SOLEX(SH:603992)2023-12-08 08:47Group 1: Business Model and Operations - The company adopts the IDM business model for both domestic and international operations, primarily sourcing business from international brand clients operating in China [1] - Approximately 60-70% of the company's clients are overseas, with 80-90% of foreign sales settled in USD [2] Group 2: Financial Performance and Strategies - The company's investment income and fair value changes in Q3 were significantly impacted by hedging activities, leading to a notable increase in investment income [2] - The company plans to maintain its hedging strategy to stabilize profits against currency fluctuations, particularly as it primarily conducts foreign sales in USD [2] - The gross profit margin has shown continuous improvement, with expectations for stability in the coming year, provided exchange rate fluctuations remain minimal [3] Group 3: Cost Management and Efficiency - The company sets annual cost reduction and efficiency improvement targets across its divisions, focusing on personnel, equipment, and quality management [3] - External measures include optimizing procurement channels and scientific pricing strategies within supply chain management [3] Group 4: Strategic Acquisitions - The company intends to acquire the remaining shares of Beijite to enhance its capabilities in the cover plate and smart toilet sectors, aiming to transition from traditional OEM to IDM model operations [4] - The acquisition is part of a broader strategy to capitalize on the growth potential in the smart toilet market [4]