{"text":[[{"start":7.5,"text":"The rollercoaster ride of rising and falling U.S. tariffs last year, and resulting gyrations in Chinese imports to the country, is reflected in the latest quarterly results of Goodbaby International Holdings Ltd. (1086.HK), whose strollers and other baby products were affected by the trade war. But even as its exports to the U.S. plunged by as much as 30%, China still posted a record $1.2 trillion trade surplus last year as its exporters turned to other global markets."}],[{"start":40.6,"text":"That pivot is also reflected in Goodbaby’s results, as the company navigates choppy trade waters using a localization strategy involving earlier acquisitions in the U.S. and Europe. Even so, Goodbaby’s U.S. sales took a clear tariff hit in the first quarter, though its European sales are holding up better."}],[{"start":59.85,"text":"Goodbaby’s founder and President Song Zhenghuan, a former teacher, is known as China’s “stroller king” for turning a factory under the Lujia Middle School, located in the city of Kunshan near Shanghai, into the world’s largest stroller maker. The company currently sells to 110 countries, giving it roughly one-third of the global market."}],[{"start":80.45,"text":"But that market has hardly been an easy stroll lately."}],[{"start":83.65,"text":"Goodbaby reported its revenue grew by 6.4% year-on-year to HK$2.17 billion ($276.5 million) in the first quarter, marking a return to growth after a 1.2% decrease for all of last year. But on a constant currency basis, which better reflects actual sales without including foreign exchange rate fluctuations, Goodbaby’s revenue declined by 0.9% in the first quarter, improving from a 3% decline in 2025."}],[{"start":113.2,"text":"Goodbaby doesn’t report profit figures in its first-quarter reports, which are voluntary under Hong Kong listing rules. But its net profit fell 38.7% last year to HK$218.4 million, as its gross margin remained basically flat."}],[{"start":129.4,"text":"The latest results show Goodbaby’s sales remain under pressure, though its situation is improving."}],[{"start":135.70000000000002,"text":"The market initially welcomed the latest report, with Goodbaby’s shares rising 10% in the three trading days after last week’s announcement. But the stock gave back most of those gains a few days later as investors were reminded the trade war is likely to linger for a while. The stock is down 25% over the last year, trading at a depressed price-to-earnings (P/E) ratio of 7.15."}],[{"start":159.4,"text":"Goodbaby is hardly alone in getting the investor cold shoulder. Shares of Butong (6090.HK), owner of the BeBeBus brand of strollers, car seat carriers and other baby products, have lost about half of their value since their IPO last September. But with its top and bottom lines both growing, Butong is in a stronger position than Goodbaby, reflected in its higher P/E ratio of 32."}],[{"start":185.5,"text":"For Goodbaby, its German Cybex brand has been a life saver. Cybex ranks among the top three premium stroller and baby car seat brands in Europe, according to research firm Mordor Intelligence. Goodbaby acquired the Bayreuth, Germany-based brand in 2014, and founder Martin Pos still sits on the board."}],[{"start":203.45,"text":"Cybex strollers cost anywhere from $250 to as much as $2,500, while its child car seats range from $240 to $950. It competes with other names like Bugaboo, owned by Abu Dhabi’s Mubadala Capital; Nuna, owned by Taiwan-based Wonderland Group, and the vintage British brand Silver Cross, owned by China’s Fosun (0656.HK)."}],[{"start":230.5,"text":"Smooth ride in Europe"}],[{"start":232.95,"text":"The fact that Cybex products are manufactured in Asia hasn’t hurt them, at least not in their core European market, where governments haven’t imposed anti-dumping tariffs on Chinese baby products yet. But that could change at any time, as China and the EU also navigate their own testy trade relationship."}],[{"start":250.6,"text":"Cybex sales grew by 12.9% year-over-year to HK$1.3 billion in the first quarter, similar to their 13% rise last year. The brand’s performance was less impressive on a constant currency basis, with sales up a more modest 2% in the latest quarter, marking a slowdown from the 9.1% gain for all of last year."}],[{"start":271.9,"text":"On a Hong Kong dollar basis, Cybex sales grew 13% last year to HK$5 billion from HK$4.46 billion in 2024. The brand is increasingly important to Goodbaby, growing to 58.3% of revenue in 2025 from 51% the previous year. The brand has also been pushing into North America, opening a flagship store in New York last year."}],[{"start":299.9,"text":"Goodbaby’s mid-market Evenflo brand, its second-largest revenue source, is in recovery mode. Its revenue grew by 3.1% in the first quarter after declining by 11.2% in 2025. With more than a century of history, the brand, based in the U.S. state of Ohio, was acquired by Goodbaby in 2014, the same year it acquired Cybex."}],[{"start":324.4,"text":"Goodbaby’s domestic China brand, gb, is struggling, though its revenue declines eased to 2.9% in the first quarter after sinking by 18.8% in 2025. The brand has been shutting down its low-margin and outdated product lines, and is focusing on core products including car seats. Despite improving trends, the restructuring has yet to translate into a return to revenue growth."}],[{"start":349.25,"text":"The brand’s struggles are partly the result of China’s declining birth rate, which reached a record low of 5.63 births per thousand people in 2025. That has dragged down some segments of the baby products market, but not all. Sales of strollers in the country declined by 3.6% to 16.37 billion yuan ($2.4 billion) in 2025, according to the China Toy and Juvenile Products Association. But child safety seat sales actually grew by 10.1% to 6.02 billion yuan last year, buoyed by more private cars on the road and a 2021 law requiring the use of child safety seats."}],[{"start":390.85,"text":"Goodbaby’s contract manufacturing business, called Blue Chip, is showing the most pain, though it is the smallest part of its revenue at about 10%. Revenues from that business fell by 14.1% in the first quarter, easing from a much larger 24.8% drop in 2025, primarily due to the impact of U.S. tariffs on orders from other brands."}],[{"start":413.5,"text":"The lone analyst following Goodbaby on Yahoo Finance predicts the company’s sales will grow about 6% this year to HK$9.18 billion. Separately, CICC maintained its “neutral” rating on the company in April after Goodbaby published its annual results."}],[{"start":432.15,"text":"“We expect the core brand Cybex to achieve strong revenue and profit growth in 2026, driven by new markets and new product categories,” CICC said. “Meanwhile, as Evenflo's business strategy is streamlined and gb's channel and product adjustments are gradually completed, losses are expected to narrow further.”"}],[{"start":458.15,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1780369275_3811.mp3"}