开润股份20250828

Summary of KaiRun Co., Ltd. Conference Call Company Overview - Company: KaiRun Co., Ltd. - Date: August 28, 2025 Key Points Financial Performance - Revenue: In the first half of 2025, revenue reached 2.43 billion yuan, a year-on-year increase of 32.5% [2][3] - Net Profit: The net profit attributable to shareholders was 187 million yuan, with a year-on-year operational net profit growth of approximately 23% after excluding one-time gains [2][3] - Segment Performance: - ToB Manufacturing: Revenue of 2.098 billion yuan, up 37.22% [3] - ToC Business: Revenue of 310 million yuan, up 8.87% [3] Segment Analysis - Luggage Segment: Revenue of 1.42 billion yuan, a 13% increase year-on-year; the growth in the luggage manufacturing segment approached 50% due to new clients like Queens and VF [2][4][5] - Apparel Segment: Revenue of 680 million yuan, a significant increase of 148% year-on-year; gross margin improved to approximately 16% due to product structure optimization and efficiency improvements [2][4][6] Operational Improvements - Production Efficiency: Efficiency in Indonesian garment factories improved by about 8%, while Chinese factories saw a 6% increase [6] - Supply Chain Management: Implementation of SAP systems to enhance supply chain control and management capabilities [6] Capacity Expansion - Indonesian Production: Ongoing expansion of the Indonesian Baodao factory, with a projected 40% increase in soft package production lines and around ten new production lines for luggage by 2026 [7][8] - Employment Impact: Over 20,000 jobs created in Indonesia, with strong local government partnerships [12] Market Dynamics - Tariff Impact: The new U.S. tariff policy has led to a shift in procurement towards Indonesia, with many clients planning to move at least one-third of their supply chains there [12][24] - Client Performance: Major clients like Uniqlo and Adidas showed strong growth, while Nike and Decathlon's growth was below average due to their own performance issues [9][17] Future Outlook - Growth Strategy: The company plans to continue focusing on efficiency improvements while gradually increasing order intake, with expectations of double-digit growth in the second half of the year [10][18] - Revenue Projections: The target revenue for the apparel segment is approximately 1.8 billion yuan for the year, with a focus on maintaining operational efficiency [15][18] Brand Performance - Brand Revenue: Brand operations generated 310 million yuan, with Xiaomi contributing over 210 million yuan, reflecting a 25% growth [4][13] - Profitability: Brand gross margin was 24.14%, down 1.1 percentage points, but both Xiaomi and 90 Fen brands saw improvements in their respective margins [13][21] Customer Acquisition - New Client Development: The company is actively pursuing new clients, particularly in high-margin outdoor brands, while maintaining relationships with existing major clients [16][20] Challenges and Mitigation - Tariff-Related Pricing Pressure: The company is addressing pricing pressures from clients due to tariffs by enhancing product margins through operational improvements and new order development [25][26] Conclusion - Overall, KaiRun Co., Ltd. demonstrated strong financial performance in the first half of 2025, with significant growth in both the luggage and apparel segments. The company is strategically expanding its production capacity in Indonesia while navigating challenges posed by new tariff policies. The outlook for the second half of the year remains positive, with expectations for continued growth and efficiency improvements.