IMPULSE(SZ:002899)2022-11-21 16:20Group 1: Impact of COVID-19 on Business - The pandemic has had both positive and negative effects on the company. On the positive side, it has increased public awareness of fitness and health, leading to a rise in demand for home fitness products [1][2] - The negative impact includes the closure or delayed opening of many commercial gyms due to the pandemic, but the company believes opportunities outweigh challenges in the long run [2] Group 2: Market Development and Product Strategy - The company has made significant preparations in the home product sector, increasing investment in research, production, and sales channels for home fitness products [2] - The company has established flagship stores on e-commerce platforms like Taobao, Tmall, and JD.com, and plans to explore new online promotion methods to enhance product visibility [2] Group 3: Targeting Specific Demographics - The company has developed the RE-LIFE series of products specifically for the elderly, focusing on safety and ease of use with hydraulic resistance adjustments [2] - The elderly market is seen as a significant opportunity due to the increasing aging population [2] Group 4: Sales Distribution - In 2020, domestic sales accounted for 25.90% of total sales, while international sales made up 74.10%, indicating a strong reliance on overseas markets [3] - North America, Europe, and Asia-Pacific are the top three international markets, with North America and Europe being mature markets and Asia-Pacific showing faster growth potential [3] Group 5: Profitability Challenges - The decline in net profit in recent years is attributed to high R&D investments and rising production costs, particularly due to increased raw material prices [4] - The company plans to enhance profitability by adjusting its product offerings to capture domestic market opportunities and improving production efficiency through new facilities [4] Group 6: Brand Promotion Strategies - The company emphasizes brand promotion through various media channels, including traditional and digital platforms, to build brand awareness and attract potential customers [4] - It has also adapted to the pandemic by focusing on online channels and successfully entering international platforms like Alibaba and Google for broader market reach [4] Group 7: Raw Material Price Impact - Rising raw material costs, particularly for steel, have pressured the company's cost management, but it has implemented measures to mitigate these effects, including price adjustment mechanisms with clients [4] - The company monitors exchange rates for export products and adjusts sales prices accordingly to minimize losses from currency fluctuations [4] Group 8: R&D and Innovation - The company recognizes the importance of innovation and R&D in maintaining competitive advantage, focusing on market demand and technological integration [5] - It conducts regular market research to anticipate product updates and actively invests in R&D to drive continuous development [5]