Core Insights - The cleaning agent industry is experiencing significant growth driven by urbanization, rising disposable incomes, and increasing consumer demand for safer and more efficient products. The market size in China is projected to grow from 47.41 billion yuan in 2015 to 94.14 billion yuan in 2024, with a compound annual growth rate (CAGR) of 8% [1][9]. Industry Overview - Cleaning agents are chemical formulations used to remove dirt and impurities, categorized into industrial and consumer cleaning agents. Industrial cleaning agents include oil removers, wax removers, and rust removers, while consumer products include laundry detergents and all-purpose cleaners [2][10]. - The cleaning agent industry is shifting towards environmentally friendly products, with innovations such as water-based formulations and biodegradable components gaining traction due to government policies and consumer preferences [1][9]. Market Dynamics - The demand for specialized cleaning agents is increasing, with products tailored for specific materials and scenarios becoming more prevalent. This trend is supported by a growing focus on functionality and safety in cleaning products [1][9]. - The surface active agent industry, crucial for cleaning agents, is also expanding, with production expected to rise from 2.15 million tons in 2015 to 5.08 million tons in 2024, reflecting a CAGR of 10.03% [6][7]. Application Sectors - The cleaning agent industry serves various sectors, including mechanical processing, electronics manufacturing, automotive maintenance, and food processing. The mechanical industry alone is projected to see revenue growth from 21.38 trillion yuan in 2018 to 31.5 trillion yuan in 2024, with a CAGR of 6.67% [8][9]. Competitive Landscape - The global cleaning agent market features a mix of international brands like Dow, Bayer, and 3M, alongside rapidly growing domestic brands such as Blue Moon and Chao Yun Group. These local brands leverage market insights and flexible strategies to compete effectively in the consumer and mid-tier industrial segments [10][11]. Future Trends - The industry is moving towards green and sustainable practices, with a focus on developing non-toxic, biodegradable formulations. This shift is driven by stricter environmental regulations and heightened public health awareness [14]. - Smart technology integration is becoming a key driver for industry transformation, with automation and IoT applications enhancing production efficiency and product consistency [14][15]. - Professionalization and functional specialization are emerging as defining characteristics of the cleaning agent industry, with products increasingly tailored to meet specific needs in various applications [15].

评论： 品牌力与成本管控共振，盈利能力保持韧性。面对行业竞争与原材料波动，公司通过三大举措维持盈利 水平：①核心产品（如超威杀虫气雾剂）规模效应显著，生产工艺优化降低单位成本；②高毛利新品 （宠物护理、高端清洁）占比提升，拉动整体毛利率结构优化；③供应链长期合作与数字化管理，锁定 关键原材料供应，成本端具备可控性。 机构：华创证券 研究员：汤秀洁 事项： 业绩一览：25H1 实现收入13.4 亿（+7.2%），归母净利润1.74 亿（-3.3%）。 毛利率49.3%（+2.9pp），净利率12.8%（-1.3pp）。销售/管理费用率分别为30.5%/6.0%（同比 +5.1/-1.0pp）。 全渠道融合+数字化赋能，市场响应效率提升。渠道端，线上在深耕淘系、京东、拼多多的基础上，实 现新电商渠道的高速发展，打造出更多的亿元渠道；提升便携驱蚊、家居清洁、宠物食品等趋势产品的 销售占比；持续优化投产，提升在线运营效率和盈利能力。线下经销渠道推行多品类的分销覆盖、加强 高毛利产品的分销数量和分销网点的质量、从而提升市场基础，在销售时采用产品形象陈列、堆头切角 和货架挂条等特殊展示方式进行推广、以提升资源的投入产出； ...

华创证券发布研报称，朝云集团(06601)作为中国领先家居护理集团，传统品类基本盘稳固，新品牌、 新赛道(宠物、高端清洁等)拓展成效显著，业绩增长动能充足。随着消费升级与细分市场需求持续释 放，公司"多品牌+多品类+全渠道"的协同效应将进一步显现。该行预计25-27年朝云集团归母净利润分 别为2.18、2.43、2.74亿元，三年复合增速12.1%，目标价3.03港元，维持"推荐"评级。 事件：公司25H1实现收入13.4亿(+7.2%)，归母净利润1.74亿(-3.3%)。毛利率49.3%(+2.9pp)，净利率 12.8%(-1.3pp)。销售/管理费用率分别为30.5%/6.0%(同比+5.1/-1.0pp)。 华创证券主要观点如下： 品牌力与成本管控共振，盈利能力保持韧性 一方面，"超威"等传统龙头品牌通过"经典+创新"双轨产品策略(经典款保基本盘，创新款拓高端市场) 巩固护城河;另一方面，"贝贝健"(母婴)、"倔强的尾巴"(宠物)等新品牌精准卡位细分场景，凭借差异化 定位快速渗透，成为业绩增长"第二曲线"，驱动长期成长边界拓展。核心团队稳定，新品研发与迭代持 续推进。 研发创新+消费趋势契合，产品力 ...

证 券 研 究 报 告 朝云集团（06601.HK）2025 年中报点评 推荐（维持） 夯实杀虫剂基本盘，多品类协同驱动成长 目标价：3.03 港元 事项： 业绩一览：25H1 实现收入 13.4 亿（+7.2%），归母净利润 1.74 亿（-3.3%）。 毛利率 49.3%（+2.9pp），净利率 12.8%（-1.3pp）。销售/管理费用率分别为 30.5%/6.0%（同比+5.1/-1.0pp）。 评论： 风险提示：市场竞争加剧、新品推广不及预期等风险。 [ReportFinancialIndex] 主要财务指标 联系人：王笑飞 邮箱：wangxiaofei@hcyjs.com 公司基本数据 | | 2024A | 2025E | 2026E | 2027E | | --- | --- | --- | --- | --- | | 营业总收入(百万) | 1,820 | 2,020 | 2,213 | 2,380 | | 同比增速(%) | 12.6% | 11.0% | 9.5% | 7.6% | | 归母净利润(百万) | 203 | 218 | 243 | 274 | | 同比增速(%) | 16. ...

