Group 1: Company Strategy and Market Position - In 2025, Dong'e Ejiao will focus on the "1238" strategy, emphasizing "growth and breakthrough" as its operational theme, and will implement the "four remakes" to enhance the entire gelatin industry chain [1] - The company holds a combined market share of 38.1% in the Qi and Xue supplement category, with Dong'e Ejiao block at 67.3% and Compound Ejiao Syrup at 31.9% [2] - Dong'e Ejiao aims to strengthen its core business and expand potential products through differentiated innovation and the establishment of technological barriers [1][2] Group 2: Financial Performance and Revenue - In Q1 2025, the company achieved online revenue of approximately 340 million yuan, a year-on-year increase of about 20% [2] - The online revenue breakdown includes: Ejiao block at approximately 120 million yuan (up nearly 15%), Compound Ejiao Syrup at approximately 60 million yuan (up nearly 60%), and Ejiao powder at approximately 60 million yuan (up nearly 50%) [2] - The overall gross margin is maintained at around 70%, with a slight increase in Q1 due to reduced costs from centralized procurement [7] Group 3: Inventory and Sales Management - The reasonable inventory level for Dong'e Ejiao block and Compound Ejiao Syrup is set at six months of terminal market sales, while for Taohua Ji Ejiao cake, it is 1.5 months [2] - The current channel inventory is at a healthy level, and terminal pure sales are progressing steadily [2] Group 4: Future Plans and Dividends - Since its first dividend in 1999, the company has distributed a total of 8.469 billion yuan over 26 occasions, with an average payout ratio of 65.75% [6] - The proposed dividend for 2024 is 818 million yuan, with a payout ratio of 99.70% [6] - The company plans to maintain a stable and proactive dividend policy based on its operational development, profitability, cash flow, and shareholder interests [6] Group 5: Challenges and Adjustments - The increase in accounts receivable in Q1 2025 is attributed to the implementation of a credit management strategy and increased procurement costs for strategic materials [4] - The company is addressing the small proportion of insurance payments for Compound Ejiao Syrup and aims for sustainable growth in this area [5]