Hua Er Jie Jian Wen·2025-08-26 10:10Core Insights - The company achieved double-digit growth in both revenue and net profit in the first half of 2025, with total revenue reaching RMB 256.22 billion, a year-on-year increase of 15.6% [3] - The tea beverage segment surpassed bottled water for the first time, generating revenue of RMB 100.89 billion, a significant increase of 19.7%, accounting for 39.4% of total revenue [2][5] - The gross profit margin improved to 60.3%, up from 58.8% in the same period last year, primarily due to a decrease in raw material costs [3][6] Revenue Breakdown - Tea beverages: Revenue of RMB 100.89 billion, representing 39.4% of total revenue, with a growth rate of 19.7% [2][4] - Bottled water: Revenue of RMB 94.43 billion, accounting for 36.9% of total revenue, with a year-on-year growth of 10.7% [2][4] - Juice beverages: Revenue of RMB 25.64 billion, showing a growth of 21.3% [2][4] - Functional beverages: Revenue of RMB 2.898 billion, with a growth rate of 13.6% [2][4] Profitability and Cost Management - Net profit attributable to the parent company was approximately RMB 76.22 billion, reflecting a year-on-year increase of 22.1% [3] - Gross profit reached RMB 154.6 billion, up 18.6% year-on-year, with a gross profit margin increase of 1.5 percentage points [6] - Selling and distribution expenses as a percentage of total revenue decreased from 22.4% to 19.6% due to reduced advertising and promotional expenses [6] Strategic Developments - The company has initiated international expansion, with core products launched in the Hong Kong market, covering over 3,500 retail outlets [6]