Core Viewpoint - The company Reliable Co., Ltd. (301009.SZ) addressed objections raised by director Bao Jia regarding the company's Q3 2025 report, asserting that these objections do not align with principles of prudence and relevance [1] Group 1: Related Transactions and Regulatory Warnings - Director Bao Jia's objections pertain to previous related party transactions, which led to regulatory warnings for the company; these transactions occurred in the first half of the year and have since been rectified, thus not relevant to the Q3 report's accuracy [1] - The company clarified that there are no issues of the actual controller holding shares on behalf of suppliers, as confirmed by an audit committee report [1] Group 2: Bankruptcy Disclosure and Financial Reporting - The company denied any concealment regarding the bankruptcy situation of Haizheng Sulikang, stating that it was unaware of the bankruptcy restructuring application prior to the H1 2025 report, and only learned of it during the Q3 report preparation [2] - The objections regarding management fees, particularly legal consultation fees, were addressed by the company, which stated that the fees were not significant enough to warrant board review and were explained to Bao Jia prior to the board meeting [2] Group 3: Company Performance and Business Overview - Reliable Co., Ltd. specializes in the design, research, production, and sales of disposable hygiene products, including adult incontinence products, baby care products, women's hygiene products, and pet hygiene products [3] - For the first three quarters of the year, the company reported revenue of 829 million yuan, a year-on-year increase of 5.12%, and a net profit attributable to shareholders of 27.98 million yuan, reflecting a growth of 26.79% [3]

Core Viewpoint - Reliable Co., Ltd. has addressed concerns raised by board member Bao Jia regarding the company's third-quarter report for 2025, asserting that the objections lack relevance and have been clarified through additional disclosures [1][2]. Group 1: Board Meeting and Objections - The board meeting revealed that Bao Jia's objections pertained to previous related party transactions, which the company claims are unrelated to the accuracy of the third-quarter report [1]. - Reliable Co. stated that regulatory warnings regarding related party transaction approvals occurred in the first half of the year and have since been rectified [1]. - The company conducted an audit with the support of intermediaries, confirming that there is no evidence of the actual controller holding shares on behalf of suppliers or any benefit transfer to the actual controller [1][2]. Group 2: Financial Reporting and Management Fees - Reliable Co. clarified that there was no concealment regarding the bankruptcy situation of Haizheng Sulikang, as the information was not available prior to the publication of the 2025 semi-annual report [2]. - The company addressed concerns about abnormal changes in management fees, specifically legal consultation fees, stating that the amount of 233,100 yuan for legal fees from January to September 2025 does not constitute a significant transaction requiring board approval [2]. Group 3: Company Overview and Financial Performance - Reliable Co. specializes in the design, research and development, production, and sales of disposable hygiene products, including adult incontinence products, baby care products, women's hygiene products, and pet hygiene products [3]. - For the first three quarters of the year, Reliable Co. reported revenue of 829 million yuan, reflecting a year-on-year growth of 5.12%, and a net profit attributable to shareholders of 27.9844 million yuan, representing a year-on-year increase of 26.79% [3].

Core Viewpoint - The report from Tianfeng Securities indicates that Haoyue Care's net profit attributable to shareholders for the first half of 2025 is 150 million, a decrease of 23% year-on-year, with Q2 net profit at 60 million, down 47% year-on-year [1] Group 1: Financial Performance - Haoyue Care's net profit for H1 2025 is 150 million, reflecting a 23% decrease compared to the previous year [1] - The company's Q2 net profit is 60 million, showing a significant decline of 47% year-on-year [1] Group 2: Strategic Focus - The company plans to focus resources on increasing online promotion efforts to enhance the development of its own brand and optimize product structure [1] - Haoyue Care aims to develop new products through research and innovation, with a focus on baby care and adult care products [1] Group 3: Product Development and Innovation - The company is responding to new consumer demands by introducing a series of wet wipes and increasing investment in its own brand promotion to boost sales [1] - New product lines include easy-to-wear menstrual pants and baby pull-ups, as well as differentiated light incontinence adult pull-ups [1] - The company is advancing the application of new materials such as online embossed composite materials and ultra-breathable materials in its products [1] Group 4: Partnerships and Market Position - Haoyue Care collaborates with renowned multinational companies like Unicharm and Kao, as well as emerging domestic brands in the maternal and infant sector [1] - The company is increasing its investment in its own brand e-commerce in response to market competition [1] Group 5: Earnings Forecast - Based on the performance in H1 2025, the earnings forecast has been adjusted, but the "Buy" rating is maintained [1]

