Core Viewpoint - The company is focusing on continuous innovation and product iteration to drive long-term growth, leveraging new product launches and management capabilities to enhance performance [3]. Group 1: New Product Development - The company has a strong ability to launch new products, which is expected to accelerate revenue growth. New products are a core performance indicator, with a target of over 10% of total revenue coming from new launches [3]. - The innovation mechanism combines top-down and bottom-up approaches, allowing subsidiaries to propose new products based on local market conditions. Successful pilot products can be rolled out nationally [3]. - Recent product launches, such as the new guava yogurt, have shown strong sales performance, indicating effective market penetration [3]. Group 2: Profitability Enhancement - The market recognizes the company's "fresh" strategy and management capabilities, but there are differing views on the path to improving net profit margins. Some believe that margin improvement relies more on raw milk cost benefits rather than product structure optimization [4]. - On the supply side, the reduction in dairy cattle is stable, with no signs of acceleration. The demand side shows relatively weak consumption, with stable sales during holidays but pressure on daily sales [4]. - As of June 19, 2025, raw milk prices have decreased to 3.04 yuan per kilogram, and the timeline for achieving supply-demand balance has been pushed back compared to previous expectations [4]. - The company's milk source structure is flexible, with self-owned, joint-venture, and cooperative farms contributing 30%, 30%, and 40% of production, respectively, allowing for profit enhancement through cost benefits [4]. - The core business focuses on low-temperature fresh milk and specialty yogurt, with revenue growth in low-temperature categories outpacing that of ambient products. The gross margins for low-temperature products are significantly higher than for ambient products [4].