Summary of the Conference Call for HaoYue Care Company Overview - **Company**: HaoYue Care - **Industry**: Baby and adult hygiene products Key Points Financial Performance - In the first half of 2025, HaoYue Care achieved revenue of 3.3 billion yuan, a year-on-year increase of 3.13%, but net profit significantly declined due to high sales expenses, with a sales expense ratio reaching 43% [2][4] - For Q2 2025, revenue was 8.5 billion yuan, a year-on-year growth of 26.07%, but net profit fell by 46% to 580 million yuan [3] - The gross margin for Q2 was 31.36%, an increase of 1.05 percentage points year-on-year, while the net margin was 6.82%, a decrease of approximately 9 percentage points [3] Product and Market Strategy - HaoYue Care is focusing on promoting new products with higher unit prices and gross margins to enhance overall profitability [2][3] - The company has launched several new products, leading to increased sales expenses, particularly in online marketing [6] - The company’s own brands, such as Thailand's Sunny Baby and domestic wet wipes, have achieved double-digit growth, but face challenges from changes in TikTok platform rules and intensified competition [2][12] International Expansion - HaoYue Care is investing in overseas markets, specifically in Peru and Tanzania, to leverage geographical advantages and cost benefits [5] - The Peru project aims to serve the entire Latin American market, while the Tanzania project targets the rapidly growing East African market [5] - The construction period for these projects is expected to be around two years, with some production lines potentially starting earlier [7] ODM and Competitive Landscape - The ODM business for diapers saw double-digit growth in Q1 2025, but faced a decline in Q2 due to negative events affecting a key client [18] - The company has adjusted pricing strategies to maintain good relationships with downstream clients amid rising logistics costs [14] Future Outlook - The company anticipates that the recent government policies promoting childbirth will eventually lead to an increase in newborn birth rates, positively impacting the baby hygiene products market [19] - Future sales strategies will focus on balancing revenue growth with profitability, especially during the upcoming consumer goods sales peak season [6][8] Challenges and Adjustments - The company is facing increased sales expenses due to the need for higher marketing investments to maintain market presence [14] - Adjustments in sales strategies are planned to respond to competitive pressures and changes in market dynamics [13] Dividend and Buyback Plans - HaoYue Care has maintained a high dividend payout rate but did not declare a dividend for mid-2025 due to ongoing overseas investment plans [20] - Future dividend and buyback decisions will depend on profitability in the upcoming quarters [20]

Group 1 - The company held its 16th meeting of the 3rd Board of Directors on August 29, 2025, with all 7 directors present, ensuring compliance with legal regulations [1][2] - The Board approved the 2025 semi-annual report and its summary, which had been pre-reviewed by the Audit Committee and received written opinions from the Supervisory Board [1] - The Board passed a resolution to establish a foreign exchange hedging management system, with unanimous approval from all directors [2] Group 2 - The Board approved the proposal to conduct foreign exchange hedging business, with all directors voting in favor [2] - The Board approved the establishment of a subsidiary in Tanzania and the construction of a production base, with unanimous support from the Board [2][3] - The Board also approved the establishment of a subsidiary in Peru and the construction of a production base, receiving unanimous approval [3] - The Board decided to suspend the investment in the Mexico production base project, with all directors voting in favor [3]

Group 1 - The third meeting of the supervisory board of Hangzhou Haoyue Nursing Products Co., Ltd. was held on August 29, 2025, with all three supervisors present, confirming compliance with relevant laws and regulations [1][2] - The supervisory board approved the 2025 semi-annual report, stating that the report accurately reflects the company's operational and management status during the reporting period, with no false records or omissions [1][2] - The board also approved a proposal to conduct foreign exchange hedging business, which is deemed beneficial for mitigating the adverse effects of exchange rate fluctuations on the company's operations [2]

Core Viewpoint - The company, Haoyue Nursing (605009), announced that as of the date of the announcement, neither the company nor its subsidiaries have any overdue guarantees [1] Group 1 - The company has confirmed the absence of overdue guarantees, indicating a stable financial position [1]

（文章来源：证券日报） 证券日报网讯 8月29日晚间，豪悦护理发布公告称，公司第三届监事会第十二次会议审议通过了《2025 年半年度报告及其摘要》《关于开展外汇套期保值业务的议案》。 ...

