Core Viewpoint - The company reported a revenue increase of 14.3% year-on-year to 38.54 billion yuan in the first half of 2025, with a net profit attributable to shareholders of 7.03 billion yuan, indicating strong growth despite pressures on profit margins from its mainstream brands [1][2]. Financial Performance - Revenue for the first half of 2025 reached 38.54 billion yuan, up 14.3% year-on-year, while operating profit increased by 17.0% to 10.13 billion yuan [1]. - The net profit attributable to shareholders was 7.03 billion yuan, with a comparable net profit growth of 14.5% when excluding one-time gains from the previous year's listing of a subsidiary [1]. - The company proposed an interim dividend of 1.37 HKD per share, with a payout ratio of 50.2% [1]. Brand Performance - Anta brand revenue grew by 5.4% year-on-year to 16.95 billion yuan, with a gross profit margin (GPM) decrease of 1.7 percentage points to 54.9% due to increased costs in professional products and a higher proportion of e-commerce sales [1]. - FILA brand revenue increased by 8.6% to 14.18 billion yuan, with GPM down by 2.2 percentage points to 68.0%, primarily due to rising costs of functional and high-quality products [1]. - Other brands saw a significant revenue increase of 61.1% to 7.41 billion yuan, with GPM up by 1.2 percentage points to 73.9% [1]. Channel Performance - E-commerce revenue rose by 17.6% year-on-year, accounting for 34.8% of total revenue, reflecting a 1.0 percentage point increase [2]. - As of the end of the first half of 2025, the company operated 7,187 adult stores and 2,722 children's stores, with a net increase of 52 adult stores and a decrease of 62 children's stores since the beginning of the year [2]. Cost Management - The overall gross margin decreased by 0.7 percentage points to 63.4%, while the net profit margin attributable to shareholders remained stable at 18.2% year-on-year [2]. - Employee costs, advertising expenses, and R&D costs as a percentage of revenue increased slightly, with employee costs at 15.7%, advertising at 6.6%, and R&D at 2.6% [2]. Future Outlook - The company maintains a positive outlook on brand growth potential, projecting revenues of 78.99 billion yuan, 87.08 billion yuan, and 95.38 billion yuan for 2025 to 2027, with year-on-year growth rates of 11.5%, 10.2%, and 9.5% respectively [3]. - Expected net profits for the same period are projected at 13.50 billion yuan, 15.11 billion yuan, and 17.03 billion yuan, with a slight decline in 2025 followed by growth in subsequent years [3].