Core Viewpoint - The article emphasizes the importance of ingredient innovation in the baking industry, showcasing the launch of two new products by Nanqiao: Aiyichun Pure Cream and Qiaobai Le Fermented Butter, which are set to redefine flavor profiles in baking [1][5][55]. Group 1: Product Launch and Demonstration - Nanqiao held a product launch event for Aiyichun Pure Cream and Qiaobai Le Fermented Butter, presenting them as not just products but as a new approach to flavor in baking [1][3]. - The event featured a live demonstration by renowned French pastry chef Maxime Martel, who showcased the performance of Aiyichun Pure Cream in creating a Black Forest cake, highlighting its smooth texture and fresh dairy aroma [5][12][8]. - Qiaobai Le Fermented Butter was demonstrated in making sourdough croissants, showcasing its complex flavor profile derived from a unique fermentation process involving four types of lactic acid bacteria [14][21][26]. Group 2: Ingredient Quality and Flavor - Aiyichun Pure Cream is made from 100% pure animal milk fat sourced from the North Latitude 38° golden milk source, ensuring a rich and clean taste that maintains its texture under various conditions [8][13]. - Qiaobai Le Fermented Butter offers a multi-layered flavor experience, combining creaminess, acidity, and caramel notes, which enhances the overall taste of baked goods [14][23][26]. - The article stresses that the quality of these ingredients allows for a more authentic flavor experience, moving away from artificial enhancements [53][55]. Group 3: Market Trends and Consumer Preferences - The launch reflects a broader trend in the baking industry where brands are shifting focus from aesthetics to authentic flavors, as consumers increasingly seek genuine taste experiences [53][55]. - The event also highlighted the growing demand for high-quality domestic dairy products in the Chinese market, indicating a shift towards local sourcing and production [57]. - The introduction of these innovative products is seen as a catalyst for the evolution of bakery menus, allowing for quicker adaptation to new flavor trends [50][55].

Financial Performance - In the first half of 2025, the company achieved revenue of 1.555 billion yuan, which remained basically flat year-on-year; however, the net profit attributable to shareholders decreased by 72% to 35.96 million yuan [1] - Despite measures such as product price adjustments and changes in product structure to mitigate the impact of rising raw material costs, the price increase of products was insufficient to offset the cost pressure, leading to a decline in overall profit levels [1] Raw Material Costs - Key raw materials for the company include palm oil, soybean oil, coconut oil, and natural cream. Although palm oil prices have slightly decreased, they remain high compared to the same period in 2024, with a year-on-year increase of over 30% from approximately 7,000 yuan/ton to about 10,000 yuan/ton [1] - The average import price of coconut oil in June 2025 was 2,510.88 USD/ton, reflecting an increase of over 90% compared to June 2024 [2] - In the first half of 2025, China imported 80,000 tons of cream, a year-on-year increase of 13.7%, with an average price of 7,984 USD/ton, up 24.1% year-on-year [2] Product Development and Market Strategy - The company established a subsidiary to enhance cold processing pastry capacity to meet the growing demand from coffee, tea, and catering clients. It has also launched new products in response to market needs, including health-oriented oils and cream products [3] - The trend towards diversified consumer preferences has led to the coexistence of "small and refined" specialty stores and "large and comprehensive" baking factories, providing more market entry points and development model choices for companies [3] Market Expansion - The company is focusing on resource integration and optimizing sales channels, increasing the number of distributors to 471 by the end of June 2025, a year-on-year increase of 42 [4] - The company is also expanding its presence in overseas markets, particularly in Southeast Asia, exporting various products including baking oils and creams [4] - The baking market in China is expected to continue expanding, driven by a shift towards daily consumption and increased frequency of purchases [4]