Xianle Health Technology Co., Ltd. 2025 Board of Directors Work Report
In 2025, Xianle Health Technology Co., Ltd. (hereinafter referred to as the "Company") strictly abided by the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Securities Law of the People's Republic of China" (hereinafter referred to as the "Securities Law"), and other laws and regulations, operated in a standardized manner, made scientific decisions, and strictly performed the duties granted by the "Articles of Association of Xianle Health Technology Co., Ltd." (hereinafter referred to as the "Articles of Association"). All directors fulfilled their duties diligently and conscientiously, effectively safeguarding the interests of the Company. The main work report of the Board of Directors for 2025 is as follows:
I. Review of Operating Conditions During the Reporting Period
In 2025, the Company, guided by the vision of "becoming an innovative leader and the first choice in the nutrition and health field," continued to deeply cultivate the CDMO field of nutrition and health food (B-end market). In accordance with the established strategic plan, the Company actively implemented the 2025 business plan. During the reporting period, the Company achieved operating revenue of RMB 4.263 billion, a year-on-year increase of 1.24%; net profit attributable to shareholders of the listed company was RMB 137 million, a year-on-year decrease of 58.00%; net profit attributable to shareholders of the listed company after deducting non-recurring items was RMB 74 million, a year-on-year decrease of 77.34%. Among the main businesses, domestic business achieved sales revenue of RMB 1.715 billion, a year-on-year increase of 3.26%; overseas business achieved sales revenue of RMB 2.548 billion, a year-on-year decrease of 0.09%.
During the reporting period, the net profit attributable to shareholders of the listed company decreased compared to the same period last year, mainly due to the following factors:
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Since 2025, the operating environment of the Company's personal care business has undergone significant changes, with a decrease in customer demand, leading to an increase in operating costs for the personal care business. In addition, team member changes in the second half of 2025 further exacerbated the operational difficulties of the personal care business, resulting in increased losses for the year and a relatively significant decline in revenue and gross profit year-on-year, which had a considerable impact on the Company's net profit. As the personal care business is not the Company's main business and cannot generate synergistic effects, in order to enhance the Company's overall profitability and market competitiveness, and to focus on the main business of nutrition and health food solutions, the Company plans to divest the personal care business segment. Therefore, as of December 31, 2025, inventory, long-term prepaid expenses, fixed assets, right-of-use assets, intangible assets, etc. related to the personal care business segment were impaired, resulting in a total asset impairment loss of RMB 194.9587 million. These asset impairment losses mainly affected the Company's income statement and did not affect cash flow. The impact of these matters on the Company's income statement is mainly concentrated in 2025. With the completion of the divestment of the personal care business segment, the impact of these matters on the Company's future performance will be eliminated, and the Company will focus more on the main business of nutrition and health food solutions.
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To enhance the Company's core competitiveness and ensure sustainable future development, the Company launched a strategic consulting project in 2025, incurring a high one-time consulting fee.
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The Company is proactively laying out precision nutrition, pet nutrition, and other market segments, and has correspondingly initiated consulting and argumentation, sales, R&D and management team building, market research, and other preliminary work. The initial investment was substantial, but it has not yet generated benefits in the short term. As the business gradually lands, it is expected to generate positive impacts in the future.