Core Viewpoint - Vitasoy International's performance in the mainland China market has been adversely affected by a previous public relations crisis, leading to a decline in revenue and market competitiveness. Group 1: Financial Performance - For the six months ending September 30, Vitasoy International reported a revenue of HKD 3.227 billion, a year-on-year decrease of 6% [2] - Operating profit was HKD 247 million, down 4% year-on-year, while profit attributable to shareholders slightly increased by 1% to HKD 172 million, largely due to cost-cutting measures that reduced total operating expenses by 7% [2] - Revenue from the mainland market was HKD 1.778 billion, a decline of 9% year-on-year, with a slight decrease in gross margin to 51.1% due to lower product prices and increased promotional spending [3] Group 2: Market Challenges - The decline in Vitasoy's mainland revenue is attributed to a long-standing impact from a public relations crisis in July 2021, which led to significant brand damage and a 22.77% drop in revenue for the 2022 fiscal year [3] - The company has faced ongoing revenue declines in the mainland market, with a slight recovery only expected in the 2025 fiscal year [3] - Vitasoy's product and channel strategies are losing competitiveness in a fiercely competitive mainland market, with traditional retail channels slowing down and consumers shifting towards e-commerce and chain snack stores [4] Group 3: Competitive Landscape - The plant-based milk sector is still growing, but the market growth rate has slowed, with increased competition from both new and established brands [5] - In the tea beverage segment, competition has intensified, particularly with the rise of new brands and the proliferation of chain tea shops, which have impacted Vitasoy's lemon tea sales and market share [5] Group 4: Management and Future Outlook - Since the public relations crisis in July 2021, Vitasoy's leadership has seen two changes, with the founder's second-generation leader, Lo Yau Lee, being 84 years old and not yet retired [6] - Despite short-term challenges in the mainland market, the executive chairman expressed confidence in the long-term growth potential and plans to optimize channels and innovate products, focusing on low-sugar and no-sugar options [6]

维他奶国际主要产品为豆奶和柠檬茶，公司近九成收入来自中国内地和中国香港两大市场。报告期内，集团营收32.27亿港元，同比减少6%；经营溢 利2.47亿港元，同比下滑4%；股东应占溢利微增1%至1.72亿港元，这很大程度上依赖于"降本"，期内公司总经营费用同比减少7%。 营收下滑则主要受内地市场影响。 报告期内，维他奶国际在中国内地营收为17.78亿港元，同比下滑9%，且由于产品售价下降、推广开支增加，公司毛利率轻微下滑至51.1%。 维他奶在内地市场的疲软并非"一日之寒"。 四年前的一场舆论风波，成为维他奶在内地市场的发展转折点。 11月25日晚间，维他奶国际（00345.HK）披露截至9月底的中期业绩。 水芙蓉/摄 维他柠檬茶在便利店的促销活动 左宇/摄 与此同时，饮品的市场竞争正日趋白热化。 植物奶方面，整体行业规模仍在增长，但市场增速已明显放缓，新老品牌混战加剧。OATLY长期占据高端市场份额，伊利、蒙牛等国内巨头相继推 出燕麦奶产品，凭借渠道优势走进大小商超。 茶饮料板块的竞争更为激烈。无糖茶消费需求集中爆发后，新品牌扎堆出头，占据便利店核心位置；蜜雪冰城等连锁现制茶饮店遍地开花，柠檬茶更 是经典单品 ...

