Group 1 - The Chinese government has announced a subsidy of 3,600 RMB per child per year for infants aged 0 to 3, signaling policy support for childbirth, although the amount is limited [1] - The subsidy aims to boost consumption rather than directly stimulate childbirth, but it may have a limited positive impact on the number of newborns in the short term [1] - This policy is a response to the declining birth rate and aims to alleviate the financial burden of raising children on families [1] Group 2 - The infant formula market is closely linked to the number of newborns, with a temporary rebound in newborn numbers expected to stabilize market size in the first five months of 2025 compared to 2024 [2] - Leading domestic companies are pushing subsidy policies, impacting the competitive landscape in the infant formula industry [2] - Companies such as Yili (600887.SH) are showing strong growth momentum, while H&H International (01112) has seen a recovery in market share in the ultra-premium segment; China Feihe (06186) is focused on channel inventory reduction and retail price control [2]