JACK(SH:603337)2025-08-28 15:15Summary of Jack Co. Conference Call Company Overview - Jack Co. is a leading global player in the textile equipment industry, having maintained the highest global sales volume for industrial sewing machines for 14 consecutive years and the highest export volume since 2011 [2][3] - The company provides integrated smart manufacturing solutions that combine hardware and software, being the only provider in the industry to integrate AI into its manufacturing software systems [2][3] Key Financial Performance - In the first half of 2025, domestic sales declined by approximately 10%, outperforming the industry average decline of 30%-35% [2][11] - Overseas sales increased by 22%, exceeding the industry growth rate of 20% [2][11] - Overall revenue grew by over 4% year-on-year, with profits increasing by over 10% [2][11] Research and Development Strategy - Jack Co. has established a long-term commitment to R&D, with plans to increase R&D investment from 8% to 10% of revenue over the next three years, aiming for over 15% in the long term [2][4][5] - The company has set up 14 R&D centers globally, accounting for over 50% of the industry’s R&D investment, and employs a team of over 1,000 researchers [2][5] Marketing and Sales Strategy - The company has a network of over 8,200 distributors across more than 170 countries and regions, with plans to increase overseas offices from 16 to 30 in the next three years [2][6] - Jack Co. employs a dual strategy of value marketing and benchmark smart connectivity to enhance market share [2][6] Technological Advancements - The company is focusing on AI applications to enhance business efficiency, driving value through a fully connected digital chain from users to suppliers [2][7] - Jack Co. is developing humanoid robots, which have begun real-world training in client factories, showcasing significant progress in self-learning capabilities [2][16][22] Future Outlook and Plans - Jack Co. plans to continue investing in high-end AI sewing machines and humanoid robots, aiming to strengthen core competitiveness and profitability [2][13] - The company anticipates establishing more overseas offices to expand international market share and drive technological innovation in the garment manufacturing industry [2][13] Market Trends and Challenges - The global manufacturing sector is rapidly transitioning towards smart manufacturing, creating a pressing demand for automation and AI technologies, which presents market opportunities for Jack Co.'s high-end products [2][14] - The company is addressing challenges such as rising labor costs due to an aging population and the need for more efficient production methods [2][14] Organizational Structure and Decision-Making - Jack Co. has a board-centered organizational structure supported by an Executive Management Team (EMT) to ensure effective decision-making [2][8] Talent and Incentive Systems - The company has established a comprehensive incentive system to motivate employees, focusing on growth opportunities, material compensation, and shared business success [2][9] Cultural Philosophy - Jack Co. emphasizes a customer-oriented culture, focusing on innovation, hard work, and gratitude [2][10] Conclusion - Jack Co. is well-positioned in the textile equipment industry, with a strong focus on R&D, marketing, and technological innovation, aiming to capitalize on emerging market opportunities while navigating industry challenges [2][14][20]