Core Insights - The company reported a revenue of 1.436 billion yuan for the first half of 2025, a decrease of 5% year-on-year, with a profit of 57.796 million yuan, primarily due to a reduction in sales from industrial projects [1] - The main business segment, intimate apparel, generated revenue of 1.289 billion yuan, showing a quarter-on-quarter growth of 2.3%, with a gross margin increase of 0.5% to 49.6% [1] - E-commerce performance was strong, with a gross merchandise volume (GMV) exceeding 1.6 billion yuan, representing a year-on-year growth of 243% [1] Revenue and Profit Analysis - The decline in overall revenue and profit is attributed to a decrease in the number of industrial project deliveries compared to the same period last year [1] - The company expects to deliver the remaining units of the Yuquan project by the end of 2025 [1] Business Segment Performance - The revenue from pure cotton home goods increased by approximately 46%, driven by precise market positioning and differentiated product offerings [1] - The company is enhancing collaboration with partners in the e-commerce sector to optimize supply chain efficiency and improve brand-channel synergy [1] Future Outlook - The company aims to maintain its competitive edge by developing popular products and continuously innovating to meet diverse consumer needs [2] - The e-commerce business is projected to continue its rapid growth, with an expected annual GMV exceeding 3.4 billion yuan for 2025 [1]

Core Insights - Urban Beauty (2298.HK) reported a revenue of RMB 1.436 billion for the first half of 2025, with a profit of RMB 57.796 million [1] - The company's main business segment, intimate apparel, generated revenue of RMB 1.289 billion, reflecting a 2.3% increase compared to the second half of 2024, with a gross margin improvement to 49.6% [1] - E-commerce performance showed significant growth, with a GMV exceeding RMB 1.6 billion, marking a 243% year-on-year increase [1] Revenue and Profitability - Total revenue for the first half of 2025 reached RMB 1.436 billion, with a profit of RMB 57.796 million [1] - Revenue from intimate apparel was RMB 1.289 billion, up 2.3% from the previous half, with a gross margin increase of 0.5% to 49.6% [1] - Segment performance for intimate apparel was RMB 69.652 million, showing a year-on-year growth of 15.6% [1] E-commerce and Product Expansion - The e-commerce segment continued to deepen, with a GMV of over RMB 1.6 billion, representing a 243% increase year-on-year [1] - The pure cotton home goods line experienced rapid expansion, with a year-on-year growth of approximately 46% [1] Brand Development - In January 2025, Urban Beauty signed short track speed skating athletes Liu Shaolin and Liu Shaoang as brand ambassadors [1] - In March 2025, actress Nazha was announced as the brand spokesperson, further solidifying Urban Beauty's position as a leader in the "national underwear" market [1]

Core Insights - The company reported stable growth in its main business and rapid growth in e-commerce, which has become a new highlight for the company [1] Financial Performance - Revenue from the main business of intimate apparel reached 1.289 billion RMB, a quarter-on-quarter increase of 2.3% compared to the second half of 2024, with a gross margin increase of 0.5% to 49.6% [1] - The segment performance showed a profit of 69.652 million RMB, representing a year-on-year growth of 15.6% [1] Growth Channels - The company is continuously exploring new channel opportunities, including shopping centers, online e-commerce partnerships, offline stores, and instant retail, with cloud retail growing approximately 40% in the first half of the year [1] - In the e-commerce sector, the company deepened cooperation with partners to enhance market share, achieving a total gross merchandise volume (GMV) of over 1.6 billion RMB in the first half of the year, which is a significant year-on-year increase of 243% compared to the entire year of 2024 [1]

Core Insights - The company reported a revenue of RMB 1.436 billion and a profit of RMB 57.796 million for the first half of 2025 [1] Financial Performance - Revenue from the core business of intimate apparel reached RMB 1.289 billion, showing a quarter-on-quarter increase of 2.3% compared to the second half of 2024 [1] - Gross margin for the core business improved by 0.5 percentage points to 49.6% [1] - Segment performance recorded a profit of RMB 69.652 million, representing a year-on-year growth of 15.6% [1] E-commerce Growth - The company's e-commerce GMV exceeded RMB 1.6 billion in the first half of 2025, marking a significant year-on-year increase of 243% [1] - The brand's cotton home products achieved approximately 46% year-on-year growth due to precise market positioning and differentiated product offerings [1] Brand Development - In January 2025, the company signed short track speed skating athletes Liu Shaolin and Liu Shaoang as brand ambassadors [1] - In March 2025, actress Nazha was announced as a brand spokesperson [1] - The company invested in advertising across approximately 180 high-speed railway stations and 50 key urban areas in Beijing, Shanghai, Guangzhou, and Shenzhen to enhance brand visibility [1]

