Core Viewpoint - The company, Ruoyuchen, reported significant revenue and profit growth in its 2025 semi-annual report, driven by its own brand business and brand management services [1][3]. Financial Performance - The company achieved operating revenue of 1.319 billion yuan, a year-on-year increase of 67.55% [2]. - Net profit attributable to shareholders was 72.26 million yuan, up 85.60% compared to the previous year [2]. - The self-owned brand business generated 603 million yuan in revenue, a substantial growth of 242.42%, accounting for 45.75% of total revenue [1][3]. Brand Performance - The brand "Zhanjia" generated 444 million yuan in revenue, reflecting a growth of 157.11% [3]. - The health product brand "Feicui" achieved revenue of 160 million yuan, with significant growth during the second quarter [5]. Sales Channels - The highest sales revenue came from Douyin, accounting for 37.24% of total sales, with a reported sales amount of 489 million yuan [6]. - During the 618 shopping festival, the overall GMV for "Zhanjia" increased by over 160%, with significant growth across multiple platforms [3]. Brand Management and Operations - The brand management business generated 335 million yuan, a year-on-year increase of 52.53% [6]. - The company’s agency operation business reported revenue of 380 million yuan, a slight decline of 2.79%, but with improved overall gross profit margins [7]. Legal Disputes - The company faced legal disputes with Mead Johnson and Mentholatum, involving contract and trademark issues, respectively [7][8]. - A court ruling required Mead Johnson to pay Ruoyuchen 18.47 million yuan, while Ruoyuchen was ordered to pay 750,000 yuan for product costs [7][8]. Future Plans - Ruoyuchen plans to issue H-shares and list on the Hong Kong Stock Exchange, aiming to raise funds for product development, brand building, and global expansion [9]. - The company is focusing on expanding into Southeast Asian markets, particularly with its self-owned brand "Zhanjia," which has significant growth potential in the region [10].

Core Viewpoint - The article discusses the essential differences between cross-border trade and general trade, highlighting the strategies that overseas brands can adopt when entering the Chinese market, including the role of agency operations and self-management. Group 1: Differences Between Cross-Border Trade and General Trade - Cross-border trade involves transactions that cross national borders, including goods, services, technology, and investments, while general trade refers to conventional trade where both parties are within the same country [3]. - The process of cross-border trade is complex, requiring compliance with multiple countries' laws, currency exchange, and customs clearance, whereas general trade follows simpler domestic regulations [4]. - Cross-border trade benefits from tax exemptions, such as a 70% tax on value-added and consumption taxes for cross-border e-commerce, while general trade requires full tax payments with potential for export tax refunds [5]. - Risks and costs in cross-border trade include currency fluctuations, political risks, and high logistics costs, while general trade faces lower risks but must manage domestic market competition [6]. - Typical scenarios for cross-border trade include platforms like Tmall International and Amazon Global, while general trade is exemplified by traditional export businesses [6]. - Cross-border trade is characterized by its reliance on platform rules and user insights, making it suitable for emerging brands, while general trade requires long-term customer relationship building, favoring established companies [6]. Group 2: Agency Operations for Overseas Brands - Agency operations provide a rapid entry strategy for brands, as demonstrated by Panasonic, which achieved over 60 million in GMV in its first year through agency collaboration [6][7]. - The Ordinary, a Canadian brand, successfully penetrated the market with a "component-focused" strategy, generating over 100 million in GMV through agency-led campaigns [7]. - Strong brands like LVMH and Apple have opted for self-management, establishing their own flagship stores and leveraging brand ambassadors to reach high-end consumers [8]. - The choice between agency operations and self-management depends on the brand's resources and market stage, with agency operations being ideal for resource-limited brands and self-management suited for financially robust companies [9]. Group 3: Strategies for Entering the Chinese Market - Successful market entry requires localization, as illustrated by Santa Maria Novella, which launched a "Chinese-style fragrance gift box" through an agency, achieving over 10 million in GMV in its first year [10]. - A comprehensive traffic strategy is essential, utilizing platforms like Xiaohongshu for product discovery, Tmall for conversion, and Douyin for repeat purchases, creating a closed loop of content, transaction, and retention [11]. - Agency operations can help brands navigate compliance and efficiency challenges, such as avoiding advertising violations and optimizing supply chains for faster delivery [12]. Group 4: Conclusion on Trade Forms and Brand Strategies - The fundamental difference between cross-border and general trade lies in the balance between globalization and localization, influencing how overseas brands approach the Chinese market [13]. - The choice between agency operations and self-management should align with the brand's specific needs and market conditions, with agency operations serving as an accelerator for rapid adaptation [13].