吉宏股份20250512

Summary of Ji Hong Co., Ltd. Conference Call Company Overview - Ji Hong Co., Ltd. reported a significant recovery in Q1 2025, with revenue reaching 1.477 billion yuan, a year-on-year increase of 11.55% [2][4] - Profit for the quarter was 60 million yuan, up 38% year-on-year, while net profit excluding non-recurring items was 57 million yuan, reflecting a 51% increase [2][4] Industry Insights - The company's cross-border e-commerce business focuses primarily on the Asian market (80% of revenue), followed by Europe (10%), with the U.S. market contributing only 2% due to tariff impacts [2][4] - There is a noticeable trend of export supply chains shifting to neighboring countries, providing opportunities for the company to integrate upstream supply chains, although this process is gradual [2][5] Financial Performance - The company observed a significant impact from exchange rate fluctuations on net profit margins, which are approximately 5-6% [2][7] - In April 2025, market demand showed a recovery with a month-on-month growth of about 10% compared to March [2][9] - The European market experienced rapid growth, with year-on-year increases exceeding 100%, primarily driven by sales volume [2][10] Product and Market Strategy - The company utilizes big data for product placement, with a wide range of SKUs primarily in categories such as clothing, home goods, 3C digital products, and beauty items [2][13] - The average order value in Q1 2025 was approximately 240 yuan, showing slight growth compared to the previous year [2][12] Cost Structure and Efficiency - E-commerce gross margin is around 60%, with logistics and procurement costs each accounting for 10-20% of revenue [2][20] - The company maintains a high turnover rate due to a model that emphasizes ordering before procurement, which constitutes 50-60% of orders [2][21] Competitive Landscape - The company has a competitive edge in cross-border social e-commerce due to its data mining capabilities and the application of artificial intelligence, which enhances efficiency in data tagging and video generation [2][15] - The impact of U.S. tariffs on sellers is minimal in the short term, as the company has established a first-mover advantage in the U.S. market [2][14] Future Outlook - The company has passed the hearing for its Hong Kong IPO, with funds primarily allocated for international expansion, particularly in the e-commerce sector [2][3][19] - The company plans to continue focusing on stable policy environments in Asia and Europe to mitigate uncertainties related to exchange rates, tariffs, and logistics [2][4] Additional Considerations - The overall signing rate remains stable at around 88%, with slight variations across regions [2][24] - The company is exploring new partnerships in the Middle East to expand market capacity without relocating existing production [2][27]