Group 1: Financial Performance - The total cash dividend amount for the last three accounting years reached 91,913,104.51 CNY, exceeding 30% of the average net profit for the same period [2] - Cumulative cash dividends from 2018 to 2024 amount to approximately 1.099 billion CNY, which is 2.29 times the net raised funds [2] - In Q1 2025, total revenue was 758,656,819.43 CNY, a year-on-year increase of 1.64%, while net profit was 86,652,875.66 CNY, a decrease of 7.94% [5][7] Group 2: Market Position and Strategy - The company has achieved a high market share in overseas markets, with 2024 foreign revenue at 275,650.05 CNY, up 23.43%, accounting for 82.87% of total revenue [5] - The company has maintained its position as the leading exporter of medical dressings in China for 17 consecutive years since 2008 [6] - Future growth will focus on four product categories: surgical and wound care, infection prevention, advanced dressings, and hygiene care products [6] Group 3: Product Development and Innovation - The company is transitioning from basic to advanced dressing products, with new offerings in 2024 including soft silicone foam dressings and hydrocolloid dressings [3][6] - The company is investing in technology integration, including AI for quality control, to enhance manufacturing competitiveness [4] - The hygiene care product line is still in its early stages but has significant growth potential, targeting a market valued in the hundreds of billions [6][8] Group 4: Industry Outlook - The medical dressing market is characterized as a stable growth sector with low product substitutability, provided that companies maintain competitive advantages [7] - The company aims to reduce reliance on developed markets by expanding into emerging markets in the Middle East, South America, Southeast Asia, and Africa [5]

Core Viewpoint - The company Fulejia continues to experience a decline in net profit for the second consecutive year, with a reported decrease of 11.77% in 2024, attributed primarily to increased marketing expenses and a competitive business environment [1][3][4]. Financial Performance - In 2024, Fulejia achieved operating revenue of 2.017 billion yuan, a year-on-year increase of 4.32%, while the net profit attributable to shareholders was 661 million yuan, reflecting a decrease of 11.77% [3]. - The company reported a net profit decline of 11.56% in 2023, despite a revenue growth of 9.29% during the same period [3]. - Marketing expenses have significantly increased, with 2024 sales expenses reaching 748 million yuan, up 40.53% from 2023, which had sales expenses of 532 million yuan, an increase of 36.44% [3]. Market Environment - The competitive landscape is characterized by reliance on traffic operations and price competition, leading to increased costs and reduced profit margins [4]. - Fulejia's financial report indicates a significant dependence on promotional events and influencer marketing, which, while effective for short-term sales, contribute to rising operational costs over time [4]. Historical Context - Founded in 2015, Fulejia quickly rose to prominence in the beauty industry, particularly in the medical dressing sector, with a substantial portion of its revenue derived from medical products [5][6]. - The company experienced rapid revenue growth from 374 million yuan in 2018 to 1.342 billion yuan in 2019, and further to 1.585 billion yuan in 2020 [6]. Research and Development - Fulejia's R&D expenses have seen significant growth, with 2023 expenditures reaching 32.84 million yuan, but the growth rate slowed to 6.04% in 2024 [9]. - The proportion of R&D expenses relative to total revenue remains low, at less than 2% in 2024, compared to over 5% for competitors like Huaxi Biology [9]. Future Outlook - The company plans to continue its dual-line R&D strategy focusing on both medical devices and cosmetics, aiming to enhance brand image and market share through refined operations and product quality [9]. - Industry experts suggest that Fulejia needs to differentiate itself and explore new avenues, such as beauty devices, to maintain its competitive edge as its initial advantages diminish [10].