Core Viewpoint - Under the strategy of "lean management + multi-dimensional innovation + one body and two wings," the company is seeking certainty in a challenging market environment, showcasing resilience in its mid-term performance despite industry adjustments and slow consumer recovery [2][34]. Financial Performance - In the first half of 2025, the company achieved revenue of 41.57 billion yuan and operating profit of 3.54 billion yuan. Excluding losses from joint ventures in the livestock sector, the net profit attributable to the parent company remained stable year-on-year [2]. Industry Context - The dairy industry is experiencing a deep adjustment, with a 4.5% year-on-year decrease in the number of dairy cows and a 2.81% decline in raw milk production, marking the first drop since 2018 [3][5]. - Despite the decrease in supply, the market faces oversupply and weak demand, leading to a 4.6% year-on-year reduction in apparent dairy consumption in 2024 [5]. - The average daily surplus of raw milk remains at 11,000 tons, indicating ongoing challenges in supply-demand balance [5]. Operational Strategies - The company has implemented various lean management initiatives to enhance operational efficiency, resulting in a 13.4% increase in operating profit margin and growth in operating cash flow [6][11]. - In upstream raw milk supply, the company has introduced technical services to improve the resilience and operational capabilities of partner farms [9]. - In the midstream processing segment, the company has adopted smart operations to enhance production efficiency, achieving a 55% reduction in delivery cycles and a 32% decrease in operating costs [10]. Innovation and Product Development - The company has seen double-digit revenue growth in its fresh milk segment (+22%) and maintained market leadership in low-temperature products for 21 consecutive years [12]. - The introduction of over 100 new products in the first half of 2025 reflects the company's commitment to innovation, targeting specific consumer needs and market segments [12][15]. - The company focuses on health and emotional value in its product offerings, launching products with clear health benefits and appealing designs [15][16]. Brand and Marketing Strategies - The company has shifted its marketing strategy to integrate top IPs and social values, enhancing brand connection with consumers [16][18]. - The incorporation of ESG principles into the brand's identity has garnered widespread market recognition [18]. Channel Innovation - The company is pursuing a decentralized approach to channel innovation, expanding into new retail formats and optimizing logistics through digital transformation [19]. - Collaborations with major clients in the B2B sector have opened new growth avenues while addressing raw milk surplus [19]. Strategic Framework - The company's growth strategy, termed "one body and two wings," emphasizes a return to core dairy principles and the development of high-value nutrition and health platforms [21][24]. - The focus on international markets, particularly in Southeast Asia, has allowed the company to alleviate domestic supply pressures and expand its market reach [28][29]. Conclusion - The company's mid-term report reflects a strategic shift towards efficiency, innovation, and long-term growth, positioning it to capture market share and improve profitability as industry conditions stabilize [34].

Core Viewpoint - The article discusses the shift in the consumer goods industry from a focus on explosive growth and "hit products" to a more sustainable approach centered on continuous innovation and user value, emphasizing the importance of understanding consumer needs and preferences in a saturated market [2][7][80]. Group 1: Industry Trends - The era of new consumption characterized by rapid growth and easy market entry for new brands has ended, leading to a more cautious approach in product development [2][7]. - Brands are now focusing on user value and continuous innovation rather than relying solely on single hit products [10][80]. Group 2: Brand Case Studies - White Elephant has successfully utilized "saturation innovation" in the instant noodle market, launching over 100 new products annually and achieving significant market presence despite a stagnant growth rate of 2%-3% in the industry [12][15]. - "Fruits Ripe" has rapidly gained market share in the sugar-free tea segment, with an 851.07% year-on-year increase, by adopting a multi-category innovation strategy rather than relying on a single product [18][22]. - Wudao has captured 48% of the Greek yogurt market in just four years by focusing on high-quality production and user feedback for product iteration [29][30]. - Lemon Republic achieved over 300 million in sales within three years by deeply understanding consumer preferences and continuously innovating within a niche market [33][36]. Group 3: Innovation Strategies - Brands are encouraged to let users become part of the product development process, ensuring that consumer feedback directly influences product innovation [11][28]. - Continuous innovation should focus on genuine consumer needs and insights, rather than superficial trends [10][28]. - The packaging and marketing strategies should be designed to enhance consumer engagement and facilitate product usage [42][49]. Group 4: Marketing and Consumer Engagement - McDonald's has effectively utilized social media to create "fan moments," enhancing brand engagement and driving sales through relatable content and community interaction [46][49]. - The long-term marketing strategy of Yili during the Chinese New Year has successfully integrated brand messaging with consumer sentiment, resulting in significant sales growth [56][60]. - Light Up has rapidly become a top seller in the beverage category by leveraging extensive online marketing and consumer feedback for product development [63][66]. Group 5: Global Market Strategies - The case of Sunrise Egg Products demonstrates the importance of high standards and local partnerships when entering foreign markets, successfully selling century eggs in the U.S. by addressing cultural barriers and ensuring product quality [70][76].