Group 1 - The core viewpoint of the article highlights the financial performance of Urban Beauty (02298) for the first half of 2025, showcasing significant growth in revenue and profitability [1] - Urban Beauty reported a revenue of RMB 1.436 billion and a profit of RMB 57.796 million for the first half of 2025 [1] - The main business segment of intimate apparel generated revenue of RMB 1.289 billion, reflecting a quarter-on-quarter growth of 2.3% compared to the second half of 2024, with a gross margin increase of 0.5% to 49.6% [1] Group 2 - The company’s e-commerce segment showed remarkable growth, with a gross merchandise volume (GMV) exceeding RMB 1.6 billion in the first half of 2025, representing a year-on-year increase of 243% [1] - Urban Beauty's subsidiary, Pure Cotton Home, achieved a year-on-year revenue growth of approximately 46% due to precise market positioning, differentiated product offerings, and high-quality service experiences [1] - The company has engaged prominent brand ambassadors, including short track speed skating athletes Liu Shaolin and Liu Shaoang, and actress Nazha, to enhance brand visibility and memory [1] Group 3 - In the first half of 2025, Urban Beauty invested in advertising across approximately 180 high-speed railway stations and 50 key commercial areas in major cities, reinforcing brand presence and momentum [1]

Core Viewpoint - The company reported a solid performance in the first half of 2025, with significant growth in revenue and profit, driven by effective e-commerce strategies and strong brand positioning [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of RMB 1.436 billion and a profit attributable to shareholders of RMB 57.796 million, with basic earnings per share of RMB 0.027 [1]. - Revenue from the core business of intimate apparel was RMB 1.289 billion, reflecting a 2.3% increase compared to the second half of 2024, with a gross margin improvement of 0.5% to 49.6% [1]. - The performance of the intimate apparel segment showed a year-on-year increase of 15.6%, amounting to RMB 69.652 million [1]. E-commerce Growth - The company's collaboration with its joint venture partners in e-commerce significantly enhanced its market share, with the total gross merchandise value (GMV) from related e-commerce platforms reaching approximately RMB 1.52 billion in the first half of 2025, compared to RMB 240 million in the first half of 2024 [1]. - Service revenue from these e-commerce activities was approximately RMB 39.4 million, up from RMB 21 million in the same period last year [1]. Strategic Initiatives - The company maintains a prudent approach in a complex market environment, focusing on strengthening its channel advantages and achieving notable results [2]. - The main brand continues to deepen its operations in traditional street channels while expanding into shopping centers to enhance brand penetration and core competitiveness [2]. - The "Pure Cotton Living" brand has experienced rapid expansion, with a year-on-year revenue growth of approximately 46% for the six months ending June 30, 2024 [2]. Market Outlook - The company anticipates ongoing challenges and opportunities in the intimate apparel industry due to global economic adjustments and domestic consumption disparities [2]. - The company will continue to adhere to its strategic positioning of providing high-quality, cost-effective products while deepening its layout across brand, product, and channel dimensions [2].

Core Viewpoint - The company reported a mid-year performance for 2025, highlighting a stable financial performance amidst significant changes in the global economic landscape and domestic consumer market dynamics [1] Financial Performance - Revenue for the first half of 2025 reached 1.436 billion RMB - Gross profit amounted to 666 million RMB - Shareholders' profit attributable to the company was 57.796 million RMB - Basic earnings per share were 2.7 cents [1] Industry Context - The global economic landscape is undergoing deep adjustments, with international supply chains being rapidly restructured - The domestic consumer market is showing clear signs of differentiation - The Chinese lingerie industry is entering a new cycle characterized by quality upgrades and value reassessment, with consumers increasingly demanding functionality, comfort, and emotional value in products [1] Strategic Response - The company is actively adapting to market changes by focusing on brand, product, and channel strategies to build comprehensive competitive advantages - The gross margin remained stable at approximately 46.4% compared to 47.5% in the first half of 2024 - The gross margin for intimate apparel products also remained stable at about 49.6%, compared to 49.1% in the first half of 2024 [1]

Core Viewpoint - The company reported a revenue of 1.436 billion RMB for the first half of 2025, indicating a significant adjustment in the global economic landscape and a restructuring of international supply chains, which has led to a noticeable differentiation in the domestic consumer market [1] Group 1: Financial Performance - The company's gross profit for the first half of 2025 was 666 million RMB, with a net profit attributable to shareholders of 57.796 million RMB, translating to a basic earnings per share of 2.7 cents [1] - The gross margin remained stable at approximately 46.4%, compared to 47.5% in the same period of 2024 [1] - The gross margin for intimate apparel products also remained stable at around 49.6%, compared to 49.1% in the same period of 2024 [1] Group 2: Market Context - The company is navigating a new cycle of quality upgrades and value reassessment in the Chinese lingerie industry, driven by consumers' increasing demand for functionality, comfort, and emotional value in products [1] - The company is actively responding to market changes by focusing on brand, product, and channel strategies to build comprehensive competitive advantages and enhance performance [1]

