Investment Rating - The investment rating for the company is "Buy" (maintained) [4] Core Insights - The company experienced accelerated growth in Q2 2025, with revenue and net profit attributable to shareholders increasing by 12% and 24% year-on-year, respectively [1] - The high-end brand transformation is showing positive results, with a focus on brand building, product line expansion, and channel development [2] - The self-owned brand and CP business segments are stabilizing, with expectations for profitability in the upcoming periods [3] Financial Performance - In the first half of 2025, the company reported revenue of 2.5 billion yuan, a year-on-year increase of 9.02%, and a net profit of 123 million yuan, up 16.54% [1] - The gross margin for Q2 2025 was 65.27%, reflecting a year-on-year increase of 3.67 percentage points [1] - The forecast for net profit attributable to shareholders is projected to grow significantly from 260 million yuan in 2025 to 414 million yuan in 2027, representing year-on-year increases of 136%, 29%, and 23% respectively [3][8] Brand and Product Development - The company is enhancing its high-end brand matrix through collaborations with celebrities and high-fashion events, which are effectively reaching high-net-worth customers [2] - New product launches in the Chinese market have been successful, contributing to the overall brand product system [2] - The performance of star products has been strong, with significant sales in key categories [2] Market Position and Strategy - The company is focusing on high-end transformation, with a target to open 50 high-end stores with SPA services over the next three years [2] - The self-owned brand and CP business are expected to stabilize, with a focus on quality and resource allocation [3]

北京商报讯（记者 张君花）8月22日，水羊股份发布2025年半年度报告称，报告期内，公司实现营业收 入约25亿元，同比增长9.02%；实现归母净利润1.23亿元，同比增长16.54%。 ...

Financial Performance - The company's total revenue for the first half of 2025 was 2.5 billion yuan, an increase of 207 million yuan compared to the same period last year, marking a 9.02% year-on-year growth [1] - The net profit attributable to shareholders was 123 million yuan, up by 17.5 million yuan from the same period last year, reflecting a 16.54% increase year-on-year [1] - The net cash inflow from operating activities was 166 million yuan, an increase of 228 million yuan compared to the same period last year [1] Profitability and Efficiency Ratios - The latest asset-liability ratio stood at 48.93%, a decrease of 0.06 percentage points from the previous quarter [3] - The gross profit margin was 64.61%, an increase of 0.86 percentage points from the previous quarter and a 3.13 percentage points increase year-on-year, achieving six consecutive years of growth [3] - The return on equity (ROE) was 5.73%, up by 0.79 percentage points compared to the same period last year [3] Earnings Per Share and Turnover Ratios - The diluted earnings per share were 0.32 yuan, an increase of 0.05 yuan from the same period last year, representing a 17.41% year-on-year growth [3] - The total asset turnover ratio was 0.59 times, an increase of 0.03 times year-on-year, reflecting a 5.40% increase [3] - The inventory turnover ratio was 1.08 times, up by 0.03 times compared to the same period last year, indicating a 2.82% year-on-year increase [3] Shareholder Structure - The number of shareholders was 25,700, with the top ten shareholders holding a total of 214 million shares, accounting for 54.79% of the total share capital [3] - The largest shareholder is Hunan Yujia Investment Management Co., Ltd., holding 24.5 million shares [3]

Group 1 - The company did not distribute cash dividends, issue bonus shares, or increase capital from reserves during the reporting period [2] - There were no changes in the controlling shareholder or actual controller during the reporting period [3] - The company has no preferred shareholders or related holdings during the reporting period [3] Group 2 - The company has not made any retrospective adjustments or restatements of previous accounting data [2] - The report indicates that all directors attended the board meeting to review the report [1] - Important matters regarding the company's main operations and significant events can be found in the full semi-annual report for 2025 [3]

Group 1 - The board of directors of Shuiyang Group Co., Ltd. held its first regular meeting of 2025 on August 20, 2025, with all 7 directors present, meeting the legal requirements [1][2] - The board unanimously approved the 2025 semi-annual report and its summary, confirming that the report accurately reflects the company's operational status for the first half of 2025 without any false statements or omissions [1][2] - The board also approved the special report on the storage and actual use of raised funds for the first half of 2025, affirming compliance with relevant regulations and confirming no violations in the use of raised funds [2]

