Group 1: Financial Performance - The company achieved a revenue of 888 million CNY in the first half of 2025, representing a year-on-year growth of 9.34% [15] - The net profit attributable to shareholders was 102 million CNY, an increase of 7.37% compared to the same period last year [15] - The gross profit margin for the first half of 2025 was 18.97%, up by 0.09 percentage points year-on-year [10] Group 2: Core Business and Market Position - The core product, pet pads, saw a revenue growth of 7.28% in the first half of 2025, aligning with industry averages despite a slowdown due to tariff disruptions [3] - The company holds a nearly 40% share in the customs export of similar products, indicating a strong position in the overseas market [12] - The pet diaper product line experienced significant growth, with a year-on-year increase of 40.58% [3] Group 3: Strategic Initiatives - The company plans to expand into new retail channels and consumption scenarios, including instant retail and partnerships with pet brand operators and hospitals [4] - A dual strategy of "overseas + domestic" and "ODM/OEM + self-owned brands" is being implemented to enhance market presence [11] - The company is focusing on product innovation, particularly in eco-friendly and functional products, to meet evolving consumer demands [4] Group 4: Consumer Trends and Market Dynamics - The pet care market is shifting from price competition to value competition, with consumers increasingly prioritizing quality and safety [7] - The company recognizes the importance of product quality as a core value, aiming to build trust with consumers through high-quality offerings [7] - The domestic pet care market is still developing, with a growing awareness of the necessity for hygiene products, which is expected to increase demand over time [9] Group 5: Challenges and Responses - The company faced challenges due to tariff disruptions, which temporarily affected exports to the U.S. but has since returned to normal operations [19] - Strategic reserves of raw materials have been implemented to mitigate risks from price fluctuations and supply chain disruptions [14] - The company is actively enhancing its supply chain management to align with national policies promoting the standardization of the pet industry [14]