Core Insights - Swisse has celebrated its 10th anniversary in the Chinese market, reflecting on its past achievements and future growth strategies under the theme "Collaborate for Win-Win, Steady Growth" [1] - The company has evolved from an Australian brand to a global health leader, maintaining a strong focus on consumer health trends and local market needs [3][4] Group 1: Company Growth and Strategy - Swisse has experienced significant growth through two key phases: the 1.0 era capitalizing on the rise of cross-border e-commerce and the 2.0 era focusing on local market adaptation and product diversification [4][5] - The brand has launched multiple product lines, including Little Swisse for children and Swisse Me for young adults, addressing the diverse nutritional needs of various consumer segments [5] - In 2023, Swisse introduced the "Swisse Mega Brand" strategy, achieving a global sales milestone of over 1 billion AUD and becoming the top nutrition brand in China [7] Group 2: Consumer Insights and Product Development - The company has adapted to the evolving consumer demand for personalized, scientific, and age-specific nutrition, moving beyond basic supplementation [8] - Swisse emphasizes its commitment to quality through its "Three Truths" philosophy: true reputation, true effectiveness, and true safety, ensuring consumer trust and product integrity [10] Group 3: Future Directions and Partnerships - Swisse aims to strengthen its ecosystem with partners, focusing on long-term collaboration, product quality, and transparent communication [13][14] - The company plans to continue innovating based on consumer insights and maintain compliance with scientific standards, enhancing brand and channel synergy [14][18]

Group 1 - The current trend in China's health consumption market can be summarized as "decentralization," indicating a shift in consumer demographics, scenarios, and decision-making processes, which raises the requirements for brand organization and product structure [1] - The traditional growth model driven by a single brand or product is becoming increasingly unsustainable, with long-term competitiveness now relying on a brand system that addresses various consumer life stages and health needs [1] - Swisse's "Mega Brand" strategy is a proactive response to this trend, focusing on building a clear brand hierarchy around the main brand to achieve systematic coverage of different consumer groups and consumption depths [1] Group 2 - From an investment perspective, the value of the Mega Brand lies not in short-term growth speed but in sustainable growth and cyclical resilience, with brands that possess matrix capabilities showing higher visibility and more controllable fluctuations in performance [2] - For the health group, Swisse represents not just a standout single brand but a growth paradigm that aligns with the current health consumption phase, emphasizing a structure-driven growth model rather than a single-point-driven approach [2]

Core Viewpoint - Swisse has successfully navigated a decade of growth in the Chinese health market, evolving from an Australian brand to a global health leader, leveraging local insights and consumer trends to enhance its brand positioning and product offerings [5][10]. Group 1: Company Growth and Market Position - Swisse entered the Chinese market in 2015 and has since become a pioneer in the nutrition industry, achieving significant milestones through strategic adaptations to local consumer preferences [5][6]. - The brand capitalized on the rise of cross-border e-commerce and the growing trust in overseas products, leading to a substantial increase in visibility and sales from 2016 to 2018 [6][7]. - By 2019, Swisse transitioned to a localized brand strategy, launching multiple product lines to cater to diverse consumer needs, resulting in a top ranking in the online VHMS market in China [7][9]. - In 2023, Swisse announced the "Swisse Mega Brand" strategy, achieving over 1 billion AUD in global sales and becoming the top nutrition brand in China [9][10]. Group 2: Consumer Insights and Product Innovation - Swisse's product development is driven by a deep understanding of evolving consumer health needs, shifting from basic supplementation to personalized, age-specific nutrition [12][15]. - The brand emphasizes a "natural health" philosophy, aligning its product offerings with consumer lifestyles and fostering emotional connections with its audience [12][13]. - Swisse adheres to a "three truths" principle—genuine reputation, proven effectiveness, and safety—ensuring high-quality products that resonate with consumers [15]. Group 3: Strategic Partnerships and Future Outlook - The company emphasizes long-term partnerships and product quality, aiming to build a collaborative ecosystem with stakeholders [18][22]. - Swisse plans to continue innovating based on consumer insights, reinforcing its commitment to scientific validation and compliance while enhancing brand and channel synergy [19][22]. - The leadership expresses confidence in navigating future challenges and opportunities in the health market, focusing on sustainable growth and high-quality development [22].

