Core Insights - The Chinese infant formula market is undergoing significant transformation, with newborn numbers dropping from 14.65 million in 2019 to 9.54 million in 2024, leading to a 13.9% year-on-year decline in industry scale for 2023. However, the ultra-premium segment is experiencing a 4.2% growth, indicating a structural differentiation within the market [1][3]. Group 1: Market Trends - The ultra-premium infant formula market is entering a critical growth phase in 2023, with the implementation of new national standards accelerating industry reshuffling, resulting in smaller brands exiting the market and larger, technologically advanced brands gaining more space [3]. - By 2024, the market share of ultra-premium infant formula is expected to reach 37%, an increase of 4.2 percentage points from 2023 [3]. Group 2: Company Performance - The company, Jianhe Group, has shown remarkable performance amidst industry changes, with a 46.9% year-on-year increase in its infant formula business in Q1 2025, and its ultra-premium market share rising to 15.6% [1][3]. - Jianhe Group's brand, Biostime, has effectively captured market trends, with its Paixing series benefiting from core formulations like LPN and SN-2 PLUS, leading to sales growth of 55.4% and 8.7% for its first and second stages, respectively, in the first two months of 2025 [3]. Group 3: Sales and Distribution Strategy - In response to a 9.8% decline in offline sales, Jianhe Group adopted a "dual-channel drive" strategy, achieving a 117% year-on-year increase in GMV during the Double Eleven shopping festival in 2024, and enhancing offline sales through 2,263 parent-child events, resulting in a 27% increase in actual sales [6]. - The company has improved customer acquisition efficiency, with a 25% increase in new customers in 2024 [6]. Group 4: Supply Chain and Product Innovation - Jianhe Group has optimized its supply chain, reducing inventory turnover days from 159 in 2023 to 150 in 2024, showcasing strong inventory management capabilities [8]. - The company is expanding its product offerings beyond infant formula to include innovative products like lactoferrin and probiotics, as well as entering the children's nutrition market with the launch of Biostime's children's milk powder targeting ages 3-14 [8]. - The company is successfully transitioning from quantity to quality through high-end products, multi-channel operations, and extending user lifecycle value, positioning itself as a model for the entire maternal and infant industry amid declining population dividends [8].