Core Viewpoint - The company reported its 2025 H1 results, showing stable revenue and profit growth, with a focus on high dividend distribution and growth in B-end and overseas markets [1][4]. Financial Performance - 2025 H1 revenue reached 2.927 billion yuan, a slight increase of 0.02% year-on-year, while net profit attributable to shareholders was 309 million yuan, up 0.39% year-on-year [1]. - The company proposed an interim dividend of 0.3107 HKD per share, totaling 275 million yuan, with a dividend payout ratio of 88.9% [1]. Revenue Breakdown - Revenue from third-party sales grew steadily, while revenue from related parties declined [1]. - By product, revenue for hot pot condiments, Chinese compound condiments, instant food, and other products were 1.683 billion, 492 million, 709 million, and 44 million yuan, respectively, with year-on-year changes of -3.7%, +8.2%, +1.2%, and +78.7% [1][2]. Third-Party and Related Party Revenue - For hot pot condiments, third-party revenue increased by 7.5%, while related party revenue decreased by 14.6% [1]. - In the Chinese compound condiment category, third-party revenue rose by 4.8%, and related party revenue surged by 69.7% [2]. - Instant food saw third-party revenue grow by 3.5%, while related party revenue fell by 17.0% [2]. Channel Performance - In 2025 H1, third-party and related party revenues were 2.064 billion and 864 million yuan, respectively, with year-on-year changes of +6.5% and -12.7% [3]. - The decline in related party revenue was attributed to pressure on store operations, with same-store sales down 9.7% [3]. Profitability Metrics - The company's gross margin for 2025 H1 was 29.5%, a decrease of 0.4 percentage points year-on-year, primarily due to revenue structure adjustments [3]. - Other income increased by 216% year-on-year to 91 million yuan, supported by foreign exchange gains and government subsidies [4]. Growth Drivers - The B-end and overseas markets are becoming significant growth drivers for the company [4]. - The B-end revenue grew by 131.7% year-on-year to 155 million yuan, supported by the establishment of a dedicated sales team [4]. - The company is expanding its overseas market presence, focusing on Southeast Asia and exploring opportunities in Africa, India, South America, and the Middle East [4].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company's performance in the first half of 2025 is in line with expectations, with revenue of 2.927 billion CNY, a year-on-year increase of 0.02%, and a net profit of 309 million CNY, up 0.39% year-on-year [4] - The company continues to offer high dividends, proposing an interim dividend of 0.3107 HKD per share, totaling 275 million CNY, with a payout ratio of 88.9% [4] - The third-party B-end revenue shows strong growth, driven by the demand for beef hot pot base and dipping sauces, with a year-on-year increase of 131.7% to 155 million CNY [8] Revenue Performance - The company achieved revenue of 2.927 billion CNY in 25H1, with a breakdown of product revenues: hot pot condiments at 1.683 billion CNY (down 3.7%), Chinese compound condiments at 492 million CNY (up 8.2%), instant food at 709 million CNY (up 1.2%), and other products at 44 million CNY (up 78.7%) [5] - Third-party revenue from B-end and overseas business continues to grow, with third-party revenue reaching 2.064 billion CNY (up 6.5%) while related party revenue declined by 12.7% [6] Profitability and Cost Structure - The company's gross margin for 25H1 was 29.5%, a decrease of 0.4 percentage points year-on-year, primarily due to revenue structure adjustments and the rapid growth of lower-margin B-end business [7] - Other income increased by 216% to 91 million CNY, supported by foreign exchange gains and government subsidies [7] Future Outlook - The company is expected to see accelerated growth in B-end business and steady progress in overseas markets, with a focus on Southeast Asia and potential expansion into Africa, India, South America, and the Middle East [8] - The report projects a decline in net profit estimates for 2025-2027, with net profits adjusted to 812 million CNY, 899 million CNY, and 992 million CNY respectively [9]