Core Viewpoint - Dong'e Ejiao has implemented the "1238" strategy focusing on "growth and breakthrough" for 2025, aiming to enhance quality and achieve dual improvements in returns [1] Group 1: Financial Performance - In the first half of 2025, Dong'e Ejiao reported a revenue of 3.051 billion yuan, a year-on-year increase of 11.02%, and a net profit of 818 million yuan, up 10.74% [3] - The company has achieved double-digit growth in revenue, net profit, and net profit excluding non-recurring gains for two and a half consecutive years [4] - By the end of June 2025, the company's asset-liability ratio was 19.17%, indicating a low debt burden and strong financial health [4][5] Group 2: Innovation and Brand Development - Dong'e Ejiao is transitioning to a dual-driven model of "pharmaceuticals + health consumer products," focusing on building a comprehensive industry chain [6] - The revenue from Ejiao and related products reached 2.845 billion yuan in the first half of 2025, reflecting an 11.50% increase [6] - Research and development expenses grew by 23.29% to 79.92 million yuan, significantly outpacing revenue and profit growth [7] Group 3: Corporate Governance and Shareholder Returns - Dong'e Ejiao received multiple awards for its corporate governance practices, including recognition for its performance explanation meetings and market value management [9][11] - The company announced a cash dividend of 12.700919 yuan per 10 shares, totaling approximately 817 million yuan, which represents 99.94% of its net profit for the first half of 2025 [12] - Cumulatively, the company has distributed over 9.287 billion yuan in dividends since 1999, with the latest announcement pushing total dividends to exceed 10 billion yuan [12]

Core Viewpoint - Dong'e Ejiao has achieved significant growth in revenue and profit in the first half of 2025, demonstrating strong resilience and a solid foundation in the market, while implementing its "1238" strategy focused on quality and innovation [1][3][4]. Financial Performance - In the first half of 2025, Dong'e Ejiao reported revenue of 3.051 billion yuan, a year-on-year increase of 11.02%, and a net profit of 818 million yuan, up 10.74% [3]. - The company has maintained double-digit growth in revenue, net profit, and net profit excluding non-recurring items for two and a half consecutive years [3][4]. - Revenue for 2023 and 2024 was 4.715 billion yuan and 5.921 billion yuan, with year-on-year growth rates of 16.66% and 25.57%, respectively [3]. Innovation and Brand Development - Dong'e Ejiao is focusing on a dual-driven model of "pharmaceuticals + health consumer products," aiming to become a trusted leader in health supplements [6]. - The company has expanded its health consumer product line, achieving revenue of 2.845 billion yuan from its main products in the first half of 2025, reflecting an 11.50% increase [6]. - Research and development expenses reached 79.92 million yuan, growing by 23.29%, indicating a strong commitment to innovation [6]. Financial Health - As of June 30, 2025, Dong'e Ejiao's debt-to-asset ratio was 19.17%, indicating a low financial risk [5]. - The company had cash reserves of 6.629 billion yuan, providing a solid foundation for strategic initiatives and business expansion [5]. Shareholder Returns - Dong'e Ejiao announced a cash dividend of 12.69 yuan per 10 shares, totaling approximately 817 million yuan, which represents 99.94% of its net profit for the first half of 2025 [12]. - Since its first dividend in 1999, the company has distributed a total of 9.287 billion yuan, and with the latest plan, total dividends will exceed 10 billion yuan [12]. Governance and Market Recognition - The company received awards for its effective governance practices and market management, highlighting its commitment to compliance and investor relations [10][11]. - Dong'e Ejiao has established a regular performance briefing model to enhance communication with investors, fostering trust and understanding [11].

Core Viewpoint - Dong'e Ejiao has implemented the "1238" strategy focusing on "growth and breakthrough" for 2025, aiming to enhance quality and achieve high-quality development through five key dimensions [1][6]. Financial Performance - In the first half of 2025, Dong'e Ejiao reported revenue of 3.051 billion yuan, a year-on-year increase of 11.02%, and a net profit of 818 million yuan, up 10.74% [3][5]. - The company has achieved double-digit growth in revenue, net profit, and net profit excluding non-recurring gains for two and a half consecutive years, showcasing strong resilience in a competitive market [3][4]. - The projected full-year revenue for 2025 is expected to exceed 6 billion yuan, marking two consecutive years of 1 billion yuan growth [4]. Financial Structure - As of June 30, 2025, Dong'e Ejiao's debt-to-asset ratio was 19.17%, indicating a low financial risk profile [5]. - The company had cash reserves of 6.629 billion yuan, providing solid financial support for strategic initiatives and business expansion [5]. Innovation and Brand Development - Dong'e Ejiao is transitioning to a dual-driven model of "pharmaceuticals + health consumer products," focusing on building a comprehensive industry chain [6][9]. - In the first half of 2025, revenue from Ejiao and related products reached 2.845 billion yuan, a growth of 11.50%, while other pharmaceuticals and health products generated 142 million yuan, up 7.06% [6]. - Research and development expenses increased by 23.29% to 79.92 million yuan, outpacing revenue and profit growth [6]. Investor Relations and Shareholder Returns - Dong'e Ejiao has been recognized for its governance practices, winning awards for its annual report performance and board office practices [10][11]. - The company announced a cash dividend of 12.69 yuan per 10 shares, totaling approximately 817 million yuan, which represents 99.94% of the net profit for 2025 [12]. - Cumulatively, the company has distributed over 9.287 billion yuan in dividends since 1999, with the latest plan pushing total dividends to exceed 10 billion yuan [12].

Investment Rating - The investment rating for the company is "Accumulate" [5] Core Insights - In H1 2025, the company achieved revenue of 3.051 billion yuan (yoy +11.02%) and a net profit attributable to shareholders of 818 million yuan (yoy +10.74%) [1] - The company maintains a high cash dividend payout, proposing a cash dividend of 12.69 yuan per 10 shares, totaling approximately 817 million yuan, which accounts for 99.94% of the net profit for H1 2025 [4] - The company focuses on its core business with a dual-driven strategy of "pharmaceuticals + health consumer products," enhancing its market position and expanding into new demographics [3] Financial Performance - The gross profit margin for H1 2025 was 73.12% (down 0.42 percentage points), and the net profit margin was 26.80% (down 0.07 percentage points) [1] - The company’s sales expense ratio decreased to 33.79% (down 2.59 percentage points), while the management expense ratio increased to 6.06% (up 1.17 percentage points) [2] - Revenue from core products, including Ejiao and related products, reached 2.845 billion yuan (yoy +11.50%), accounting for 93.24% of total revenue [3] Future Projections - Revenue forecasts for 2025 and 2026 are adjusted to 6.702 billion yuan and 7.468 billion yuan, respectively, with corresponding growth rates of 13.2% and 11.4% [8] - The projected net profit for 2025 and 2026 is 1.812 billion yuan and 2.099 billion yuan, with growth rates of 16.4% and 15.8% [8] - The company aims for an EPS of 2.81 yuan and 3.26 yuan for 2025 and 2026, respectively [8]