Core Insights - Swisse has transformed from a cross-border e-commerce newcomer to a leading brand in China's health market over the past decade, showcasing a successful case of international brand localization [2][3][4]. Group 1: Strategic Evolution - Swisse's journey in China can be divided into three key phases: - Phase 1 (2016-2018): Capitalized on the rise of cross-border e-commerce and positioned itself as a trendy brand targeting younger consumers, successfully entering the oral beauty segment [6][7]. - Phase 2 (2019-2022): Transitioned to localization, launching sub-brands like Little Swisse and Swisse Me to meet diverse consumer needs, while becoming the top international nutrition brand in China's online market [8][9]. - Phase 3 (2023-present): Focused on strategic upgrades and multi-brand collaboration, achieving a 15.7% year-on-year growth in the first three quarters of 2025, contributing to 70.6% of the group's sales [9][11]. Group 2: Underlying Growth Logic - Swisse's growth is driven by a deep understanding of local consumer needs, combining global research capabilities with local health trends, and establishing a strong scientific brand image [11][13]. - The brand's operational model includes a localized team for quick decision-making and marketing strategies that resonate with local consumers, utilizing platforms like Xiaohongshu and Douyin [13]. Group 3: Brand Strategy and Market Positioning - Swisse has upgraded its brand strategy to "Swisse Mega Brand," creating a product matrix that covers all life stages, with the main brand serving as a stabilizing force while sub-brands target specific consumer segments [15][20]. - The brand's performance during the 2025 Double Eleven shopping festival demonstrated its market dominance, with Swisse maintaining the top sales in categories like fish oil and oral beauty [20][21]. Group 4: Future Growth Strategies - Looking ahead, Swisse aims to deepen its core product offerings while exploring new market opportunities in areas like cardiovascular health and immune support, aligning with societal trends such as aging and lifestyle-related health concerns [24][29]. - The company has established a robust infrastructure for future growth, including a localized team, comprehensive channel touchpoints, and a scientific approach to product development [30].

Core Insights - Swisse has celebrated its 10th anniversary in the Chinese market, emphasizing its commitment to exploring new opportunities in the health sector with partners [1][4] - The company has successfully transitioned through three phases of market engagement, adapting to consumer needs and market trends [2][3][4] Group 1: Company Growth and Strategy - Swisse entered the Chinese market in 2015 and has since maintained a strong focus on local consumer health trends, promoting a brand ethos centered on "movement, nutrition, and mindfulness" [1][3] - The brand capitalized on the rise of cross-border e-commerce and the trust in overseas products, launching popular items that resonated with young consumers, leading to significant growth from 2016 to 2018 [2][3] - In 2019, Swisse began its localization transformation, launching multiple sub-brands to cater to diverse consumer needs, achieving the top position in the online VHMS market in China [3][4] Group 2: Market Position and Future Outlook - In 2023, Swisse introduced the "Swisse Mega Brand" strategy, marking its entry into a multi-brand and multi-category development phase, achieving over 1 billion AUD in global sales [4][5] - The brand has become the top nutrition brand in China by mid-2025, reflecting its dual growth in both global and Chinese markets [4] - The leadership of H&H Group emphasizes ongoing product innovation driven by consumer insights and a commitment to quality and compliance, aiming for high-quality development in the health sector [5]

Core Insights - The 2025 Swisse Partner Conference held in Guangzhou celebrated the 10th anniversary of Swisse's entry into the Chinese market, reflecting on past achievements and future opportunities in the health sector [1][3]. Group 1: Company Growth and Strategy - Swisse, an Australian natural nutrition brand with a 55-year history, has evolved into a global health leader since joining the Health and Happiness Group in 2015, focusing on local market insights and consumer health trends [3][4]. - The brand capitalized on the rise of cross-border e-commerce and consumer trust in overseas products during its initial phase, launching popular products that quickly gained visibility among Chinese consumers [4][5]. - In 2019, Swisse transitioned to a localized strategy, launching multiple sub-brands to cater to diverse consumer needs, achieving the top position in China's online VHMS market [5][7]. Group 2: Market Position and Achievements - By 2023, Swisse introduced the "Swisse Mega Brand" strategy, achieving over AUD 1 billion in global sales and becoming the top nutrition brand in China by mid-2025 [7][8]. - The brand's growth reflects its ability to adapt to the evolving health market, focusing on personalized and scientific nutrition solutions for various consumer demographics [8][10]. Group 3: Consumer Insights and Product Development - Swisse's product development is driven by a deep understanding of consumer needs, shifting from basic supplementation to personalized, age-specific nutrition [8][10]. - The brand emphasizes its commitment to quality through its "Three Truths" philosophy: genuine reputation, proven effectiveness, and safety throughout the supply chain [10][18]. Group 4: Future Directions and Partnerships - The company aims to strengthen its ecosystem with partners, focusing on long-term strategies, product quality, and transparent communication to foster mutual trust [13][14]. - Swisse plans to continue innovating based on consumer insights, enhancing product offerings, and collaborating closely with partners to explore new opportunities in the health sector [14][18].

