On July 28, the rollout plan for the national parenting subsidy system was unveiled, officially introducing "national subsidies" into the realm of childbirth. Based on the estimates by the food and beverage research team at Guotai Junan Securities, led by Zi Meng, the annual parenting subsidies are anticipated to reach approximately RMB100 billion. This significant sum is expected to have a multiplicative effect, potentially increasing further. This measure is poised to stimulate demand in various industries, including dairy products. While Guotai Junan Securities projects a decline in the future birth rate, leading to a decrease in annual subsidy amounts, the fiscal expenditure remains substantial. For the dairy industry, the nationwide parenting subsidy is expected to propel related dairy consumption, particularly infant formula, aiding in the enhancement of industry prosperity and accelerating the alignment of supply and demand imbalances.