Loctek(SZ:300729)2022-12-05 06:50Group 1: Company Performance - The company experienced significant growth in Q2 2020, attributed to the digitalization trend in international trade and online retail sales, accelerated by the pandemic [3] - The company holds over 800 patents globally, including 45 invention patents, which contribute to its competitive edge [3] - The main product line, linear drive height-adjustable desks, aligns well with the "stay-at-home economy" demand during the pandemic [3] Group 2: Domestic and International Sales - In 2019, the domestic sales split was approximately 60% online and 40% offline, while international sales were 41% online and 59% offline; online sales for international markets grew by about 68% year-on-year in the first half of 2020 [4] - The company has been engaged in domestic sales since 2004, with a rapid growth rate in linear drive products, supported by China's large population and increasing purchasing power [3][4] Group 3: Strategic Responses to Market Conditions - The company has established a manufacturing base in Vietnam to mitigate the impact of U.S. tariffs, producing 70-80% of its products for the U.S. market there [4][5] - The overseas warehouse strategy is designed to enhance international market expansion, reduce transportation costs, and improve service to customers [5] - The company views the North American market as a key development area, emphasizing its competitive advantages in technology, craftsmanship, and product quality compared to local competitors [5] Group 4: Future Outlook - The company plans to continue increasing R&D investment, anticipating sustained growth in performance, albeit at a potentially slower rate [3] - The domestic market is expected to expand further due to the government's focus on domestic circulation and the dual circulation development pattern [4]