Core Viewpoint - China Party Culture (01532) has entered into a sale agreement with Fuzhou Baihui Technology Co., Ltd. to sell its entire stake in High Kelee Investment Holdings Limited for RMB 20.5 million, indicating a strategic move to streamline operations and focus on core business areas [1] Group 1: Transaction Details - The sale agreement was signed on November 19, 2025, after trading hours [1] - The total consideration for the sale is RMB 20.5 million [1] - Following the completion of the sale, the target group will no longer be a subsidiary of the company, and its financial performance will not be consolidated into the company's financial statements [1] Group 2: Business Rationale - The board reviewed the financial and operational performance of the target group, which primarily operates in the personal and home care product sectors [1] - The board noted that the personal hygiene product market is facing increased competition and that demand has returned to normal levels post-COVID-19, leading to an unclear business outlook for the target group [1] - The sale is seen as an opportunity for the company to realize value from this business and reallocate resources to its core operations, thereby enhancing overall management efficiency [1]

Core Viewpoint - China Party Culture (01532) has entered into a sale agreement with Fuzhou Baihui Technology Co., Ltd. to sell 100% equity of High Kelee Investment Holdings Limited for RMB 20.5 million, which will lead to the target group no longer being a subsidiary and its financial performance not being consolidated into the group's financial statements [1] Group 1: Transaction Details - The sale agreement is set to be completed on November 19, 2025, after trading hours [1] - The total consideration for the sale is RMB 20.5 million [1] Group 2: Business Implications - The target group primarily engages in the business of clothing care, personal care, and home care products [1] - The board has reviewed the financial and operational performance of the target group and noted that the outlook remains uncertain due to intensified competition in the personal hygiene products market and the normalization of demand post-COVID-19 [1] - The sale is expected to streamline the company's business structure, reduce resource allocation, and enhance overall management efficiency [1] - The board views this sale as an opportunity to realize value from the business and reallocate resources to core operations [1]

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].