Core Insights - The global functional food market is projected to reach approximately 1.09 trillion yuan in 2024 and may exceed 1.46 trillion yuan by 2030, with China maintaining a high growth trajectory in this sector [1] - The competitive landscape is shifting from "marketing leadership" to "efficacy leadership," emphasizing the importance of scientific validation and product effectiveness [1] Company Analysis - Swisse, a core brand of the Health and Happiness Group's Adult Nutrition Care (ANC) business, is enhancing its product offerings with a focus on "scientific efficacy + multi-scenario reach" [1] - The Swisse PLUS series targets the 35-50 age demographic with anti-aging ingredients like NAD+ and ergothioneine, while the Swisse Me line features convenient products such as gummies and instant powders aimed at younger consumers [1] - In the first half of 2025, Swisse's ANC business revenue grew by 5.9% to 3.44 billion yuan, accounting for nearly half of the group's total revenue, with an overall gross margin of 62.5%, reflecting a year-on-year increase of 1.6 percentage points [1] Industry Trends - The current strategies of functional food brands signal three major trends: efficacy-driven branding creates barriers but demands higher R&D investment and scientific validation; premiumization meets consumer quality demands and enhances product loyalty, requiring brands to accurately gauge health consumption trends; and snackification innovations can broaden consumer reach but involve high market education costs and longer return cycles [1] - Efficacy-driven competition, premium segmentation, and scenario innovation are expected to be key indicators of industry differentiation in the next two to three years [2]

Summary of H&H Holdings Conference Call Industry Overview - The global dietary supplement (VDS) market is experiencing steady growth, with a market size of approximately $132.4 billion in 2023 and an annual growth rate of 4%-5% [2][7] - The Chinese health supplement market is growing significantly faster than the global average, with a compound annual growth rate (CAGR) of 8%-9% from 2010 to 2023, increasing from over 70 billion yuan to around 224 billion yuan [2][7] - The health supplement industry in China benefits from aging demographics and new consumption trends, with online sales channels accelerating, rising to 60% post-pandemic [2][9] Company Insights - H&H Holdings has transformed into a health supplement company primarily focused on adult health, with over 90% of Swisse brand revenue coming from online channels, maintaining a market share of 7%-8% [2][11] - The company has diversified its brand matrix by launching new brands targeting teenagers, children, and pets, such as Swisse Me, Little Swisse, and Plus [2][11] - H&H Holdings is actively expanding its oral beauty product line, including high-margin products like super light bottles and anti-sugar pills, which are expected to enhance profitability [2][14] Financial Performance and Projections - H&H Holdings is expected to optimize interest expenses by approximately 100 million yuan in 2025 through the replacement of high-interest dollar debt with domestic low-interest loans, which will directly enhance profits [2][5][21] - The company anticipates an adjusted net profit of around 700 million yuan in 2025, representing a nearly 30% year-on-year growth, indicating a turning point in its fundamentals [2][23] - The company’s revenue structure has shifted, with a 24%-25% decline in milk powder revenue in 2024 due to regulatory changes, but a recovery of 44% in the first quarter of 2025 is expected [2][13][14] Market Strategy and Brand Development - H&H Holdings is focusing on the Southeast Asian market for expansion, aiming to replicate the success of the Swisse brand in this region [2][20][27] - The company’s management team has extensive experience in fast-moving consumer goods (FMCG) and foreign investment, which supports strategic clarity and revenue stability across different phases [2][16] - The Swisse brand has expanded its core family nutrition series to include oral beauty products, which are expected to drive future growth [2][15] Risk Assessment - The company has a high level of goodwill, approximately 7.8 billion yuan, primarily concentrated in the Swisse and pet brands, which are performing well with no significant impairment risks [2][22] - Legal issues are not expected to significantly impact the company's financial status, as past experiences suggest a favorable outcome in similar cases [2][25] Conclusion - H&H Holdings is positioned for significant growth in the health supplement market, with a strong focus on online sales and brand diversification. The company’s financial outlook is positive, with expectations of increased profitability and market expansion, particularly in Southeast Asia. The management's strategic decisions and market positioning provide a solid foundation for future growth [2][26][27]