Core Insights - The company reported stable growth in its performance for the first half of 2025, achieving revenue of 3.113 billion with a year-on-year increase of 22.5% and a net profit attributable to shareholders of 1.182 billion, up 20.2% year-on-year [1] - The company maintains its full-year guidance, expecting a revenue growth rate of 25%-28% and a net profit of 2.5 billion to 2.55 billion, representing a year-on-year increase of 21%-24% [1] Brand Performance - The brand "可复美" generated revenue of 2.542 billion, a year-on-year increase of 22.7%, accounting for 81.7% of total revenue, with disposable products expected to represent 30% and dressings 25% of sales [1] - The brand "可丽金" achieved revenue of 503 million, up 26.9% year-on-year, although there was a slight decline in offline sales due to distributor impacts [1] Product Category Performance - Functional skincare products generated revenue of 2.410 billion, a year-on-year increase of 24.2%, while medical dressings brought in 693 million, up 17.0% year-on-year [1] - The growth in functional skincare revenue is attributed to refined operations across all channels, enhanced brand influence, and the successful launch of key products [1] Channel Performance - Direct sales channels generated revenue of 2.325 billion, a year-on-year increase of 26.5%, with online direct sales particularly strong at 391 million, up 133.6% due to targeted operations on e-commerce platforms [2] - Offline direct sales also saw significant growth, reaching 118 million, up 74.3%, driven by the accelerated layout of brand specialty stores [2] - The DTC store direct sales revenue was 1.816 billion, a year-on-year increase of 13.3%, while the distribution channel revenue was 787 million, up 12.1% [2] Profitability and Cost Structure - The company's gross margin and net margin for the first half of 2025 were 81.7% and 38.0%, respectively, reflecting a year-on-year decrease of 0.7 percentage points and 0.6 percentage points [2] - The decline in gross margin is primarily due to the increased proportion of lower-margin functional skincare products [2] - The sales, management, and R&D expense ratios were 34.0%, 2.7%, and 1.3%, showing a decrease in sales expense ratio due to refined operational management and changes in channel structure [2] Investment Outlook - The company shows a robust growth trend in its mid-year report, with core brands continuing to drive significant growth through the launch of new products and expansion in both online and offline channels [3] - The projected net profits for 2025-2027 are 2.549 billion, 3.092 billion, and 3.673 billion, corresponding to PE ratios of 20, 17, and 14 times, respectively, maintaining an "outperform" rating [3]