [3] - A product research institute has been established to leverage over 20 years of R&D experience for developing proprietary products [3] Group 3: Sales and Distribution Channels - Domestic sales will utilize a combination of online and offline channels, with over 500 established offline outlets including boutique bookstores and chain stores [3] - The company directly engages with end customers, avoiding intermediaries to better gather feedback for product optimization [3] Group 4: Financial Performance - In Q1 2025, revenue growth was primarily driven by the cultural and recreational sector and the sports fitness sector, with the subsidiary Ruitfei's revenue nearly doubling [4] - The gross margin in the cultural and recreational sector has increased, contributing to overall rapid growth [4] Group 5: Cross-Border E-commerce - Ruitfei's cross-border e-commerce business has seen significant growth, with plans to expand into non-US markets, including Europe and Japan, where revenue is expected to double in 2024 compared to 2023 [5] - The company has not raised prices in Q1 2025 to counteract tariff risks but plans to implement gradual price increases [5] Group 6: Future Outlook and Investments - The company plans to maintain or increase R&D investments, emphasizing the importance of research capabilities for future growth [8] - A dividend of CNY 1.5 per 10 shares is planned for the 2024 fiscal year, with future distributions dependent on operational performance [8]