Core Viewpoint - Minsheng Health (301507) reported a year-on-year increase in both revenue and net profit for the first half of 2025, indicating strong financial performance despite a decline in profit margins [1]. Financial Performance - Total revenue for the first half of 2025 reached 462 million yuan, a 16.37% increase compared to 397 million yuan in the same period of 2024 [1]. - Net profit attributable to shareholders was 82.41 million yuan, up 6.65% from 77.27 million yuan in the previous year [1]. - In Q2 2025, revenue was 191 million yuan, reflecting a 17.32% increase year-on-year, while net profit for the quarter was 19.70 million yuan, a 7.08% increase [1]. - Gross margin stood at 54.35%, down 10.06% year-on-year, and net margin was 17.86%, down 8.14% [1]. - Total operating expenses were 142 million yuan, accounting for 30.78% of revenue, a decrease of 5.97% year-on-year [1]. - Earnings per share (EPS) increased to 0.23 yuan, a 4.55% rise from 0.22 yuan [1]. Business Model and Growth Drivers - The company relies heavily on marketing-driven performance, with a focus on the growth of its vitamin and mineral products [3][5]. - The market share of the main product, 21 Jin Weita Multi-element Tablets, has been steadily increasing [5]. - Online sales have expanded through three dedicated online business units, enhancing sales channels and contributing to revenue growth [6]. Future Expectations - Analysts project that the company's performance for 2025 will reach approximately 107 million yuan, with an average EPS forecast of 0.30 yuan [4].

Company Overview - Minsheng Health has a diverse business structure, including vitamin and mineral supplements, probiotics, and medical beauty products [1] - The company has established a full industrial chain in the probiotics sector, enhancing its competitive advantage [2][3] Growth in Core Products - The main product, 21 Jinweita® Multivitamin Tablets, has seen a steady increase in market share [2] - Online sales have expanded significantly through three dedicated online business units, contributing to overall revenue growth [2] Probiotics Market Strategy - The company has developed a comprehensive probiotics ecosystem, including over 6,500 strains in its proprietary "Yanhuang Strain Library" [3] - Focus on functional strains and unique technologies to differentiate products in the probiotics market [3] New Product Launches - Minoxidil solution is set to launch in August 2025, while Varenicline tablets are planned for September 2025 [4] - Different marketing strategies will be employed for each product, with a focus on consumer health education for Varenicline [4] Challenges and Solutions - The decline in foot traffic at offline pharmacies poses a challenge; however, the company has built strong relationships with pharmacies to mitigate this [5] - The new skincare brand, Jisuran, aims to convert low-frequency pharmaceutical purchases into higher-frequency skincare sales [5] Organizational Structure - Each business segment operates independently, with dedicated departments for OTC, online retail, and medical beauty [6] - The company emphasizes talent retention and management efficiency to ensure sustainable growth [6] Long-term Strategic Goals - Maintain steady growth in the core vitamin and mineral supplement business [6] - Position the probiotics segment as a second growth curve to catch up with industry leaders [6]