Summary of Conference Call Records Company Overview - **Company**: 贝加洁 (Beijiajie) - **Industry**: Oral Care and Probiotics Key Financial Performance - **Revenue Growth**: 2025 H1 revenue increased by 10.22% to 717 million CNY, with net profit rising by 31.31% to 43.52 million CNY [2][3] - **Cash Flow**: Operating cash flow grew by 21.85% to 79.7 million CNY [2][3] - **Core Products**: Oral care products generated 485 million CNY, up 20.77%, while toothbrush sales declined by 4.81% due to reduced orders [2][4] Product Performance - **Toothpaste**: Significant growth in toothpaste revenue, contributing over 70 million CNY, a substantial increase from the previous year [2][6] - **OEM Business**: OEM revenue reached 608 million CNY, up 8.22%, driven by toothpaste sales despite declines in wet wipes and toothbrushes [2][9] - **Private Label**: Private label revenue was 55.21 million CNY, a 36% increase, but still incurred a loss of 10.42 million CNY [2][10] Market Performance - **Domestic Market**: Domestic revenue was 285 million CNY, up 29%, largely due to toothpaste sales [2][12] - **International Market**: International revenue was 378 million CNY, showing a slight decline of 0.1% [2][12] Customer Relationships - **Key Clients**: Strong partnerships with Procter & Gamble and Comfort Dental, with significant contributions to revenue [2][7] - **Client Structure Improvement**: Enhanced client structure with notable contributions from new clients [2][21] Future Development Focus - **Market Expansion**: Plans to deepen existing markets and explore new business areas, particularly in oral care and probiotics [2][8] - **Product Innovation**: Emphasis on technological innovation and strategic partnerships to diversify product offerings [2][8] Subsidiary Performance - **善恩康 (Shan'enkang)**: Achieved 49.76 million CNY in revenue, an 80% increase, turning a profit of 8.38 million CNY [2][13] Challenges and Strategies - **E-commerce Performance**: E-commerce channels showed mixed results, with significant losses from Douyin despite overall growth in online sales [2][11][10] - **Competitive Pricing**: The company is actively responding to market competition by adjusting pricing strategies and focusing on high-margin products [2][14][34] Conclusion - **Growth Outlook**: The company aims for double-digit growth in the coming years, leveraging its strengths in OEM and private label businesses while navigating market challenges [2][28]

Core Viewpoint - The company, Yaoshi Bang, demonstrated strong financial performance in the first half of 2025, achieving significant revenue growth and profitability despite a challenging pharmaceutical market environment [1][2]. Financial Performance - In the first half of 2025, the company reported revenue of 9.843 billion yuan, a year-on-year increase of 11.7% [1] - Gross profit margin improved from 10% to 11.2% [1] - Net profit attributable to shareholders reached 78.11 million yuan, representing over a threefold increase year-on-year [1] - Operating cash flow remained positive at 257 million yuan, with cash and cash equivalents totaling 3.551 billion yuan [1] Business Model and Growth Drivers - The company operates as the largest pharmaceutical trading service platform in the outpatient market in China, maintaining a leading user coverage and deepening user engagement [1] - Monthly active buyers reached 453,000, a 6.5% increase year-on-year, with a buyer payment rate of 94% and an average order quantity of 29.2 per paying buyer [1] - The dual-driven model of "platform + self-operated" generated revenue of 9.843 billion yuan, with platform revenue at 436 million yuan and self-operated business revenue at 9.389 billion yuan, reflecting a 12% increase [1][2] Supply Chain and Operational Efficiency - The company reported a payable turnover period of approximately 67.7 days and an inventory turnover of 32.2 days, indicating strong supply chain efficiency [2] - The cash conversion cycle was approximately -33.8 days, showcasing superior cash turnover efficiency compared to industry standards [2] - The self-owned brand business achieved a transaction scale of 852 million yuan, a year-on-year increase of approximately 473.4% [2] Strategic Initiatives - The company is focusing on three strategic areas: expanding self-owned brands, enhancing supply chain efficiency, and developing grassroots medical services [2][3] - The integration of various technologies, including POCT and AI systems, is aimed at empowering grassroots medical institutions [3] - The monthly average available SKUs reached 4 million, with same-day delivery orders increasing from 67.7% to 70% [3] Market Outlook - Despite the ongoing challenges in the domestic pharmaceutical retail industry, structural opportunities are emerging due to market consolidation [4] - The company is strategically addressing industry pain points by enhancing digital supply chain capabilities and optimizing profit structures through high-margin products [4] - Forecasts suggest that the company's net profit attributable to shareholders will reach 149 million yuan in 2025, with a projected growth of 395% year-on-year [4]

