How Can Meiyingsen Achieve Value Reconstruction Through Advanced Gameplay For High Value-added Customers And Five Major Overseas Bases?

Meiyingsen recently provided a detailed introduction to the company's business development strategy, overseas layout, and future plans during an investor relations event. The company has established a dual wheel drive strategy based on domestic business and accelerating the expansion of overseas markets as a growth point, and has provided in-depth explanations of various business details.
Domestic business: the cornerstone of steady development
The company regards domestic business as the foundation for sustained and healthy development, and is committed to maintaining its steady growth. This is not only an important strategy for the company, but also provides a solid foundation for overall performance.
Meiyingsen has a diverse customer structure and a wide distribution of downstream industries. Among them, consumer electronics accounted for about 40%, furniture and household appliances accounted for about 30%, and the automobile and new energy automobile industry chain and Baijiu accounted for about 10% respectively. In addition, the company's business also covers fields such as medical devices, food and beverage, health products, express packaging, as well as label and electronic functional material die-cutting products.
In terms of profit margin, the overall fluctuation of Meiyingsen's domestic and international business profit margins is relatively small and remains stable. In recent years, the company has effectively improved its overall profitability by developing customers with higher added value and proactively reducing orders with lower gross margins. With the rapid growth of overseas business, the company's profits have also increased.
Overseas Business: New Growth Engines and Cautious Layout
Meiyingsen regards overseas performance growth as an important business goal at present. The company has five factories in Vietnam, Thailand, Malaysia, and Mexico, with the new factory in Mexico planned to start production within the year. At present, overseas business is growing rapidly, mainly due to industrial transfer, changes in overseas competition patterns, the company's own comprehensive competitiveness, and forward-looking overseas production capacity layout.
In terms of overseas investment strategy, Meiyingsen adheres to the principle of prudence to control investment risks. The company mainly adopts the model of leasing factory buildings and allocating existing spare equipment to expand production capacity, which can meet overseas order demands and ensure overall controllable capital expenditures. The production capacity layout is completely guided by the actual order needs of customers, thereby improving asset utilization efficiency.

Faced with competition in overseas markets, Meiyingsen stands out with its own advantages. Compared to local overseas enterprises, the company has strong competitive advantages in product quality, service, research and development design, and customer resources. At the same time, the company's group service capabilities can better meet the global supply chain management needs of customers, providing integrated supporting services for the same customer with orders in different regions. The company also admitted that the main barriers to overseas investment are high capital expenditures and a lack of strong customer base, and Meiyingsen chose to set up factories precisely because of its long-term cooperation with customers in multiple overseas locations.
Future Prospects
Raw materials and exchange rates: The company's overseas factories mainly rely on localized procurement to reduce costs and cope with price fluctuations. When there is a significant change in raw material prices, the company will negotiate with customers to adjust product prices. In addition, the company closely monitors exchange rate fluctuations and communicates with banks to reduce their impact on business.
Third party procurement business: This business utilizes the company's supply chain channel advantages to provide customers with integrated packaging services, helping them reduce the number of suppliers and lower overall procurement and management costs.
Non packaging business: The company is currently focusing on its main packaging business, while non packaging businesses such as big health are still in the early stages of exploration and have a relatively small scale.
Major shareholder debt: The financial business contract dispute between the major shareholder of the company and Zhejiang Commercial Bank has been resolved, and the relevant settlement agreement is being executed in an orderly manner. It is expected to be fully repaid within the agreed time.
Dividend Plan: The company operates steadily with good cash flow and will continue to prioritize cash dividends to repay shareholders. The amount and proportion of dividends will be determined comprehensively based on factors such as operating conditions, financial situation, and capital expenditures.
Equity incentives and financing: The company currently does not have any relevant equity incentives or financing plans.
Strategic choices and challenges
The strategic layout demonstrated by Meiyingsen in investor relations activities clearly outlines the path for a traditional manufacturing enterprise to seek transformation and growth in the wave of globalization. Its dual wheel drive strategy of "steady development of domestic business" and "accelerated layout of overseas business" is not simply a scale expansion, but based on a profound insight into the trend of industrial transfer, changes in customer demand, and its own core competitiveness.

Meiyingsen's overseas expansion is not blind, but has a rigorous strategic logic. The company has established factories in Vietnam, Thailand, Malaysia, and Mexico, which are hotspots for the outward transfer of supply chains in industries such as consumer electronics, furniture, and home appliances in recent years. By setting up factories in customer gathering areas, Meiyingsen has achieved "going global with customers", which not only better serves the global supply chain needs of existing large customers, but also greatly reduces the risk of exploring new markets.
Its "cautious" overseas capital expenditure strategy is even more prominent. Prioritizing the use of leased factory buildings and the allocation of existing equipment, rather than large-scale new construction, reflects the balance between the enterprise's pursuit of growth and consideration of return on assets (ROA) and investment risk. This enables the company to quickly respond to market demand while avoiding financial pressure that may arise from excessive investment in fixed assets. This model is particularly pragmatic and clever in the current uncertain overseas market environment.
In terms of profitability, Meiyingsen's strategy also deserves in-depth analysis. The company is conducting an optimization of its customer and product structure through "developing high value-added customers" and "actively reducing low gross profit orders". This indicates that the company is no longer pursuing pure sales growth, but is more focused on high-quality profits. This not only helps to improve the overall gross profit margin, but also lays the foundation for the company's long-term healthy development.
However, investors also need to pay attention to the potential risks involved. The high gross profit margin of overseas orders is partly due to the differences in the competition between overseas supply and demand compared to domestic ones. Is this difference sustainable? How will the competitive landscape in overseas markets evolve as more competitors go global? This will be a key variable affecting the profit margin of future overseas business.
In addition, the decline in gross profit margin of domestic export business in the second quarter also reminds us that even mature domestic markets may face challenges such as high value-added order loss and price adjustments. This highlights the importance of the company's continuous product innovation and customer maintenance. In summary, the story of Meiyingsen is not just about simple business growth, but also a vivid example of traditional manufacturing seeking a new round of development through strategic planning, fine management, and core competency building in the context of global supply chain restructuring.