Core Viewpoint - The expected peak in birth rates during the Year of the Dragon did not materialize, yet the company Aiyingshi reported strong performance in the first half of 2025, achieving revenue growth despite demographic challenges [1] Financial Performance - Aiyingshi achieved operating revenue of 1.835 billion yuan, a year-on-year increase of 8.31% - The net profit attributable to shareholders was 47 million yuan, up 10.17% - The net profit excluding non-recurring items reached 37 million yuan, reflecting a growth of 20.65% [1] Market Strategy - The company capitalized on the trend of increased spending per child among parents born in the 1980s and 1990s, focusing on premium products and services [1] - Aiyingshi's growth was attributed to a dual-channel strategy, expanding offline stores while enhancing online presence through new media platforms [1][2] Store Expansion - Aiyingshi focused on expanding its direct-operated stores in East, Central, and South China, ending the reporting period with a total of 487 stores [2] - The company opened 20 new stores in East China, 6 in South China, and 9 in Central China during the reporting period [2] Revenue Structure - Revenue from various business segments included: - Store sales: 1.28 billion yuan (up 5.76%) - E-commerce: 760 million yuan (down 14.87%) - Maternal and infant services: 200 million yuan (up 13.44%) - Supply chain management: 365 million yuan (up 31.04%) [2][3] Supply Chain Optimization - Aiyingshi's revenue growth was significantly driven by its maternal and infant health supply chain management business [2] - The company implemented a supply chain network optimization strategy, enhancing market penetration and operational efficiency [4] O2O Integration - The company developed an O2O (Online to Offline) instant fulfillment network, partnering with platforms like Meituan and Ele.me to improve delivery efficiency [5] - O2O channel revenue accounted for 18% of total revenue, with a gross margin 3.2 percentage points higher than traditional e-commerce [5] Private Label Strategy - Aiyingshi's private label products now account for 35% of its offerings, allowing for better cost control and product differentiation [5] - The integration of supply chain management with product development has led to a 70% success rate for new product launches [5]