Loctek(SZ:300729)2022-12-03 09:54Group 1: Company Overview and Market Position - Lege Ergonomics Technology Co., Ltd. is focused on developing ergonomic products, with a significant emphasis on R&D and brand marketing to penetrate the domestic market [2][3]. - The company has experienced a rapid increase in sales of computer lift tables, indicating a shift in product demand [3]. - The domestic ergonomic product market is still in its early educational phase, with a projected growth in consumer demand driven by younger demographics and an aging population [3][4]. Group 2: Competitive Strategy and Market Challenges - The company aims to compete internationally by focusing on talent development, product innovation, and marketing system enhancement rather than engaging in price wars [3][4]. - The company acknowledges the challenges posed by established foreign competitors, particularly in terms of cultural integration and policy factors [4][5]. - The overall gross margin has declined due to high sales expenses, which are a result of the current business model [4][5]. Group 3: Financial Performance and Projections - The price of cold-rolled steel, a key raw material, has fluctuated significantly, impacting the gross margin of large screen display mounts [4][5]. - The ergonomic industry in China is expected to grow by over 50% in the next few years, while the U.S. market is projected to grow by over 30% [5][6]. - The company plans to enhance its sales and marketing team to support growth in domestic sales [6]. Group 4: Operational Insights and Future Plans - The company is addressing inventory turnover issues caused by a shift to a cross-border e-commerce model, which requires more stock [6]. - Marketing investments are expected to increase, but the sales expense ratio will depend on sales performance [6]. - The company is committed to continuous improvement in R&D and marketing to maintain competitive advantage [6].