Core Insights - Company achieved total revenue of 7.604 billion yuan in the first half of 2025, a year-on-year increase of 0.80%, while net profit attributable to shareholders decreased by 15.79% to 676 million yuan [1] - In Q2 2025, total revenue reached 4.005 billion yuan, up 5.69% year-on-year, but net profit attributable to shareholders fell by 22.74% to 281 million yuan [1] - The company is focusing on customized products for large B clients and has seen strong performance in new retail and e-commerce channels [1] Revenue and Profitability - Q2 2025 gross margin was 18.0%, down 3.3 percentage points year-on-year, primarily due to rising raw material costs and increased promotional efforts [2] - The company plans to distribute a mid-term dividend of 470 million yuan, with a payout ratio of approximately 70% [2] Product Innovation and Strategic Partnerships - The company is driving product innovation and has made progress in integrating external resources, including a partnership with Dingwei Thai to share channels and enhance product development capabilities [2]

Investment Rating - The investment rating for the company is "Outperform the Market" [6][4][20] Core Views - The company achieved total revenue of 7.604 billion yuan in the first half of 2025, a year-on-year increase of 0.80%, while the net profit attributable to shareholders decreased by 15.79% to 676 million yuan [1][10] - The company is focusing on product innovation and has made progress in embracing large B (special channel) customers and new retail strategies, resulting in strong performance in certain sales channels [2][12] - Due to weak downstream demand for frozen food, the profit forecast for 2025-2027 has been revised downwards, with expected revenues of 15.82 billion yuan, 17.23 billion yuan, and 18.48 billion yuan respectively [4][18] Summary by Sections Financial Performance - In Q2 2025, the company reported total revenue of 4.005 billion yuan, a year-on-year increase of 5.69%, but the net profit attributable to shareholders fell by 22.74% to 281 million yuan [1][10] - The gross profit margin in Q2 2025 was 18.0%, down 3.3 percentage points year-on-year, primarily due to rising raw material costs and increased promotional efforts [3][13] Product and Channel Performance - Revenue from rice and noodle products, prepared foods, and dishes in Q2 2025 showed varied performance, with declines in rice and noodle products (-10.8%) and prepared foods (-1.4%), while dish products grew by 26.1% [2][12] - The company has established deep cooperation with major retailers like Walmart and Metro for customized product development, leading to significant growth in new retail and e-commerce channels [2][12] Future Outlook - The company plans to distribute a mid-term dividend of 470 million yuan, with a payout ratio of approximately 70%, indicating a commitment to returning value to shareholders [3][13] - The revised profit forecast reflects a cautious outlook due to the challenging market environment for frozen foods, with expected net profits of 1.4 billion yuan, 1.56 billion yuan, and 1.67 billion yuan for 2025-2027 [4][18]

Core Viewpoint - The company reported mixed financial results for the first half of 2025, with revenue growth but a decline in net profit, indicating challenges in profitability due to rising raw material costs and increased promotional activities [1][2]. Financial Performance - In the first half of 2025, the company achieved total revenue of 7.604 billion yuan, a year-on-year increase of 0.80% [1]. - The net profit attributable to shareholders was 676 million yuan, a decrease of 15.79% year-on-year [1]. - The second quarter of 2025 saw revenue of 4.005 billion yuan, up 5.69% year-on-year, but net profit dropped by 22.74% to 281 million yuan [1]. Product and Channel Performance - The company experienced varied performance across product categories in Q2 2025, with revenue changes of -10.8% for rice and flour products, -1.4% for prepared foods, and +26.1% for dish products [1]. - The company’s channels showed positive growth, with revenue increases of +1.6% for distributors, +8% for supermarkets, +19.4% for special channels, and +35.1% for new retail and e-commerce [1]. Cost and Profitability - The gross margin for Q2 2025 was 18.0%, down 3.3 percentage points year-on-year, primarily due to rising prices of raw materials like crayfish and fish paste, as well as increased manufacturing costs [2]. - The company’s non-GAAP net profit margin decreased to 6.5%, reflecting a year-on-year decline of 2.8 percentage points [2]. Strategic Initiatives - The company is focusing on product innovation and has made progress in customized product development, collaborating with major retailers like Walmart and Metro [1][2]. - A new frozen baking division has been established through a partnership with Dingwei Thai, enhancing the company’s channel sharing and product innovation capabilities [2]. Dividend Policy - The company plans to distribute a mid-term dividend of 470 million yuan, representing a payout ratio of approximately 70%, indicating a commitment to returning value to shareholders [2].