Core Viewpoint - Aoyou's international and nutrition businesses have become the second growth engine for the company, showing robust performance in the first half of 2025 with significant revenue and profit growth [1][3]. Group 1: Financial Performance - In the first half of 2025, Aoyou achieved revenue of approximately RMB 38.87 billion, a year-on-year increase of 5.6% [1]. - EBITDA reached approximately RMB 3.98 billion, reflecting a year-on-year growth of 29.7% [1]. - Profit attributable to equity holders of the parent company was approximately RMB 1.81 billion, up 24.1% year-on-year, indicating sustained revenue and profit growth [1]. Group 2: International Business Growth - Aoyou's international business saw explosive growth, with revenue from the overseas market increasing by 65.7% to approximately RMB 4.83 billion [5]. - The Middle East remains the largest overseas market for Aoyou, with a revenue increase of 54.2% [7]. - North America experienced a revenue increase of over 138.7%, becoming the second-largest revenue source for Aoyou [7]. - The Commonwealth of Independent States (CIS) market contributed stable revenue growth with a year-on-year increase of 33.8% [7]. Group 3: Nutrition Business Development - Aoyou's nutrition business achieved a revenue growth of 7.0% year-on-year, successfully expanding into overseas markets [8]. - The To B segment saw significant improvements in the stability of probiotic fermentation processes, with revenue contributions from strategic partnerships and e-commerce channels [8]. - The To C segment launched seven new functional products, which received positive consumer feedback [8]. Group 4: Brand and Market Position - Aoyou's own brand milk powder business generated approximately RMB 28.26 billion in revenue, with the goat milk powder segment growing by 3.1% [13]. - The market share of Aoyou's goat milk powder increased by 2.8 percentage points to 30.4% [13]. - Aoyou's cow milk powder business stabilized, with significant growth in e-commerce sales [13]. Group 5: Supply Chain and Operational Efficiency - Aoyou completed the strategic acquisition of the remaining 50% stake in Amalthea Group B.V., enhancing its supply chain advantage in goat milk products [14]. - The company implemented a digital can code system to improve product freshness and transparency, which may impact short-term sales but supports long-term growth [11]. - Sales and distribution expense ratios improved, with a 3.8% year-on-year decrease due to enhanced marketing efficiency [15]. Group 6: Research and Innovation - Aoyou hosted the "Future of Goat Milk" international seminar, enhancing its authority in the field of goat milk formula [16]. - The company launched four new goat milk raw materials, with three achieving global commercialization [17]. - Aoyou received multiple awards for its research and product innovations, reinforcing its commitment to scientific advancement [17].

Core Viewpoint - Aoyou (1717.HK) has successfully developed its international and nutrition businesses as a second growth engine, achieving steady overall performance in the first half of 2025 with significant revenue and profit growth [1][3]. Financial Performance - In the first half of 2025, Aoyou reported revenue of approximately RMB 38.87 billion, a year-on-year increase of 5.6% - EBITDA reached approximately RMB 3.98 billion, up 29.7% year-on-year - Profit attributable to equity holders of the parent company was approximately RMB 1.81 billion, reflecting a 24.1% year-on-year growth [1][3]. International Business Growth - Aoyou's international business experienced explosive growth, with revenue from the overseas market increasing by 65.7% to approximately RMB 4.83 billion - The Middle East market remains the largest overseas market for Aoyou, with a revenue increase of 54.2% - North America saw a revenue increase of over 138.7%, becoming the second-largest revenue source for Aoyou [3][6][7]. Nutrition Business Development - The nutrition business achieved a revenue growth of 7.0% year-on-year and successfully expanded into overseas markets - The To B segment saw significant improvements in the fermentation process and stability of probiotics, contributing to a revenue increase - The To C segment launched several new functional products that gained popularity among consumers [7][8][10]. Market Position and Brand Strength - Aoyou's own brand milk powder business generated approximately RMB 28.26 billion in revenue, with the goat milk powder business growing by 3.1% - The market share of Aoyou's goat milk powder increased by 2.8 percentage points to 30.4% - Aoyou's cow milk powder business stabilized, with significant growth in e-commerce sales [12][14][15]. Strategic Initiatives - Aoyou has implemented a digital can code system to enhance product freshness and transparency, laying a solid foundation for sustainable growth - The company has also focused on improving operational efficiency and reducing sales and distribution costs, achieving a 3.8% decrease in the sales and distribution expense ratio [10][15][16]. Research and Innovation - Aoyou has strengthened its research capabilities, hosting international conferences and launching new products based on scientific research - The company received several awards for its innovative products and research achievements, enhancing its reputation in the industry [17][19][20]. Future Outlook - Despite uncertainties in the macro environment and a declining trend in the infant formula market, Aoyou remains confident in its market position and future development - The company aims to strengthen its second growth curve and enhance management efficiency through innovation and research [21].