Core Viewpoint - The company held a mid-year performance exchange meeting on August 28, 2025, discussing its operational performance and engaging with 76 institutions, highlighting its sales growth and strategic initiatives in the baking industry [1][2]. Group 1: Sales Performance - In the first half of 2025, the revenue from circulation channels accounted for nearly 50% of total sales, remaining stable year-on-year, while the supermarket channel saw a revenue increase of nearly 30% due to strong sales of new products [2]. - The second quarter of 2025 recorded a sales revenue of 1.024 billion yuan, representing an 18.4% year-on-year growth, with a net profit attributable to shareholders of 82.39 million yuan, up over 40% year-on-year [2]. - The revenue from baking food raw materials accounted for slightly over 50% in the second quarter, with a year-on-year growth of nearly 45%, driven by the UHT cream products which contributed to a nearly 40% growth in the cream segment [2]. Group 2: Capacity and Product Development - The company’s second UHT production line, which is set to commence operations in the second half of 2024, currently has excess capacity to meet the anticipated market demand increase [2]. - A new high-end cream product has passed internal testing and is currently in the bulk testing phase with major clients, expected to be launched in the market soon [2]. - The utilization rate of frozen baking capacity has slightly improved compared to the previous year, despite no significant expansion in production capacity over the past year [2]. Group 3: Strategic Initiatives - The company aims to ensure stable growth in traditional circulation channels through product innovation, service optimization, and resource allocation [2]. - A joint venture with Feihe was established to secure a stable supply of dairy fat, which is crucial for the company's cream and baking product segments, leveraging synergies with leading domestic dairy companies [2]. - The company sources its oil materials primarily from three categories: frying oil for frozen baking, soybean oil for sauces, and palm kernel oil for producing non-dairy cream and blended cream products [2].