Incident: The company announced the 2025 Restricted Stock Incentive Plan (draft). A total of 131 people are eligible for this incentive plan. The source is the company's targeted issuance of A-share common shares to the incentive recipients; the number of restricted shares to be granted to the incentive recipients is 5.3414 million shares, accounting for about 3% of the company's total share capital of about 0.178 billion shares when the draft incentive plan was announced; the grant price for restricted shares was 7.37 yuan/share, with a closing price of 13.48 yuan on the announcement date. This is the first time that equity incentives have been provided since the company went public.

Assessment target: The assessment year is 2025-2026, of which the 2025 revenue/net profit trigger values are 2.15 billion yuan/0.11 billion yuan, respectively, and the target values are 2.22 billion yuan/0.117 billion yuan respectively; in 2026, the 25-26 cumulative two-year revenue/net profit was assessed. The trigger values were 4.48 billion yuan/0.239 billion yuan, respectively, and the target values were 4.6 billion yuan/0.247 billion yuan respectively billion yuan. The company assesses revenue and net profit separately. When the trigger value is reached but the target value is not reached, the actual value of revenue (net profit) and the target value of revenue (net profit) are used as the sales restriction ratio. The final sales restriction ratio is determined based on the degree of completion between revenue and net profit.

Opinions: 1) The company implemented equity incentives for the first time since listing, covering all executives and middle management and core technical personnel of the company, fully expressing the company's desire to bind the interests of core personnel, which is conducive to stimulating vitality and synergy of interests in subsequent development; 2) The company's current stock price is in a historically low position. At this time, motivation is mobilized through equity incentives, which is expected to better grasp the dividends of the 2025 home appliance national subsidy policy; 3) Judging from the unlocking target, the company's 2025 revenue and net profit targets are lower than the actual value of 2023. We are conservative. It is believed that the company places more importance on the certainty of achieving goals to ensure incentives for core personnel, and does not represent the company's future goals.

Profit forecasting and investment advice. The company focuses on the large-volume refrigerator circuit. As an industry leader, the company continues to promote product upgrades and continuous expansion of overseas markets. The company's 2024-2026 EPS is expected to be 0.50 yuan, 0.62 yuan, and 0.72 yuan respectively, maintaining the “hold” rating.

Risk warning: Risks such as export sales growth falling short of expectations, customer expansion falling short of expectations, and increased competition.