Core Viewpoint - L'Oréal Group reported a sales revenue of €22.473 billion (approximately ¥186.19 billion) for the first half of 2025, marking a year-on-year growth of 3%, driven significantly by the Chinese market's recovery and the performance of emerging markets [1][3]. Group Performance - The overall growth of L'Oréal was attributed to the recovery in the Chinese market, which had previously experienced a decline, and the gradual recovery in North America, offsetting the slowdown in Europe [1][3]. - The sales performance in North Asia declined by 1.1%, but excluding travel retail, there was slight growth [3][4]. Regional Performance - Sales in Europe increased by 2.4%, while North America saw an 8.3% growth. The SAPMENA-SSA and Latin America regions continued to lead in high growth, with increases of 10.5% and 12.4%, respectively [4][3]. - The Chinese market showed a recovery with a growth of approximately 3% in the second quarter, following a slight decline in the first quarter [3][5]. Key Growth Drivers - The skin science and professional hair care divisions were highlighted as significant contributors to the recovery in China, with double-digit growth reported in the skin science division [5][18]. - The 618 shopping festival was a crucial factor in reversing the performance, with L'Oréal's brands achieving double-digit growth during this period, outperforming the market average [5][10]. Brand Performance - L'Oréal maintained a strong position in the online beauty market, with six brands in the top 20, including Lancôme and YSL, which performed well in their respective segments [7][10]. - The professional hair care division led all departments with a 6.5% increase in sales, driven by strong performance across all regions [15][17]. Investment Strategies - L'Oréal's investment strategy in China focuses on three main areas: industry investment funds, biotechnology and innovation research, and smart supply chain development [11][12]. - The establishment of the "Beauty Navigation Fund" and the "Kaihui Create Future Fund" aims to support emerging beauty brands and innovative trends in the local market [11][12]. Future Outlook - The company remains optimistic about the second half of the year, expecting better performance compared to the previous year, as it has moved out of negative growth [10][14]. - L'Oréal plans to launch several new products, including high-end offerings, to capitalize on the growing demand for quality products among high-income consumers [13][21].