Core Insights - The company reported a mixed performance for the first half of 2025, with total revenue of 1.621 billion yuan, a year-on-year increase of 2.5% [1] - The flavor and food ingredients segment faced significant challenges, with revenue declining by 8.6% to approximately 596 million yuan, accounting for 36.7% of total revenue [1][3] - The tobacco raw materials segment achieved strong growth, with revenue increasing by 45.3% to 238 million yuan [1][4] - The fragrance raw materials segment saw revenue of 405 million yuan, a year-on-year increase of 7.6% [1][6] - The seasoning business remained stable, with revenue of 382 million yuan, roughly unchanged from the same period last year [1][6] Flavor and Food Ingredients Segment - The flavor and food ingredients segment experienced a significant decline in sales, with revenue down 8.6% to approximately 596 million yuan and operating profit dropping 86.4% to about 18.8 million yuan [3] - The operating profit margin fell from 21.1% to 3.2%, a decrease of 17.9 percentage points, primarily due to changes in product sales structure and a one-time expense of approximately 70.1 million yuan related to the termination of an equity incentive plan [3] - The company is actively exploring markets in Southeast Asia and the Middle East to address challenges in the tobacco flavor segment and is enhancing its technical capabilities in food flavoring [3] Tobacco Raw Materials Segment - The tobacco raw materials segment performed exceptionally well, with sales revenue of approximately 238 million yuan, a year-on-year increase of 45.3%, accounting for about 14.7% of total revenue [4] - The segment achieved an operating profit of approximately 31.3 million yuan, successfully turning a profit with an operating profit margin of 13.1% [4] - The new type of reconstituted tobacco leaf has become a key driver for business growth, with a production capacity of 3,000 tons established in Indonesia [4] Fragrance Raw Materials and Seasoning Segment - The fragrance raw materials segment reported sales revenue of approximately 405 million yuan, a year-on-year increase of 7.6%, and an operating profit of approximately 61.7 million yuan, significantly improving from a loss in the previous year [6] - The seasoning segment's revenue was approximately 382 million yuan, remaining stable compared to the previous year, with an operating profit of approximately 38.9 million yuan, a decrease of 29.8% [6] - The company is focusing on cost control and has successfully developed new domestic customers despite challenges in the overseas market due to tariff policies [6]