Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company has benefited from the rise of domestic mid-tier brands and is strategically enhancing its global business operations [1][4]. - In H1 2025, the company achieved a revenue of 371 million yuan, representing a year-on-year growth of 39.3%, and a net profit attributable to shareholders of 17 million yuan, up 14.9% year-on-year [4][6]. - The company is focusing on high-quality product development and has established stable partnerships with various brands, which is expected to drive revenue growth [7]. Financial Data and Profit Forecast - Total revenue projections for 2025 are estimated at 1.009 billion yuan, with a year-on-year growth rate of 45.2% [6]. - The net profit attributable to shareholders is forecasted to be 69 million yuan in 2025, with a significant growth rate of 52.6% [6]. - The company’s gross margin is projected to be 26.4% in 2025, with a gradual increase expected in subsequent years [6]. Business Segmentation - The skincare segment remains the core business, accounting for 89.5% of total revenue in H1 2025, with significant growth driven by new customer orders [7]. - The company has developed over 50 high-quality products and is actively expanding its market presence both domestically and internationally [7]. Market Positioning - The company is strategically positioned to leverage the growing demand for domestic brands and is enhancing its supply chain capabilities to support market expansion [7]. - The report highlights the company's focus on high-quality exhibitions to promote its global business, targeting key markets in Europe and North America [7].

Core Viewpoint - The beauty industry is entering a new phase of "quality competition," where consumers demand high efficacy and scientific backing for products, leading to increased costs for independent research and compliance [2][4][20]. Market Demand and Consumer Expectations - Consumers are increasingly seeking products with strong efficacy supported by real foundational research, clear mechanisms of action, and professional evaluation data [4][20]. - The definition of "high quality" has evolved to include a complete research chain and robust quality control capabilities [4][20]. Industry Trends and Brand Strategies - Brands are shifting from a low-price competition model to focusing on a "boutique route," emphasizing the success rate of flagship products [6][20]. - The market is rewarding brands that possess true innovation capabilities and comprehensive research systems, enabling them to achieve high-quality long-term growth [20][27]. Supply Chain Dynamics - Traditional low-cost manufacturing firms are struggling to meet current market demands, leading to a decline in low-end production capacity [8][20]. - Supply chain companies must enhance their comprehensive strength and develop service models that align with current market needs [8][20]. Case Study: BAWI Co., Ltd. - BAWI Co., Ltd. has achieved significant growth, with projected revenue of 785 million yuan (after tax 695 million yuan) in 2024, representing a year-on-year increase of 48.24% [9][19]. - The company has developed a unique service model for full lifecycle quality management, integrating research, testing, production, marketing, and upgrades [11][20]. - BAWI's investment in research and development exceeded 30 million yuan in 2024, reflecting a 9.35% increase, and the company plans to further enhance its R&D capabilities [22][24]. Global Expansion and Market Position - BAWI Co., Ltd. has successfully expanded its overseas market presence, with revenue from international clients growing by 361.52% in 2024 [30]. - The company aims to become a benchmark in the supply chain industry by focusing on knowledge, digitalization, sustainability, and globalization [30][27].