Core Insights - Dong'e Ejiao reported a revenue of 4.766 billion yuan and a net profit of 1.274 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 10.10% and 10.58% respectively, after excluding retrospective adjustments [1][4] - The company has achieved five consecutive years of high growth since 2020, positioning itself as a benchmark in the traditional Chinese medicine industry [2][3] - The company is implementing the "1238" development strategy under the leadership of Chairman Cheng Jie, focusing on expanding into the health consumption market with new products [2][9] Financial Performance - In the first three quarters of 2025, after retrospective adjustments, revenue growth was 4.41% and net profit growth was 10.53% [4] - Despite the technical decline in revenue growth due to adjustments, the net profit growth remained in double digits, indicating strong operational quality [4] - The company completed a share acquisition in July 2025, which affected financial metrics due to the consolidation of financial statements [3][4] Market Position and Strategy - Dong'e Ejiao is a leading brand in the Chinese herbal medicine sector, with a market share exceeding 70% in the ejiao block category and over 25% in the compound ejiao syrup category [9][10] - The company is diversifying its product offerings, including health products targeting men's health, and has launched several new products in recent years [2][10] - The "1238" strategy emphasizes dual-driven development in pharmaceuticals and health consumer goods, aiming to create a second growth curve [9][10] Leadership and Collaboration - Chairman Cheng Jie has been appointed as the executive director and president of China Resources Pharmaceutical Group, enhancing collaboration between Dong'e Ejiao and the state-owned enterprise [6][7] - Cheng's leadership has contributed to the company's robust growth, with a compound annual growth rate of 21.28% in revenue and 41.29% in net profit over the past three years [7][8] - The integration of resources and expertise from the parent group is expected to support Dong'e Ejiao's sustainable development [8][9] Innovation and Product Development - The company is focusing on innovation in product development, collaborating with universities to establish a scientific evidence system for new product development [11] - New product launches include red ginseng and other health supplements, aimed at enhancing market presence and addressing consumer needs [10][11] - Dong'e Ejiao's strategy includes balancing traditional strengths with innovative breakthroughs to navigate market challenges [11]

Group 1: Future Business Strategy - Dong-E E-Jiao will adhere to the "1238" strategy, focusing on the integration of the gelatin industry chain and enhancing its core business [1] - The company aims to improve digital capabilities and drive high-quality growth, aspiring to become a trusted leader in health supplements [1] Group 2: Investment and Acquisition Plans - Investment and acquisitions are key components of the "1238" strategy, with a focus on potential targets in the health supplement sector [1] - The company is implementing a "dual-wheel drive" strategy for investment direction, particularly in pharmaceuticals and health consumer products [2] Group 3: Raw Material Supply Assurance - The company emphasizes the sustainable supply of donkey hide, focusing on both domestic and international markets [3] - Efforts include establishing a supply network and promoting policy guidance in key countries to ensure a stable supply chain [3] Group 4: New Product Development - The "Zhuangben" brand will focus on upstream material acquisition and introduce innovative products to the market [4] - The company plans to enhance brand recognition for "Ejiao Dates" and develop a variety of health snack products [4] - A new category for "Ejiao Bird's Nest" will be created, with a focus on brand optimization and product efficacy verification [4] Group 5: Profit Distribution and Dividends - Since its listing in 1996, the company has distributed dividends 26 times, totaling 8.469 billion yuan, with an average payout ratio of 65.75% [6] - For 2024, the company plans to distribute 818 million yuan, with a payout ratio of 99.87% [6] Group 6: Revenue Projections - In 2024, Dong-E E-Jiao block products are expected to account for approximately 45% of total revenue, while compound Ejiao syrup is projected to contribute nearly 35% [6] Group 7: Brand Development Initiatives - The "Royal Weichang 1619" brand aims to establish itself as a leading men's health brand, focusing on product and category expansion [7] - The "Peach Blossom Princess Ejiao Cake" brand will undergo a comprehensive brand renewal to capture the mainstream beauty market [7] Group 8: Financial Performance Insights - The company experienced a decline in cash flow and an increase in accounts receivable due to strategic credit management and increased procurement of raw materials [8]