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 朝雲集團有限公司 (於開曼群島註冊成立的有限公司） 呈交日期: 2025年10月6日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 06601 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | 法定/註冊股本 | | | 上月底結存 | | | 250,000,000,000 | USD | 0.0000002 | USD | | 50,000 | | 增加 / 減少 (-) | | | 0 | | | USD | | 0 | | 本月底結存 | | | 250,000,000,000 | USD | 0.0000002 | USD | | 50,00 ...

[Company Profile](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E7%B0%A1%E4%BB%8B) An overview of the company's business model, strategic pillars, product categories, and core brands [Company Overview and Strategic Pillars](index=3&type=section&id=%E5%85%AC%E5%8F%B8%E6%A6%82%E8%A7%88%E8%88%87%E6%88%B0%E7%95%A5%E6%94%AF%E6%9F%B1) Chaoyun Group is a leading Chinese multi-category platform for home, pet, and personal care, integrating operations through eight strategic pillars across ten product categories and nine core brands - Chaoyun Group is a leading one-stop multi-category home care, pet products, and personal care platform in China[4](index=4&type=chunk) - The company's business structure is based on **eight pillars**: insight, brand, R&D, marketing, sales, collaboration, management, and operations, achieving a fully integrated business process from market research to sales[4](index=4&type=chunk)[5](index=5&type=chunk) - Successfully launched **ten categories**, covering home care, pet stores and pet products, and personal care, with **rapid development** in the pet business[6](index=6&type=chunk) - Owns **nine core brands**, including Weiwang, Chaowei, Beibeijian, Juejiangweiba, Juejiangzuiba, Xilan, Runzhisu, ZhuaZhuaMiaoXingQiu, and Mileguaiguai[6](index=6&type=chunk) [Corporate Information](index=4&type=section&id=%E5%85%AC%E5%8F%B8%E8%B3%87%E6%96%99) Key corporate details including board composition, committees, auditors, and listing information [Board of Directors and Corporate Structure](index=4&type=section&id=%E8%91%A3%E4%BA%8B%E6%9C%83%E8%88%87%E5%85%AC%E5%8F%B8%E6%9E%B6%E6%A7%8B) This section details Chaoyun Group's board members, committee compositions, joint company secretaries, auditors, legal advisors, and other fundamental corporate information - Board members include Executive Directors Chen Danxia (Chairman and CEO), Wang Dong, Zhong Xuyi, Lu Yongji, Non-executive Director Chen Zexing, and Independent Non-executive Directors Yu Rong, Guo Sheng, and Chen Hongjun[7](index=7&type=chunk) - The Audit Committee Chairman is Chen Hongjun, Remuneration Committee Chairman is Guo Sheng, and Nomination Committee Chairman is Chen Danxia[7](index=7&type=chunk) - The company's auditor is Deloitte Touche Tohmatsu, and legal counsel is Zhou Junxuan Law Firm[7](index=7&type=chunk) - The company's stock code is **6601**, listed on **March 10, 2021**[8](index=8&type=chunk) [Financial Highlights](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) A concise summary of the company's key financial performance and position for the period [Core Financial Performance and Position](index=5&type=section&id=%E6%A0%B8%E5%BF%83%E8%B2%A1%E5%8B%99%E8%A1%A8%E7%8F%BE%E8%88%87%E7%8B%80%E6%B3%81) For the six months ended June 30, 2025, Chaoyun Group's revenue grew 7.2% to RMB 1.339 billion, gross profit rose 14.0% to RMB 660 million, and pre-tax profit increased 5.3% to RMB 232 million, while profit for the period slightly decreased 2.7% to RMB 171 million, with stable total equity and liabilities Results Highlights for the Six Months Ended June 30, 2025 | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,338,807 | 1,249,136 | 7.2 | | Gross Profit | 659,785 | 579,011 | 14.0 | | Profit Before Tax | 231,701 | 220,065 | 5.3 | | Profit for the Period | 171,106 | 175,873 | (2.7) | | EPS (cents) | 13.02 | 13.46 | (3.3) | Assets, Liabilities, and Equity Highlights as of June 30, 2025 | Indicator | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 684,972 | 480,025 | | Current Assets | 2,991,916 | 3,321,678 | | **Total Assets** | **3,676,888** | **3,801,703** | | Total Equity | 3,052,577 | 2,989,234 | | Total Liabilities | 624,311 | 812,469 | [Management Discussion and Analysis](index=6&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) Management's review of business performance, financial results, and future strategic outlook [Business Overview and Outlook](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E6%A6%82%E8%A7%88%E5%8F%8A%E5%B1%95%E6%9C%9B) In H1 2025, Chaoyun Group saw sustained performance improvement with stable revenue, cash, and profit growth, driven by home care, pet products, and online channels, while pursuing strategic expansion and high dividend payouts - In H1 2025, the Group focused on customer value, achieving sustained overall performance improvement, adhering to principles of high quality, sustainability, and stable profits[12](index=12&type=chunk) Revenue Growth by Product Category (Six Months Ended June 30, 2025) | Product Category | Revenue (RMB millions) | YoY Growth (%) | | :--- | :--- | :--- | | Home Care Products | 1,214.2 | 4.3 | | Pet Stores and Pet Products | 96.0 | 101.4 | | Personal Care Products | 25.8 | (25.8) | Revenue Growth by Sales Channel (Six Months Ended June 30, 2025) | Sales Channel | Revenue (RMB millions) | YoY Growth (%) | | :--- | :--- | :--- | | Online Channels | 517.2 | 27.4 | | Offline Channels | 821.6 | (2.6) | - Insecticide and mosquito repellent products ranked **first** in comprehensive market share among similar products in China for **eleven consecutive years** (2015-2025)[14](index=14&type=chunk) - Future growth strategies include: expanding high-end natural home care and insecticide/mite removal product lines; increasing pet store coverage and quantity, creating online bestsellers; maintaining market positions on Taobao, JD, Pinduoduo, and rapidly developing content e-commerce like Douyin; deepening offline distribution networks; enhancing R&D capabilities; promoting diversified incentive mechanisms; actively pursuing domestic and international M&A in pet, personal care, cosmetics, and FMCG sectors; and continuing to implement a high dividend payout policy[17](index=17&type=chunk) [Financial Review](index=9&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) Revenue grew 7.2% to RMB 1.339 billion, driven by market opportunities and pet business expansion, with gross margin improving to 49.3% due to brand strength and operational efficiency, while profit for the period slightly declined due to increased income tax expense, and operating cash outflow significantly