Core Viewpoint - Blue Moon Group reported a revenue of HKD 30.37 billion for the first half of 2025, a year-on-year decline of approximately 3%, with a loss of HKD 4.35 billion, although this loss has narrowed compared to the previous year [2]. Group 1: Online Pressure and Core Business Decline - The decline in revenue compared to the previous year is a significant factor contributing to Blue Moon's losses in the first half of the year [4]. - The company's personal and home cleaning products generated revenues of HKD 2.16 billion and HKD 1.8 billion, respectively, with year-on-year growth of 12.4% and 4.8%. However, the clothing cleaning products, which account for over 80% of total revenue, saw a decline of 4.6% to HKD 26.41 billion [4]. - The clothing cleaning market is currently characterized by "high-end breakthroughs and mid-range battles," with international brands like Procter & Gamble and Unilever promoting innovative products in China, while local brands compete through niche marketing [4][5]. Group 2: Sales Channel Performance - Online sales accounted for 68.1% of total revenue in the first half of 2025, down from 72.6% in the previous year, with online sales revenue declining by 8.9% to HKD 20.68 billion [6]. - The decline in online sales is attributed to the company's decision to control sales and distribution expenses, which affected the growth of new sales channels [5][6]. - Blue Moon's aggressive marketing strategy, particularly through live streaming on platforms like Douyin, has led to significant sales during promotional events, but at a high cost [7]. Group 3: Financial Performance and Strategic Investments - From 2021 to 2024, Blue Moon's sales and distribution expenses increased significantly, outpacing revenue growth, leading to a continuous decline in net profit [8]. - In 2024, despite achieving a record revenue of HKD 85.56 billion, the company reported a net loss of HKD 7.49 billion, marking its first annual loss since going public [8]. - In the first half of 2025, Blue Moon reduced its marketing expenses by 13.2% to HKD 19.1 billion, but this led to a more pronounced revenue decline due to the company's heavy reliance on online traffic [8][9]. Group 4: Future Outlook - Blue Moon plans to leverage emerging online and distribution platforms to promote best-selling and new products, particularly focusing on concentrated laundry detergents [9]. - The company acknowledges that educating consumers about new products will require time, investment, and extensive promotion, indicating that short-term performance may continue to face challenges [9].

Core Viewpoint - Blue Moon Group (06993) maintains its leading position in the cleaning and personal care industry, achieving a revenue of approximately HKD 8.556 billion in 2024, representing a year-on-year growth of 16.82% [1] Financial Performance - The company reported a gross profit of HKD 5.183 billion, with a year-on-year increase of 14.16%, resulting in a gross margin of 60.6% [1] - The board proposed a final dividend of HKD 0.06 per share [1] Revenue Growth Drivers - Revenue growth was attributed to increased sales across all product categories and channels, excluding direct sales to major clients [1] - Significant sales growth was noted in emerging e-commerce channels, with online sales increasing by 34.1% to HKD 5.104 billion, driven by successful marketing and product mix strategies [1] - Offline distributor sales rose by 13.6% to HKD 3.129 billion, benefiting from overall product sales growth and refined management of distributor channels [1] Market Position - The company's laundry detergent and hand wash products have ranked first in the China Brand Power Index for 14 consecutive years (2011-2024) [2] - The laundry detergent and hand wash products have maintained the highest market share in their respective categories for 15 years (2009-2023) and 12 years (2012-2023) [2]

Investment Rating - The report gives an "Outperform the Market" rating for both Blue Moon Group and CATL, indicating expected performance above the market average [6][27][31]. Core Insights - The jewelry sector is transitioning from channel-driven to brand-driven, with a focus on product structure upgrades leading to improved gross margins [8][9]. - The pet consumption market is expanding, driven by an increase in pet ownership and a demand for higher quality products [21]. - CATL is expected to maintain strong performance with a projected net profit growth from 645 billion to 932 billion CNY over the next three years [31]. Summary by Sections Jewelry Sector - The jewelry industry is seeing a shift towards brand-driven strategies, enhancing product offerings and improving profitability [8][9]. - The report highlights that the retail sales of gold and silver jewelry have shown a year-on-year increase of 5.4% in early 2025, indicating a recovery in demand [10]. - Companies like Chow Tai Fook and Zhou Dasheng are focusing on high-quality expansion and product structure improvements to capture market share [11][12]. Pet Consumption - The pet food sector is recommended due to the growing consumer interest and spending on pet-related products, with leading companies expected to outperform the market [21]. - The report notes a significant increase in online sales and engagement in the pet product category, with a 71% year-on-year growth in pet-related live commerce [21]. Blue Moon Group - The company is projected to recover from losses in 2024, with expected net profits turning positive by 2025, supported by a strong brand presence in the cleaning products market [27]. - The report anticipates a revenue growth of 16% in 2024, driven by increased sales across all product categories [25]. CATL - CATL is projected to maintain its leadership in the global battery market, with a significant increase in production capacity and a strong pipeline of new products [31]. - The company is expected to achieve a net profit of 645 billion CNY in 2025, with a favorable valuation range of 337.12 to 366.43 CNY per share [31].