Investment Rating - The investment rating for the company is "Buy" and is maintained [9] Core Views - The company's total revenue for H1 2025 is 1.318 billion yuan, a year-on-year decrease of 17.07%, with a net profit attributable to the parent company of 173 million yuan, down 30.81% year-on-year [2][4] - The decline in revenue and profit is attributed to negative public sentiment impacting sales [5] - The company is expected to return to a growth trajectory in H2 2025, with plans for product adjustments to reshape brand positioning [7] Revenue Breakdown - For H1 2025, revenue from soy sauce is 839 million yuan (down 16.09% year-on-year), vinegar is 159 million yuan (down 21.51%), and other condiments is 299 million yuan (down 16.05%) [5] - Online sales for H1 2025 are 198 million yuan (down 29.2%), while offline sales are 1.099 billion yuan (down 14.06%) [5] - Revenue by region shows a significant decline in the northern region, with H1 revenue of 211 million yuan (down 30.47%) [5] Profitability Analysis - The net profit margin for H1 2025 decreased by 2.61 percentage points to 13.16%, while the gross margin increased by 0.97 percentage points to 36.58% [6] - In Q2 2025, the net profit margin dropped significantly to 2.62%, with a gross margin of 32.64% [6] - Increased marketing and promotional expenses in Q2 2025 have put pressure on profitability [6] Future Outlook - The company is positioned to benefit from the health-oriented trend in the condiment industry, with expectations of a recovery in sales following the public sentiment issues [7] - A new production line with an annual capacity of 600,000 tons has been launched, increasing automation to over 80% and total capacity to 1.2 million tons [7] - Projected net profits for 2025 and 2026 are 432 million yuan and 543 million yuan, respectively, with corresponding PE ratios of approximately 28 and 22 times [7]