reduced - Total revenue increased by **7.2%** year-on-year to **RMB 1,338.8 million**, primarily due to seizing market opportunities and actively promoting rapid development in product categories, online channels, and the pet business[19](index=19&type=chunk) Revenue and Proportion by Product Category (Six Months Ended June 30, 2025) | Product Category | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Home Care | 1,214,162 | 90.7 | 1,163,557 | 93.1 | | Pet Stores and Pet Products | 95,955 | 7.2 | 47,633 | 3.8 | | Personal Care | 25,776 | 1.9 | 34,752 | 2.8 | | Other | 2,914 | 0.2 | 3,194 | 0.3 | | **Total** | **1,338,807** | **100.0** | **1,249,136** | **100.0** | Revenue and Proportion by Sales Channel (Six Months Ended June 30, 2025) | Sales Channel | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | Online Channels | 517,189 | 38.6 | 405,854 | 32.5 | | Offline Channels | 821,618 | 61.4 | 843,282 | 67.5 | | **Total** | **1,338,807** | **100.0** | **1,249,136** | **100.0** | - Gross profit increased by **14.0%** to **RMB 659.8 million**, with gross margin rising from **46.4% to 49.3%**, mainly benefiting from enhanced brand influence, optimized product and channel structure, and improved supply chain efficiency[24](index=24&type=chunk) Gross Profit and Gross Margin by Product Category (Six Months Ended June 30, 2025) | Product Category | 2025 Gross Profit (RMB thousands) | 2025 Gross Margin (%) | 2024 Gross Profit (RMB thousands) | 2024 Gross Margin (%) | | :--- | :--- | :--- | :--- | :--- | | Home Care | 595,839 | 49.1 | 540,137 | 46.4 | | Pet Stores and Pet Products | 55,761 | 58.1 | 23,601 | 49.5 | | Personal Care | 10,340 | 40.1 | 14,716 | 42.3 | | Other | (2,155) | (74.0) | 557 | 17.4 | | **Total** | **659,785** | **49.3** | **579,011** | **46.4** | - Sales and distribution expenses increased by **28.5%** to **RMB 408.3 million**, consistent with the increased revenue scale of online channels and the pet business[32](index=32&type=chunk) - Administrative expenses decreased by **7.8%** to **RMB 80.1 million**, primarily due to improved overall operational efficiency and reduced goodwill impairment losses[33](index=33&type=chunk) - Profit for the period slightly decreased by **2.7%** to **RMB 171.1 million**, with net profit margin falling from **14.1% to 12.8%**, mainly impacted by increased income tax expense (effective tax rate rose from **20.1% to 26.2%**)[37](index=37&type=chunk)[38](index=38&type=chunk) - Net cash outflow from operating activities significantly decreased from **RMB 159.7 million** to **RMB 36.4 million**[39](index=39&type=chunk) - The capital gearing ratio remained stable at **1.7%** as of June 30, 2025[43](index=43&type=chunk) [Other Financial Information](index=14&type=section&id=%E5%85%B6%E4%BB%96%E8%B2%A1%E5%8B%99%E4%BF%A1%E6%81%AF) As of June 30, 2025, the Group had no pledged assets or significant contingent liabilities, employee count increased due to pet store expansion, total staff costs remained stable, and an interim dividend of RMB 0.0521 per share was declared, maintaining a 40.0% payout ratio - As of June 30, 2025, the Group had no pledged assets or significant contingent liabilities[48](index=48&type=chunk)[49](index=49&type=chunk) - As of June 30, 2025, the number of employees was **1,321**, an increase from **1,140** on June 30, 2024, mainly due to the expansion of the pet offline store business[50](index=50&type=chunk) - The Board resolved to declare an interim dividend of **RMB 0.0521** per share (equivalent to **HKD 0.0571** per share), maintaining a stable payout ratio of **40.0%**[51](index=51&type=chunk) [Other Information](index=15&type=section&id=%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) Additional disclosures on director and shareholder interests, equity incentive schemes, use of proceeds, and corporate governance [Directors' and Chief Executives' Interests and Short Positions in Shares, Underlying Shares, and Debentures](index=15&type=section&id=%E8%91%A3%E4%BA%8B%E5%8F%8A%E6%9C%80%E9%AB%98%E8%A1%8C%E6%94%BF%E4%BA%BA%E5%93%A1%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E6%AC%8A%E8%AD%89%E4%B8%AD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, the company's directors and chief executives held long positions in shares and related shares, with Ms. Chen Danxia holding the largest stake, and Ms. Wang Dong and Mr. Zhong Xuyi holding share option interests Directors' Share Interests (As of June 30, 2025) | Director Name | Nature of Interest | Number of Shares (L) | Approximate % of Interest | | :--- | :--- | :--- | :--- | | Chen Danxia | Beneficial Owner | 4,793,500 | 0.36% | | Wang Dong | Beneficial Owner | 401,000 | 0.03% | | Zhong Xuyi | Beneficial Owner | 150,000 | 0.01% | - The number of shares held by Ms. Wang Dong and Mr. Zhong Xuyi includes relevant shares that may be allotted and issued upon full exercise of all outstanding share options granted under the share option scheme[57](index=57&type=chunk) [Major Shareholders' and Other Persons' Interests and Short Positions in Shares and Underlying Shares](index=16&type=section&id=%E4%B8%BB%E8%A6%81%E8%82%A1%E6%9D%B1%E5%8F%8A%E5%85%B6%E4%BB%96%E4%BA%BA%E5%A3%AB%E6%96%BC%E8%82%A1%E4%BB%BD%E5%8F%8A%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E7%9A%84%E6%AC%8A%E7%9B%8A%E5%8F%8A%E6%B7%A1%E5%80%89) As of June 30, 2025, Ms. Ma Huizhen, Ms. Li Ruohong, Mr. Chen Kaixuan, Mr. Chen Kaichen, and Chaoyun Global Limited were major shareholders, each holding a 74.25% interest in the company's issued ordinary shares Major Shareholders' Share Interests (As of June 30, 2025) | Shareholder Name/Entity | Nature of Interest | Number of Shares (L) | Approximate % of Interest | | :--- | :--- | :--- | :--- | | Ms. Ma Huizhen | Interest in Controlled Corporation/Spousal Interest | 990,000,000 | 74.25% | | Ms. Li Ruohong | Interest in Controlled Corporation/Spousal Interest | 990,000,000 | 74.25% | | Mr. Chen Kaixuan | Interest in Controlled Corporation/Spousal Interest | 990,000,000 | 74.25% | | Mr. Chen Kaichen | Interest in Controlled Corporation/Spousal Interest | 990,000,000 | 74.25% | | Chaoyun Global Limited | Beneficial Owner | 990,000,000 | 74.25% | - Ms. Ma and Mr. Chen Kaichen, and Ms. Li and Mr. Chen Kaixuan are spouses and are deemed to have interests in all shares held by each other under the Securities and Futures Ordinance[60](index=60&type=chunk) - The entire issued share capital of Chaoyun Global Limited is beneficially owned by Ms. Ma, Ms. Li, Mr. Chen Kaichen, and Mr. Chen