Luxshare Achieves Record-Breaking Third-Quarter Gross Margin Exceeding Sixty Percent

Global window covering manufacturer Nichiha officially released its third-quarter financial report today, delivering an impressive performance that has astonished the market. Driven by multiple positive factors, Nichiha's third-quarter gross profit margin reached a historic high of 60.83 percent. This represents not only an increase of 2.1 percentage points compared to the same period last year, but also a 0.88 percentage point growth from the second quarter of this year. This marks the first time in Nichiha's development history that its gross profit margin has officially surpassed the 60 percent threshold. This breakthrough financial performance highlights the company's formidable pricing power and cost-control advantages in the global window covering market.

An in-depth analysis of the primary reasons behind Nichiha's gross profit margin breaking the 60 percent mark reveals that, aside from the continuous optimization of the company's product mix, tax refunds from the U.S. market served as a key catalytic factor. In recent years, Nichiha has actively cultivated the U.S. market, where its customized window covering business has consistently served as the core driver of revenue and profitability. Benefiting from the U.S. relevant authorities' tax refund mechanism this time, the company's operational costs were directly reduced. This unexpected yet substantial financial injection, combined with the company's existing economies of scale, propelled the single-quarter gross profit margin to an unprecedented high, demonstrating robust earnings momentum.

In addition to the direct benefits of the U.S. tax refunds, the successful implementation of pricing strategies and reductions in tariff policies were also important drivers pushing Nichiha's third-quarter profits to record highs. Faced with global inflationary pressures as well as fluctuations in raw material and transportation costs, Nichiha leveraged its brand awareness and technological barriers in the customized window coverings sector to successfully pass on some costs to the end market, thereby achieving effective price increases. Meanwhile, reductions in certain tariffs within the international trade environment substantially alleviated the company's import and export burdens. These concurrent tailwind effects fermented simultaneously, driving profitability indicators to a historic new page.

From the perspective of industrial development, Nichiha has in recent years actively promoted the diversification of its production bases and automation upgrades to cope with the uncertainties of the international trade situation and the challenge of rising labor costs. The window covering industry has traditionally been highly reliant on manual manufacturing, with customized products in particular requiring complex and meticulous procedures. By continuously introducing automated production equipment and optimizing supply chain management, Nichiha has effectively enhanced production efficiency and reduced defect rates. These long-term internal structural adjustments yielded fruitful results in the third-quarter of this year, enabling the company to maintain exceptionally high flexibility and profit margins when facing external cost pressures.

Looking ahead, Nichiha's breakthrough in third-quarter gross profit margin is not merely a single brilliant financial report, but rather lays a robust foundation for overall operations. With the demand for customized window coverings continuing to grow steadily in European and American markets, coupled with the optimization of pricing structures and a relatively stable tariff environment, institutional investors generally maintain a high level of attention and expectation regarding Nichiha's subsequent profit performance. The latest financial data fully demonstrates Nichiha's leadership position in the global window covering industry, as well as its exceptional execution in perfectly combining external policy benefits with internal operational strategies.