Core Insights - The company reported a revenue of 1.764 billion yuan for H1 2025, representing a year-over-year increase of 15.12%, with a net profit of 188 million yuan, up 4.64% year-over-year [1] - In Q2 2025, the company generated revenue of 768 million yuan, showing a slight increase of 0.18% year-over-year, but net profit decreased by 25.50% year-over-year to 57 million yuan [1] Product Performance - The company focuses on a health-oriented product line, with revenue from the "Free Point" series reaching 1.687 billion yuan in H1 2025, a year-over-year increase of 20.5%, driven by the growing share of probiotics [1] - The company is increasing advertising for its organic cotton series and testing new Vitamin E products, while the growth of panty liners continues [1] Channel Development - The company experienced significant growth in various regions, with revenues from Sichuan-Chongqing, Yunnan-Guizhou-Shaanxi, other regions, and e-commerce channels reaching 430 million, 280 million, 430 million, and 590 million yuan respectively, with year-over-year growth rates of 13.1%, 14.7%, 124.2%, and -9.4% [1] - Offline revenue growth remains strong, and the company has established an instant retail department to capitalize on channel opportunities, achieving better profitability than online [1] - Online revenue in Q2 2025 was severely impacted by public sentiment, but adjustments in Q3 have restored ROI to last year's levels, with expectations for high-quality growth in Q4 across platforms like Douyin, JD, and Pinduoduo [1] Profitability Metrics - For H1 2025, the company's gross margin and net margin were 53.2% and 10.7% respectively, reflecting a year-over-year decrease of 1.2 percentage points and 1.1 percentage points, but profitability is expected to improve as product structure optimizes and channel costs are diluted [2] - The company's expense ratios for sales, management, R&D, and finance were 36.4%, 2.4%, 1.9%, and -0.01% respectively, with year-over-year changes of +1.1 percentage points, -0.6 percentage points, -0.3 percentage points, and +0.1 percentage points, primarily due to increased budget for brand and online platform sales expenses [2] Investment Outlook - The company is focusing on its probiotic health series and aims to balance profitability with market ranking through e-commerce channels, while also deepening its presence in key offline markets [3] - Revenue projections for 2025-2027 are set at 3.97 billion, 4.92 billion, and 5.98 billion yuan, with net profits of 350 million, 500 million, and 630 million yuan respectively, corresponding to PE ratios of 37, 26, and 21 times [3]