Summary of Key Points from the Conference Call of Jieya Co., Ltd. Company Overview - Jieya Co., Ltd. is benefiting from Kimberly-Clark's strategic adjustments in the European market, with expected new orders in 2025 bringing nearly 200 million RMB in sales [2][6] - The company is actively expanding its business in Australia, New Zealand, Southeast Asia, and Latin America, indicating significant growth in international markets [2] Core Business Developments - Jieya has secured a project with Procter & Gamble in the Canadian market, with an expected annual sales of approximately 30 million RMB, potentially increasing to nearly 100 million RMB [2][8] - The new factory in North Carolina, USA, originally planned to start production in 2025, has been delayed to Q1 2026 due to approval and client review factors, with a designed capacity of 100 million USD [2][11] - In the first half of 2025, Jieya's revenue growth is expected to be around 10%, with better profit growth anticipated, and a faster growth rate expected in the second half of the year [2][15] Client and Market Structure - Jieya primarily serves major international brands such as Johnson & Johnson, Kimberly-Clark, Procter & Gamble, L'Oréal, and Australia's largest supermarket chain, Woolworths [4] - The company's business structure is heavily focused on wet wipes, which constitute the majority of its offerings, while cosmetics account for about 10% of overall business [4] Financial Performance and Projections - In Q1 2025, Jieya reported a slight decline in performance, but a recovery is expected in Q2 due to new orders, with overall performance showing improvement [3][15] - The company has a strong financial reserve of approximately 1.3 billion RMB, sufficient to support business expansion [5][30] Strategic Partnerships and Market Trends - The strategic shift by Kimberly-Clark to outsource production has created opportunities for Jieya, with a significant increase in orders expected [7] - The wet wipes industry is facing increased competition from new entrants, but major players like Jieya focus on their market shares without significant conflict [17] Future Growth and Investment Plans - Jieya aims to explore international market opportunities and product categories as key growth drivers, with plans to maintain stable growth in core business areas [13][14] - The company is considering investments and acquisitions to seek business growth, particularly targeting brand collaborations [24] Challenges and Risks - The company faces challenges in the cosmetics sector due to reduced orders from L'Oréal, but it plans to continue serving L'Oréal while expanding domestic client relationships [5][23] - There are uncertainties regarding the production timeline of the new factory in the USA, which could impact future revenue [11][20] Export and Domestic Sales Dynamics - Jieya's export ratio is expected to increase from 50% in 2024 to 70% in 2025, while domestic sales are projected to decrease to 30% [27] Profitability Outlook - The gross margin is projected to improve as international business grows, with current margins around 20%-25% for international operations and about 10% for domestic [28] Conclusion - Jieya Co., Ltd. is positioned for growth through strategic partnerships, international market expansion, and a focus on core competencies in wet wipes, while navigating challenges in the cosmetics sector and maintaining a strong financial foundation [31]

Company Overview - Tongling Jieya Biotechnology Co., Ltd. was established in 1999 and specializes 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]. - In Q1 2025, the company reported a revenue of 124 million yuan and a net profit of 10.06 million yuan [2]. Q&A Highlights - **Impact of Tariffs**: The current tariff policies have a relatively limited impact on the company's overall business [3]. - **US Wet Wipe Factory Project**: The project is currently under construction and is expected to commence production next year [3]. - **Kimberly-Clark European Orders**: Production began in April 2025, and order deliveries are progressing as planned [3]. - **Asset Impairment**: The company adheres to accounting standards and will reasonably assess asset impairment based on prudence [3]. - **Self-Branding Considerations**: The company is exploring self-branding through an industrial fund but has seen low revenue conversion rates [3]. - **Facial Mask Business Outlook**: Currently serving major clients like L'Oréal and Galen Group, with a gradual expansion to other domestic brands, though new client orders are relatively small [3]. - **Jiechuang Medical Subsidiary**: The subsidiary is undergoing strategic adjustments, with cautious investment based on overall business layout and resource optimization [3]. - **Equity Incentives**: The company is focused on establishing long-term incentive mechanisms and will disclose plans as they develop [3]. - **Compliance with Regulations**: The company conducted the investor communication event in accordance with regulatory guidelines, ensuring no undisclosed significant information leaks occurred [3].

Group 1: Company Performance and Challenges - The sales of baby wet wipes decreased by nearly 20% in 2024, primarily due to intensified industry competition and a decline in birth rates [2][3] - The wet wipes industry is highly market-oriented with numerous manufacturers, leading to a gradual market share concentration towards leading companies [3] - The company faces significant challenges due to increased competition and a complex economic environment since its listing [3] Group 2: Future Growth Strategies - The company aims to drive performance growth through product structure optimization, sales strategy adjustments, and technological innovation [3][4] - Direct exports to the U.S. represent a small proportion of the company's products, limiting the impact of recent tariff policies on overall performance [3] - The company plans to leverage capital market advantages to acquire quality assets that align with its main business, enhancing sustainable profitability [3] Group 3: Investor Relations and Governance - The investor relations activity was conducted in compliance with regulatory guidelines, ensuring no significant undisclosed information was leaked [4] - The management emphasizes a commitment to high-quality development and improving investor returns through enhanced governance and compliance [3][4]

Core Viewpoint - The company has signed a maximum guarantee contract with Industrial and Commercial Bank of China to provide a joint liability guarantee of 50 million yuan for its wholly-owned subsidiary, Jiangsu Haoyue Industrial Co., Ltd. [2][3] Summary by Sections Guarantee Overview - The company has renewed a maximum guarantee contract with Industrial and Commercial Bank of China, providing a joint liability guarantee of 50 million yuan for Jiangsu Haoyue [3][10] - The total amount of guarantees provided by the company and its subsidiaries, including this renewal, is 200 million yuan, which is within the authorized limit of 500 million yuan set by the board for the fiscal year 2024 [2][12] Decision-Making Process - The board of directors approved the guarantee at the 14th meeting of the third board on April 14, 2025, allowing the company and its subsidiaries to provide guarantees up to 500 million yuan [4][5] Basic Information of the Guaranteed Party - Jiangsu Haoyue Industrial Co., Ltd. is a wholly-owned subsidiary of the company, established on May 19, 2010, with a registered capital of 220 million yuan [6][8] - The company directly holds 100% equity in Jiangsu Haoyue, which is not listed as a dishonest executor [8][9] Financial Indicators - Jiangsu Haoyue has a good credit status, with no significant issues affecting its debt repayment ability [9][11] Necessity and Reasonableness of the Guarantee - The guarantee is deemed necessary and reasonable to support the operational needs of the subsidiary, ensuring smooth business operations and aligning with the company's long-term development strategy [11][12] Board Opinion - The board unanimously approved the guarantee, stating it aligns with the company's overall development strategy and that the company can effectively manage operational risks [12]

Group 1 - The company reported a revenue of 2.929 billion yuan for 2024, representing a year-on-year growth of 6.25% [1] - The net profit attributable to shareholders of the listed company was 388 million yuan, showing a year-on-year decline of 11.65% [1] - The company announced a cash dividend of 8.5 yuan (including tax) for every 10 shares to all shareholders [1]