Investment Rating - The investment rating for the company is "Outperform the Market" [4][6][18]. Core Views - The company achieved a revenue growth of 11% year-on-year in the first half of 2025, reaching 5.7 billion yuan, with a net profit growth of 8.6% to 860 million yuan. The gross profit margin increased by 0.1 percentage points to 41.5% [1][4]. - The company is focusing on children's products and e-commerce channels, which are driving growth despite a challenging consumption environment. The operating cash flow significantly improved, with a net inflow of 520 million yuan, up 227.2% year-on-year [1][4][18]. - The company plans to distribute an interim dividend of 20.4 Hong Kong cents per share, corresponding to a payout ratio of 45% [1][4]. Revenue and Profit Analysis - The adult footwear and apparel segments saw revenue growth of 12.8% and 1.6% respectively, while children's footwear grew by 27.8% and apparel declined by 7.6%. The increase in footwear revenue was attributed to strong sales growth and moderate price adjustments [2][4]. - The average wholesale price for adult and children's apparel decreased by 4.5% and 6.3% respectively, enhancing cost performance in response to market demand [2][4]. Channel Performance - E-commerce sales for the company grew by 45% year-on-year, reaching 1.82 billion yuan, accounting for 31.8% of total revenue. Online exclusive products now represent 85% of sales, providing a differentiated experience [3][4]. - The company is expanding its offline store model, with the number of super stores increasing to 49, and plans to exceed 100 by year-end. The fifth-generation children's stores have reached 222 locations, a growth of 5.7 percentage points from the end of 2024 [3][4]. Financial Forecasts - The company expects net profits for 2025-2027 to be 1.25 billion, 1.35 billion, and 1.48 billion yuan respectively, reflecting a year-on-year growth of 8.5%, 8.7%, and 9.4% [4][19]. - Revenue projections for 2023-2027 are 8.423 billion, 10.074 billion, 11.186 billion, 12.335 billion, and 13.486 billion yuan, with growth rates of 21.0%, 19.6%, 11.0%, 10.3%, and 9.3% respectively [5][19].