Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, attributed to high base effects, cyclical downturns, and market disruptions, while maintaining operational control and cost management [1][2]. Group 1: Financial Performance - In H1 2025, the company achieved revenue of 2.5 billion RMB, a year-on-year decrease of 39.6% [1] - The net profit attributable to shareholders was 570 million RMB, down 23.5% year-on-year, while the non-IFRS net profit was 610 million RMB, reflecting a 39.8% decline [1] - The adjusted net profit margin for H1 2025 was 24.6%, showing a slight decrease of 0.1 percentage points, indicating strong cost and expense control [2] Group 2: Brand and Product Performance - Revenue from the brands Zhenjiu, Lidu, and others fell by 44.8%, 9.4%, and 47.9% respectively, with Lidu managing to achieve some growth through enhanced marketing strategies [1] - The company’s gross profit margin improved by 0.3 percentage points, primarily due to an increase in Lidu's revenue share [2] - The number of cooperative distributors decreased by 516, or 6.8%, as part of the company's strategy to stabilize channels [1] Group 3: Strategic Initiatives - The company plans to launch a new flagship product, Dazhen Zhenjiu, to drive sales growth and enhance market presence [3] - There is a focus on deepening the penetration of existing core products and strengthening the layout of mid-to-high-end products to capture dining demand [3] - The innovative "Wanshang Alliance" channel model for Dazhen aims to boost merchant confidence and drive sales through low entry barriers and high returns [3] Group 4: Future Outlook - The company anticipates a narrowing of revenue decline in H2 2025, supported by the launch of Dazhen and a recovery in demand [2][3] - Non-IFRS net profit forecasts for 2025 to 2027 are set at 1.27 billion, 1.61 billion, and 1.97 billion RMB, respectively, with corresponding non-IFRS PE ratios of 24.0, 19.0, and 15.5x [3]
珍酒李渡(06979.HK)2020年中报点评：珍酒主动纾压 李渡保持稳健