Core Viewpoint - The company emphasizes the importance of strategic determination and business synergy for high-quality development in a complex global economic environment, with a focus on diversified layout and stable operations [1] Financial Performance - For the six months ending June 30, 2025, the company reported total revenue of approximately 1.621 billion yuan, representing a year-on-year increase of 2.5% [1] - The profit attributable to equity holders reached approximately 118 million yuan, showing a significant year-on-year growth of 298.1%, indicating strong operational resilience [1] Business Segments - The flavor and food ingredients segment, as a core area, has strengthened its technical capabilities in microwave drying and extraction, effectively meeting the demand for natural extracts from Chinese tea beverage brands [3] - In the tobacco raw materials segment, the new reconstituted tobacco leaf production line at the Indonesian production base has achieved bulk supply, with steadily increasing capacity utilization, serving as a key driver for sustainable development [3] - The tobacco capsule business is actively expanding into overseas markets, achieving rapid revenue growth through the development of region-specific flavors and technological upgrades [3] - The flavor raw materials segment has maintained stable revenue amidst fluctuations in overseas market demand through cost control and new customer development [3] - The seasoning business focuses on value innovation in the catering channel, enhancing customer engagement through online live broadcasts and offline promotional activities, with the number of primary distributors reaching 956 [3] Innovation and Risk Management - The company's philosophy of balancing technological innovation and risk management is reflected in its mid-term performance, with R&D investment of approximately 125 million yuan, accounting for 7.7% of revenue, and multiple technological achievements reaching industry-leading levels [4] - The company has optimized processes and improved systems across various dimensions, including climate change, safety production, and compliance, while integrating AI technology into operational management to enhance intelligence and digitalization, effectively reducing operational risks [4] - Cash generated from operating activities reached 214 million yuan, a year-on-year increase of 88.6%, with a maintained low debt-to-asset ratio, indicating a robust financial structure that provides ample funding for future development [4] Future Outlook - The company plans to continue deepening multi-business collaborative development under the strategic guidance of its CEO, focusing on the health sector and overseas market expansion, while enhancing core competitiveness through technological innovation and refined management to create greater value for shareholders [4]

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]