Core Viewpoint - The company reported a mixed financial performance for 2025H1, with revenue growth but a decline in net profit, indicating challenges in profitability despite increasing sales volume [1][2]. Financial Performance - In 2025H1, the company's revenue reached 12.66 billion yuan, a year-on-year increase of 10%, while the net profit attributable to shareholders was 1.66 billion yuan, down 11% year-on-year [1]. - For Q2 2025, revenue was 7.31 billion yuan, up 9% year-on-year, but net profit fell to 900 million yuan, a decrease of 17% year-on-year [1]. - The company's net profit margin for Q2 2025 was 12.3%, reflecting a year-on-year decline of 3.9 percentage points [2]. Sales and Orders - The company sold 115 million pairs of athletic shoes in 2025H1, a 6% increase year-on-year, with an average selling price up by 4% [1]. - The decline in profitability is attributed to weaker order demand from existing customers and changes in factory structure, impacting production efficiency [2]. Customer Dynamics - The company is experiencing strong growth in new customer orders, with expectations for recovery in orders from core clients like Nike and Adidas [2]. - The company is actively expanding its customer base and adjusting production capacity to meet demand from new clients [2]. Capacity Expansion - The company plans to continue expanding its production capacity, with new factories coming online and production ramping up, which is expected to support long-term growth [3]. - In 2024, the company added four new factories, and it is anticipated that production capacity will grow at a CAGR of over 10% from 2025 to 2026 [3]. Investment Outlook - The company is recognized as a leading global manufacturer of athletic shoes, with ongoing efforts to expand its high-quality customer base [4]. - Profit forecasts for 2025 to 2027 have been adjusted, estimating net profits of 3.562 billion, 4.341 billion, and 5.136 billion yuan respectively, with a PE ratio of 17 for 2025 [4].