讀後心得

The U.S. adjusts import tariffs, impacting global export companies. Zhiwei (5263) stated that its successful diversification over the years has minimized this impact. Zhiwei's products are sold in over 20 countries, and the U.S. market accounts for only 4% of total revenue. Although high tariffs increase consumer costs, Zhiwei has launched economical products to meet market demand and plans to expand its product line to improve market penetration. Additionally, Zhiwei offers a range of bundled solutions and maintains a competitive advantage in difficult circumstances due to high profit margins. Zhiwei will continue to grow steadily and expand its global market.

The United States recently announced adjustments to import tariffs on specific countries, a policy that will significantly impact globally export-dependent companies. The leader in motion-based amusement equipment, i.e., 智崴, points out that with years of diverse deployment in the global market and a variety of products and services, coupled with high gross margin development, 智崴's competitiveness in the era of high tariffs will be stronger than that of its peers in other countries.

智崴’s motion-based amusement equipment products are marketed in over 20 countries and regions worldwide, including Canada, Japan, Germany, Mexico, Saudi Arabia, and more. The diversified market layout not only helps reduce the risk of relying on a single market but also minimizes the impact of policy changes from a single country. It is worth noting that 智崴's revenue in the U.S. market accounts for a relatively low proportion. According to company statistics, the U.S. market accounted for only 4% of total revenue in 2023 and is further expected to drop to 1% in 2024. Given the existing market trends, non-U.S. markets in the Middle East and Asia may present more opportunities; therefore, the impact of this tariff policy on 智崴 is relatively limited.

Globally high tariffs will still affect the overall amusement industry, leading to an increase in consumer costs in various countries and accelerating the trend of consumer downgrade in the global market, causing customers to prefer cost-effective economic products. The product diversification policy that 智崴 has vigorously expanded in recent years precisely meets this market demand, including the economically-priced flying theater o-Ride successfully sold to Brazil, Japan, and Canada, as well as the newly launched 4D motion theater, which has been sold to South Korea. Additionally, in July this year, 智崴 will launch a high-capacity, cost-effective series of flying theater products, aiming to comprehensively cover different price ranges and further solidify market penetration.

In addition to the sale of amusement equipment, 智崴 also offers comprehensive solutions such as film shooting, animation production, digital content licensing, and thematic design. Through diversified digital content, they drive the growth of equipment sales and the content licensing market. The thematic design team also provides customized venue theme design solutions to expand the growth potential of individual sales amounts.

智崴 emphasizes its market advantage with high gross margins, allowing it to withstand tariff challenges more robustly than competitors that rely heavily on the U.S. market. The core of 智崴's technology lies in research and development and system integration; key patented hardware is manufactured in Taiwan, while other hardware is locally sourced based on export destinations. The company has also achieved effectiveness in cost efficiency management, giving it a relative price advantage over competitors in the trade war.

The implementation of the new tariff policy will test the operational resilience and diversity of amusement equipment companies. Whether a significant recession will occur due to high tariffs, 智崴 believes that, based on past trends, aside from the impact of the COVID-19 pandemic in 2020, the global leisure travel market has not experienced more than a 10% negative impact during past financial crises and other events. Currently, the demand for international theme park construction is strong; for instance, Disney plans to invest $60 billion in theme parks and cruise projects over the next ten years, and Shanghai and Hong Kong Disneyland have announced expansion plans to add more new facilities. NBCUniversal is also set to build its first European Universal Studios in the UK, while the Middle East is actively promoting "Vision 2030" to invest in leisure and entertainment construction.

In light of the reduced number of suppliers post-pandemic, market demand still exceeds supply. Despite facing high tariff challenges, 智崴's outlook for 2025 remains steady growth. Moving forward, the company will continue to strengthen its market leadership through diversification strategies and high-margin products, further expanding its global market footprint.