### Overview Bethany Company, known for its innovative skin care products, predominantly focused on children's skin conditions, recently shared key insights from its investor relations activities regarding the company's strategic direction and financial performance. This article highlights the essential components from their latest report, detailing plans for product expansions and the overall financial health as of year-end 2023.

### Key Financials The company has significantly expanded its Over-The-Counter (OTC) distribution channels, now covering approximately 129,000 pharmacies, alongside the successful opening of 179 new direct-selling stores. This growth indicates a robust and increasing footprint in the market. Further, their self-built OMO (Online-Merge-Offline) sales platform has reported an impressive average transaction value exceeding 1500 yuan, showcasing improved market penetration.

### Management Commentary Management has exuded a positive tone during the presentation, particularly with the newly appointed Vice General Manager, Wu Xiaojing, who has seamlessly integrated with the existing team. The leadership appears optimistic about the future, focusing on enhancing brand presence and product accessibility to strengthen their competitive edge.

### Trends and Drivers Bethany is responding strategically to both market trends and consumer demands. They are set to release a new eczema-focused product line under the Weinoona Baby brand by mid-2025, which includes moisturizers, sunscreens, and creams designed specifically for children's skin care needs. Furthermore, the AOXMED brand aims to deepen its product offerings by introducing new lines suitable for both professional and home care applications, fostering collaboration between online and offline sales channels. The company's adoption of AI and smart manufacturing technologies indicates a strong commitment to optimizing production while ensuring consumer benefits through advanced transparency measures.

### Risks and Outlook Despite promising developments, Bethany faces risks that could impact its future performance. The competitive landscape is intensifying, particularly in establishing a strong image for high-end domestic brands. The management also highlighted the challenges in transforming innovative research and development into marketable products, emphasizing the importance of continued investment in clinical validations, which are currently being conducted in partnership with 63 medical institutions across the country.

### Conclusion In conclusion, Bethany Company's strategic focus on expanding product lines and enhancing distribution channels indicates a strong growth trajectory moving forward. However, the company must navigate competitive pressures and ensure that its innovation translates effectively into market demand. Investors should keep a close watch on the company's ongoing R&D efforts and the success of new product launches in the upcoming quarters.