Financial Performance - The company's revenue increased by 2.1% year-over-year, reaching RMB 11,108 million in 1H FY25 compared to RMB 10,877 million in 1H FY24[5] - Gross profit margin decreased by 110 basis points from 47.3% in 1H FY24 to 46.2% in 1H FY25, influenced by increased costs of whole milk powder and product mix[5] - Operating profit decreased by 11.0% from RMB 2,541 million in 1H FY24 to RMB 2,261 million in 1H FY25[5] - Profit attributable to owners of the company decreased by 7.8% from RMB 1,863 million in 1H FY24 to RMB 1,717 million in 1H FY25, with an income tax rate of 23.0%[5] Revenue Breakdown by Product Category - Rice crackers revenue increased to RMB 2,130 million in 1H FY25 from RMB 2,057 million in 1H FY24[11], with sales volume up by mid-single digits[14] - Dairy and beverage revenue decreased slightly to RMB 5,941 million in 1H FY25 from RMB 6,009 million in 1H FY24[15], while beverage sales doubled[15] - Snack food revenue increased to RMB 2,940 million in 1H FY25 from RMB 2,731 million in 1H FY24[16], with ice product sub-category increasing by mid-double digits[34] Channel Performance - Emerging channels and snack food retail channels experienced high-speed growth[5, 14, 15, 16, 33, 34] - Snack food retail channels account for approximately 15% of the group's revenue[37] - Emerging channels account for over 10% of the group's revenue[37] - Overseas market revenue increased by low-single digits and accounts for high-single digits of the group's revenue[37] Expenses and Working Capital - Operating expenses increased by 10.6% from RMB 2,894 million in 1H FY24 to RMB 3,202 million in 1H FY25, driven by increased A&P expenses[5, 18] - Distribution costs increased from RMB 1,369 million in 1H FY24 to RMB 1,550 million in 1H FY25[21], with distribution costs accounting for 14.0% of revenue in 1H FY25, up from 12.6% in 1H FY24[19] - Inventory increased from RMB 2,576 million on March 31, 2025, to RMB 2,748 million on September 30, 2025[26], with inventory turnover days increasing from 74 to 80 days[25]

Core Viewpoint - The report highlights that Saiwei Times (301381) has shown impressive revenue growth, but profitability is under pressure due to increased investment in new product promotions and adjustments in pricing strategies [1][3]. Financial Performance - For the fiscal year 2024, the company reported revenue and net profit of 1.0275 billion and 214 million yuan, reflecting a year-on-year increase of 56.55% and a decrease of 36.19% respectively [1]. - In Q4 2024, revenue and net profit were 347.4 million and 19 million yuan, showing an increase of 58.66% and a significant decline of 83.46% [1]. - For Q1 2025, revenue, net profit, and net profit excluding non-recurring items were 245.8 million, 47 million, and 41 million yuan, representing increases of 36.65% and declines of 45.35% and 42.32% respectively [1]. Business Analysis - Revenue from apparel and accessories, non-apparel and accessories, and logistics services for 2024 was 744.7 million, 232.4 million, and 45.5 million yuan, with growth rates of 59.43%, 33.85%, and 261.49% respectively [2]. - The top five brands achieved revenues of 218.9 million, 208.2 million, 87.5 million, 56 million, and 33.8 million yuan, with growth rates of 50.42%, 61.87%, 39%, 145.66%, and 86.5% respectively [2]. - Revenue by region for 2024 was 900.7 million, 70.3 million, 2.3 million, and 2.3 million yuan from North America, Europe, Asia, and other regions, with growth rates of 53.40%, 40.87%, 12.27%, and 128.86% respectively [2]. - Revenue from channels such as Amazon, Walmart, Temu, and TikTok was 839.4 million, 38.6 million, 26.5 million, and 14.9 million yuan, with growth rates of 45.47%, 44.63%, 6503.07%, and 10453.93% respectively [2]. Profitability and Cost Structure - The overall gross margin for 2024 was 43.4%, a decrease of 2.07 percentage points year-on-year, primarily due to Amazon's commission adjustments and the introduction of a low-price mall [3]. - The gross margins for apparel and accessories, non-apparel and accessories, and logistics services decreased by 2.23, 0.21, and 7.96 percentage points respectively [3]. - The expense ratios for sales, management, and financial costs were 35.67%, 3.69%, and -0.28%, with an increase in sales expense ratio attributed to enhanced brand marketing and rising labor costs [3]. Earnings Forecast and Valuation - The company forecasts EPS for 2025, 2026, and 2027 to be 0.63, 0.84, and 1.1 yuan, with current stock prices corresponding to PE ratios of 33, 24, and 19 times [4].