Group 1: Financial Performance - Revenue from the Americas market increased by 4.26% year-on-year, reaching 760 million CNY in the first half of 2025 despite trade tensions [5] - The company maintained a stable gross margin for its export business to the Americas through various cost control measures [5] Group 2: Strategies for Market Expansion - The company plans to scale up its gummy business and explore existing large clients' needs, preparing for sales opportunities in 2026 [2] - Focus on expanding sales in the Latin American market, particularly targeting new clients in Brazil [2] - Strengthening team development by equipping sales regions with business development and customer operation teams [2] Group 3: Response to Tariff Challenges - The company has implemented strategies to mitigate the impact of tariffs, including adjusting end-user prices and locking in raw material costs [2] - Engaging in negotiations with suppliers to reduce cost increases and sourcing alternative materials [2] Group 4: Globalization and Supply Chain Efficiency - The company is advancing its global strategy by enhancing local capabilities and improving operational efficiency in overseas factories [3] - Plans to diversify market risks by expanding into emerging markets such as Southeast Asia and Latin America [6] Group 5: Production Capacity and Order Fulfillment - Domestic factories have a medium to high capacity utilization for soft capsules, gummies, and tablets, while beverage powder capacity is underutilized [4] - The company is steadily progressing in fulfilling existing orders, with overall sales and delivery conditions being normal [4] Group 6: Future Development Focus - The company aims to solidify its leading position in domestic markets while expanding into new consumer channels [6] - Plans to enhance technological capabilities, including the development of an AI-driven formula design system and digital transformation initiatives [7] Group 7: Goodwill and Acquisitions - The company reported goodwill of over 400 million CNY due to acquisitions, with no current impairment risks identified [7] - Integration of acquired companies into the overall business strategy to strengthen global supply capabilities [7]

Core Viewpoint - Xianle Health reported a positive performance in Q1 2025, with revenue growth and improved profit margins, indicating strong market positioning and growth potential in both domestic and international markets [1][2][3] Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 954 million yuan, a year-on-year increase of 0.28% [1] - The net profit attributable to shareholders reached 68.64 million yuan, reflecting a year-on-year growth of 8.90% [1] - The gross profit margin was 33.09%, an increase of 2.47 percentage points compared to the previous year [1] Group 2: Domestic Business Development - The company maintained positive revenue growth in the China region despite a high base from the previous year, with order growth outpacing revenue growth [1] - Xianle Health expanded its leading position in the domestic market by targeting new consumer markets and enhancing its MCN channel [1] - The company successfully launched 13 major products and established a global product map, creating vertical solutions [1] Group 3: International Business Strategy - The company adopted a localized operational strategy to enhance its global business layout, responding quickly to market demands [2] - In the Americas, despite tariff-related uncertainties, the company reported a strong start with improved gross margins and significant order growth [2] - The European business performed well, establishing partnerships with top brands in Southern Europe, while the Asia-Pacific region saw a gross margin exceeding 45%, the highest since 2022 [2] Group 4: Research and Innovation - Xianle Health emphasized research and development by establishing an Anti-Aging Research Institute and launching innovative products [2] - New products include QUICKFIZZ probiotic drinks and DHA algae oil gummies, which received regulatory approval [2]