Core Viewpoint - The company reported its 2025 mid-year results, showing a revenue increase and a return to profitability in Q2 2025, driven by strong performance in the beauty segment and strategic focus on core products [1][2]. Financial Performance - For 1H25, the company achieved a revenue of 3.478 billion yuan, representing a year-on-year increase of 4.8%, and a net profit attributable to shareholders of 266 million yuan, up 11.7% [1]. - In Q2 2025, revenue reached 1.775 billion yuan, marking a significant increase of 25.4%, with a net profit of 29 million yuan, indicating a return to profitability [2]. Business Segment Analysis - Revenue breakdown for 1H25 includes beauty at 747 million yuan (+32.0%), personal care at 1.590 billion yuan (+0.1%), innovation at 436 million yuan (-2.5%), and overseas at 703 million yuan (-1.5%) [2]. - The beauty division has shown strong growth, focusing on online sales and key products, with gross margins of 73.9% [2]. Profitability and Cost Management - The overall gross margin for 1H25 was 63.4%, an increase of 2.2 percentage points, with a net profit margin of 7.6%, up 0.5 percentage points [2]. - The company has seen an increase in sales, management, and R&D expense ratios, primarily due to organizational changes and increased depreciation from new software systems [2]. Strategic Focus - The company is concentrating on core brand development and online channels, with a notable 34.64% year-on-year growth in domestic online sales in Q2 2025 [3]. - Key product initiatives include the Six God mosquito repellent, Yuze barrier repair series, and Baicaoji's classic white mud series [3]. Employee Engagement - The company announced a 2025 employee stock ownership plan covering 45 core middle and senior management members, with performance targets aimed at achieving profitability by 2025 [3]. Investment Outlook - The company is focusing on four strategic adjustments, with expectations for improved operational quality and a reversal in performance, projecting net profits of 355 million yuan, 482 million yuan, and 572 million yuan for 2025-2027, corresponding to PE ratios of 48.7, 35.9, and 30.2 [3].