[Financial Summary](index=1&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) For the six months ended June 30, 2025, the company's revenue and profit attributable to owners decreased year-on-year, with basic and diluted earnings per share also declining, while the intimate wear product segment grew, but the industrial projects and logistics segment significantly decreased | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 1,435,894 | 1,514,450 | | **Segment Results** | | | | Intimate Wear Products | 69,652 | 60,257 | | Industrial Projects and Logistics | 10,945 | 79,841 | | Profit Attributable to Owners of the Company | 57,796 | 82,398 | | **Earnings Per Share** | | | | Basic (RMB cents) | 2.7 | 3.8 | | Diluted (RMB cents) | 2.6 | 3.7 | [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=2&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%90%8D%E7%9B%8A%E5%8F%8A%E5%85%B6%E4%BB%96%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue was RMB 1,435,894 thousand, a decrease from RMB 1,514,450 thousand in the prior period, with profit for the period declining by approximately 31% to RMB 53,447 thousand | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Revenue | 1,435,894 | 1,514,450 | | Cost of Sales | (770,130) | (795,551) | | Gross Profit | 665,764 | 718,899 | | Selling and Marketing Expenses | (523,907) | (514,693) | | General and Administrative Expenses | (79,664) | (83,833) | | Operating Profit | 65,448 | 123,833 | | Finance Costs – Net | (10,341) | (8,713) | | Profit Before Income Tax | 55,389 | 115,311 | | Income Tax Expense | (1,942) | (37,965) | | Profit for the Period | 53,447 | 77,346 | | Profit Attributable to Owners of the Company | 57,796 | 82,398 | | Total Comprehensive Income for the Period | 51,339 | 71,732 | [Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets were RMB 3,603,808 thousand, a slight decrease from December 31, 2024, with total equity at RMB 2,064,809 thousand, total liabilities at RMB 1,538,999 thousand, and a significant reduction in current liabilities | Metric | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 1,298,672 | 1,332,097 | | Total Current Assets | 2,305,136 | 2,364,711 | | **Total Assets** | **3,603,808** | **3,696,808** | | **Equity** | | | | Share Capital and Reserves Attributable to Owners of the Company | 2,081,081 | 2,032,990 | | Non-controlling Interests | (16,272) | (11,627) | | **Total Equity** | **2,064,809** | **2,021,363** | | **Liabilities** | | | | Total Current Liabilities | 1,070,864 | 1,465,386 | | Total Non-current Liabilities | 468,135 | 210,059 | | **Total Liabilities** | **1,538,999** | **1,675,445** | | **Total Equity and Liabilities** | **3,603,808** | **3,696,808** | [Notes to the Financial Statements](index=6&type=section&id=%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section details the basis of preparation for interim financial information, changes in accounting policies, general company information including its registered place, principal business, and ultimate holding company, along with detailed classifications and analyses of key financial accounts [General Information](index=6&type=section&id=%E4%B8%80%E8%88%AC%E8%B3%87%E6%96%99) This section provides basic information on the company's place of registration, principal business, and ultimate holding company - The company is registered in the Cayman Islands, with its principal business being the design, marketing, and sale of intimate wear products, development of industrial projects, and provision of logistics services in China[9](index=9&type=chunk) - The company's ultimate holding company is Yao Li Investment Holdings Limited, controlled by Mr. Zheng Yaonan[10](index=10&type=chunk) [Basis of Preparation](index=6&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) This section outlines the basis for preparing the interim financial information, emphasizing it should be read in conjunction with the annual consolidated financial statements - The interim financial information is prepared in accordance with International Accounting Standard 34 and should be read in conjunction with the annual consolidated financial statements for the year ended December 31, 2024[11](index=11&type=chunk) [Changes in Accounting Policies](index=6&type=section&id=%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E8%AE%8A%E5%8B%95) This section explains the consistency of accounting policies adopted for the interim condensed consolidated financial information with the annual financial statements, noting the initial adoption of revised standards - The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those followed in the annual financial statements, except for the initial adoption of revised International Financial Reporting Standards[12](index=12&type=chunk) - The amendments to International Accounting Standard 21 regarding "Lack of Exchangeability" had no impact on this interim condensed consolidated financial information[13](index=13&type=chunk) [Operating Segment Information](index=7&type=section&id=%E7%B6%93%E7%87%9F%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) This section