Core Insights - 2025 is a milestone year for Miaokelando and the entire Chinese cheese industry, marking ten years since the company entered the cheese market and significantly contributing to the "cheese enlightenment" in China [1] - The company aims to enhance the domestic cheese industry by increasing technological investment and developing a complete cheese supply chain, focusing on high-quality local milk sources [2] - The founder believes that the cheese category is emerging as a high-value segment in the context of China's economic growth and consumer trends towards health and quality [2] Industry Development - The Chinese cheese market is expected to exceed a trillion yuan, driven by four significant trends: integration with traditional Chinese cuisine, rapid development of "two oils and one cheese" (cream, butter, and original cheese), increased demand for solid dairy products, and opportunities for domestic innovation and product development [3] - The company plans to implement "two core strategies" and "five strategic guarantees" to attract more enterprises into the cheese sector and expand the market [3]

Core Insights - The cheese industry has a long supply chain that spans primary, secondary, and tertiary industries, with upstream focusing on milk supply and added ingredients, midstream on cheese production, and downstream on food service and retail channels [1][2][6] Industry Structure - The upstream segment consists of dairy farms and raw milk suppliers, with major players including YouRan Dairy, Modern Dairy, and others [2] - The midstream includes cheese manufacturers, with domestic participants like Mengniu, Yili, and Miaokelan Duo, and international brands such as Anchor and Kraft Heinz [2] - The downstream retail sector encompasses both online platforms like Taobao and JD.com, and offline supermarkets such as Walmart and Carrefour, as well as food service outlets like KFC and Starbucks [2][6] Regional Distribution - The upstream dairy supply is concentrated in regions like Inner Mongolia, Heilongjiang, and Shandong, while cheese production is primarily located in coastal areas [6] - Consumer demand is stronger in southern and coastal regions, indicating a north-south distribution pattern in the cheese industry [6] Cost Structure - The cost structure for processed cheese, such as cheese sticks, shows that raw material costs can exceed 50%, with packaging and processing costs accounting for approximately 17% and 28% respectively [9] - The cheese content in products often meets or exceeds 50%, impacting the overall cost structure [9] Price Transmission Mechanism - The cheese market price is influenced by supply-side costs, manufacturing costs, and consumer demand elasticity, creating a complex price transmission mechanism [12] - The final consumer price is affected by the cumulative costs from the supply chain, including raw material prices and brand premiums [12] Value Chain Analysis - The upstream segment has a higher profit margin, with companies competing for stable and quality milk supply [13] - Midstream cheese manufacturers like Miaokelan Duo have gross margins around 45%-50%, while downstream distributors have margins of 29%-33% [13]