Summary of Dong-E E-Jiao Conference Call Company Overview - **Company**: Dong-E E-Jiao - **Industry**: Health and wellness products, specifically traditional Chinese medicine Key Points and Arguments Financial Performance - In the first half of 2025, Dong-E E-Jiao maintained double-digit growth and aims to continue this trend throughout the year, adhering to the "1,238" strategy [2][23] - For Q3 2025, the company reported revenue of 4.766 billion yuan, a year-on-year increase of 10.1%, and a net profit of 1.274 billion yuan, up 10.58% [4][23] Dividend Policy - Dong-E E-Jiao ranks first in cash dividends among Chinese listed companies, having distributed over 10.1 billion yuan since 1999 [2][7] - The company plans to allocate all profits from the second half of 2025 for dividends, with potential adjustments including share buybacks and cash dividends [2][7] E-commerce and Digital Strategy - Online channels showed strong growth, with Q3 GMV increasing over 20% year-on-year [2][21] - The company is focusing on a comprehensive e-commerce model that integrates brand display, consumer insights, sales, and new product incubation [2][21] High-end Retail Performance - Significant achievements in high-end retail channels, with low-sugar E-Jiao cakes and E-Jiao astragalus powder generating 50 million yuan in sales within two months [2][9][10] - Collaborations with premium retailers such as Sam's Club and Hema Fresh have been established [3][10] International Expansion - The international business strategy focuses on Hong Kong, Macau, and Southeast Asia, with plans to open flagship stores and expand sales channels [4][15][16] - Cultural promotion activities are being conducted to enhance brand visibility and influence [15][16] Product Development and Innovation - The company is expanding its product line, including the launch of new items like E-Jiao red ginseng powder and E-Jiao astragalus powder [5][14] - The Royal Weiyang 1,609 series for men's health has seen significant growth, with plans for further expansion [6][18] Investment and Acquisition Strategy - The investment strategy aligns with the "1,238" overall strategy, focusing on expanding the health supplement category and integrating the supply chain [4][18] - Recent acquisitions include 70% of Ma Ji Pharmaceutical and 80% of Rou Cong Rong Group, enhancing product offerings in the health sector [4][18] Research and Development - Dong-E E-Jiao emphasizes technological innovation and has established partnerships with universities to enhance product standards and innovation capabilities [19][20] - The company aims to develop new health products and establish industry standards through collaborative research [20] Market Trends and Consumer Engagement - The company has successfully engaged consumers through targeted marketing campaigns, particularly during the Mid-Autumn Festival, achieving record sales [11][12] - The E-Jiao brand is focusing on building customer loyalty and enhancing product competitiveness through strategic partnerships and promotional activities [12][19] Future Outlook - Dong-E E-Jiao is committed to maintaining double-digit growth and expanding its market presence through digitalization and internationalization [2][23] - The company plans to enhance its product portfolio and strengthen its market position in the health and wellness sector [22][23] Additional Important Information - The company has implemented a retrospective adjustment in its financial reporting to better reflect its international business operations [17][24] - Dong-E E-Jiao is actively pursuing ESG initiatives and has hosted forums to discuss sustainable development [5][19]