Group 1 - The company reported a robust revenue growth of 17.29% year-on-year, achieving an operating income of 4.108 billion yuan in H1 2025 [1] - The net profit attributable to the parent company reached 524 million yuan, reflecting a significant increase of 30.65% year-on-year [1] - The gross margin for H1 2025 was 75.52%, a slight decrease of 0.99 percentage points, while the net profit margin improved by 1.74 percentage points to 13.52% [1] Group 2 - The main brand, Han Shu, generated revenue of 3.344 billion yuan in H1 2025, marking a 14.3% increase, with significant sales from the Hong Man Yao and X Peptide series [2] - The second brand, Newpage, saw a remarkable revenue growth of 146.5% year-on-year, reaching 397 million yuan, achieving its annual sales target for 2024 [2] - The company is actively enhancing its online sales strategy, with self-operated online channels generating 3.421 billion yuan in revenue, a 24.6% increase, and accounting for 83.3% of total revenue [2] Group 3 - The company is expected to achieve net profits of 1.025 billion yuan, 1.286 billion yuan, and 1.566 billion yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 32, 26, and 21 [3]

Investment Rating - The report assigns a rating of "Outperform" for WEILONG Delicious Global Holdings, indicating an expected total return over the next 12-18 months that exceeds the relevant market benchmark [20]. Core Insights - WEILONG Delicious reported a revenue of RMB 3.48 billion for the first half of 2025, reflecting an 18.5% year-on-year increase, with a net profit of RMB 0.74 billion, also up 18.5% year-on-year, maintaining a net profit margin of 21.1% [1][7]. - The vegetable products segment showed remarkable growth, with a 44% year-on-year increase in revenue, driven by innovative product offerings and a strong focus on consumer demand [2][9]. - The offline channel structure has been optimized, with a 66% year-on-year increase in the number of stores, and East China remains a key revenue-generating region [3][10]. Revenue Breakdown - Revenue from seasoned flour products, vegetable products, and bean-based products was RMB 1.31 billion, RMB 2.11 billion, and RMB 0.06 billion respectively, with year-on-year changes of -3.2%, +44.3%, and -48.1% [2][8]. - The contribution of vegetable products to total revenue increased to 60.5%, while seasoned flour products accounted for 37.6% [2][8]. Profitability Analysis - The gross profit reached RMB 1.64 billion, a 12.3% increase year-on-year, but the gross profit margin decreased to 47.2%, down 2.6 percentage points due to rising raw material costs [4][11]. - Despite the decline in gross profit margin, the company managed to stabilize its net profit margin at 21.1% through effective cost management, with administrative expenses decreasing by 17.0% [4][12]. Dividend Policy - The company declared an interim dividend of RMB 0.18 per share, maintaining a high dividend payout ratio of 60% [5][13].

Financial Performance - The company reported total revenue of RMB 3,482.9 million for the six months ending June 30, 2025, representing an 18.5% year-on-year increase [1] - Profit for the period was RMB 736.2 million, also up 18.5% year-on-year [1] - Basic earnings per share increased by 14.8% to RMB 0.31 [1] - A mid-term dividend of RMB 0.18 per ordinary share was declared [1] Product Segment Growth - Revenue from vegetable products grew by 44.3% year-on-year, reaching RMB 2,108.8 million, which now accounts for 60.5% of total revenue, up from 49.7% in the previous year [1] - The growth in vegetable products is attributed to the company's efforts in consumer demand exploration, continuous innovation, and product matrix enrichment [1] - The company expanded production capacity for these products during the reporting period [1] Strategic Vision and Market Approach - The company aims to transform traditional Chinese cuisine into convenient snacks that consumers can enjoy anytime [2] - The mission is to make the world love Chinese flavors, with a vision focused on entertainment, convenience, and data-driven approaches [2] - The company emphasizes a core value of customer-first and innovation, fostering a work environment that prioritizes employee experience and growth [2] Channel Development - The company is accelerating the diversification of retail channels, with growth in snack wholesale stores and membership warehouse supermarkets [2] - Emerging channels and small formats are also experiencing growth, alongside a diversified e-commerce strategy [2] - The company is enhancing its omnichannel coverage and sales network to reach more consumers [2] Future Outlook - The company plans to deepen its multi-category strategy and leverage R&D advantages to expand its product matrix [2] - There will be a focus on launching innovative products that meet the diverse taste preferences of consumers [2] - The company aims to create more consumption scenarios through category synergy, providing richer choices for consumers [2]