Core Viewpoint - Blue Moon Group reported a revenue of HKD 30.37 billion for the first half of 2025, a year-on-year decline of approximately 3%, with a loss of HKD 4.35 billion, although this loss has narrowed compared to the previous year [2]. Group 1: Online Pressure and Core Business Decline - The decline in revenue compared to the previous year is a significant factor contributing to Blue Moon's losses in the first half of the year [4]. - The company's personal and home cleaning products generated revenues of HKD 2.16 billion and HKD 1.8 billion, respectively, with year-on-year growth of 12.4% and 4.8%. However, the clothing cleaning products, which account for over 80% of total revenue, saw a decline of 4.6% to HKD 26.41 billion [4]. - The clothing cleaning market is currently characterized by "high-end breakthroughs and mid-range battles," with international brands like Procter & Gamble and Unilever promoting innovative products in China, while local brands compete through niche marketing [4][5]. Group 2: Sales Channel Performance - Online sales accounted for 68.1% of total revenue in the first half of 2025, down from 72.6% in the previous year, with online sales revenue declining by 8.9% to HKD 20.68 billion [6]. - The decline in online sales is attributed to the company's decision to control sales and distribution expenses, which affected the growth of new sales channels [5][6]. - Blue Moon's aggressive marketing strategy, particularly through live streaming on platforms like Douyin, has led to significant sales during promotional events, but at a high cost [7]. Group 3: Financial Performance and Strategic Investments - From 2021 to 2024, Blue Moon's sales and distribution expenses increased significantly, outpacing revenue growth, leading to a continuous decline in net profit [8]. - In 2024, despite achieving a record revenue of HKD 85.56 billion, the company reported a net loss of HKD 7.49 billion, marking its first annual loss since going public [8]. - In the first half of 2025, Blue Moon reduced its marketing expenses by 13.2% to HKD 19.1 billion, but this led to a more pronounced revenue decline due to the company's heavy reliance on online traffic [8][9]. Group 4: Future Outlook - Blue Moon plans to leverage emerging online and distribution platforms to promote best-selling and new products, particularly focusing on concentrated laundry detergents [9]. - The company acknowledges that educating consumers about new products will require time, investment, and extensive promotion, indicating that short-term performance may continue to face challenges [9].