Investment Rating - The report maintains a "Buy" rating for the company with a target price not specified [5] Core Views - The company reported a revenue of 800 million in Q2 2025, representing a 26% year-on-year increase, while the net profit attributable to the parent company was 60 million, down 47% year-on-year [1] - For the first half of 2025, the company achieved a revenue of 1.8 billion, up 34% year-on-year, with a net profit of 150 million, down 23% year-on-year [1] - The revenue growth is attributed to the consolidation of Hubei Sibao [1] - The company's product revenue breakdown shows that infant hygiene products accounted for 52.9% of total revenue, adult hygiene products 36.31%, and other products 10.79% [1] Financial Performance and Forecast - The report adjusts the profit forecast for the company, expecting net profits for 2025-2027 to be 350 million, 410 million, and 470 million respectively, with corresponding P/E ratios of 20X, 17X, and 15X [4] - The financial data indicates a projected revenue growth rate of 32.44% for 2025, followed by 10.08% and 10.73% in subsequent years [4] - The company’s EBITDA is forecasted to be 514.52 million in 2025, with a slight decline in net profit margins over the forecast period [4] Business Strategy - The company plans to focus resources on increasing online promotion efforts, enhancing its own brand development, and optimizing product structure [2] - New product innovations include easy-to-wear menstrual pants and ultra-breathable materials, which have already been launched in the market [3] - The company has established deep collaborations with major clients, including global brands and emerging domestic brands, which is expected to enhance its market presence [3]

Core Viewpoint - The company is experiencing growth in adult incontinence products driven by population aging and policy demand, while also participating in standard-setting to promote industry development [1]. Investment Highlights - The company has adjusted its profit expectations but maintains a "Buy" rating, forecasting EPS of 0.14/0.14/0.15 yuan for 2025-2027, with a target price of 16.84 yuan based on a 3.3x PB for 2025 [2]. - In the first half of 2025, the company's revenue reached 549 million yuan, a year-on-year increase of 5.39%, with net profit attributable to shareholders at 28 million yuan, up 21.81% [2]. - The revenue from adult incontinence products in the first half of 2025 was 287 million yuan, a year-on-year increase of 4.62% [2]. Industry Development - The company completed 20 research projects and participated in drafting four national and group standards, including the "Guidelines for Aging-Friendly Design of Household Products" [3]. - As of the first half of 2025, the company holds 207 valid patents, including 65 invention patents, 101 utility model patents, and 41 design patents [3]. - The company's net profit margin in Q2 2025 was 3.60%, an increase of 1.55 percentage points year-on-year, while the gross profit margin was 23.62%, a slight decrease of 0.15 percentage points [3].

Core Viewpoint - The company Reliable Co., Ltd. is facing governance issues related to compliance with related party transactions, highlighted by a warning letter from the Zhejiang Securities Regulatory Bureau [1][2]. Governance Issues - The second largest shareholder, Director Bao Jia, has consistently voted against various proposals, citing ongoing violations of related party transactions and calling for regulatory intervention [2][3]. - Bao Jia's dissent has escalated to broader governance disputes involving operational decisions, executive appointments, and profit distribution [3][4]. - Despite Bao Jia's objections, the board's decisions have not been significantly affected, maintaining a stable governance structure with a majority of non-independent directors [4]. Shareholder Structure Changes - Recent governance conflicts are closely tied to significant changes in the company's shareholding structure, particularly following the divorce between the actual controller Jin Liwei and Bao Jia [5][6]. - Following the divorce, Jin Liwei's direct shareholding dropped to 30.13%, while Bao Jia acquired a direct stake of 29.13%, leading to a near-equal distribution of shares [7]. - Despite the share distribution, Bao Jia voluntarily relinquished voting rights for 4% of her shares, allowing Jin Liwei to retain control over the company [7]. Financial Performance - For the first half of 2025, the company reported revenue of 549 million yuan, a year-on-year increase of 5.39%, and a net profit attributable to shareholders of 28 million yuan, up 21.81% [11]. - The company's product revenue breakdown shows that adult incontinence products account for 51.72% of total revenue, while baby care products contribute 38.57% [11]. - The company operates with a production model where OEM (Original Equipment Manufacturer) business constitutes 53% of revenue, and self-owned brand business accounts for 45% [11]. ESG Rating - Reliable Co., Ltd. currently holds a BB ESG rating, placing it in the bottom 30% of its industry, primarily due to transparency issues and escalating governance conflicts [9]. - The company has faced criticism for its environmental management practices, despite having ISO 14001 certification, and has received warnings for improper disclosure of related party transactions [9].

