Investment Rating - The report does not explicitly state an investment rating for Shanghai Jahwa United Core Views - Shanghai Jahwa achieved revenue of 3.48 billion yuan in 25H1, a year-on-year increase of 4.8%, driven by brand innovation, channel expansion, and operational efficiency improvements [2][9] - The gross margin for 25H1 was 63.4%, up 2.2 percentage points year-on-year, attributed to high-margin new products and improved supply chain efficiency [2][9] - The company reported a net profit attributable to the parent company of 266 million yuan in 25H1, an increase of 11.7% year-on-year [2][9] - The domestic business saw a significant revenue increase of 132.6% year-on-year in 25H1, while overseas revenue declined by 70.3% due to tariff impacts [3][10] - The company plans to continue focusing on brand building, marketing, R&D, and channel optimization in the second half of 2025 [6][14] Summary by Sections Financial Performance - 25H1 revenue was 3.48 billion yuan, up 4.8% YoY; net profit was 266 million yuan, up 11.7% YoY; operating cash flow increased by 39.7% YoY to 682 million yuan [2][9] - 25Q2 revenue reached 1.78 billion yuan, a 25.4% YoY increase, with a gross margin of 63.3% [2][9] Business Segmentation - Domestic business revenue in 25H1 was 2.78 billion yuan, with beauty, personal care, and innovation businesses contributing 26.9%, 57.3%, and 15.7% respectively [3][10] - Overseas business revenue was 703 million yuan in 25H1, down 70.3% YoY, primarily due to US tariff policies [3][10] Brand and Product Innovation - Significant new product launches included Liushen's Mosquito Repellent Egg 2.0 and Dr. Yu's upgraded skin barrier repair series, both performing well in the market [4][11] - Online sales for domestic business grew by 26% YoY in 25H1 and reached 35% in 25Q2 [4][11] Operational Efficiency - The company improved operational efficiency through standardized brand live broadcast rooms and expanded offline channels, increasing coverage to 92% in counties and above [5][12] - Supply chain optimization led to reduced procurement costs and logistics rates, enhancing response speed and efficiency [5][12] Future Outlook - Shanghai Jahwa plans to enhance brand marketing, continue R&D upgrades, and optimize online channels to drive high-quality business development in 25H2 [6][14]