identifies the Group's two reportable operating segments: intimate wear products and industrial projects and logistics, providing their respective revenue and performance data - The Group has two reportable operating segments: the intimate wear products segment (design, marketing, and sale of intimate wear products) and the industrial projects and logistics segment (development of industrial projects and provision of logistics services)[14](index=14&type=chunk) - The Group's revenue from external customers is generated solely from its operations in China, with no single external customer accounting for **10%** or more of revenue[15](index=15&type=chunk) Reportable Segment Revenue and Results | Metric | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | **Segment Revenue** | | | | Intimate Wear Products | 1,288,540 | 1,295,054 | | Industrial Projects and Logistics | 147,354 | 219,396 | | **Segment Results** | | | | Intimate Wear Products | 69,652 | 60,257 | | Industrial Projects and Logistics | 10,945 | 79,841 | [Revenue](index=8&type=section&id=%E6%94%B6%E5%85%A5) This section details the company's customer contract revenue breakdown by source, including retail, sales to franchisees, e-commerce, logistics revenue, and sales of industrial project properties Disaggregation of Revenue from Contracts with Customers | Revenue Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Retail | 662,627 | 643,711 | | Sales to Franchisees | 400,984 | 424,611 | | E-commerce | 224,929 | 226,732 | | Logistics Revenue | 64,445 | 47,521 | | Sales of Industrial Project Properties | 82,909 | 171,875 | | **Total Revenue** | **1,435,894** | **1,514,450** | [Other Income and Other Losses – Net](index=8&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E5%8F%8A%E5%85%B6%E4%BB%96%E8%99%A7%E6%90%8D%EF%BC%8D%E6%B7%A8%E9%A1%8D) This section analyzes the company's other income and net losses for the reporting period, including government grants, investment income, exchange losses, and gains/losses from disposal of property, plant, and equipment Analysis of Other Income | Other Income Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Government Grants | 813 | 1,147 | | Investment Income from Financial Assets | 382 | 1,707 | | Others | 7,160 | 6,475 | | **Total Other Income** | **8,355** | **9,329** | Analysis of Other Losses – Net | Other Loss Source | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Net Exchange Losses | (872) | (3,166) | | (Loss)/Gain on Disposal of Property, Plant and Equipment – Net | (5) | 19 | | **Total Other Losses – Net** | **(877)** | **(3,147)** | [Profit Before Income Tax](index=9&type=section&id=%E9%99%A4%E6%89%80%E5%BE%97%E7%A8%85%E5%89%8D%E5%88%A9%E6%BD%A4) This section lists the key items included in or deducted from profit before income tax, such as cost of inventories, cost of services, depreciation, amortization, and impairment provisions Items Included in/(Deducted from) Profit Before Income Tax | Item | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Cost of Inventories Sold | 648,935 | 658,921 | | Cost of Services Provided | 65,759 | 48,398 | | Cost of Properties Sold | 55,436 | 88,232 | | Depreciation and Amortisation – Right-of-use Assets | 102,065 | 85,320 | | Depreciation and Amortisation – Property, Plant and Equipment | 41,877 | 40,043 | | Depreciation and Amortisation – Intangible Assets | 3,506 | 3,549 | | Provision for Inventories | 5,736 | – | | Impairment (Reversal)/Provision for Property, Plant and Equipment | (283) | 182 | | Impairment (Reversal)/Provision for Right-of-use Assets | (5,230) | 5,220 | [Income Tax Expense](index=9&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) This section analyzes the composition of income tax expense, including current and deferred income tax, and explains the high-tech enterprise preferential tax rate and land appreciation tax provision Analysis of Income Tax Expense | Tax Type | 2025 (RMB '000) | 2024 (RMB '000) | | :--- | :--- | :--- | | Current Income Tax – China Corporate Income Tax | 1,271 | 2,029 | | Current Income Tax – China Land Appreciation Tax | 1,873 | 15,811 | | Deferred Income Tax | (1,202) | 20,125 | | **Total Income Tax Expense** | **1,942** | **37,965** | - Guangdong Cosmo Lady was granted a preferential income tax rate of **15%** as a high-tech enterprise in December 2024, valid for three years[23](index=23&type=chunk) - The land appreciation tax provision is management's best estimate based on its understanding of relevant Chinese tax laws and regulations, with the actual liability subject to determination by tax authorities[24](index=24&type=chunk) [Earnings Per Share](index=10&type=section&id=%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) This section explains the calculation method for basic earnings per share and provides detailed calculation data for both basic and diluted earnings per share - Basic earnings per share are calculated by dividing the profit attributable to owners of the company by the weighted average number of ordinary shares outstanding during the period[26](index=26&type=chunk) Calculation of Basic and Diluted Earnings Per Share | Metric | 2025 (RMB '000/thousand shares) | 2024 (RMB '000/thousand shares) | | :--- | :--- | :--- | | Profit for the Period Attributable to Owners of the Company | 57,796 | 82,398 | | Weighted Average Number of Ordinary Shares for Basic EPS | 2,179,354 | 2,175,223 | | Dilutive Effect – Share Award Scheme | 50,415 | 40,498 | | Number of Shares Used for Calculating Diluted EPS | 2,229,769 | 2,215,721 | [Trade and Bills Receivables](index=11&type=section&id=%E6%87%89%E6%94%B6%E8%B3%A6%E6%AC%BE%E5%8F%8A%E6%87%89%E6%94%B6%E7%A5%A8%E6%93%9A) This section provides the net composition and aging analysis of trade and bills receivables, along with the Group's credit period policy granted to franchisee customers Trade and Bills Receivables – Net | Item | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Amounts Due from Third Parties | 455,045 | 401,417 | | Bills Receivable | 61 | 267 | | Less: Loss Allowance | (18,567) | (16,439) | | **Trade and Bills Receivables – Net** | **436,539** | **385,245** | Aging Analysis of Trade Receivables | Aging | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 137,802 | 157,275 | | Over 30 days but within 60 days | 105,689 | 44,861 | | Over 60 days but within 90 days | 43,031 | 94,702 | | Over 90 days but within 180 days | 23,981 | 44,192 | | Over 180 days but within 360 days | 120,466 | 48,501 | | Over 360 days | 24,076 | 11,886 | | **Trade Receivables, Total** | **455,045** | **401,417** | - The Group generally grants credit periods of **15 to 90 days** to franchisee customers, and **90 to 180 days** for initial orders of new retail store products[31](index=31&type=chunk) [Trade and Bills Payables](index=12&type=section&id=%E6%87%89%E4%BB%98%E8%B3%A6%E6%AC%BE%E5%8F%8A%E6%87%89%E4%BB%98%E7%A5%A8%E6%93%9A) This section presents the composition of trade and bills payables, including amounts due to third parties and related parties, and provides an aging analysis of trade payables Trade and Bills Payables | Item | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Amounts Due to Third Parties | 218,479 | 398,564 | | Amounts Due to Related Parties | 1,697 | 5,544 | | Bills Payable | 27,253 | 119,365 | | **Total** | **247,429** | **523,473** | Aging Analysis of Trade Payables | Aging | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Within 30 days | 45,589 | 43,302 | | Over 30 days but within 60 days | 6,938 | 38,016 | | Over 60 days but within 90 days | 55,834 | 100,054 | | Over 90 days but within 180 days | 97,490 | 191,386 | | Over 180 days but within 360 days | 7,300 | 19,748 | | Over 360 days | 7,025 | 11,602 | | **Trade Payables, Total** | **220,176** | **404,108** | [Loans](index=13&type=section&id=%E8%B2%B8%E6%AC%BE) This section details the composition of the company's loans, including non-current and current secured bank loans, and advances on discounted bills with recourse Loan Composition | Type | 2025年6月30日 (RMB '000) | 2024年12月31日 (RMB '000) | | :--- | :--- | :--- | | Non-current Secured Bank Loans | 349,505 | 91,250 | | Current Secured Bank Loans | 118,000 | 304,380 | | Advances on Discounted Bills with Recourse | 104,158 | – | | **Total** | **571,663** | **395,630** | [Business Review](index=14&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) Facing global economic adjustments and domestic consumption divergence, the company actively responded by strengthening brand momentum, upgrading product development systems, and deepening channels to improve performance, with profit attributable to owners of the company at RMB 57,796,000 during the reporting period - Profit attributable to owners of the company was **RMB 57,796,000**[34](index=34&type=chunk) - Looking ahead to the second half, the company will continue to adhere to its strategic positioning, uphold the principle of "good quality at affordable prices" for its products, and deepen its layout across brand, product, and channel dimensions to meet challenges and achieve steady performance growth[39](index=39&type=chunk) [Strengthening Brand Momentum](index=14&type=section&id=%E5%BC%B7%E5%8C%96%E5%93%81%E7%89%8C%E5%8B%A2%E8%83%BD) The company continuously enhances brand influence and market recognition by signing sports stars and artists, conducting sports marketing campaigns, obtaining industry certifications, and multi-channel advertising - Signed Chinese short track speed skaters Liu Shaolin and Liu Shaoang as brand ambassadors, reinforcing the brand identity of "National Underwear, Champion's Choice"[35](index=35&type=chunk) - Leveraged the Asian Winter Games' popularity to create the "Let the World Feel China's Warmth" sports marketing campaign, effectively boosting brand momentum[35](index=35&type=chunk) - Announced Gulinazha as brand spokesperson and once again received Frost & Sullivan's "National Sales No. 1" certification, solidifying its foundation as a national intimate wear brand[35](index=35&type=chunk) - Placed advertisements on approximately **180** high-speed rail stations and **50** outdoor large screens in core commercial districts across Beijing, Shanghai, Guangzhou, and Shenzhen, continuously strengthening brand recall[36](index=36&type=chunk) - Continued to fulfill its public welfare mission, cumulatively donating **177,000** items of goods across **12** provinces nationwide in the first half of the year[36](index=36&type=chunk) [Continuous Upgrade of Product Development System](index=15&type=section&id=%E6%8C%81%E7%BA%8C%E5%8D%87%E7%B4%9A%E7%94%A2%E5%93%81%E9%96%8B%E7%99%BC%E9%AB%94%E7%B3%BB) The company continuously upgrades its product development system through in-depth market research, strengthened cooperation with suppliers, and refinement of its blockbuster product matrix to meet diverse consumer demands - Conducted in-depth