Kaixuan[60](index=60&type=chunk) [Equity Incentive Schemes](index=17&type=section&id=%E8%82%A1%E6%AC%8A%E6%BF%80%E5%8B%B5%E8%A8%88%E5%8A%83) The company has share option and restricted share award schemes to attract, retain, and incentivize talent, with total options representing 9.64% and restricted shares 1.51% of issued shares, both linked to revenue and net profit growth performance targets - The share option scheme aims to attract, retain, and incentivize talented employees, aligning company value with participant interests[61](index=61&type=chunk) - As of the report date, the total number of share options available for grant under the scheme is **128,533,350**, representing approximately **9.64%** of the total issued shares[63](index=63&type=chunk) - The share option scheme's assessment mechanism includes the Group's revenue growth rate and net profit growth rate (each with **50% weighting**), which will determine the performance factor and individual vesting ratio[68](index=68&type=chunk)[70](index=70&type=chunk) - The restricted share award scheme aims to align management and shareholder interests, incentivize management to achieve performance targets, and attract external talent[72](index=72&type=chunk) - The maximum number of award shares that can be granted under the restricted share award scheme is **25,000,000** shares, representing **1.87%** of the total issued shares[73](index=73&type=chunk) - As of the report date, a total of **4,800,000** unexercised restricted shares have been granted to three directors, one consultant, and four employees[80](index=80&type=chunk) - The assessment mechanism for the restricted share award scheme is similar to the share option scheme, also using the Group's revenue growth rate and net profit growth rate as key performance indicators[77](index=77&type=chunk)[79](index=79&type=chunk) [Use of Proceeds from Global Offering](index=23&type=section&id=%E5%85%A8%E7%90%83%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) The company received net proceeds of approximately RMB 2.419 billion from its global offering, with RMB 714 million utilized by June 30, 2025, and the remaining RMB 1.704 billion allocated for R&D, channel expansion, marketing, supply chain, digitalization, and strategic acquisitions - The company received net proceeds of approximately **RMB 2,418.8 million** from its global offering[82](index=82&type=chunk) Use and Utilization of Proceeds from Global Offering (As of June 30, 2025) | Item | Approximate % of Total Net Proceeds | Net Proceeds from Global Offering (RMB millions) | Actual Net Utilized as of June 30, 2025 (RMB millions) | Unutilized Net as of June 30, 2025 (RMB millions) | Expected Full Utilization Timeline | | :--- | :--- | :--- | :--- | :--- | :--- | | New product R&D, existing product upgrades, and new brand/category development | 7.1% | 171.8 | 84.4 | 87.4 | Before end of 2026 | | Promoting R&D center construction and upgrades | 10.2% | 246.7 | 0 | 246.7 | Before end of 2026 | | Incentivizing and recruiting R&D talent | 2.7% | 65.3 | 0 | 65.3 | Before end of 2026 | | Further developing online distribution channels | 10.0% | 241.9 | 241.9 | 0 | N/A | | Further strengthening offline distribution network | 5.0% | 120.9 | 46.5 | 74.4 | Before end of 2026 | | Establishing and optimizing overseas online and offline sales networks | 5.0% | 120.9 | 0 | 120.9 | Before end of 2026 | | Increasing market penetration in lower-tier cities | 5.0% | 120.9 | 10.2 | 110.7 | Before end of 2026 | | Investing in online brand marketing activities | 10.0% | 241.9 | 146.5 | 95.4 | Before end of 2026 | | Establishing overseas supply chain | 1.5% | 36.3 | 0 | 36.3 | Before end of 2026 | | Upgrading production facilities and production lines | 1.5% | 36.3 | 0 | 36.3 | Before end of 2026 | | Establishing supply chain base in Shanghai | 7.0% | 169.3 | 0 | 169.3 | Before end of 2026 | | Deepening digitalization strategy, strengthening IT infrastructure | 10.0% | 241.9 | 10.8 | 231.1 | Before end of 2026 | | Strategic acquisitions of upstream and downstream businesses | 15.0% | 362.8 | 174.1 | 188.7 | Before end of 2026 | | Working capital and other general corporate purposes | 10.0% | 241.9 | 0 | 241.9 | Before end of 2026 | | **Total** | **100.0%** | **2,418.8** | **714.4** | **1,704.4** | | - As of June 30, 2025, the remaining proceeds of approximately **RMB 1,704.4 million** will continue to be used according to the prospectus and deposited in reputable banks in Hong Kong or mainland China[85](index=85&type=chunk) [Corporate Governance](index=25&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company maintains high corporate governance standards, adhering to Listing Rules Appendix C1, with the Chairman and CEO roles combined for leadership consistency, balanced by independent non-executive directors, and confirms compliance with director securities dealing standards and public float requirements - The company has adopted and complied with all applicable code provisions of Appendix C1 of the Listing Rules on Corporate Governance during the reporting period[86](index=86&type=chunk) - The roles of Chairman and CEO are combined and held by Ms. Chen Danxia; the Board believes this arrangement facilitates consistent leadership and efficient strategic planning, with independent non-executive directors ensuring a balance of power[87](index=87&type=chunk) - 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 throughout the reporting period[88](index=88&type=chunk) - As of the report date, the company's public float meets Listing Rules requirements, with at least **25%** of total issued shares held by the public[91](index=91&type=chunk) [Subsequent Events](index=26&type=section&id=%E6%9C%9F%E5%BE%8C%E4%BA%8B%E9%A0%85) No significant post-balance sheet events occurred after the reporting period - No significant subsequent events occurred after the reporting period[94](index=94&type=chunk) [Audit Committee](index=26&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors and one non-executive director, reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025, and received the independent auditor's review report - The Audit Committee comprises Mr. Chen Hongjun (Chairman), Mr. Guo Sheng, Dr. Yu Rong (Independent Non-executive Directors), and Mr. Chen Zexing (Non-executive Director)[95](index=95&type=chunk) - The Audit Committee has reviewed the Group's unaudited condensed consolidated financial statements for the six months ended June 30, 2025[95](index=95&type=chunk) - The Group's