Core Viewpoint - The company reported strong financial performance for 1H2025, with significant revenue and profit growth, driven by robust customer traffic and performance across its three main business segments [1][2][3]. Financial Performance - 1H2025 revenue reached 1.459 billion, a year-on-year increase of 28.2%, with a 3.9% growth when excluding the impact of the acquisition of Nairui [1] - Net profit attributable to the parent company was 156 million, up 34.9% year-on-year [1] - Operating cash flow for 1H2025 was 410 million, reflecting an 84.4% increase year-on-year [1] Business Segment Performance - The three main business segments showed strong growth: - Beauty and wellness services generated 810 million, up 29.6% - Medical beauty services reached 500 million, a 13.0% increase - Sub-health medical services surged to 150 million, a remarkable 107.8% growth [1][2] - Direct sales and franchise models contributed to revenue, with direct sales at 740 million (31.0% growth) and franchise at 70 million (16.2% growth) [1] Customer Engagement - Direct sales stores saw customer traffic of 850,000, a 48.6% increase, and active membership rose to 112,000, up 45.7% [1] - Medical beauty direct stores had customer traffic of 50,000, a 28.0% increase, with active members at 24,000, up 27.6% [2] - Sub-health medical services experienced a customer traffic increase of 75.5% to 19,000, with active members growing 93.4% to 7,014 [2] Store Expansion - As of the end of 1H2025, the total number of stores reached 552, an increase of 143 stores year-on-year [3] - The number of beauty and wellness service direct stores was 238, up 69 stores, while franchise stores also increased by 69 to 276 [3] Profitability - The overall gross margin improved by 2.3 percentage points to 49.3%, with net profit margin increasing by 0.5 percentage points to 10.7% [3] - Gross margins for the three business segments were 42.1% for beauty and wellness, 56.9% for medical beauty, and 63.1% for sub-health services, all showing year-on-year improvements [3] Cost Management - Sales, management, and R&D expense ratios were 17.2%, 16.2%, and 1.4%, respectively, with slight increases attributed to acquisitions and marketing efforts [4] - The company is focusing on both organic growth and acquisitions, with the integration of Nairui showing positive results [4] Future Outlook - The company has raised its net profit forecasts for 2025-2027, reflecting confidence in continued growth and integration success [5] - The business model is evolving, with expectations for significant growth potential in the beauty and medical sectors [5]