Core Viewpoint - Hangzhou Haoyue Nursing Products Co., Ltd. plans to conduct foreign exchange hedging transactions with domestic commercial banks to mitigate exchange rate fluctuation risks, with a maximum amount of up to $25 million [1] Summary by Sections Business Overview - The company and its subsidiaries intend to engage in foreign exchange hedging transactions with a maximum amount of $22 million or equivalent foreign currency, with a maximum margin and premium of 20 million RMB or equivalent foreign currency [1] - The funding for the hedging activities will come from the company's own funds, and will not involve raised funds [1] - The transactions will include various foreign exchange derivatives such as forward, swap, and option transactions, aimed at locking in exchange rate risks and costs [1] - The authorization for these transactions is valid for twelve months from the date of approval by the board of directors [1] Approval Process - The transaction requires approval from the board of directors and does not need to be submitted to the shareholders' meeting, nor does it involve related party transactions [2] Risk Analysis - The company acknowledges potential risks including exchange rate fluctuation risks, performance risks from financial institutions, and operational risks due to the complexity of the transactions [3] - A management system for foreign exchange hedging has been established to ensure compliance and to avoid speculative trading [3] Accounting and Supervisory Opinions - The company will account for and disclose the foreign exchange hedging activities according to relevant accounting standards [4] - The supervisory board supports the hedging activities, stating that they are beneficial for mitigating adverse effects from exchange rate fluctuations and that the decision-making process is legal and compliant [4]

Group 1 - The company announced the approval of multiple proposals, including the "2025 Semi-Annual Report and its Summary" during the 16th meeting of the third board of directors [2]

Core Insights - The company reported a total revenue of 1.76 billion yuan for the first half of 2025, with a significant portion coming from baby hygiene products [1] - The total profit amounted to 171 million yuan, reflecting a year-on-year decline of 22.77%, while the net profit attributable to shareholders was 148 million yuan, down 23.47% year-on-year [1] Revenue Breakdown - Baby hygiene products generated 931 million yuan, accounting for 52.90% of total revenue [1] - Adult hygiene products contributed 639 million yuan, representing 36.31% of total revenue [1] - Other products brought in 190 million yuan, making up 10.79% of total revenue [1] Business Overview - The company specializes in the research, manufacturing, and sales of hygiene care products for women, infants, and adults [1] - Product offerings include disposable hygiene items such as baby diapers, adult diapers, menstrual pants, sanitary napkins, and wet wipes [1]

Group 1 - The company reported a revenue of 1.76 billion yuan for the first half of 2025, representing a year-on-year increase of 34.03% [1] - The net profit attributable to shareholders of the listed company was 148 million yuan, showing a year-on-year decrease of 23.47% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 146 million yuan, reflecting a year-on-year decline of 23.91% [1] - The basic earnings per share were 0.69 yuan [1]

第三届监事会第十二次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 证券代码：605009 证券简称：豪悦护理 公告编号：2025-046 杭州豪悦护理用品股份有限公司 表决结果：3 票同意，0 票反对，0 票弃权。 （二）审议通过《关于开展外汇套期保值业务的议案》 监事会认为：公司在保证正常生产经营的前提下，开展外汇套期保值业务， 有利于规避和防范汇率波动对公司经营造成的不利影响，有利于控制汇率风险， 符合公司实际情况，相关决策程序符合有关法律、法规的规定，不存在损害公司 及股东特别是中小股东利益的情形。 表决结果：3 票同意，0 票反对，0 票弃权。 特此公告。 杭州豪悦护理用品股份有限公司监事会 一、监事会会议召开情况 杭州豪悦护理用品股份有限公司（以下简称"公司"）第三届监事会第十二 次会议于 2025 年 8 月 29 日在公司会议室以现场结合通讯的方式召开，会议通知 已于 2025 年 8 月 19 日通过短信的方式送达全体监事。本次会议由监事会主席陈 昶先生主持，会议应出席监事 3 人，实际出席监事 ...