Changzhou Motomotion Intelligent Home Furnishing Co., Ltd. 2024 Third Quarter Report
Message from the General Manager
The company is primarily engaged in the research, design, development, production, sales, and service of smart electric sofas, smart electric beds, and their core components. According to the "Guidelines for Industry Classification of Listed Companies" (2017 Revision) issued by the China Securities Regulatory Commission, the company belongs to the "C21 Furniture Manufacturing" industry, specifically "C2190 Other Furniture Manufacturing."
[Image: Motomotion furniture display]
I. Economic Situation and Trends from January to September 2024
According to the latest data released by the General Administration of Customs of China on October 18, 2024, China's cumulative exports of furniture and parts reached 49.544 billion USD from January to September 2024, a year-on-year increase of 7.70%. Compared to the 14.80% growth rate from January to June 2024, the growth rate for the first nine months decreased by 7.10%.
According to a report by the National Bureau of Statistics on October 27, 2024, from January to September 2024, the total profit of industrial enterprises above designated size nationwide reached 5.22816 trillion RMB, a year-on-year decrease of 3.50%.
II. Trends in Exports to the U.S. from China and Vietnam
Statistical data released by the General Administration of Customs of China on October 18, 2024, shows that from January to September 2024, the trade volume between China and the U.S. was 504.404 billion USD, a year-on-year increase of 2.30%. This represents a rebound of 2.50% compared to the 0.20% decline seen from January to June 2024. China's exports to the U.S. reached 381.137 billion USD, a year-on-year increase of 2.80%.
The Office of the United States Trade Representative (USTR) announced on September 13 that it would phase in tariff increases on certain Chinese goods starting September 27. Tariff rates for electric vehicles will rise to 100%, solar cells to 50%, and electric vehicle batteries, critical minerals, steel, aluminum, masks, and ship-to-shore cranes to 25%. Additionally, tariffs on other products, including semiconductor chips, will be raised over the next two years.
According to reports from Xinde Marine News, to cope with the impending tariff hikes, Chinese exporters and U.S. importers chose to ship goods in advance during July and August, leading to tight capacity and soaring freight rates in the shipping market.
Regarding Vietnam, data provided by the General Statistics Office of Vietnam in October shows that from January to August 2024, Vietnam's exports to the U.S. reached 77.9 billion USD, a year-on-year increase of 25.4%. The U.S. remains Vietnam's largest export market. Exports of computers, electronic products, and components grew by 50.82% year-on-year, showing particularly strong performance.
This indicates that despite the slowdown in global economic growth, Vietnam's exports to the U.S. market maintain a strong growth momentum.
From January to September 2024, 89.89% of the company's products were sold to the United States, and 84.18% of products were exported from Vietnam.
III. Company Revenue and Profit Situation from January to September 2024
The company's revenue for the first three quarters of 2024 was 1.849 billion RMB, an increase of 27.13% compared to the same period in 2023. Compared to the same period in 2023, the gross profit margin increased by 1.68% to 33.72%. Net profit (after deducting share-based payment expenses) reached 431 million RMB, a year-on-year increase of 33.56%, achieving "double growth in revenue and profit."
The company's 2023 restricted stock incentive plan was officially granted on July 7, 2023. Total share-based payment expenses for January to September 2024 were 20.258 million RMB (compared to 8.4121 million RMB for the same period in 2023).
[Chart: Revenue and net profit comparison]