Core Viewpoint - The report highlights the financial performance and strategic initiatives of Shuiyang Group Co., Ltd. for the first half of 2025, showcasing a growth in revenue and net profit while emphasizing the company's focus on high-end brand development and digital transformation. Financial Performance - The company achieved a revenue of CNY 2,499.73 million, representing a year-on-year increase of 9.02% compared to CNY 2,292.85 million in the same period last year [5] - The net profit attributable to shareholders was CNY 120.59 million, up 16.54% from CNY 103.45 million in the previous year [5] - The basic earnings per share increased by 17.41% to CNY 0.3190 from CNY 0.2717 [5] - The total assets at the end of the reporting period were CNY 4,207.72 million, a slight decrease of 1.02% from CNY 4,251.11 million at the end of the previous year [5] Business Overview - Shuiyang Group primarily engages in the research, production, and sales of cosmetics, covering a wide range of products including masks, lotions, creams, and makeup [6] - The company has established deep partnerships with major e-commerce platforms such as Tmall, Taobao, Douyin, JD.com, and others, ensuring comprehensive online and offline sales channels [6][8] - The company has a global sales network with brand outlets or flagship stores in major cities across China, the UK, France, the US, and Canada [6] Industry Development - The retail sales of consumer goods in China reached CNY 24,545.8 billion, growing by 5.0% year-on-year, with cosmetics retail sales amounting to CNY 229.1 billion, a growth of 2.9% [8] - The demand for beauty products is increasingly diversified, with the Z generation becoming a significant consumer group, emphasizing product efficacy and aesthetic appeal [9] - The industry is witnessing a transformation in sales channels, with traditional e-commerce adjusting to enhance quality and service experiences, while offline channels are shifting towards experiential and service-oriented models [9] Strategic Initiatives - The company is committed to enhancing brand assets and product quality, focusing on building a marketing system that integrates online and offline channels [10] - Shuiyang Group aims to establish itself as a "global emerging luxury beauty group," emphasizing sustainable development and a multi-brand matrix [10] - The company has implemented a digital system that covers various operational aspects, enhancing efficiency in market analysis, product development, and supply chain management [15][16] R&D and Innovation - The company has a robust R&D framework, focusing on skin mechanism exploration and innovative raw material development, with 18 patents applied for and 4 granted during the reporting period [11] - Research on Eastern skin mechanisms and the development of new raw materials based on Chinese plants have been prioritized, showcasing the company's commitment to innovation [12][13] - The company has introduced new product formulations and technologies aimed at improving consumer experience and product efficacy [14][15]

Core Viewpoint - The report highlights the financial performance of Shuiyang Group Co., Ltd. for the first half of 2025, showing an increase in revenue and net profit compared to the same period last year, while also indicating a significant improvement in cash flow from operating activities [1]. Financial Performance - Operating revenue for the reporting period reached CNY 2,499,726,293.89, representing a 9.02% increase from CNY 2,292,845,526.07 in the same period last year [1]. - Net profit attributable to shareholders of the listed company was CNY 123,295,453.50, up 16.54% from CNY 105,796,051.99 year-on-year [1]. - The net profit after deducting non-recurring gains and losses was CNY 120,592,203.46, a slight increase of 1.04% compared to CNY 119,354,926.83 [1]. - The net cash flow from operating activities was CNY 166,359,623.51, a significant increase of 368.97% from a negative cash flow of CNY -61,850,822.06 in the previous year [1]. - Basic earnings per share rose to CNY 0.3190, reflecting a 17.41% increase from CNY 0.2717 [1]. - Diluted earnings per share increased to CNY 0.3055, up 16.60% from CNY 0.2620 [1]. - The weighted average return on equity was reported at 5.76% [1]. Asset and Equity Status - Total assets at the end of the reporting period were CNY 4,207,715,166.26, a decrease of 1.02% from CNY 4,251,106,914.16 at the end of the previous year [2]. - Net assets attributable to shareholders of the listed company increased to CNY 2,151,000,384.44, marking a 2.60% rise from CNY 2,096,565,253.21 [2]. Shareholder Information - The company did not propose any cash dividends, stock bonuses, or capital reserve transfers to shareholders for the reporting period [1]. - The major shareholders include Hunan Yujia Investment Management Co., Ltd. with a 24.59% stake and other significant shareholders holding varying percentages [4][5].

