Core Viewpoint - New Hope Dairy is redefining its growth strategy amid a challenging dairy market, focusing on innovation and consumer demand for fresher and diverse products [1] Group 1: Company Strategy - The company's product strategy has evolved from "Fresh and Sour Dual Strong" to "Three Fresh Dominance," adding beverages to its core offerings of fresh milk and yogurt [1] - The company aims to leverage high-end products and local market penetration as key growth drivers, alongside exploring international markets [3] Group 2: Market Conditions - The dairy industry in China is undergoing a significant adjustment, with total dairy production expected to decline to 29.62 million tons in 2024, a 1.9% year-on-year decrease [1] - Liquid milk production is experiencing its first decline in five years, with per capita dairy consumption dropping by 5.6% [1] Group 3: Financial Performance - Revenue decreased by 2.9% year-on-year to 10.67 billion yuan, while net profit grew by 24.8% to 540 million yuan, maintaining a double-digit growth rate [2] Group 4: International Expansion - The company is focusing on low-temperature beverages as a potential entry point into overseas markets, with countries like Thailand, the Philippines, and Singapore showing growth opportunities in flavored milk [4] - New Hope Dairy has established a global R&D presence across four continents and six countries, targeting Southeast Asia for future growth [3][4] Group 5: Financial Health - As of the end of Q1, the company's debt-to-asset ratio has decreased to 64.61%, nearing the target set in its "New Five-Year Strategy" [5]

Core Viewpoint - New Hope Dairy is focusing on innovation and consumer demand for fresh and diverse dairy products to navigate the challenges of a slowing market and declining consumption [1][2] Industry Overview - The domestic dairy industry is characterized by intense competition with a trend towards increased concentration among leading companies [2] - In 2024, China's total dairy production is projected to decline to 29.62 million tons, a decrease of 1.9% year-on-year, with liquid milk production experiencing its first drop in five years [2] - Per capita dairy consumption is expected to decrease by 5.6% year-on-year, indicating a shift in consumer behavior towards value and quality [2] Company Strategy - New Hope Dairy is committed to a "fresh strategy" that emphasizes product innovation across various categories, including fresh milk and beverages [3] - The company aims to enhance its competitive edge through the integration of AI and synthetic biology in its production processes [3] - New Hope Dairy's revenue for 2024 is projected at 10.665 billion yuan, a slight decrease of 2.93% year-on-year, while net profit is expected to rise by 24.8% to 538 million yuan [3] Growth Drivers - The company identifies three key growth drivers: high-end product development, deepening market penetration, and international expansion [4][5] - The "24-hour" fresh milk series and local market strategies are expected to contribute significantly to revenue growth, with high-end products seeing over 15% year-on-year revenue increase [5] - New Hope Dairy is also focusing on innovative distribution channels, including partnerships with major retailers and the establishment of fresh milk stores [5] Strategic Partnerships - New Hope Dairy has formed a strategic partnership with the Norwegian Gene Cow Breeding Association to introduce and cultivate Norwegian Red Cattle, enhancing its product offerings [6] - The company has already launched its first Norwegian Red Milk product, which has received positive market feedback [6]