unaudited condensed consolidated financial statements have been reviewed by independent auditor Deloitte Touche Tohmatsu[95](index=95&type=chunk) [Changes in Directors' Information](index=26&type=section&id=%E8%91%A3%E4%BA%8B%E8%B3%87%E6%96%99%E8%AE%8A%E5%8B%95) No changes in director information have occurred since the publication of the company's 2024 annual report - No changes in directors' information requiring disclosure under paragraphs (a) to (e) and (g) of Rule 13.51(2) of the Listing Rules have occurred since the publication of the company's 2024 annual report[96](index=96&type=chunk) [Review Report on Condensed Consolidated Financial Statements](index=27&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) The independent auditor's review opinion on the condensed consolidated financial statements [Review Opinion](index=27&type=section&id=%E5%AF%A9%E9%96%B1%E6%84%8F%E8%A6%8B) Independent auditor Deloitte Touche Tohmatsu reviewed Chaoyun Group's condensed consolidated financial statements for the six months ended June 30, 2025, finding no material non-compliance with IAS 34 - Independent auditor Deloitte Touche Tohmatsu has reviewed Chaoyun Group's condensed consolidated financial statements for the six months ended June 30, 2025[98](index=98&type=chunk)[99](index=99&type=chunk) - The scope of review is substantially less than that of an audit, and accordingly, no audit opinion is expressed[99](index=99&type=chunk) - The auditor found no matters that cause them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with International Accounting Standard 34[100](index=100&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=28&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) A summary of the company's revenue, profit, and comprehensive income for the reporting period [Profit or Loss and Comprehensive Income Overview](index=28&type=section&id=%E6%90%8D%E7%9B%8A%E8%88%87%E5%85%A8%E9%9D%A2%E6%94%B6%E7%9B%8A%E6%A6%82%E8%A7%88) For the six months ended June 30, 2025, the company reported RMB 1.339 billion in revenue, RMB 660 million in gross profit, RMB 171 million in profit for the period, and RMB 154 million in total comprehensive income, primarily impacted by exchange differences Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income (Six Months Ended June 30, 2025) | Indicator | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 1,338,807 | 1,249,136 | | Gross Profit | 659,785 | 579,011 | | Profit Before Tax | 231,701 | 220,065 | | Profit for the Period | 171,106 | 175,873 | | Total Comprehensive Income for the Period | 154,276 | 184,113 | | Basic EPS (RMB cents) | 13.02 | 13.46 | - Exchange differences arising from the translation of foreign operations resulted in other comprehensive expenses of **RMB 16,830 thousand**[102](index=102&type=chunk) [Condensed Consolidated Statement of Financial Position](index=29&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) An overview of the company's assets, liabilities, and equity as of the reporting date [Assets, Liabilities, and Equity Position](index=29&type=section&id=%E8%B3%87%E7%94%A2%E3%80%81%E8%B2%A0%E5%82%B5%E5%8F%8A%E6%AC%8A%E7%9B%8A%E7%8B%80%E6%B3%81) As of June 30, 2025, total assets were RMB 3.677 billion, with current assets being the largest component; total equity was RMB 3.053 billion, and total liabilities were RMB 624 million, with a higher proportion of current liabilities Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Indicator | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Non-current Assets | 684,972 | 480,025 | | Current Assets | 2,991,916 | 3,321,678 | | **Total Assets** | **3,676,888** | **3,801,703** | | Equity Attributable to Owners of the Company | 3,056,681 | 2,990,882 | | Non-controlling Interests | (4,104) | (1,648) | | **Total Equity** | **3,052,577** | **2,989,234** | | Non-current Liabilities | 29,169 | 30,493 | | Current Liabilities | 595,142 | 781,976 | | **Total Liabilities** | **624,311** | **812,469** | - Net current assets were **RMB 2,396,774 thousand**, a decrease from **RMB 2,539,702 thousand** as of December 31, 2024[104](index=104&type=chunk) [Condensed Consolidated Statement of Changes in Equity](index=30&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E8%A1%A8) Analysis of changes in the company's equity attributable to owners during the period [Analysis of Changes in Equity](index=30&type=section&id=%E6%AC%8A%E7%9B%8A%E8%AE%8A%E5%8B%95%E5%88%86%E6%9E%90) For the six months ended June 30, 2025, total equity attributable to owners increased to RMB 3.057 billion, with profit for the period at RMB 174 million, but exchange reserves decreased by RMB 16.83 million due to exchange differences, and dividends of RMB 90.93 million were recognized Condensed Consolidated Statement of Changes in Equity (Six Months Ended June 30, 2025) | Item | June 30, 2025 (RMB thousands) | June 30, 2024 (RMB thousands) | | :--- | :--- | :--- | | Total equity at beginning of period | 2,989,234 | 2,937,472 | | Profit (loss) for the period | 171,106 | 175,873 | | Total other comprehensive (expense) income for the period | (16,830) | 8,240 | | Dividends recognized as distribution | (90,933) | (85,333) | | Total equity at end of period | 3,052,577 | 3,027,292 | - Exchange reserve decreased by **RMB 16,830 thousand** due to other comprehensive expenses (exchange differences) during the period[105](index=105&type=chunk) - Dividends recognized as distribution during the period amounted to **RMB 90,933 thousand**[105](index=105&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=31&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E8%A1%A8) A summary of cash flows from operating, investing, and financing activities [Cash Flow Analysis](index=31&type=section&id=%E7%8F%BE%E9%87%91%E6%B5%81%E9%87%8F%E5%88%86%E6%9E%90) For the six months ended June 30, 2025, net cash used in operating activities significantly decreased to RMB 36.38 million, net cash from investing activities was RMB 381 million, and net cash used in financing activities was RMB 11.37 million, with cash and cash equivalents increasing to RMB 1.508 billion at period-end Condensed Consolidated Statement of Cash Flows (Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net cash used in operating activities | (36,381) | (159,710) | | Net cash from (used in) investing activities | 381,434 | (155,696) | | Net cash used in financing activities | (11,367) | (18,465) | | Net increase (decrease) in cash and cash equivalents | 333,686 | (333,871) | | Cash and cash equivalents