Core Viewpoint - The Chinese beauty market in 2025 is undergoing a cyclical adjustment, with consumers becoming more rational, international giants facing pressure, online traffic growth slowing, and offline channel dynamics being reshaped [2][4]. Financial Performance - In the first half of 2025, the company reported a revenue of 5.36 billion yuan, a year-on-year increase of 7.21%, and a net profit attributable to shareholders of 798 million yuan, up 13.80% year-on-year [6][8]. - Operating cash flow reached 1.29 billion yuan, a significant increase of 95.34% year-on-year, reflecting improved operational efficiency and profitability [6][7]. Channel Performance - Online revenue was 5.11 billion yuan, a year-on-year increase of 9.17%, accounting for 95.39% of main business revenue [9][10]. - Offline revenue was 247 million yuan, a year-on-year decrease of 21.49%, but the company is focusing on high-end lines and deepening collaborations in department stores to ensure stable development across channels [9][10]. Brand Strategy - The company has a multi-brand strategy that includes core brands, secondary brands, and emerging brands, which collectively support its resilience during industry cycles [11][20]. - The core brand, Proya, generated 3.98 billion yuan in revenue, accounting for 74.27% of total revenue, focusing on product iteration and marketing strategies [11][19]. Research and Development - R&D expenses reached 95 million yuan in the first half of 2025, an increase of 41.26 million yuan year-on-year, with a focus on enhancing product capabilities [22][23]. - The company has a robust patent portfolio, with a total of 240 patents, including 124 invention patents, reflecting its commitment to innovation [23][25]. Capital Actions - The company announced a high interim dividend plan, proposing a cash dividend of 8 yuan per 10 shares, totaling 315 million yuan, marking the highest interim dividend in its history [30][31]. - The company has initiated preparations for issuing H-shares and listing on the Hong Kong Stock Exchange, signaling a new phase in its internationalization strategy [31][32]. Strategic Vision - The company aims to rank among the top ten global cosmetics companies in the next decade, with a focus on long-term value rather than short-term gains [32].

Core Viewpoint - The company, Proya, has demonstrated strong revenue growth and cash flow in its mid-year report, launching its highest-ever interim dividend plan and initiating a Hong Kong stock listing plan, indicating a robust performance amid a slowing industry growth rate [2][8]. Financial Performance - In the first half of 2025, Proya achieved a revenue of 5.362 billion yuan, a year-on-year increase of 7.21%, and a net profit attributable to shareholders of 799 million yuan, up 13.80% [2][9]. - The operating cash flow net amount significantly increased by 95.34% to 1.293 billion yuan, showcasing strong profitability and operational efficiency [2]. Dividend and Listing Plans - Proya announced a mid-term dividend plan, proposing a cash dividend of 8.00 yuan per 10 shares, totaling approximately 315 million yuan, marking a new high for the company's semi-annual dividends [2][8]. - The company is also planning to issue H-shares and list on the Hong Kong Stock Exchange, aiming to accelerate its internationalization strategy and enhance overseas business capabilities [8][10]. Brand Performance - Proya's main brand generated 3.979 billion yuan in revenue, accounting for 74.27% of total revenue, targeting young white-collar workers with a focus on "scientific skincare" [3][5]. - The emerging brand, Caitang, achieved a revenue of 705 million yuan, growing by 21.11%, and is becoming a significant performance driver [4]. Market Position and Strategy - The Chinese cosmetics market is experiencing a slowdown, with retail sales growth of 2.9% in the first half of the year, below the overall retail sales growth of 5% [3]. - Proya's net profit margin improved to 15.41%, and gross margin increased by 3.56 percentage points to 73.38%, indicating effective cost control and product structure optimization [3]. R&D and Digital Transformation - Proya's R&D expenses reached 210 million yuan in 2024, a year-on-year increase of 21.21%, with the establishment of R&D centers in Shanghai and Europe [6][7]. - The company is advancing its digital transformation, launching SAP system upgrades and AI-driven customer service systems to enhance operational efficiency [7]. Competitive Landscape - Proya's multi-brand strategy effectively covers diverse consumer groups, with the main brand maintaining its core market while new brands accelerate growth, contributing to overall performance [5][10]. - The company is positioned to become the first domestic beauty enterprise listed on both A-shares and H-shares, enhancing its capital strength and competitive edge in the global market [9][10].

Core Insights - The company reported a revenue of 5.362 billion yuan, a year-on-year increase of 7.21%, and a net profit of 799 million yuan, up 13.80% [2] - The operating cash flow surged by 95.34% to 1.293 billion yuan, indicating strong financial health [2] - The company announced a record interim dividend of 8 yuan per 10 shares, totaling 315 million yuan, reflecting a commitment to shareholder returns [4] Revenue and Profitability - The hair care segment saw a remarkable revenue increase of 131.25%, while the beauty and makeup category grew by 25.79%, driving overall revenue growth [3] - The main brand, Proya, generated 3.979 billion yuan, accounting for 74.27% of total revenue, maintaining its leading position in major e-commerce channels [3] - The net profit margin improved to 15.41%, and the gross margin increased by 3.56 percentage points to 73.38%, showcasing effective cost control and product optimization [3] Dividend and Capital Strategy - The proposed interim dividend represents nearly 40% of the net profit, marking the highest dividend payout ratio since the company's listing [4] - The company is preparing for an H-share listing in Hong Kong to enhance international financing, governance, and brand recognition, aiming to support global expansion [4] Multi-Brand Strategy - The company’s multi-brand strategy is yielding results, with the brand Caitang achieving 705 million yuan in revenue, a 21.11% increase [5] - The hair care brand Off&Relax reported a revenue of 279 million yuan, up 102.52%, indicating strong market performance [6] - Other brands like Yuefuti and Yuanse Bota also showed significant growth, contributing to a diversified growth path for the company [6] R&D and Digital Transformation - The company applied for 35 new patents in the first half of 2025, emphasizing its commitment to R&D [7] - Collaborations with Ant Group for smart customer service and upgrades to digital management systems are underway, enhancing data-driven decision-making [7] Future Outlook - The company plans to accelerate production capacity and the H-share listing process while focusing on high-end domestic markets and overseas expansion [8] - The H-share listing is expected to open international financing opportunities, positioning the company for greater competitiveness in the global beauty market [8]