Core Viewpoint - The company has confirmed that its new production capacity for probiotic products is operational and will be gradually released based on customer orders, ensuring that it meets market demand without causing oversupply [1] Group 1: Production Capacity - The overall production capacity of the company's probiotic products is currently high, with the utilization rate remaining at a satisfactory level [1] - The new production capacity in Hohhot, Inner Mongolia, has met the conditions for operation and has recently commenced trial production [1] Group 2: Market Demand and Supply - The company plans to release the new production capacity in an orderly manner, in batches, according to customer order situations [1] - There is an emphasis on avoiding redundancy in production that could negatively impact product pricing [1]

Summary of the Conference Call for Beijiajie Company Overview - **Company**: Beijiajie - **Period**: First half of 2025 - **Revenue**: 6.63 billion CNY, a year-on-year increase of 10.2% [2][9] - **Net Profit**: 435.2 million CNY, a year-on-year increase of 31.31% [3] - **Gross Margin**: Increased by 1.21 percentage points to 25% [11] Key Points Revenue Growth - **Total Revenue Growth**: After merging with Shanenkang, total revenue growth reached 15.6% [2] - **Domestic vs. Overseas**: Domestic business revenue grew by 29%, while overseas business slightly decreased by 0.1% [2][9] Product Performance - **Oral Care Products**: Revenue of 4.85 billion CNY, a year-on-year increase of 21% [4] - **Toothbrushes**: Revenue decreased by 4.81% to 2.38 billion CNY [4] - **Dental Floss**: Revenue increased by 35% to 707.5 million CNY [4] - **Toothpaste**: Significant growth due to partnerships with major clients [4] - **Wet Wipes**: Revenue of 1.78 billion CNY, a year-on-year decrease of 10.8%, but gross margin improved to 23.48% [5] - **Shanenkang Probiotics**: Revenue of 48.98 million CNY, a significant year-on-year increase, achieving a net profit of 8.38 million CNY [6][13] Brand Performance - **Self-owned Brand Beijiajie**: Revenue of 55.21 million CNY, a year-on-year increase of 36%, but still incurred a loss of 10.42 million CNY [8] - **E-commerce Performance**: 45% of online sales from Douyin, which is the main source of losses [8] Operational Insights - **OEM Business**: Revenue of 6.08 billion CNY, a year-on-year increase of 8% [7] - **Production Capacity Utilization**: Toothbrush capacity utilization at 70%, with plans to increase toothpaste production lines [21] Market Dynamics - **Impact of Tariff Policies**: April tariff policies temporarily affected orders and shipping, but the situation has normalized [23] - **Regional Performance**: European region saw over 20% growth, while the U.S. market faced challenges due to decreased demand for medical wet wipes [22] Future Outlook - **Revenue Guidance**: Aiming for double-digit growth, with a bottom line of 10% for the year [26] - **Investment in R&D**: Shanenkang's R&D investment ratio is expected to be over 15%, focusing on next-generation probiotics [19] Additional Notes - **Challenges**: The company faced its first loss in history this year, but plans to improve operational performance and provide returns to investors [27] Conclusion Beijiajie demonstrated solid revenue growth in the first half of 2025, driven by strong domestic performance and strategic partnerships. However, challenges in the overseas market and specific product lines, such as wet wipes and toothbrushes, highlight areas for improvement. The company remains focused on maintaining growth and enhancing profitability through strategic investments and operational efficiencies.