Core Viewpoint - Vitasoy International is struggling to reverse its declining performance, with a 6% year-on-year drop in revenue for the first half of the 2026 fiscal year, primarily due to a 9% decline in revenue from the mainland China market [1][2]. Group 1: Financial Performance - For the first half of the 2026 fiscal year, Vitasoy reported revenue of HKD 3.227 billion, a decrease of 6% year-on-year [1]. - The company's operating profit was HKD 247 million, down 4% year-on-year, while the profit attributable to shareholders increased by 1% to HKD 172 million [1]. - The gross profit margin slightly decreased from 51.6% to 51.1% due to falling product prices in mainland China [1]. Group 2: Market Challenges - Vitasoy's revenue from the mainland China market was HKD 1.778 billion, representing a 9% decline year-on-year, which is the main reason for the overall revenue drop [1][2]. - The plant-based beverage market, where Vitasoy operates, has seen significant growth slow down, with a mere 2% year-on-year growth in 2023 [2]. - Increased competition from major players like Mengniu, Yili, and Dali Foods, who have launched their own soy milk products, is squeezing Vitasoy's market share [2]. Group 3: Strategic Responses - Vitasoy is undergoing leadership changes, with a new head for mainland operations appointed in April 2024, following several leadership transitions [3]. - The company has introduced new products such as sugar-free lemon tea and plans to increase the proportion of low-sugar or no-added-sugar products to 80% by the 2030/31 fiscal year [3]. - To address channel weaknesses, Vitasoy has partnered with over 800 Lawson convenience stores and various dining establishments to launch breakfast sets aimed at boosting sales [3]. Group 4: Leadership Transition - Vitasoy was founded by the Lo family in 1940, and after the passing of founder Lo Kwai Sang in 1995, his son Lo Yau Lee has led the company for 30 years [4]. - In November 2023, Lo Yau Lee's daughter, Lo Chi Mei, was appointed as vice-chairman of the board, signaling a potential succession plan [4][5]. - Lo Yau Lee has indicated that the transition of leadership will be gradual over the next two to three years [5].

Core Viewpoint - Vitasoy International (00345.HK) continues to struggle with declining performance, reporting a 6% year-on-year decrease in revenue for the first half of the 2026 fiscal year, primarily due to a significant drop in sales in the mainland China market [1][2]. Group 1: Financial Performance - For the first half of the 2026 fiscal year, Vitasoy reported revenue of HKD 3.227 billion, a decrease of 6% year-on-year [1]. - The company's operating profit was HKD 247 million, down 4% year-on-year, while the profit attributable to shareholders increased by 1% to HKD 172 million [1]. - Revenue from the mainland China market was HKD 1.778 billion, representing a 9% decline year-on-year, which was the main contributor to the overall revenue drop [1]. Group 2: Market Dynamics - Vitasoy's market share in the plant-based beverage sector has been pressured by increased competition from major players like Mengniu, Yili, and Dali Foods, which have launched their own soy milk products [2]. - The overall growth of the plant-based beverage market in China has slowed, with a reported year-on-year growth rate of only 2% in 2023 [2]. - The rise of new consumption channels such as social e-commerce and membership stores has further challenged Vitasoy, which has traditionally relied on conventional retail networks [2]. Group 3: Strategic Initiatives - Vitasoy is attempting to revitalize its product line by introducing new offerings such as sugar-free lemon tea and high-fiber soy milk, with plans to increase the proportion of low-sugar or no-added-sugar products to 80% by the 2030/31 fiscal year [5]. - The company has implemented price reductions of approximately 10%-15% on its lemon tea products in the mainland market to stimulate sales [5]. - Vitasoy has also partnered with over 800 Lawson convenience stores and various dining establishments in regions like Hunan and Hubei to launch breakfast sets aimed at boosting sales [5]. Group 4: Leadership Changes - Vitasoy has experienced several leadership changes in its mainland operations, with the latest appointment of Wang Dong, a former executive from Procter & Gamble and PepsiCo, as the head of mainland operations [3]. - The company is in a transitional phase regarding its leadership, with the founder's daughter, Luo Qimei, being seen as a potential successor to the current chairman, Luo Youri [6].