store surveys, large client interviews, and combined with lingerie exhibitions and online data monitoring to gain insights into consumer needs[37](index=37&type=chunk) - Deepened cooperation with core suppliers to establish differentiated competitive advantages in key areas such as innovative raw material research and development and production process upgrades[37](index=37&type=chunk) - Improved the blockbuster product matrix, continuously building popular and mid-to-high-priced blockbuster products covering multiple consumption scenarios to meet diverse consumer needs[37](index=37&type=chunk) [Channel Deepening](index=16&type=section&id=%E6%B8%A0%E9%81%93%E6%B7%B1%E8%80%95) The company deepened traditional street store channels and expanded into shopping malls with its main brand, achieving significant performance growth for its sub-brands and a substantial increase in e-commerce GMV - The "Cosmo Lady" main brand continued to advance its "strong provinces and counties" strategy, deepening traditional street store channels and expanding into shopping mall channels with a new image[40](index=40&type=chunk) - The Group's "Pure Cotton Home Goods" brand performance increased by approximately **46%** year-on-year[40](index=40&type=chunk) - E-commerce channel GMV exceeded **RMB 1.6 billion**, achieving a significant growth of **243%** year-on-year[40](index=40&type=chunk) [Detailed Financial Performance Analysis](index=17&type=section&id=%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E8%A9%B3%E6%83%85%E5%88%86%E6%9E%90) This section provides a detailed analysis of changes in the company's financial indicators and their key drivers during the reporting period, including profit, revenue, gross margin, selling and marketing expenses, general and administrative expenses, finance costs, and income tax expense [Profit Attributable to Owners of the Company and Segment Results](index=17&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E6%93%81%E6%9C%89%E4%BA%BA%E6%87%89%E4%BD%94%E5%88%A9%E6%BD%A4%E5%8F%8A%E5%88%86%E9%83%A8%E6%A5%AD%E7%B8%BE) This section analyzes the decrease in profit attributable to owners of the company, detailing the growth in the intimate wear product segment and the significant decline in the industrial projects and logistics segment, along with their reasons - Profit attributable to owners of the company was **RMB 57,796,000**, a decrease of approximately **30%** compared to the same period in 2024[41](index=41&type=chunk) - The intimate wear products segment's performance increased by approximately **16%** to **RMB 69,652,000**, primarily due to collaboration with associates to expand e-commerce platforms, achieving a GMV of approximately **RMB 1.52 billion** (H1 2024: RMB 240 million) and service revenue of approximately **RMB 39.4 million** (H1 2024: RMB 21.0 million)[41](index=41&type=chunk)[42](index=42&type=chunk) - The industrial projects and logistics segment's performance decreased by approximately **86%** to **RMB 10,945,000**, mainly due to a significant reduction in the number of units delivered for the Yuquan project compared to the same period last year[41](index=41&type=chunk)[42](index=42&type=chunk) [Revenue](index=18&type=section&id=%E6%94%B6%E5%85%A5) This section details the composition and changes in the company's revenue, identifying the decrease in industrial project sales as the primary reason for the overall revenue decline, and provides information on the Yuquan project's delivery status Revenue Breakdown and Proportion | Revenue Source | 2025 (RMB '000) | Proportion (%) | 2024 (RMB '000) | Proportion (%) | | :--- | :--- | :--- | :--- | :--- | | Intimate Wear Products: Offline Sales | 1,063,611 | 74.1 | 1,068,322 | 70.5 | | Intimate Wear Products: E-commerce | 224,929 | 15.6 | 226,732 | 15.0 | | Industrial Projects and Logistics: Logistics Revenue | 64,445 | 4.5 | 47,521 | 3.1 | | Industrial Projects and Logistics: Industrial Project Sales | 82,909 | 5.8 | 171,875 | 11.4 | | **Total Revenue** | **1,435,894** | **100.0** | **1,514,450** | **100.0** | - The change in revenue was primarily due to a decrease in industrial project sales, with a significant reduction in the number of units delivered for the Yuquan project leading to a corresponding decrease in related sales revenue[44](index=44&type=chunk) - The Yuquan project has a total gross floor area of approximately **145,000 square meters**, of which approximately **89,000 square meters** are primarily for sale, with approximately **60,000 square meters** delivered and revenue recognized as of June 30, 2025[44](index=44&type=chunk)[45](index=45&type=chunk) [Gross Margin](index=19&type=section&id=%E6%AF%9B%E5%88%A9%E7%8E%87) This section analyzes the stability of the Group's overall gross margin and notes the decline in the industrial projects and logistics gross margin due to reduced sales - The Group's gross margin remained stable at approximately **46.4%** (H1 2024: 47.5%)[46](index=46&type=chunk) - The gross margin for intimate wear products remained stable at approximately **49.6%** (H1 2024: 49.1%)[46](index=46&type=chunk) - The gross margin for industrial projects and logistics decreased to approximately **17.8%** (H1 2024: 37.7%), primarily due to reduced industrial project sales[46](index=46&type=chunk) [Selling and Marketing Expenses](index=19&type=section&id=%E9%8A%B7%E5%94%AE%E5%8F%8A%E7%87%9F%E9%8A%B7%E8%B2%BB%E7%94%A8) This section indicates