Group 1 - The company plans not to distribute profits for the first half of 2025, including no cash dividends or stock bonuses, to ensure sustainable development and protect long-term shareholder interests [4] - The board of directors confirmed the authenticity, accuracy, and completeness of the half-year report, which has not been audited [3][6] - The company reported an unallocated profit of -41,204,869.29 yuan as of June 30, 2025, indicating that the unallocated losses exceed one-third of the paid-in capital [17] Group 2 - The company has faced challenges due to macroeconomic fluctuations, structural changes in consumer behavior, and intensified industry competition, leading to cautious spending among high-income consumers [18] - The company is implementing strategic adjustments focused on "technology empowering health," leveraging its strengths in traditional Chinese medicine and technology to enhance brand loyalty and consumer experience [19] - The company is pursuing a global strategy to expand into emerging markets and key channels, aiming to build a diverse and robust international business system [19] Group 3 - The company raised 422.23 million yuan through its initial public offering, with a net amount of 358.91 million yuan after deducting fees [22][23] - As of the reporting period, the company had a remaining balance of 57.54 million yuan in raised funds, primarily due to ongoing projects [23][27] - The company has established a management system for raised funds, ensuring compliance with relevant laws and regulations [25][26]

Core Insights - The company reported a decline in both revenue and net profit for the first half of 2025, with revenue at 385 million yuan, down 36.22% year-on-year, and a net loss of 36.11 million yuan, down 238.19% year-on-year [3][4] - The company has experienced 11 consecutive quarters of losses since 2022, with the last four quarters also showing negative results [10] - The company announced that its unremedied losses have reached one-third of its paid-in capital, necessitating a temporary shareholders' meeting as per company law [6][7] Financial Performance - In Q2, the company’s revenue was 188 million yuan, a year-on-year decline of 39.42%, with a net loss of 34.28 million yuan, down 425.76% year-on-year [4] - The overall gross margin improved to 62.63%, an increase of 0.81 percentage points compared to the same period last year, attributed to cost reduction efforts [4] - Sales expenses decreased by 27.15% to 216 million yuan, with promotional expenses dropping by 43.65% from 114 million yuan to 63.73 million yuan [4] Cash Flow and Operational Challenges - Cash received from sales and services fell to 440 million yuan, down 36.08% year-on-year, leading to a negative net cash flow from operating activities of 20.87 million yuan, a decrease of 135.32% [5][6] - The company cited macroeconomic fluctuations, structural changes in consumer behavior, and intensified industry competition as primary reasons for its financial struggles [7] Strategic Initiatives - The company aims to leverage technology in health, promoting a "Chinese medicine × technology" strategy, and plans to enhance its overseas market presence [11][12] - Despite these initiatives, revenue from high-end products has been under pressure, with significant declines across various product categories [12][13] - The overseas business also faced challenges, with revenue down 39.32% to 19.87 million yuan and a gross margin decrease of 2.48 percentage points [13]