Core Insights - The conference held in Xiamen, China, focused on five key sectors: artificial intelligence, low-altitude economy, advanced manufacturing, new energy, and consumer goods, aiming to discuss development paths and industry future [1] - The event emphasized the collaboration between government, capital, and industry to address pain points and bottlenecks in industrial development [1] Company Overview - The company, founded in 1989, is the largest investment institution focused on the consumer sector globally, managing approximately $37 billion across nine different investment strategies [4] - The company has invested in over 300 representative consumer brands over the past 30 years, emphasizing long-term partnerships with enterprises [4] Investment Strategy - The company adopts a "Glocal" approach, combining global methodologies and consumer insights with local market applications, particularly in China [5] - The focus is on building brands that convey emotional value and resonate deeply with consumers, leveraging China's strong supply chain capabilities and mature digital commerce [5] Market Focus - The company prioritizes investments in China and the United States, while also exploring opportunities in Japan, India, Australia, New Zealand, Europe, and South America [4] - The company identifies sustainable consumer behavior trends, such as "contactless" payments and the rise of "solo economy," to guide investment decisions [8] Brand Development - The company aims to assist local emerging brands in achieving dual upgrades in branding and distribution, helping them secure advantageous positions in broader markets [9] - The company emphasizes the importance of emotional value in branding, illustrated by successful collaborations like the partnership between Heytea and FENDI [10] Localization Strategy - The company recognizes the need for localized understanding in the Chinese market, tailoring strategies to different regional consumer preferences and characteristics [11] - The company integrates local capabilities with global experience to support the growth of outstanding Chinese brands into industry leaders on a global scale [11]

Sales Performance - In the first half of 2025, online platform sales reached 137 million CNY, showing a significant increase compared to 2024 [1] - The company is actively expanding its market presence in Hong Kong and Macau through strategic product introductions and partnerships [1] Market Development - The company has become the exclusive milk brand for the "Milk and Soy Milk Program" in Macau for the 2024/2025 academic year, targeting early childhood and primary education [1] - Efforts to enhance brand influence in the Greater Bay Area include entering Hong Kong and Macau's central government canteens [1]

Core Viewpoint - Linyi is establishing itself as "China's Food Capital" through a modern industrial chain that integrates raw material cultivation and deep processing, achieving significant growth in the grain and oil industry [1] Industry Overview - By 2024, Linyi will have 161 large-scale enterprises in the premium grain and oil processing industry, with a production value exceeding 30 billion yuan [1] - From January to July this year, the number of large-scale enterprises increased to 177, achieving a production value of 19.69 billion yuan, representing a year-on-year growth of 25.2% [1] Raw Material Base - Linyi is a major grain and oil production base in China, with 9 national grain-producing counties and 6 top peanut counties [1] - The peanut planting area is 2.303 million acres, with a total output of 713,000 tons, ranking first in the province; wheat planting area is 4.388 million acres with a total output of 1.881 million tons; soybean planting area is 294,000 acres with processing capacity exceeding 1 million tons [1] Processing Industry - The processing sector is described as the "heart" of the industrial chain, with a focus on cluster development and intelligent transformation [1] - Three major processing clusters have emerged: - Peanut and vegetable oil processing cluster, centered in Ju County, with 222 peanut processing enterprises, including 21 large-scale ones, producing about 1/6 of the country's refined peanut oil [1] - Baked goods processing cluster, with over 670 enterprises producing more than 6 million tons of processed foods annually, covering over 1,000 varieties [1] - Grain processing industry chain, featuring the world's largest single flour mill and innovative products like zero-additive natural tofu [1] Technological and Collaborative Efforts - Linyi has 26 provincial-level specialized and innovative enterprises and 18 provincial-level R&D centers, collaborating with universities to tackle key processes [1] - The establishment of a 60-member "expert think tank" and various initiatives to support enterprise development have been implemented to enhance the industrial ecosystem [1] Future Outlook - The continuous efforts in "supplementing, strengthening, and extending" the industrial chain are expected to enhance Linyi's status as "China's Food Capital" [1]

