Core Viewpoint - The market capitalization of Nongfu Spring is significantly higher than that of its competitor, China Resources Beverage, with a ratio of approximately 23 times, raising questions about the reasons behind this disparity in valuation [1] Financial Performance - Nongfu Spring reported a gross profit margin of 60.3% in the first half of the year, while China Resources Beverage's gross profit margin was only 46.7% [1] Revenue Composition - Nongfu Spring has established a "water + beverage" dual-engine strategy, with tea beverage revenue accounting for 39.4% of its total revenue, compared to only 15.4% for China Resources Beverage [1] Supply Chain Model - Nongfu Spring operates a fully self-sufficient production model, whereas over half of China Resources Beverage's products rely on outsourcing, incurring approximately 2 billion yuan in annual "cooperative production partner service fees," which compresses profit margins [1] Future Plans - China Resources Beverage has recognized its supply chain issues and plans to increase its own production capacity to over 60% by 2025, although building this capacity will take time [1]