at end of period | 1,507,932 | 1,213,034 | - Net cash used in operating activities significantly decreased, primarily due to improved working capital movements, especially reduced inventories[107](index=107&type=chunk) - Net cash from investing activities primarily resulted from withdrawals of time deposits and disposal of financial assets at fair value through profit or loss[107](index=107&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=32&type=section&id=%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) Detailed notes providing additional information on the financial statements, accounting policies, and specific line items [Basis of Preparation and Accounting Policies](index=32&type=section&id=%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96%E8%88%87%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96) The condensed consolidated financial statements are prepared under IAS 34 and HKEX Listing Rules, using historical cost, with the first-time application of IAS 21 (amended) 'Lack of Exchangeability' having no material impact on financial position or performance - The condensed consolidated financial statements are prepared in accordance with International Accounting Standard 34 'Interim Financial Reporting' and the applicable disclosure requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited[108](index=108&type=chunk) - The financial statements have been prepared on the historical cost basis, except for certain financial instruments measured at fair value[109](index=109&type=chunk) - The Group first applied IAS 21 (amended) 'Lack of Exchangeability' in this interim period, which had no material impact on its financial position and performance[110](index=110&type=chunk) [Revenue and Segment Information](index=33&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) For the six months ended June 30, 2025, revenue primarily from home care products was recognized at a point in time, with RMB 46.93 million allocated to remaining performance obligations expected to be recognized within twelve months, and the company operates as a single segment primarily in China Revenue by Product or Service Category (Six Months Ended June 30, 2025) | Product or Service Category | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Home Care | 1,214,162 | 1,163,557 | | Pet Stores and Pet Products | 95,955 | 47,633 | | Personal Care | 25,776 | 34,752 | | Other | 2,914 | 3,194 | | **Total** | **1,338,807** | **1,249,136** | - All revenue is recognized at a point in time[112](index=112&type=chunk) - As of June 30, 2025, the total transaction price allocated to remaining performance obligations was approximately **RMB 46,925 thousand**, expected to be recognized as revenue within the next twelve months[113](index=113&type=chunk) - The Group primarily operates in China, with almost all revenue and non-current assets derived from China[114](index=114&type=chunk) - In both years, no revenue from transactions with a single external customer accounted for **10% or more** of the Group's revenue[115](index=115&type=chunk) [Other Income and Expenses](index=34&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E8%88%87%E9%96%8B%E6%94%AF) For the six months ended June 30, 2025, other income totaled RMB 55.32 million, mainly from bank interest and government grants, with other gains and losses showing a net gain of RMB 9.60 million, primarily from foreign exchange; sales and distribution expenses rose to RMB 408 million, administrative expenses decreased to RMB 80.05 million, and income tax expense increased to RMB 60.60 million due to higher pre-tax profit and a subsidiary's tax rate Other Income (Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Government grants | 12,029 | 9,018 | | Bank interest income | 34,362 | 43,910 | | Interest income from other financial assets measured at amortized cost | 6,151 | 5,164 | | Investment income from financial assets at FVTPL | 2,337 | 1,416 | | Other | 443 | 489 | | **Total** | **55,322** | **59,997** | Other Gains and Losses (Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Net foreign exchange gain (loss) | 9,521 | (1,237) | | Fair value change loss on financial assets at FVTPL | – | (10,016) | | **Total** | **9,596** | **(11,684)** | - Sales and distribution expenses increased by **28.5%** to **RMB 408,262 thousand**, mainly due to increased e-commerce channel marketing and advertising service fees[119](index=119&type=chunk) - Administrative expenses decreased by **7.8%** to **RMB 80,054 thousand**[33](index=33&type=chunk) - Income tax expense increased by **37.1%** to **RMB 60,595 thousand**, with the effective tax rate rising from **20.1% to 26.2%**, primarily due to increased profit before tax and a temporary tax rate increase for a subsidiary undergoing high-tech enterprise qualification renewal[37](index=37&type=chunk)[121](index=121&type=chunk)[122](index=122&type=chunk) Profit for the Period Composition (Six Months Ended June 30, 2025) | Item | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Total staff costs | 111,633 | 112,093 | | Total depreciation | 20,988 | 18,204 | | R&D costs (included in administrative expenses) | 12,488 | 13,029 | | Cost of inventories recognized as expense | 677,981 | 670,319 | [Dividends and Earnings Per Share](index=38&type=section&id=%E8%82%A1%E6%81%AF%E8%88%87%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) The company declared a 2024 final dividend of RMB 0.0682 per share and a 2025 interim dividend of RMB 0.0521 per share post-period, with basic earnings per share at RMB 13.02 cents for the six months ended June 30, 2025, and no dilution from share options - A final dividend of **RMB 0.0682** per ordinary share was declared for the year ended December 31, 2024[126](index=126&type=chunk) - Subsequent to the reporting period, the Directors resolved to declare an interim dividend of **RMB 0.0521** per ordinary share, payable to shareholders on the register as of September 11, 2025[126](index=126&type=chunk) Earnings Per Share (Six Months Ended June 30, 2025) | Indicator | 2025 (RMB thousands/thousand shares) | 2024 (RMB thousands/thousand shares) | | :--- | :--- | :--- | | Profit for basic EPS calculation | 173,562 | 179,461 | | Weighted average number of ordinary shares for basic EPS calculation | 1,333,334 | 1,333,334 | | **Basic EPS (RMB cents)** | **13.02** | **13.46** | - No exercise of share options was assumed in calculating diluted earnings per share, as their exercise price was higher than the average market price of