Core Viewpoint - The company has announced that its stock price has met the conditions for the potential redemption of its convertible bonds, which may occur if the stock price remains above a specified threshold for a certain period [1][5]. Summary by Sections Convertible Bond Basic Information - The company issued 6,949,870 convertible bonds on April 4, 2023, with a total amount of RMB 69,498.70 million, after deducting fees [2]. - The bonds were listed for trading on the Shenzhen Stock Exchange starting April 25, 2023, under the name "水羊转债" and code "123188" [2]. Conversion and Redemption Conditions - The conversion period for the bonds is from October 11, 2023, to April 3, 2029 [3]. - The initial conversion price was set at RMB 13.71 per share, which has been adjusted multiple times due to profit distributions and incentive plans, currently standing at RMB 13.54 per share [3][4]. - The company has the right to redeem the bonds if the stock price remains above 130% of the conversion price for at least 15 out of 30 consecutive trading days [5]. Conditional Redemption Clause - The stock price has been above RMB 17.60 (130% of the current conversion price) for 10 trading days from August 7 to August 20, 2025, indicating a potential trigger for the redemption clause [1][5]. - If the stock price continues to meet the criteria, the company may redeem all or part of the unconverted bonds at face value plus accrued interest [5].

Core Viewpoint - Water Sheep Co., Ltd. reported a revenue of approximately 2.5 billion yuan for the first half of the year, marking a year-on-year increase of 9.02%, and a net profit attributable to shareholders of 123 million yuan, up 16.54% year-on-year, driven by a focus on high-end brand development [2] Group 1: Financial Performance - The company achieved a revenue of about 2.5 billion yuan, reflecting a 9.02% increase compared to the previous year [2] - The net profit attributable to shareholders reached 123 million yuan, representing a year-on-year growth of 16.54% [2] - The self-owned brand revenue for the first half of the year was 1.039 billion yuan, accounting for 41.55% of total revenue, with a gross margin of 76.83%, an increase of 5.7 percentage points year-on-year [2] Group 2: Brand Strategy - Water Sheep Co., Ltd. operates through both self-owned brands and CP brands, with a diverse brand portfolio including "EDB," "RV," "PA," "H&B," "VAA," and "Yunifang," covering various product categories [2] - The company has successfully transitioned its self-owned brand system towards high-end and global markets [2] - The high-end skincare brand EDB has strengthened its luxury image through collaborations with celebrities and high-fashion events, targeting high-net-worth customers [3] Group 3: Channel Development - EDB has enhanced its online and offline channel strategies, with a focus on increasing the proportion of direct sales and reducing reliance on top influencers [3] - The brand's Tmall channel saw a growth of approximately 40% in direct sales [3] - EDB opened its first castle store in Shanghai, exceeding performance expectations, and has plans to establish 50 physical stores with SPA services across China by 2027 [3][4]

Core Viewpoint - Water Sheep Co., Ltd. reported a revenue of approximately 2.5 billion yuan for the first half of the year, marking a year-on-year increase of 9.02%, and a net profit attributable to shareholders of 123 million yuan, up 16.54% year-on-year, driven by a focus on high-end brand development and improved brand structure [1] Group 1: Financial Performance - The company achieved a revenue of about 2.5 billion yuan, reflecting a 9.02% year-on-year growth [1] - The net profit attributable to shareholders reached 123 million yuan, representing a 16.54% increase compared to the previous year [1] - The self-owned brand revenue for the first half of the year was 1.039 billion yuan, accounting for 41.55% of total revenue, with a gross margin of 76.83%, up 5.7 percentage points year-on-year [1] Group 2: Brand Strategy and Development - Water Sheep Co., Ltd. operates multiple brands including "EDB," "RV," "PA," "H&B," "VAA," and "Yunifang," covering a wide range of product categories from high-end to mass-market [1] - The company has successfully transitioned its self-owned brand structure towards high-end and global markets [1] - The EDB brand has strengthened its high-end image through collaborations with celebrities and high-fashion events, targeting high-net-worth customers [2] Group 3: Channel Strategy - EDB has enhanced its online and offline multi-channel layout, with a focus on increasing the proportion of direct sales and reducing reliance on top influencers [2] - The brand's Tmall channel saw a growth of approximately 40% in direct sales [2] - EDB opened its first castle store in Asia in Shanghai, exceeding performance expectations, with a single SPA purchase reaching a new high of 39,800 yuan [2] Group 4: Future Outlook - The chairman of Water Sheep Co., Ltd. indicated a clear improvement in the brand structure for 2024, with a strategic focus on high-end brands and a downward adjustment of mass-market brands [3] - The company plans to implement a "three-year plan" to open 50 SPA-integrated stores across China by 2027 [2]