Core Viewpoint - Zhejiang Dongri Co., Ltd. reported a revenue increase of 6.23% year-on-year for the first half of 2025, reaching approximately 373.46 million RMB, with a net profit attributable to shareholders of approximately 68.83 million RMB, reflecting a 12.12% increase compared to the previous year [2][11]. Company Overview and Financial Indicators - The company operates primarily in the agricultural product wholesale market, fresh food distribution, and soybean product processing, with the wholesale market contributing 36.25% to total revenue [11]. - Key financial metrics for the first half of 2025 include: - Total revenue: 373,455,552.81 RMB - Total profit: 90,473,978.94 RMB - Net profit attributable to shareholders: 68,829,035.32 RMB - Basic earnings per share: 0.16 RMB, up 6.67% from the previous year [2][20]. Industry Analysis - The agricultural product wholesale market is expected to see continued growth due to increasing agricultural supply and consumer demand, with a projected increase in grain yield per mu by 7.8% over the next decade [3][4]. - The market is characterized by a significant reliance on traditional wholesale channels, with approximately 70% of agricultural products distributed through wholesale markets, indicating their continued importance in the supply chain [5][6]. Business Operations - The company is focused on enhancing its digital and information technology capabilities to improve operational efficiency and customer experience in the agricultural wholesale market [8][19]. - The company has implemented various technological advancements, including smart electronic scales and digital management systems, to streamline operations and enhance service quality [13][19]. Future Development - The company aims to transition from traditional wholesale operations to a more integrated, technology-driven model that includes processing, storage, and distribution, aligning with national policies promoting agricultural modernization [6][7]. - The emphasis on digital transformation and smart logistics is expected to enhance the company's competitive edge in the agricultural product market [8][19].

Group 1 - VITASOY INT'L repurchased 46,000 shares at an average price of HKD 9.20 per share, totaling approximately HKD 423,100, with a cumulative repurchase of 23.49 million shares this year, representing 2.18% of the total share capital [1] - The stock price of VITASOY INT'L increased by 1.42% to HKD 9.31 per share at the close of the Hong Kong stock market on the same day [1] - The company's stock repurchase is a signal of management's confidence in the company's future and suggests that the current stock price does not fully reflect its intrinsic value [1] Group 2 - VITASOY INT'L is a well-known company listed in Hong Kong, primarily engaged in the production and sale of plant-based milk beverages and foods, including various types of soy milk and tea drinks [2] - The brand has a high level of recognition and reputation, with competitive products in the market, and has accumulated rich experience in production, research and development, sales, and brand promotion [2] - The company is actively expanding its market presence beyond Hong Kong to mainland China and overseas, continuously launching new product flavors and packaging to meet diverse consumer needs in the plant-based milk beverage market [2]

Core Viewpoint - Vitasoy reported a revenue of HKD 6.274 billion for the fiscal year ending March 31, 2025, reflecting a 1% year-on-year growth, while net profit attributable to shareholders surged by 102% to HKD 235 million, driven by improved sales execution in mainland China and strong performance in Hong Kong [1][2] Group 1: Financial Performance - Revenue growth of 1% in FY2025 was primarily due to growth in core products in mainland China and stable performance in Hong Kong [1] - Net profit doubled due to cost reduction and efficiency improvement measures, with operating profit in mainland China increasing by 41% and in Hong Kong by 24% [1] Group 2: Market Dynamics - The mainland market is Vitasoy's main revenue source, facing intense competition and rising consumer price sensitivity, leading to a previous price reduction strategy [1][2] - Vitasoy's management announced that there will be no further price reductions in the mainland market, indicating that the pricing of their lemon tea is already competitive after a 10%-15% price cut in the previous half-year [2][3] Group 3: Product Strategy - Vitasoy aims to maintain market advantage through high-quality products and services rather than relying solely on price competition [3] - The company has adjusted its product mix to be more economical and competitive, particularly in the tea beverage segment [3][5] Group 4: Industry Trends - The beverage industry in China is experiencing a shift, with a reported production of 188 million tons in 2024, a 7.5% increase year-on-year, and total revenue of CNY 534.8 billion, up 4.8% [7] - The plant-based beverage market is facing a slowdown, but Vitasoy believes in its long-term potential due to low per capita consumption compared to global averages and significant growth opportunities in lower-tier cities [7][8] Group 5: Competitive Landscape - The tea beverage market is growing, with increasing consumer demand for health-oriented and diverse product offerings [8] - Vitasoy has been expanding its low-sugar and no-sugar beverage options since 2015/16, but faces challenges from increased competition in the no-sugar tea segment [8][9]