Summary of the Conference Call for Dengkang Oral Care Company Overview - **Company**: Dengkang Oral Care - **Industry**: Oral Care Products Key Points Strategic Direction - The strategic tone for 2026 is "steady progress" with a focus on optimizing profitability through adjustments in e-commerce platform allocations [2][6][10] - Plans to reduce reliance on Douyin (TikTok) from over 40% to below 40%, maintain Tmall at around 30%, and increase JD's share to over 20% [2][5][7][10] E-commerce Performance - As of early 2026, overall profit margins across e-commerce platforms are stable at approximately 5-6%, with JD performing the best, followed by Tmall, and Douyin slightly below average [2][5][7] - The company aims to enhance profitability by reallocating resources to higher-margin platforms [5][16] Product Strategy - Dengkang is focusing on product premiumization, targeting an increase in ultra-high-end products (priced above 30 RMB) from 20% to around 30% of total sales [2][11][12] - The new keratin toothpaste launched in August 2025 has monthly sales exceeding 10 million RMB, with a target of 20-30 million RMB per month in 2026 [2][13] Market Trends and Challenges - The overall industry remains challenging, with many emerging brands operating at a loss, particularly on platforms like Douyin [9][21] - Despite a general decline in the oral care market, Dengkang has achieved nearly double-digit growth, contrasting with an industry decline of about 8% [21][22] Future Plans - 2026 is designated as the year for overseas market expansion, particularly in Southeast Asia, with a sales target of several million RMB [5][18] - The company plans to implement a three-step strategy for international expansion: brand establishment, building offline channels, and supply chain development [5][18] Manufacturing and Supply Chain - Dengkang employs a light asset operation model, outsourcing lower-end product manufacturing while maintaining high-end production in-house [19] - The inventory cycle is currently 30-40 days, significantly shorter than the industry average of 90-120 days, indicating efficient inventory management [16] Investment and Growth Areas - Future investments will focus on the oral health ecosystem, including smart oral care and digital transformation [24][25] - The company is also exploring mergers and acquisitions to enhance growth potential in the oral care sector [24] Shareholder Actions - Shareholder reduction plans are based on individual decisions, with expectations for future stock price growth influencing timing [26] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Dengkang Oral Care's focus on profitability, product premiumization, and market expansion.