the company's shares[127](index=127&type=chunk) [Details of Assets and Liabilities](index=38&type=section&id=%E8%B3%87%E7%94%A2%E8%88%87%E8%B2%A0%E5%82%B5%E8%A9%B3%E6%83%85) This section details property, plant and equipment, right-of-use assets, financial assets at FVTPL, deferred tax assets, inventories, trade and other receivables, related party balances, other financial assets at amortized cost, time deposits, trade and other payables, and contract liabilities, noting trade receivables' 30-60 day credit term with ECL provisions, decreased inventories, and reduced contract liabilities - During the interim period, the Group incurred capital expenditure of approximately **RMB 6,859 thousand** for the acquisition of property, plant, and equipment[128](index=128&type=chunk) - Financial assets at fair value through profit or loss primarily consist of unlisted equity investments, totaling **RMB 111,923 thousand**[129](index=129&type=chunk) Deferred Tax Assets (As of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Deferred tax assets | 63,684 | 60,400 | Inventory Composition (As of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Raw Materials | 29,015 | 41,097 | | Work-in-progress | 8,561 | 12,942 | | Finished Goods | 115,769 | 263,988 | | **Total** | **153,345** | **318,027** | - Trade receivables typically have a credit period of **30 to 60 days** from invoice date; as of June 30, 2025, total trade receivables were **RMB 79,070 thousand**, with an expected credit loss provision of **RMB 4,270 thousand**[132](index=132&type=chunk)[134](index=134&type=chunk) - As of June 30, 2025, amounts due from related parties were **RMB 48,341 thousand**, and amounts due to related parties were **RMB 33,137 thousand**[137](index=137&type=chunk)[141](index=141&type=chunk) - Other financial assets measured at amortized cost include bonds and asset management schemes, totaling **RMB 296,271 thousand**[144](index=144&type=chunk) - Total time deposits amounted to **RMB 1,714,283 thousand**, bearing fixed annual interest rates ranging from **1.40% to 5.30%**[146](index=146&type=chunk) - Trade payables typically have a credit period of **20 to 60 days**; as of June 30, 2025, total trade payables were **RMB 159,623 thousand**[149](index=149&type=chunk)[150](index=150&type=chunk) - Contract liabilities (advances from customers) significantly decreased to **RMB 46,925 thousand**[152](index=152&type=chunk) [Share Capital and Share-based Payment Transactions](index=46&type=section&id=%E8%82%A1%E6%9C%AC%E8%88%87%E8%82%A1%E4%BB%BD%E7%82%BA%E5%9F%BA%E7%A4%8E%E7%9A%84%E4%BB%98%E6%AC%BE%E4%BA%A4%E6%98%93) The company's authorized share capital is 250 billion shares, with 1.333 billion issued and fully paid shares; share award and option schemes aim to incentivize employees, but no new share-based payment expenses were recognized for the six months ended June 30, 2025 - The company's authorized share capital is **250,000,000,000** shares with a par value of **USD 0.0000002**[153](index=153&type=chunk) - Issued and fully paid share capital consists of **1,333,333,500** shares, with share capital stated as **RMB 2 thousand**[153](index=153&type=chunk) - No share-based payment expenses were recognized under the share award scheme and share option scheme for the six months ended June 30, 2025[155](index=155&type=chunk)[157](index=157&type=chunk) - No share options vested or were exercised for the six months ended June 30, 2025[157](index=157&type=chunk) [Capital Commitments and Fair Value Measurement of Financial Instruments](index=47&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E6%93%94%E8%88%87%E9%87%91%E8%9E%8D%E5%B7%A5%E5%85%B7%E5%85%AC%E5%B9%B3%E5%80%BC%E8%A8%88%E9%87%8F) As of June 30, 2025, contracted but unprovided capital expenditure for property, plant, and equipment was RMB 1.37 million; financial assets at fair value are measured using market approach and classified as Level 3, with management deeming carrying amounts of financial assets and liabilities at amortized cost approximate their fair values Capital Commitments (As of June 30, 2025) | Item | June 30, 2025 (RMB thousands) | Dec 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Contracted but unprovided capital expenditure for property, plant and equipment | 1,369 | 258 | - Financial assets at fair value through profit or loss are valued using the market approach, with key inputs including comparable company market multiples, IPO, redemption, and liquidation probabilities, risk-free rates, and expected volatility, classified as Level 3 fair value measurements[160](index=160&type=chunk) - Management believes that the carrying amounts of financial assets and financial liabilities measured at amortized cost approximate their fair values[161](index=161&type=chunk) [Related Party Transactions](index=49&type=section&id=%E9%97%9C%E8%81%AF%E6%96%B9%E4%BA%A4%E6%98%93) The Group engaged in various related party transactions with entities under common control by the controlling shareholder, including sales, purchases, testing, sales support, warehouse, IT services, short-term lease fees, lease liability payments, and property management fees, with director remuneration also disclosed as key management personnel compensation Related Party Transactions (Six Months Ended June 30, 2025) | Transaction Type | 2025 (RMB thousands) | 2024 (RMB thousands) | | :--- | :--- | :--- | | Sales to related parties | 94,926 | 113,590 | | Provision of testing services to related parties | 126 | 57 | | Purchases from related parties | 66,564 | 79,698 | | Sales support service fees | 27,594 | 28,320 | | Warehouse service fees | 4,500 | 4,500 | | IT service fees | 1,150 | 1,150 | | Short-term lease related fees | 571 | 1,248 | | Lease liability payments | 3,045 | 3,112 | | Property management fees | 1,786 | 932 | - Directors' remuneration is disclosed in Note 9 as part of key management personnel compensation[165](index=165&type=chunk)