Company Overview - Tongling Jeya Biotechnology Co., Ltd. was established in 1999, specializing in the research, production, and sales of wet wipes, with over 20 years of industry experience [2]. - The company was listed on the Shenzhen Stock Exchange's Growth Enterprise Market on December 3, 2021, and is steadily advancing its fundraising projects [2]. Financial Performance - In Q1 2025, the company reported a revenue of 124 million yuan and a net profit of 10.06 million yuan [2]. Business Operations - As of Q2 2025, the company has a stable order flow in its wet wipes business, with existing customers in Europe and Canada [3]. - The current production capacity utilization rate is approximately 80% [3]. - The U.S. wet wipes factory is under construction and is expected to commence production next year, primarily serving international brand clients in the North American market [3]. Clientele and Market Expansion - Key clients in the wet wipes business include international brands such as Woolworths, Kimberly-Clark, Johnson & Johnson, Procter & Gamble, as well as domestic e-commerce brands like Babycare and Dongfang Zhenxuan [3]. - The company anticipates that overseas orders will increase, with foreign sales expected to account for over 50% of total business in 2025 [3]. Risk Management - Investment risks associated with the U.S. factory include uncertainties in facility renovation and approval processes, customer audit outcomes, potential delays in production timelines, and cultural differences affecting production efficiency [3]. Future Business Strategy - The company plans to expand its cosmetics business, primarily through contract manufacturing for L'Oréal, while also exploring domestic clients [4]. - The current revenue from proprietary brands is low, with a focus on contract manufacturing [4]. - Future business drivers include expanding existing brand client relationships and leveraging the new U.S. factory [4]. Stock Performance - The company's stock price fluctuations are influenced by macroeconomic factors, industry policies, and market sentiment, with no undisclosed significant information affecting operations as of the date of the meeting [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported significant revenue growth, achieving an operating income of 4.24 billion yuan in 2024, a year-on-year increase of 36.56%, and a net profit attributable to shareholders of 0.381 billion yuan, up 229.52% year-on-year [4][5] - The company is accelerating market share growth among new and existing clients, with its OEM manufacturing business generating revenue of 3.534 billion yuan, a year-on-year increase of 44.61% [5] - The company's gross margin for 2024 was 22.86%, a decrease of 1.49 percentage points year-on-year, primarily due to the consolidation of Jia Le's income, which impacted profitability [6] - The company has over 70% of its production capacity overseas, which minimizes the impact of tariff increases on its costs [7][8] - Future revenue projections for 2025-2027 are 5.234 billion yuan, 6.140 billion yuan, and 7.055 billion yuan, representing year-on-year growth rates of 23.4%, 17.3%, and 14.9% respectively [9][11] Summary by Sections Financial Performance - In Q4 2024, the company achieved an operating income of 1.215 billion yuan, a year-on-year increase of 47.91%, and a net profit of 0.06 billion yuan, returning to profitability [4] - For Q1 2025, the company reported an operating income of 1.234 billion yuan, a year-on-year increase of 35.57%, and a net profit of 0.085 billion yuan, up 20.12% year-on-year [4] Business Segments - The OEM manufacturing segment is performing well, with a focus on expanding into the apparel sector and optimizing production efficiency [5] - The brand management segment generated revenue of 0.658 billion yuan, a year-on-year increase of 5.07%, focusing on core travel product categories [5] Profitability Metrics - The company's net profit margin for 2024 was 8.99%, an increase of 5.26 percentage points year-on-year [6] - The gross margin for Q1 2025 was 24.71%, an increase of 0.54 percentage points year-on-year, indicating potential for improved profitability moving forward [6] Market Position - The company is positioned as a leading OEM in the luggage sector, leveraging its global production capabilities to enhance market share among existing clients and attract new ones [9] - The company is also focusing on brand promotion and product innovation to drive growth in its proprietary brand business [9]

Investment Rating - The report gives a "Buy" rating for the company [4]. Core Views - The company is positioned as a leading manufacturer in the bag industry, leveraging both B2B and B2C business models to drive growth. The B2B segment includes partnerships with renowned brands like Nike and Uniqlo, while the B2C segment focuses on its own brands, "90 Points" and "Xiaomi" [2][8]. - The company anticipates significant revenue growth, with projections of 32.04% in 2024 and 29.82% in 2025, alongside a substantial increase in net profit [8][12]. Financial Forecasts - Revenue (in million yuan): - 2023A: 3104.90 - 2024E: 4099.86 - 2025E: 5322.46 - 2026E: 6099.15 - Revenue Growth Rate (%): - 2023A: 13.28 - 2024E: 32.04 - 2025E: 29.82 - 2026E: 14.59 - Net Profit (in million yuan): - 2023A: 115.62 - 2024E: 390.46 - 2025E: 372.71 - 2026E: 452.66 - EPS (in yuan): - 2024E: 1.63 - 2025E: 1.55 - 2026E: 1.89 - PE Ratio: - 2024E: 13.96 - 2025E: 14.62 - 2026E: 12.04 [3][4][8]. Business Model and Strategy - The company operates under a dual business model, focusing on both B2B and B2C segments. The B2B segment includes OEM and ODM operations, while the B2C segment emphasizes direct sales through its own brands [12][48]. - The company has successfully diversified its operations, expanding from traditional IT bag manufacturing to include sports and leisure bags, as well as garment manufacturing [22][51]. Market Overview - The domestic bag market is experiencing a recovery, with a retail scale of 2349.2 billion yuan in 2023, reflecting a growth of 12.60% compared to 2022. The international market also shows signs of recovery, with a retail scale of 1551.5 billion USD [35][40]. - The report highlights the potential for domestic brands to capture market share, as the current market is dominated by foreign luxury brands [40][41]. Management and Governance - The company's ownership structure is stable, with the founder holding 51.23% of the shares, ensuring strong control and strategic direction [24]. - The management team is experienced, with backgrounds in leading IT companies, which enhances operational efficiency and competitive advantage [24]. Conclusion - The report indicates a positive outlook for the company, driven by robust growth in both B2B and B2C segments, strategic partnerships, and a favorable market environment [2][8][12].