a approximately 2% increase in selling and marketing expenses, primarily attributed to the company's continued investment in brand marketing to enhance brand influence - Selling and marketing expenses increased by approximately **2%** to **RMB 523,907,000**, primarily due to the Group's continuous efforts to enhance its brand power and increase brand marketing investment[47](index=47&type=chunk) [General and Administrative Expenses](index=20&type=section&id=%E4%B8%80%E8%88%AC%E5%8F%8A%E8%A1%8C%E6%94%BF%E8%B2%BB%E7%94%A8) This section notes a approximately 5% decrease in general and administrative expenses, primarily benefiting from the company's continued effective implementation of cost control measures during the reporting period - General and administrative expenses decreased by approximately **5%** to **RMB 79,664,000**, primarily due to the continuous effective implementation of cost control measures during the relevant period[48](index=48&type=chunk) [Finance Costs – Net](index=20&type=section&id=%E8%B2%A1%E5%8B%99%E8%B2%BB%E7%94%A8%EF%BC%8D%E6%B7%A8%E9%A1%8D) This section indicates that net finance costs increased to approximately RMB 10,341,000, primarily due to a decrease in interest income - Finance costs – net increased to approximately **RMB 10,341,000** (H1 2024: RMB 8,713,000), primarily due to a decrease in interest income[49](index=49&type=chunk) [Income Tax Expense](index=20&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) This section analyzes the decrease in income tax expense to approximately RMB 1,942,000, primarily attributed to reduced land appreciation tax expenses from industrial project sales and profits, and deferred income tax expenses recognized in the prior period - Income tax expense decreased to approximately **RMB 1,942,000** (H1 2024: RMB 37,965,000), primarily due to reduced China land appreciation tax expenses from industrial project sales and profits, and deferred income tax expenses recognized in the prior period[50](index=50&type=chunk) [Liquidity and Financial Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90) The company maintains a sound financial position with healthy current and net debt ratios, and this section also outlines foreign exchange risks, capital expenditures, and asset pledges [Overview of Liquidity and Financial Resources](index=20&type=section&id=%E6%B5%81%E5%8B%95%E8%B3%87%E9%87%91%E5%8F%8A%E8%B2%A1%E5%8B%99%E8%B3%87%E6%BA%90%E6%A6%82%E8%A7%88) This section provides an overview of the company's restricted bank deposits, cash and cash equivalents, loans, and key liquidity financial ratios, including current ratio, total debt ratio, and net debt ratio Liquidity and Financial Ratios | Metric | 2025年6月30日 (RMB '000/times/%) | 2024年12月31日 (RMB '000/times/%) | | :--- | :--- | :--- | | Restricted Bank Deposits and Cash and Cash Equivalents | 554,921 | 621,871 | | Loans | 571,663 | 395,630 | | Current Ratio | 2.2 times | 1.6 times | | Total Debt Ratio | 22.6% | 19.6% | | Net Debt Ratio | Negative 4.2% | Negative 11.2% | [Foreign Exchange Risk](index=21&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) This section states that most of the Group's revenue, expenses, and raw material purchases are settled in RMB, and no significant difficulties have been encountered in remitting profits from mainland China subsidiaries to holding companies outside mainland China - Most of the Group's revenue, expenses, and raw material purchases are settled in RMB, and no significant difficulties have been encountered in remitting profits from mainland China subsidiaries to holding companies outside mainland China[53](index=53&type=chunk) [Capital Expenditure on Property, Plant and Equipment and Intangible Assets](index=21&type=section&id=%E6%9C%89%E9%97%9C%E7%89%A9%E6%A5%AD%E3%80%81%E5%BB%A0%E6%88%BF%E5%8F%8A%E8%A8%AD%E5%82%99%E5%92%8C%E7%84%A1%E5%BD%A2%E8%B3%87%E7%94%A2%E7%9A%84%E8%B3%87%E6%9C%AC%E6%80%A7%E6%94%AF%E5%87%BA) This section discloses the company's capital expenditure on property, plant and equipment and intangible assets during the reporting period, primarily for store renovation and refurbishment - During the reporting period, capital expenditure on the Group's property, plant and equipment and intangible assets was approximately **RMB 32,647,000** (H1 2024: RMB 33,333,000), primarily for store renovation and refurbishment[54](index=54&type=chunk) [Pledge of Assets](index=21&type=section&id=%E8%B3%87%E7%94%A2%E8%B3%AA%E6%8A%BC) This section discloses the total amount of restricted bank deposits, property, plant and equipment, and land use rights pledged by the Group as of June 30, 2025, to secure loans and bills payable - As of June 30, 2025, the Group pledged approximately **RMB 646,263,000** of restricted bank deposits, certain property, plant and equipment, and land use rights to secure loans and bills payable[55](index=55&type=chunk) [Human Resources Management](index=21&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E7%AE%A1%E7%90%86) As of June 30, 2025, the Group had approximately 2,000 full-time employees, with remuneration determined by experience, qualifications, and market conditions, alongside training and efforts to foster a harmonious work environment - As of June 30, 2025, the Group had approximately **2,000** full-time employees (December 31, 2024: 2,200 employees)[56](index=56&type=chunk) - Remuneration is determined with reference to individual employees' experience