Core Viewpoint - The company reported a total revenue of 7.802 billion yuan for the first half of 2025, a year-on-year increase of 1.03%, and a net profit attributable to shareholders of 543 million yuan, a year-on-year increase of 22.79% [1] Group 1: Financial Performance - In Q2 2025, revenue in the U.S. was impacted by increased tariffs, resulting in a year-on-year decline of 6.6%, while net profit increased by 9.84% [1] - The company maintained a healthy cash flow with operating cash flow increasing by 27% year-on-year and implemented a mid-term dividend of 0.15 yuan per share [1] - The overall gross margin for H1 2025 was 22.08%, an increase of 0.32 percentage points year-on-year, with Q2 gross margin also showing a slight increase [3] Group 2: Domestic and International Sales - Domestic sales faced pressure with revenue of 1.732 billion yuan, a year-on-year decrease of 3.8%, while online retail sales for key brands showed significant structural differentiation [2] - Overseas revenue for H1 2025 was 6.07 billion yuan, a year-on-year increase of 2.5%, but faced short-term fluctuations due to U.S. tariffs [2] - The company is expected to benefit from increased market concentration in the overseas small appliance sector in the medium to long term [2] Group 3: Cost and Efficiency - The company improved its overall profitability through cost reduction and efficiency enhancement measures, with a stable expense ratio [3] - The net profit margin for H1 2025 reached 6.96%, an increase of 1.23 percentage points year-on-year [3] - The company continues to engage in hedging operations, reducing losses from derivative investments and fair value changes by approximately 71 million yuan year-on-year [3] Group 4: Future Outlook - The company maintains EPS expectations of 1.43, 1.57, and 1.75 yuan for 2025-2027, with a target price adjustment to 20.77 yuan based on a 14.5x PE valuation for 2025 [4] - Despite short-term impacts from U.S. tariffs, the company is optimistic about its cost, technology, and industrial support advantages in small appliance manufacturing [4]