Core Viewpoint - The company is facing governance issues, particularly regarding related party transactions, which have led to regulatory scrutiny and internal dissent among board members [3][6][17]. Governance Issues - The company received a warning letter from the Zhejiang Securities Regulatory Bureau for failing to comply with the review and disclosure obligations related to a related party transaction with Guangxi Hanggang [3]. - The dissent was highlighted during a board meeting where the second-largest shareholder, Director Bao Jia, voted against the annual report and related party transaction proposals, citing ongoing violations and the need for regulatory intervention [3][6]. - Bao Jia has consistently opposed various board proposals, raising concerns about governance practices, executive qualifications, and the accuracy of financial disclosures [9][11]. Shareholder Dynamics - The governance conflict is exacerbated by a significant change in the company's shareholding structure following a divorce settlement between the actual controller Jin Liwei and Bao Jia, leading to a near-equal distribution of shares [14][15]. - Despite the share redistribution, Bao Jia voluntarily waived voting rights for 4% of her shares, allowing Jin Liwei to maintain control over the company [15]. Financial Performance - For the first half of 2025, the company reported revenue of 549 million, a year-on-year increase of 5.39%, and a net profit of 28 million, reflecting a 21.81% growth [21]. - The gross margins for major product categories have shown slight improvements [21]. ESG Rating - The company currently holds a BB rating in ESG, placing it in the bottom 30% of its industry, primarily due to governance conflicts and lack of transparency in ESG disclosures [17][19]. - The company has faced criticism for its environmental management practices, despite having ISO14001 certification, and has received warnings for improper use of IPO funds [19][21]. Market Position - The company operates in the adult incontinence products, baby care products, and pet hygiene products sectors, maintaining a leading market share in adult incontinence [22]. - As of 2024, adult incontinence products accounted for 51.72% of revenue, while baby care products made up 38.57% [22].

Core Viewpoint - Recent regulatory scrutiny has been directed at Reliable Co., Ltd. due to a violation involving related party transactions with Guangxi Hanggang Material Technology Co., Ltd., raising concerns among investors and the Zhejiang Securities Regulatory Bureau [1] Group 1: Regulatory Actions - Reliable Co. received a warning letter from the Zhejiang Securities Regulatory Bureau regarding its failure to timely disclose and review related party transactions amounting to 21.12 million yuan, which is 1.54% of the company's latest audited net assets [1] - The regulatory decision also holds the company's chairman and financial director accountable for the violations, leading to supervisory discussions being recorded in the securities market integrity archives [1] Group 2: Financial Performance Comparison - Reliable Co. has maintained annual revenues around 1.1 billion yuan from 2021 to 2024, while its net profit has not exceeded 50 million yuan during the same period [3] - In contrast, competitor HaoYue Care has reported significantly higher revenues ranging from 2.46 billion to 2.93 billion yuan and net profits between 363 million and 602 million yuan from 2020 to 2024 [3][6] Group 3: Strategic Developments - Reliable Co. is focusing on expanding production capacity and upstream raw material sourcing, which is crucial for the adult incontinence product sector [2][6] - The company has increased its procurement of long fiber fluff pulp from Guangxi Hanggang, leading to a gross margin improvement of 20.79% in 2024, up by 3.14 percentage points from the previous year [2] - Reliable Co. is also investing in a technology research and development center with a budget of 43.89 million yuan, aimed at enhancing its capabilities in raw material research and testing [6][7] Group 4: Market Position and Future Outlook - Reliable Co. has reported a revenue of 549 million yuan in the first half of 2025, reflecting a year-on-year growth of 5.39%, and a net profit of 28 million yuan, up 21.81% [10] - The company is actively pursuing domestic market opportunities amid global trade uncertainties, with plans for capacity expansion at its Guangxi Hanggang facility, which currently has an annual capacity of 100,000 tons [10]