and qualifications, as well as overall market conditions, with bonuses linked to the Group's operating results and individual performance[56](index=56&type=chunk) - The Group provides training for new employees and on-the-job training for existing employees, aiming to develop their skills and create a harmonious and supportive work and living environment[56](index=56&type=chunk) [Other Information](index=22&type=section&id=%E5%85%B6%E4%BB%96%E4%BF%A1%E6%81%AF) This section covers interim dividend policy, corporate governance practices, securities trading, post-reporting period events, and the audit committee's review work [Interim Dividend](index=22&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board does not recommend the payment of an interim dividend to shareholders for the six months ended June 30, 2025 - The Board does not recommend the payment of an interim dividend to the company's shareholders for the six months ended June 30, 2025 (2024: **1.1 HK cents** per share, totaling approximately **HKD 24,744,000**)[57](index=57&type=chunk) [Corporate Governance Practices](index=22&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%B8%B8%E8%A6%8F) The company complied with the Corporate Governance Code in Appendix C1 of the Listing Rules during the reporting period and explained the safeguards for the combined roles of Chairman and Chief Executive Officer - The company has complied with all applicable code provisions in the Corporate Governance Code set out in Appendix C1 of the Listing Rules throughout the reporting period, except for code provision C.2.1[58](index=58&type=chunk) - Mr. Zheng Yaonan concurrently holds the roles of Chairman of the Board and Chief Executive Officer, and the company believes there are sufficient safeguards to ensure a balance of power on the Board[59](index=59&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities or Sale of Treasury Shares](index=22&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities%20or%20Sale%20of%20Treasury%20Shares) This section confirms that neither the company nor its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares during the six months ended June 30, 2025 - During the six months ended June 30, 2025, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities or sold any treasury shares[60](index=60&type=chunk) [Directors' Securities Transactions](index=22&type=section&id=Directors%27%20Securities%20Transactions) All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, for the six months ended June 30, 2025 - All directors confirmed compliance with the Model Code for Securities Transactions by Directors of Listed Issuers, as set out in Appendix C3 of the Listing Rules, for the six months ended June 30, 2025[61](index=61&type=chunk) [Significant Events After Reporting Period](index=23&type=section&id=Significant%20Events%20After%20Reporting%20Period) This section confirms that no significant events occurred after the reporting period ended June 30, 2025 - No significant events occurred after June 30, 2025 (the end of the reporting period)[62](index=62&type=chunk) [Audit Committee](index=23&type=section&id=Audit%20Committee) The Audit Committee, comprising three independent non-executive directors, has reviewed the unaudited interim financial information and raised no objections to the accounting treatments and principles adopted by the company - The Audit Committee, composed of three independent non-executive directors, has reviewed the unaudited interim financial information for the six months ended June 30, 2025, and has no disagreement with the accounting treatments and principles adopted by the company[63](index=63&type=chunk) [Publication of Interim Results and Interim Report for the Six Months Ended June 30, 2025](index=23&type=section&id=Publication%20of%20Interim%20Results%20and%20Interim%20Report%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025) This section states that the interim results announcement has been published on the HKEXnews website and the company's website, with the interim report to be published on the same websites in due course - This interim results announcement is published on the HKEXnews website (http://www.hkexnews.hk) and the company's website (http://www.cosmo-lady.com.hk), and the interim report will be published on the aforementioned websites in due course[64](index=64&type=chunk)

Group 1 - The core point of the article highlights the significant stock price increase of Urban Beauty (02298), which rose by 20.27% to 0.445 yuan per share, with a trading volume of 12.4622 million yuan as of 13:52 on August 26 [1] - Urban Beauty (China) Holdings Limited focuses on the design, research and development, and sales of its own brand intimate apparel products, including bras, panties, sleepwear, loungewear, and accessories, enhancing market competitiveness through a diversified brand strategy and vertically integrated business model [1] - According to a Frost & Sullivan report, Urban Beauty is the largest brand in the intimate apparel sector in China based on retail sales revenue and store count as of 2018, with its brand portfolio expanding to nine, covering various consumer tiers from mass to premium [1] Group 2 - As of the 2024 annual report, Urban Beauty reported total revenue of 3.01 billion yuan and a net profit of 126 million yuan [1] - Urban Beauty is set to disclose its interim report for the fiscal year 2025 on August 29 [1]