Core Viewpoint - The company has demonstrated significant revenue and profit growth in the first half of 2025, with a strong focus on expanding its high-end brand positioning and channel distribution [1][2][3] Financial Performance - In 25H1, the company achieved revenue of 12.35 billion RMB, a year-on-year increase of 251.0%, and a net profit of 2.27 billion RMB, up 285.8% year-on-year [1] - The adjusted net profit for 25H1 was 2.35 billion RMB, reflecting a year-on-year growth of 290.6% [1] - The company plans to distribute an interim dividend of 9.59 RMB per share and aims to maintain a high payout ratio of 50% of retained earnings annually [1] Profitability Metrics - The gross margin for 25H1 was 38.1%, a decrease of 3.2 percentage points year-on-year, primarily due to price adjustments and rising gold prices [2] - Despite the decline in gross margin, the company benefited from scale effects, leading to a reduction in sales expense ratio by 3.3 percentage points to 11.9% and a management expense ratio decrease of 1.8 percentage points to 1.7% [2] - The net profit margin improved by 1.7 percentage points year-on-year to 18.4% [2] Channel Expansion - The company experienced robust growth in both online and offline channels, with offline store revenue reaching 10.74 billion RMB, a year-on-year increase of 243.2%, and same-store sales growth of 200.8% [2] - Online platform revenue surged to 1.618 billion RMB, reflecting a year-on-year growth of 313.3% [2] - As of the end of 25H1, the company operated 41 self-owned stores, with plans for further expansion, including new openings in major cities [2] Membership Growth and Brand Positioning - The number of loyal members reached 480,000 by June 30, 2025, an increase of 130,000 from the end of 2024 [3] - The company has a consumer overlap of over 70% with several international luxury brands, indicating a strengthening brand presence [3] Future Profit Forecast - The company forecasts net profits of 4.545 billion RMB, 6.348 billion RMB, and 8.422 billion RMB for 2025-2027, representing year-on-year growth rates of 209%, 40%, and 33% respectively [1][3] - The projected price-to-earnings ratio for 2025 is 26.5X, maintaining a "strong buy" rating [1][3]