Summary of Haoyue Care Conference Call Company Overview - **Company**: Haoyue Care - **Industry**: Personal Care Products Key Points Financial Performance - In the first three quarters of 2025, Haoyue Care's revenue increased by 45.36% to 55 million yuan, but the net profit margin decreased by 8.07% to 5.73% due to a significant rise in sales expenses (up 215% year-on-year) and management expenses (up 41.5%) [2][4] - For Q3 2025, revenue reached 958 million yuan, a year-on-year growth of 31.565%, while net profit fell by 45.36% to 55 million yuan [4] - The gross profit margin was 29.2%, an increase of 2.19 percentage points year-on-year, but the net profit margin decreased by 8.07 percentage points [4] Business Segments - **OEM Business**: Excluding the Sibao business, the OEM segment achieved less than double-digit year-on-year growth in the first three quarters, with diaper OEM business showing increased volume but decreased prices [2][6] - **Self-Brand Products**: The Dafi wet wipes series maintained double-digit growth, while the shoe wipes performed well. The Thai self-brand saw triple-digit revenue growth but faced profitability decline due to increased marketing expenses [2][6] - **Sibao Business**: Revenue remained stable in the first three quarters, but Q3 profits were negative due to early promotional activities and channel expansion [7] Market Trends and Strategies - The diaper OEM business showed a trend of increased volume but decreased prices, indicating a significant contribution to overall revenue [8] - The company is actively expanding overseas markets, with projects in the US and Canada already underway, and more international projects expected in the future [2][14] - To combat competition in the sanitary napkin market, the company is leveraging live streaming on platforms like Douyin to enhance sales and brand influence [5][10] Channel Development - Haoyue Care began expanding offline channels in provinces such as Hunan, Zhejiang, Jiangsu, and Guangdong in Q2 2025, with offline revenue surpassing online [9][10] - The overall offline channel showed a negative growth trend of 4.9%, while the company's own channel had a slightly better performance with a 4.1% decline [7][9] Future Outlook - The company has set market expectations for the growth of its OEM and Sibao businesses over the next 2-3 years, but specific targets were not disclosed due to market uncertainties [5][18] - The overseas factory projects depend on domestic ODI document approvals, with the Tanzania project partially approved and the Peru project lagging behind [16] Product Development - New product launches include the high-margin Attraction series and the Haoyue removable sanitary napkin, with ongoing efforts to optimize product offerings [10][12] - The company is focusing on improving operational efficiency and resource allocation on online platforms, particularly through Douyin and traditional e-commerce channels [17] Conclusion - Haoyue Care is navigating a challenging market environment with strategic expansions and product innovations while managing rising costs and competitive pressures. The focus on overseas growth and channel diversification is expected to play a crucial role in its future performance.