Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with total revenue reaching 1.319 billion yuan, a year-on-year increase of 67.6%, and a net profit attributable to shareholders of 72.26 million yuan, up 85.6% [1] Revenue Breakdown - The self-owned brand business generated revenue of 603 million yuan, representing a substantial growth of 242.42% compared to the same period last year, accounting for 45.75% of the company's total revenue [1] - The brand management business achieved revenue of 335 million yuan, reflecting a year-on-year growth of 52.53% [1]

Revenue Composition - In 2024, the revenue composition of Ruoyuchen is as follows: 43.25% from agency operations, 28.38% from brand management, 27.42% from Lycocelle, 0.69% from Finenutri, and 0.26% from other proprietary brands [1] Share Buyback Announcement - Ruoyuchen announced a share buyback plan on August 19, with a total amount not less than 100 million RMB and not exceeding 200 million RMB, funded by the company's own funds and special loan funds [2] - The buyback will be conducted through the Shenzhen Stock Exchange's centralized bidding system, with a maximum price of 76.8 RMB per share, which is 150% of the average trading price over the last 30 trading days prior to the board's resolution [2] - The implementation period for the buyback is set for 12 months from the date of board approval [2]

Core Viewpoint - Ruoyuchen's stock surged to the daily limit after announcing plans to issue H-shares and list on the Hong Kong Stock Exchange, potentially becoming the first "A+H" dual-listed company in China's beauty e-commerce sector [2][4]. Group 1: H-share Issuance and Market Conditions - The announcement of H-share issuance aims to enhance capital strength, competitiveness, and international brand image, while also improving overseas financing capabilities [6][8]. - The recent implementation of new IPO regulations by the Hong Kong Stock Exchange has created favorable conditions for Ruoyuchen's cross-border capital layout, including relaxed listing requirements and increased market liquidity [4][8]. - Analysts suggest that the current market conditions are ripe for listing, with the beauty consumption sector expected to see increased IPO activity by 2025, providing Ruoyuchen with opportunities for reasonable valuations and capital influx [8][9]. Group 2: Financial Performance - Ruoyuchen's stock has increased nearly 170% this year, closely linked to its strong financial performance [10]. - The company anticipates a net profit of 63 million to 78 million yuan for the first half of 2025, representing a year-on-year growth of 61.81% to 100.33% [11][12]. - In 2024, Ruoyuchen reported a revenue of 1.766 billion yuan, a 29.26% increase from the previous year, with significant growth in brand management and proprietary brand segments [13][14]. Group 3: Industry Trends - The e-commerce agency industry is undergoing a deep adjustment phase, shifting from a focus on traffic to resource integration due to peak domestic traffic and stricter platform regulations [16][17]. - Leading e-commerce agencies are building competitive advantages through AI technology, private domain operations, and cross-border market strategies [18][19]. - The new policies from the Hong Kong Stock Exchange may facilitate Ruoyuchen's global capital strategy, which is crucial for the company's future and the broader potential for Chinese e-commerce service providers to expand internationally [19].

Core Viewpoint - The announcement of shareholder Langzi Co., Ltd. planning to reduce its stake in Ruoyuchen has caused significant market reaction, leading to a drop in the company's stock price by over 6% at the opening, which later narrowed to a 1.48% decline [1][3]. Shareholder Reduction - Langzi Co., Ltd. intends to reduce its holdings by up to 4,768,071 shares, representing 3% of Ruoyuchen's total share capital, due to its own financial planning [3][8]. - Langzi Co., Ltd. has previously reduced its stake in Ruoyuchen multiple times, decreasing its ownership from an initial 15 million shares (12.33% of total shares) to the current 11,602,720 shares (7.30%) [6][7]. Stock Performance - Ruoyuchen's stock has shown strong performance, with a year-to-date increase of over 155%, and a cumulative rise of nearly 24% over three trading days in late May and early June [9]. - The company experienced a significant stock price fluctuation, with a warning issued due to a cumulative price deviation exceeding 20% over three consecutive trading days [11]. Financial Performance - In 2023, Ruoyuchen reported a revenue of 1.366 billion yuan, a year-on-year increase of 12.25%, and a net profit of 54.29 million yuan, reflecting a substantial growth of 60.93% [11]. - Projections for 2024 indicate a revenue increase to 1.766 billion yuan, a significant growth of 29.26%, with a net profit of 106 million yuan, soaring by 94.58% [11]. - In the first quarter of 2025, the company achieved a revenue of 574 million yuan, marking a year-on-year increase of 54.16%, and a net profit of 27.42 million yuan, which is a remarkable growth of 113.88% [11]. Business Strategy - The company's growth is attributed to the optimization of its self-owned brand business, brand management, and operational services, with an increasing penetration rate of its self-owned brands [12]. - Ruoyuchen's experience in online multi-channel operations is expected to further enhance the momentum of its self-owned brands, sustaining high growth in performance [12].