Market Overview - The A-share market experienced a collective decline on Thursday, with the Shanghai Composite Index closing down 1.25% at 3,765.88 points, the Shenzhen Component down 2.83%, and the ChiNext Index down 4.25%. The total trading volume in the A-share market was approximately 2.54 trillion RMB, with over 2,900 stocks declining. In terms of industry performance, retail and beauty sectors led the gains, while the communication sector lagged behind. Among concept sectors, dairy and duty-free shops showed the highest increases [2][8]. Important News - The State Council issued an opinion aimed at unleashing the potential of sports consumption and promoting high-quality development in the sports industry. The goal is to cultivate a number of world-influential sports enterprises and events by 2030, with the total scale of the sports industry exceeding 7 trillion RMB. Key measures include expanding the supply of sports products, stimulating consumer demand, and enhancing service support levels [3][9]. - The Ministry of Industry and Information Technology and the State Administration for Market Regulation released an action plan for stable growth in the electronic information manufacturing industry for 2025-2026. The plan encourages localities to promote innovation in AI terminals and key components for 5G/6G technology. It also emphasizes high-quality development in the photovoltaic and lithium battery sectors, aiming to eliminate low-price competition and guide orderly layout of these industries [4][10]. Industry Insights Traditional Chinese Medicine Sector - In the first half of 2025, the traditional Chinese medicine sector faced performance pressure due to impacts from pharmacy and hospital channels. The overall revenue of the sector decreased by 5.45% year-on-year, while net profit attributable to shareholders increased by 0.13%. The decline in revenue was primarily due to policy changes, market conditions, and cost pressures, with price reductions in traditional Chinese medicine products affecting revenue and gross margin [11][12]. - The sector is undergoing a transformation period, with a focus on diversified channels, strong brand power, and high clinical value being crucial for future success. Long-term, the industry is expected to move towards high-quality and standardized development under policy guidance [13]. Pharmaceutical Outsourcing Industry - The pharmaceutical research outsourcing industry showed robust growth in the first half of 2025, with overall revenue increasing by 13.77% year-on-year and net profit rising by 63.82%. The recovery in global financing has driven demand for drug discovery, and the transition of innovative drugs into clinical and commercial stages has increased the need for production outsourcing [14][15]. - The industry is expected to benefit from the anticipated interest rate cuts by the Federal Reserve, which could lead to a valuation recovery for innovative drugs and the pharmaceutical outsourcing sector. The focus on high-value-added services, such as peptide production, is also expected to contribute to revenue growth [16]. New Media Sector - The new media company reported steady revenue growth in the first half of 2025, achieving 817 million RMB in revenue (YoY +5.94%) and a net profit of 346 million RMB (YoY +24.43%). The growth was supported by tax incentives that significantly reduced income tax expenses [17][21]. - The IPTV business saw a continuous increase in effective users, with a focus on enhancing user experience and content offerings. The company reported a revenue of 414 million RMB from its IPTV basic services, with effective users reaching 20.8 million [18][20]. Banking Sector - Agricultural Bank reported a 1.4% year-on-year revenue growth in Q2 2025, with net profit increasing by 3.2%. The improvement was driven by a recovery in fee income, particularly from wealth management services [22][23]. - Beijing Bank also showed positive performance, with a 20.3% year-on-year increase in total assets and a 1.02% revenue growth in the first half of 2025. The bank's fee income improved significantly, driven by growth in settlement and agency services [26][27].

Core Viewpoint - New Media Co., Ltd. reported strong financial performance for the first half of 2025, with significant growth in revenue and net profit, leading to a notable increase in stock price [2][3]. Financial Performance - The company achieved operating revenue of 817 million yuan, a year-on-year increase of 5.94% [2]. - The net profit attributable to shareholders reached 346 million yuan, reflecting a year-on-year growth of 24.43% [2]. - A cash dividend of 10 yuan per 10 shares (including tax) is proposed, totaling 228 million yuan, with a payout ratio of 65.88% [2]. Business Growth - As of June 30, the IPTV basic business had 20.8 million effective users, a year-on-year increase of 2.51% [2]. - IPTV basic business revenue remained stable at 414 million yuan [2]. - The value-added services for IPTV in Guangdong generated revenue of 237 million yuan, up 23.68% year-on-year [2]. User Engagement and Content Strategy - The cloud viewing series apps reached 225 million effective users, with 27.71 million smart terminals, a growth of 14.74% [3]. - Internet TV business revenue was 105 million yuan for the first half of the year [3]. - The company expanded its content copyright business, achieving revenue of 48 million yuan, a year-on-year increase of 24.10% [3]. Market Sentiment and Dividends - The mid-term dividend reflects the company's strong operational quality and is seen as a positive signal for the industry’s development outlook [3]. - Analysts note that leading companies are increasingly using cash dividends to stabilize investor expectations, indicating robust cash flow and a mature market ecosystem [3].