Group 1 - The stock price of Reliable Co. is reported at 15.09 yuan as of August 27, 2025, down 4.79% from the previous trading day [1] - The company opened at 15.61 yuan, reached a high of 15.70 yuan, and a low of 15.08 yuan, with a trading volume of 137,100 lots and a transaction value of 211 million yuan [1] - Reliable Co. specializes in adult incontinence products, baby care products, and pet hygiene products, owning brands such as Reliable and Absorbent Treasure [1] Group 2 - The company has faced internal disputes within its board of directors, attracting market attention [1] - On August 25, the company disclosed its semi-annual report and board resolution announcement, with three proposals opposed by director Bao Jia, who is also the ex-wife of the actual controller and the second-largest shareholder [1] - Bao Jia has publicly criticized the investment decisions and management capabilities of chairman Jin Liwei, as well as the professional competence of the newly appointed secretary Wang Xiangting [1] Group 3 - The company received a warning letter from the Zhejiang Securities Regulatory Bureau on August 26 due to violations in the disclosure of related party transactions [1] - As of August 27, the net outflow of main funds from Reliable Co. was 17.85 million yuan, with a cumulative net outflow of 58.56 million yuan over the past five days [1]

Core Viewpoint - The internal conflict within Reliable Co., Ltd. has intensified, highlighted by the opposition from the founder's ex-wife, Bao Jia, against several board resolutions, raising concerns about the company's management and governance [2][3][10]. Group 1: Board Meeting and Resolutions - On August 21, Reliable Co. held a board meeting where four resolutions were voted on, all of which passed despite Bao Jia's dissent on three of them, particularly regarding the appointment of Wang Xiangting as the new Secretary of the Board and Deputy General Manager [3][4]. - Bao Jia criticized Wang's lack of experience in listed companies and questioned his professional capabilities, suggesting he is more suited for the role of Chairman's Secretary rather than Secretary of the Board [3][4]. Group 2: Regulatory Issues - On August 26, Reliable Co. received a warning letter from the Zhejiang Securities Regulatory Bureau due to violations in disclosing related party transactions, which led to regulatory discussions with founder Jin Liwei and CFO Li Chaonan [7][9]. - The company was found to have failed to timely fulfill the necessary review procedures and disclosure obligations regarding related party transactions amounting to 21.12 million yuan, which constituted 1.54% of the company's latest audited net assets [9]. Group 3: Financial Performance - For the first half of the year, Reliable Co. reported a revenue increase of 5.39% to 549 million yuan and a net profit growth of 21.81% to 28.28 million yuan, with specific segments like adult incontinence products and baby care products showing positive growth [14]. - Despite the recent revenue growth, the company's overall performance has been declining since its listing, with revenues dropping from 1.174 billion yuan in 2019 to 1.079 billion yuan in 2024, and net profits fluctuating significantly, including a loss in 2021 [14]. Group 4: Management Criticism - Bao Jia has publicly criticized Jin Liwei's management decisions, particularly regarding investments in loss-making companies and the handling of the Du Di brand's sales, which have resulted in significant financial losses [10][12]. - Reliable Co. defended its investment strategy as a long-term approach and claimed that the losses from the Du Di brand were part of a broader strategy to enhance channel collaboration and improve operational efficiency [12][14]. Group 5: Market Reaction - Following the news of internal conflicts and regulatory issues, Reliable Co.'s stock closed at 15.85 yuan, down 0.25% on August 26 [17].