Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but showed significant improvement in the second quarter, driven by scale effects and cost control, leading to an increase in gross margin [1][2]. Financial Performance - 1H25 revenue was 1.391 billion yuan, down 5.2% year-on-year, while net profit attributable to shareholders was 190 million yuan, down 23.0% year-on-year [1]. - In 2Q25, revenue reached 749 million yuan, up 21.9% year-on-year, and net profit attributable to shareholders was 115 million yuan, up 62.7% year-on-year [1][2]. - The gross margin in 2Q25 improved to 37%, an increase of 3.6 percentage points year-on-year, attributed to a higher proportion of high-margin online business and better performance in retail compared to low-margin dining [2]. Growth Trends - The company expects to maintain a double-digit growth rate in organic growth, excluding the impact of acquisitions [2]. - In 2Q25, revenue from hot pot base materials was 255 million yuan, up 29% year-on-year, and revenue from Chinese compound seasonings was 462 million yuan, up 18% year-on-year [2]. - E-commerce and offline channel revenues grew by 67% and 10% year-on-year, respectively, with e-commerce growth driven by enhanced online presence and acquisitions focused on online business [2]. Outlook for 2H25 - The company anticipates a continued growth momentum in the second half of 2025, despite a higher base effect, due to proactive inventory management and channel cleaning in 1Q [3]. - The company has established platform management capabilities through years of mergers and acquisitions, with subsidiaries achieving revenues of 138 million yuan and 133 million yuan, respectively [3]. Profit Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been revised down by 8.3% and 9.8% to 3.655 billion yuan and 3.884 billion yuan, respectively, with net profit forecasts adjusted down by 9.8% and 10.0% to 640 million yuan and 693 million yuan [4]. - The current stock price is trading at 20.6 and 19.0 times P/E for 2025 and 2026, with a target price adjustment of 5% down to 14.63 yuan per share, indicating an 18.3% upside potential [4].