Core Viewpoint - The company reported a slight decline in revenue and profit for the first half of 2025, but anticipates stable income growth driven by tissue sales and a diversified sales strategy [1][2] Group 1: Financial Performance - The company achieved revenue of 11.808 billion RMB, a year-on-year decrease of 0.2% [1] - Profit attributable to equity holders was 1.373 billion RMB, down 2.6% year-on-year, with basic earnings per share at 1.206 RMB [1] - Overall gross profit decreased by approximately 3.2% to about 3.812 billion RMB, with a gross margin of about 32.3%, down from 33.3% in the same period last year [2] Group 2: Sales and Market Strategy - The company benefited from growth in tissue sales and an increase in market share, mitigating the negative impact of intense price competition in the sanitary products industry [1] - E-commerce and new retail sales accounted for approximately 34.4% of total sales, up from 31.8% in the first half of 2024, with a year-on-year sales revenue growth of about 7.9% [1] - The company is focusing on diversifying sales channels and enhancing its e-commerce presence while also promoting traditional sales channels [1] Group 3: Product Development and Market Trends - The company is actively developing new technologies to enhance product high-end positioning and diversify its product portfolio, responding to the increasing demand for personalized and value-added sanitary products [2] - Key high-end products include the "Tianshan Velvet Cotton" sanitary napkin series and the "Q MO" high-end diaper series, which have maintained strong sales momentum [2] - Despite improvements in tissue gross margins and an increase in the proportion of high-end products, overall gross profit declined due to a drop in sanitary product sales and rising promotional expenses [2]

Core Viewpoint - The company reported stable revenue performance in the first half of 2025, supported by growth in tissue sales and an increase in market share, despite intense price competition in the sanitary products sector [1] Group 1: Financial Performance - The company's overall revenue slightly decreased by 0.2% year-on-year to approximately RMB 11.808 billion [1] - Overall gross profit fell by about 3.2% to approximately RMB 3.812 billion, with a gross margin declining to around 32.3% [1] - Operating profit decreased by 7.3% to approximately RMB 1.757 billion [1] - Profit attributable to equity holders decreased by approximately 2.6% to around RMB 1.372 billion, with basic earnings per share at RMB 1.206 [1] - The board declared an interim dividend of RMB 0.70 per share [1] Group 2: Sales and Market Strategy - The steady increase in tissue sales is expected to support overall revenue stability in the second half of 2025, driven by multi-channel sales, product personalization, and stable pricing strategies [1] - The company is seizing opportunities in diversified consumer channels, increasing efforts in e-commerce and new retail markets, with e-commerce and new retail sales accounting for approximately 34.4% of total sales, showing a year-on-year growth of about 7.9% [1] - The company continues to promote sales through traditional channels and develop new growth points, with a steady advancement of its multi-channel sales strategy [1] Group 3: Product Development and Brand Enhancement - The company is actively developing new technologies to enhance product high-end features and diversify its product portfolio, responding to the growing demand for personalized and value-added sanitary products [2] - Key high-end products include the "Tianshan Velvet Cotton" sanitary napkin series and the "Q • MO" series of high-end diapers, which have maintained strong sales momentum [2] - New product launches, such as the "Cranberry A+" organic cotton sanitary napkin and the "Towards the Wild" high-end tissue series, are expected to increase the proportion of high-end products in sales and enhance brand image and product reputation [2]