Group 1: Investor Relations Activity Overview - The investor relations activity was conducted on May 15, 2025, at Chengdu Oukang Pharmaceutical Co., Ltd. [3] - Attendees included representatives from Kaiyuan Securities, Huayuan Securities, Zhongrui Huyin, and Luxin Chuangtou [3] - Company representatives included Chairman Zhao Zhuojun and CFO Cao Yongqiang [3] Group 2: Impact of Industry Trends - The overall price decline in the vitamin industry has limited impact on the company's product pricing, which is primarily influenced by raw material supply and market demand [5] - The company specializes in flavonoid products, a niche within the vitamin sector, using raw materials like bitter orange and sophora flower [5] Group 3: Production Capacity and Utilization - The new plant's production lines for bitter orange are expected to achieve over 50% capacity utilization by the end of 2025 [6] - The production lines for sophora flower are also projected to reach 50% capacity utilization by year-end 2025, with a focus on fine management and market expansion [6] Group 4: Market Expansion and Partnerships - The company has established strong partnerships in Japan for its sophora flower and bitter orange products, focusing on the food additive and health product markets [7] - Ongoing efforts are being made to deepen cooperation with clients and expand market influence in Japan [7] Group 5: Facility Upgrades and Compliance - Upgrades to the Diosmin and Rutin production lines have been completed, meeting both domestic and international GMP standards [8] - The upgraded lines have passed domestic GMP compliance checks and are in the process of obtaining EuGMP certification [8] Group 6: Financial Projections - The company anticipates a 160% increase in depreciation expenses for 2025 compared to 2024 due to the completion of investment projects [9] - Strategies will be implemented to enhance sales revenue to offset increased depreciation costs [9] Group 7: Profitability and Market Trends - The company's gross margin has declined due to production challenges and increased costs in Q1 2025, but is expected to recover as production lines stabilize [11] - The market for quercetin is projected to grow significantly due to rising health awareness and demand for natural ingredients, particularly in health supplements and functional foods [12]