Core Viewpoint - Zhongyun Group (06601) maintains a "Buy" rating with a target price of HKD 3.00, predicting a net profit of HKD 210 million in 2025, corresponding to a 4.0x P/E ratio after cash adjustments [1] Financial Performance - The company achieved revenue of RMB 1.34 billion in the first half, a year-on-year increase of 7.2%, with an overall gross margin improvement of 2.9 percentage points to 49.3% [2] - Operating profit remained flat year-on-year despite a 20.7% increase in operating expenses, while the effective tax rate rose to 26.2% due to the expiration of tax incentives, expected to revert to around 20% for the full year [2] - Net profit for the first half was RMB 170 million, a slight decline of 3.3% year-on-year, with a mid-term dividend of HKD 0.057 and a payout ratio of 40%, maintaining an annual payout ratio of 80% [2] Growth in Pet Segment - The pet segment generated RMB 96 million in revenue, a remarkable year-on-year growth of 101.4%, increasing its share from 3.8% to 7.2% [3] - The gross margin for the pet segment improved by 8.6 percentage points to 58.1%, with plans to expand self-operated stores from 77 to 200 by 2027 and to initiate a franchise model as early as next year [3] Multi-Channel Strategy - Online revenue increased by 27.4% to RMB 520 million, accounting for 38.6% of total revenue, while offline revenue decreased by 2.6% [4] - The company is enhancing the distribution of high-margin products and improving the quality of distribution points to adapt to changes in offline consumer behavior, utilizing special display methods for promotion [4]

Core Viewpoint - Zhongtai International maintains a "buy" rating for Chaoyun Group (06601), forecasting a net profit of 210 million by 2025 and a target price of 3.00 HKD, corresponding to a 4.0 times price-to-earnings ratio after cash adjustments [1] Group 1: Financial Performance - The company achieved a revenue of 1.34 billion RMB in the first half of the year, a year-on-year increase of 7.2% [1] - Overall gross margin improved by 2.9 percentage points to 49.3%, driven by an increase in the revenue share of the pet category and changes in sales channel structure [1] - Net profit for the first half was 170 million RMB, a slight decline of 3.3% year-on-year, impacted by a temporary increase in effective tax rate to 26.2% due to the expiration of tax incentives [1] Group 2: Pet Category Growth - The pet category's revenue reached 96 million RMB, with a year-on-year growth of 101.4%, increasing its share from 3.8% to 7.2% [2] - The gross margin for the pet segment rose by 8.6 percentage points to 58.1%, with plans to expand self-operated stores to 200 by 2027 [2] - The company plans to initiate a franchise model as early as next year to accelerate growth in the pet segment [2] Group 3: Multi-Channel Strategy - Online revenue increased by 27.4% to 520 million RMB, accounting for 38.6% of total revenue [3] - The company is focusing on high-margin products and enhancing distribution quality in response to changes in offline consumer behavior [3] - Special promotional strategies, such as product display techniques, are being employed to boost sales [3]

Group 1 - UBS maintains a "Buy" rating for Innovent Biologics, raising the target price to HKD 137.4, citing the promising product line and significant global R&D potential for IBI363 [1] - CMB (Hong Kong) maintains a "Buy" rating for China Life, increasing the target price to HKD 29, with a projected 7% YoY net profit growth in H1 2025 and a 20.3% increase in new business value [1] - CMB (Hong Kong) maintains a "Buy" rating for ZTE Corporation, raising the target price to HKD 42, with a 15% YoY revenue growth expected in H1 2025, driven by strong enterprise business performance [2] Group 2 - DBS reaffirms a "Buy" rating for China Merchants Bank, lowering the target price to HKD 53.5, with a projected CAGR of 2.5% for earnings from 2025 to 2027 [3] - Huatai Securities maintains a "Buy" rating for Li Auto, reducing the H-share target price to HKD 105.43, optimistic about the sales performance of the new i6 model [4] - CMB (Hong Kong) maintains an "Outperform" rating for Cha Bai Dao, with a target price of HKD 12, reporting a 4.3% YoY revenue growth and a 37.5% increase in net profit for H1 2025 [5] Group 3 - CMB (Hong Kong) maintains an "Outperform" rating for Chaoyun Group, setting a target price of HKD 3.65, with a 7.2% YoY revenue growth and a 101.4% increase in pet business revenue [6] - CMB (Hong Kong) maintains an "Outperform" rating for He Yu-B, raising the target price to HKD 20, highlighting the approval of a key clinical trial and strong financial position [7] - UBS gives a "Buy" rating to CanSino Biologics, setting a target price of HKD 224.3, anticipating updates on key data and potential collaborations [8]

Core Viewpoint - The company's 1H25 performance met expectations, with revenue of 1.34 billion RMB, a year-on-year increase of 7.2%, and a net profit of 170 million RMB, a year-on-year decrease of 3.3% [1] Revenue Performance - Revenue from the pet segment doubled, while home care revenue grew steadily, with specific contributions: - Home care product revenue increased by 4.3% to 1.21 billion RMB, driven by strong growth in mosquito repellent new products - Pet and pet product revenue surged by 101.4% to 96 million RMB, with offline stores expanding to 77 and rapid growth in proprietary brand scale - Personal care product revenue decreased by 25.8% to 26 million RMB - Online revenue grew by 27.4% to 520 million RMB, accounting for 38.6% of total revenue, an increase of 6.1 percentage points [1][2] - Offline revenue declined by 2.6% to 820 million RMB, supported by brand reputation and a strong distribution network [1] Gross Margin Improvement - The company's gross margin improved by 2.9 percentage points to 49.3%, driven by: - Upgraded product offerings, with home care and pet product gross margins increasing by 2.7 percentage points and 8.6 percentage points to 49.1% and 58.1%, respectively - Increased online resource investment and optimized e-commerce product structure, with online gross margin rising by 5.5 percentage points to 59.9% - Enhanced supply chain efficiency contributing to margin improvement [2] Strategic Growth Areas - The company is focusing on high-end product upgrades in home care and personal care, with new natural home care products expected to support future growth - The pet business is well-positioned to benefit from the expansion of China's pet industry and the rise of domestic brands, with ongoing store expansion and improved service range expected to drive revenue growth [3] - The company has a strong cash position, with net cash of 2.65 billion RMB as of June 30, and a high dividend payout ratio, indicating substantial shareholder returns [3] Profit Forecast and Valuation - The profit forecast remains unchanged, with the current stock price corresponding to 14/13 times P/E for 2025/26 - The company maintains an outperform rating and a target price of 3.65 HKD, implying a 46% upside potential based on 20/19 times P/E for 2025/26 [3]