Core Viewpoint - Xianle Health is planning to issue H-shares and apply for listing on the Hong Kong Stock Exchange to deepen its global strategy and enhance overseas business development [1][2]. Group 1: Company Performance - In 2024, Xianle Health's main business revenue reached 4.184 billion yuan, a year-on-year increase of 17.25%, but revenue in China declined by 10.28% to 1.66 billion yuan [3]. - For the first half of 2025, the company's main business revenue was 2.028 billion yuan, a year-on-year increase of 2.62%, with Chinese revenue at 818 million yuan, showing a decline of 1.63% [3]. - Revenue growth in the Americas and Europe was significant, with increases of 59.56% and 14.25% respectively in 2024, and 4.26% and 21.96% respectively in the first half of 2025 [3]. Group 2: Strategic Initiatives - The company aims to leverage international capital markets through H-share listing to create a diversified capital operation platform [2]. - Xianle Health has been pursuing a globalization strategy since 2016, including the acquisition of Ayanda, a European soft capsule manufacturer, to enhance its market presence in Europe [2]. - The company has established a global supply chain with production bases in China, Germany, the USA, and Thailand, enhancing its local supply capabilities [2]. Group 3: Operational Challenges - Domestic performance is under pressure due to structural changes in the market, with traditional brands facing challenges from new retail and cross-industry pharmaceutical brands [3]. - The company announced a delay in its digital information construction project, extending the expected completion date from December 31, 2025, to December 31, 2026 [3]. - Production capacity utilization rates vary, with domestic soft capsules and gummies at medium to high levels, while the beverage powder capacity is underutilized [4].

Group 1: Financial Performance - Revenue from the Americas market increased by 4.26% year-on-year, reaching 760 million CNY in the first half of 2025 despite trade tensions [5] - The company maintained a stable gross margin for its export business to the Americas through various cost control measures [5] Group 2: Strategies for Market Expansion - The company plans to scale up its gummy business and explore existing large clients' needs, preparing for sales opportunities in 2026 [2] - Focus on expanding sales in the Latin American market, particularly targeting new clients in Brazil [2] - Strengthening team development by equipping sales regions with business development and customer operation teams [2] Group 3: Response to Tariff Challenges - The company has implemented strategies to mitigate the impact of tariffs, including adjusting end-user prices and locking in raw material costs [2] - Engaging in negotiations with suppliers to reduce cost increases and sourcing alternative materials [2] Group 4: Globalization and Supply Chain Efficiency - The company is advancing its global strategy by enhancing local capabilities and improving operational efficiency in overseas factories [3] - Plans to diversify market risks by expanding into emerging markets such as Southeast Asia and Latin America [6] Group 5: Production Capacity and Order Fulfillment - Domestic factories have a medium to high capacity utilization for soft capsules, gummies, and tablets, while beverage powder capacity is underutilized [4] - The company is steadily progressing in fulfilling existing orders, with overall sales and delivery conditions being normal [4] Group 6: Future Development Focus - The company aims to solidify its leading position in domestic markets while expanding into new consumer channels [6] - Plans to enhance technological capabilities, including the development of an AI-driven formula design system and digital transformation initiatives [7] Group 7: Goodwill and Acquisitions - The company reported goodwill of over 400 million CNY due to acquisitions, with no current impairment risks identified [7] - Integration of acquired companies into the overall business strategy to strengthen global supply capabilities [7]