Core Viewpoint - Huaxi Biological has reported its worst half-year results, with significant declines in key financial metrics, indicating a period of operational challenges and a need for strategic reform [2][4]. Financial Performance - In the first half of 2025, Huaxi Biological achieved revenue of 2.261 billion yuan, a year-on-year decrease of 19.57% [2]. - The net profit attributable to shareholders was 221 million yuan, down 35.38% year-on-year [2]. - The net profit after deducting non-recurring items was 173 million yuan, reflecting a decline of 45% [2]. Business Challenges - The core business, particularly the skin science innovation transformation segment, has seen a significant revenue drop of 33.97%, contributing to 40.36% of the main business income [5][7]. - The company is transitioning its sales logic from a traffic-driven model to a scientifically validated brand communication approach [5]. - Marketing expenses remain high amidst fierce online competition, further compressing profit margins and straining cash flow [4]. Management Changes - A significant restructuring of the management team has occurred, with 11 senior executives leaving the company [7]. - The company has initiated a systematic adjustment of its management philosophy, business direction, and talent organization model [4][7]. Legal Issues - Huaxi Biological's wholly-owned subsidiary, Julang Co., has initiated international arbitration against Medytox, claiming damages of up to 750 million Hong Kong dollars due to a breach of contract regarding the supply of A-type botulinum toxin products [8].