Investment Rating - The investment rating for the company is "Buy" and is maintained [7]. Core Views - In 2024, the company achieved operating revenue of 5.37 billion yuan, a year-on-year decline of 11.6%, and a net profit attributable to shareholders of 170 million yuan, down 70.6% year-on-year. In Q4 2024, the operating revenue was 1.5 billion yuan, a decrease of 19.3% year-on-year, with a net profit of -190 million yuan [2][4]. - For Q1 2025, the company reported operating revenue of 1.08 billion yuan, a year-on-year decline of 20.8%, and a net profit of 100 million yuan, down 58.1% year-on-year [2][4]. - The company is focusing on overall resource efficiency and is undergoing a phase of adjustment in its skincare business, while the raw material business is growing steadily, and the high-margin medical terminal business is expanding rapidly [9]. Summary by Sections Financial Performance - In 2024, the raw material business generated revenue of 1.24 billion yuan, up 9.5% year-on-year, with international market expansion showing a growth of 17.7%, particularly in the Americas, Europe, and Southeast Asia, where growth exceeded 20% [9]. - The medical terminal business achieved revenue of 1.44 billion yuan, a year-on-year increase of 32%, with skin-related medical products growing by 43.6% [9]. - The functional skincare business reported revenue of 2.57 billion yuan, down 31.6% year-on-year, while the nutritional science business generated 80 million yuan, up 41% year-on-year [9]. Cost and Profitability - The company's gross margin improved by 0.8 percentage points year-on-year, with the raw material, medical terminal, and functional skincare gross margins changing by 0.9, 2.3, and -1.1 percentage points respectively [9]. - The net profit margin decreased by 6.5 percentage points year-on-year due to increased management expenses and changes in the organizational structure [9]. Future Outlook - The company is expected to see improvements in revenue and profit as it continues to adjust its skincare business and launch new products. The raw material business is expected to maintain a strong market position, and the medical beauty business is gradually contributing more to overall performance [9]. - EPS forecasts for 2025-2027 are 0.95, 1.33, and 1.67 yuan per share respectively [9].

Group 1: Financial Performance - The company recorded a provision for impairment of over 50 million in 2024, with nearly 30 million in Q1 2025, primarily due to inventory write-downs of pea starch influenced by market conditions [2][3] - The significant drop in profit in Q1 2025 was mainly due to changes in revenue structure and the market conditions of pea starch [3][5] - The company plans to implement a share buyback, but the loan funds for this purpose have not yet been received [2][5] Group 2: Business Strategy and Development - The company aims to become a leader in the pea industry chain, focusing on products like pea protein, noodles, and dietary fiber, while continuously extending its product line [3][4] - The company is actively expanding its raw material procurement channels to mitigate procurement risks [2][3] - New subsidiaries have been established to optimize management structure and resource allocation, enhancing operational efficiency [4][5] Group 3: Market and Product Insights - Pea protein and oligosaccharides are currently in the market development stage, with profitability yet to be established [4][5] - The Thai factory is expected to be completed in the second half of the year, with an additional production capacity of approximately 10,000 tons of protein [5][6] - The company is exploring various avenues for product development and market expansion, including potential AI and technology initiatives [5][6] Group 4: Shareholder Engagement and Value Creation - The company emphasizes maintaining good communication with investors and aims to create stable profits and implement a consistent cash dividend policy [5][6] - Concerns were raised about the impact of share buybacks on stock prices, with the company stating that stock price fluctuations are primarily due to market conditions [3][5] - The company has not identified any undisclosed significant information related to its operations [5][6]