Core Viewpoint - The company reported a slight increase in total revenue and net profit for the first half of 2025, despite facing macroeconomic and policy pressures, indicating resilience and effective market operations [1][3]. Financial Performance - In H1 2025, the company achieved total revenue of 1.759 billion yuan, a year-on-year increase of 0.3%, and a net profit attributable to shareholders of 298 million yuan, up 1.1% year-on-year [1]. - The company’s Q2 2025 revenue was 651 million yuan, a decrease of 4.0% year-on-year, with a net profit of 64.48 million yuan, down 12.8% year-on-year [1]. - The gross profit margin for H1 2025 was 65.6%, an increase of 0.53 percentage points year-on-year, while Q2 2025 gross profit margin was 63.7%, a decrease of 1.01 percentage points year-on-year [2][3]. Product Structure and Sales Channels - The product structure continues to upgrade, with products priced above 300 yuan accounting for over 22% of total sales. In Q2 2025, revenue from products priced above 300 yuan increased by 11.3% year-on-year [1]. - In H1 2025, revenue from different sales channels was 1.621 billion yuan from distributors, 38 million yuan from direct sales, and 57 million yuan from online sales, with online sales growing significantly by 29.3% year-on-year [2]. Market Strategy and Regional Performance - The company maintained strong control over the provincial market while achieving steady growth in the provincial market, with H1 2025 revenues of 1.334 billion yuan from the provincial market and 382 million yuan from the provincial market, reflecting a year-on-year change of -1.1% and +1.8%, respectively [2]. - The number of distributors in the provincial market increased by 15, while the number in the provincial market decreased by 56 compared to the end of 2024, indicating a focus on deepening provincial market strategies [2]. Cost Management and Efficiency - The company improved overall cost efficiency, with selling, administrative, and R&D expense ratios of 18.96%, 9.24%, and 1.67% for H1 2025, respectively [3]. - The company’s net profit margin for H1 2025 was 17.0%, an increase of 0.14 percentage points year-on-year, demonstrating effective cost management during a challenging industry environment [3]. Future Outlook - The company is expected to achieve revenues of 3.269 billion yuan and 3.550 billion yuan in 2025 and 2026, respectively, with year-on-year growth rates of 8.2% and 8.6% [4]. - The forecasted net profit for 2025 and 2026 is 408 million yuan and 438 million yuan, respectively, with expected growth rates of 5.1% and 7.5% [4].