Core Viewpoint - The most challenging times for the dairy industry have passed, and there are emerging opportunities for structural upgrades within the industry [1] Industry Overview - The dairy industry faces severe challenges in 2024, including increased upstream raw milk production and insufficient downstream consumer demand, leading to pressure on company performance [2] - Despite a decline in revenue and net profit for the company, it remains the largest and most profitable dairy company in Asia, with a net profit of 11.539 billion yuan, a year-on-year increase of 12.2% after excluding goodwill impairment [3] Company Strategy - The company's management philosophy focuses on low inventory and stable pricing to maintain dealer confidence, addressing rising inventory and declining profitability among dealers [4] - The company aims for balanced development across all business segments to ensure sustainable growth, akin to the "wooden barrel effect" [6] Business Performance - The company maintains a leading market share in liquid milk and ice cream, with the milk powder segment reaching a record high of 29.675 billion yuan [8] - The company has seen double-digit growth in its infant formula brand and its B2B cheese business, as well as in overseas markets [8] Future Outlook - The company expresses confidence in the long-term development of the dairy industry, identifying opportunities in online sales growth, increased consumer spending in first-tier cities, and the upgrading of dairy consumption structures [10] - The company has set a revenue target of 119 billion yuan and a profit target of 12.6 billion yuan for the year, aiming for a net profit margin of 9% [14] - In the first quarter, the company achieved a revenue of 33.018 billion yuan, a year-on-year increase of 1.35%, and a net profit of 4.629 billion yuan, a year-on-year increase of 24.19% [14]