Caixin News on October 10th (Reporter Chen Kang) The slowdown in camping product revenue has prompted mobigarden outdoor (603908.SH) to gradually shift towards expanding product categories and overseas business. Lu Hanhua, Chairman and General Manager of mobigarden outdoor, stated at today's 2024 half-year earnings conference that the company's three core product systems have achieved full coverage of outdoor product matrix; the company's cross-border business is increasing year by year and will continue to focus on corresponding markets in the future.

With the decline in camping popularity and intensified market competition, mobigarden outdoor has been facing growth challenges since last year. In the first half of this year, mobigarden outdoor's revenue and net income both declined, with revenue down 2.95% year-on-year and net income down 18.41% year-on-year. Among them, revenue from independent brand business and OEM/ODM business decreased by 3.78% and 2.06% year-on-year, respectively.

At the earnings conference, mobigarden outdoor no longer mentioned the development of "exquisite camping" and the high-end market, but reiterated the category expansion mentioned in the half-year report, stating that "the company has built three core product systems: sleep system, carrying system, and dressing system, achieving full coverage of the product matrix." Among them, the sleep product system is centered around tents, sleeping bags, and air mattresses, while the latter two systems primarily focus on backpacks and outdoor clothing, aiming to break away from the tent-centric revenue structure and find a second growth curve beyond camping equipment.

Another outdoor camping listed company, Zhejiang Nature (605080.SH), mentioned category expansion at yesterday's earnings conference. In addition to outdoor sports products, the company is gradually expanding into categories such as household inflatable mattresses, high-end insulated bags, and water-related products. The General Manager of the company, Xia Yonghui, said that after the impact of travel in 2023, the trend of "exquisite camping" has stabilized, with major domestic brands expanding new product lines to meet market demand.

Regarding distribution channels, Lu Hanhua mentioned at the earnings conference that the company mainly cooperates with mainstream e-commerce platforms such as Tmall, jd.com, Douyin online, and offline channels through various methods such as professional outdoor retail stores, key customer channels, KA stores, and deepening cooperation with key customers.

Mobigarden outdoor's sales expense ratio for the first half of the year was 7.1%, a decrease of 0.2 percentage points year-on-year, with sales expenses reduced by 5.77% year-on-year. The company stated that this was due to precise investment promotion and cost optimization in the current period's independent brand business.

An investor inquired about the company's global production capacity layout, to which Lu Hanhua stated that the company has adopted a diversified global production capacity strategy in China, Bangladesh, Vietnam, and other countries, combined with reasonable order allocation to enhance product delivery capabilities.