Core Viewpoint - Urban Beauty has demonstrated resilience in its financial performance amidst a challenging consumer environment, showcasing steady progress in strategic transformation and expansion of new business lines [1][3]. Financial Performance - In the first half of the year, Urban Beauty achieved a revenue of 1.436 billion yuan and a net profit of 57.796 million yuan [1]. - The main business of intimate apparel generated 1.289 billion yuan, reflecting a 2.3% quarter-on-quarter growth compared to the second half of 2024, with a gross margin increase of 0.5% to 49.6% year-on-year [1]. - Revenue from pure cotton home goods grew approximately 46% year-on-year, indicating a solid core business foundation and rapid expansion of new ventures [1]. E-commerce Growth - E-commerce emerged as a significant highlight, with Urban Beauty's e-commerce GMV exceeding 1.6 billion yuan, representing a 243% year-on-year increase [2]. - The company aims for its e-commerce GMV to reach or exceed 3.4 billion yuan in 2025 and 5 billion yuan by 2026 [2]. Strategic Initiatives - Urban Beauty is adopting a "joint venture e-commerce" model, collaborating deeply with leading e-commerce platforms to replace traditional consignment models, thereby reducing channel costs and enhancing brand-channel synergy [3]. - The company is optimizing its supply chain by sharing resources and evaluating suppliers to respond more agilely to market changes and consumer demands [3]. Brand and Marketing - Urban Beauty has signed national-level athletes as brand ambassadors to strengthen its brand recognition and has launched extensive advertising campaigns across major urban areas [5]. - The company is focusing on scenario-based marketing to enhance brand memory and reach diverse consumer segments [5]. Product Development - Urban Beauty has upgraded its product development system to align closely with market demands, enhancing collaboration with core suppliers [7]. - The introduction of innovative products, such as the "Goddess Cup" lingerie, has won international design awards, further solidifying its market leadership [8]. Market Position and Valuation - Urban Beauty's stock has seen a nearly 40% increase this year, reflecting improved market confidence and fundamental performance [8]. - Despite this growth, the company remains undervalued with a price-to-book ratio of only 0.35, significantly lower than the industry average of 3.93, indicating potential for market revaluation [8][9].