Core Viewpoint - Aoyou (1717.HK) has successfully developed its international and nutrition businesses as a second growth engine, achieving steady overall performance in the first half of 2025 with significant revenue and profit growth [1][3]. Financial Performance - In the first half of 2025, Aoyou reported revenue of approximately RMB 38.87 billion, a year-on-year increase of 5.6% - EBITDA reached approximately RMB 3.98 billion, up 29.7% year-on-year - Profit attributable to equity holders of the parent company was approximately RMB 1.81 billion, reflecting a 24.1% year-on-year growth [1][3]. International Business Growth - Aoyou's international business experienced explosive growth, with revenue from the overseas market increasing by 65.7% to approximately RMB 4.83 billion - The Middle East market remains the largest overseas market for Aoyou, with a revenue increase of 54.2% - North America saw a revenue increase of over 138.7%, becoming the second-largest revenue source for Aoyou [3][6][7]. Nutrition Business Development - The nutrition business achieved a revenue growth of 7.0% year-on-year and successfully expanded into overseas markets - The To B segment saw significant improvements in the fermentation process and stability of probiotics, contributing to a revenue increase - The To C segment launched several new functional products that gained popularity among consumers [7][8][10]. Market Position and Brand Strength - Aoyou's own brand milk powder business generated approximately RMB 28.26 billion in revenue, with the goat milk powder business growing by 3.1% - The market share of Aoyou's goat milk powder increased by 2.8 percentage points to 30.4% - Aoyou's cow milk powder business stabilized, with significant growth in e-commerce sales [12][14][15]. Strategic Initiatives - Aoyou has implemented a digital can code system to enhance product freshness and transparency, laying a solid foundation for sustainable growth - The company has also focused on improving operational efficiency and reducing sales and distribution costs, achieving a 3.8% decrease in the sales and distribution expense ratio [10][15][16]. Research and Innovation - Aoyou has strengthened its research capabilities, hosting international conferences and launching new products based on scientific research - The company received several awards for its innovative products and research achievements, enhancing its reputation in the industry [17][19][20]. Future Outlook - Despite uncertainties in the macro environment and a declining trend in the infant formula market, Aoyou remains confident in its market position and future development - The company aims to strengthen its second growth curve and enhance management efficiency through innovation and research [21].

Core Viewpoint - Aoyou Dairy's performance in the first half of 2025 shows resilience with continuous growth in revenue and profit, driven by strong international business and nutritional products [1][5][19] Financial Performance - In the first half of 2025, Aoyou achieved revenue of approximately RMB 3.887 billion, a year-on-year increase of 5.6% [1] - EBITDA reached approximately RMB 398 million, reflecting a year-on-year growth of 29.7% [1] - Profit attributable to equity holders of the parent company was approximately RMB 181 million, up 24.1% year-on-year [1] International Business Growth - Aoyou's international business saw explosive growth, with revenue from the overseas market increasing by 65.7% to approximately RMB 483 million [6] - The Middle East remains the largest overseas market, with a revenue increase of 54.2% [6] - North America experienced a revenue increase of over 138.7%, becoming the second-largest source of revenue for Aoyou [7] Nutritional Products Development - The nutritional products segment achieved a revenue growth of 7.0%, expanding into overseas markets [8] - The company launched several new functional products that received positive consumer feedback [8] Market Position and Brand Strength - Aoyou's own brand milk powder business generated approximately RMB 2.826 billion in revenue, with the goat milk powder segment growing by 3.1% [12] - The market share of Aoyou's goat milk powder increased by 2.8 percentage points to 30.4% [12] - The company completed a strategic acquisition to enhance its supply chain advantage in goat milk products [14] Operational Efficiency and Management - Aoyou implemented a digital can code system to improve product freshness and transparency, laying a foundation for sustainable growth [9] - The company improved its sales and distribution expense ratio by 3.8% through enhanced marketing efficiency [15] - Overall asset turnover improved, with inventory turnover days decreasing by 20 days [15] Research and Innovation - Aoyou focused on nutritional health research, hosting an international conference on goat milk and launching new raw materials for goat milk products [16][18] - The company engaged in significant collaborations with academic institutions to enhance its research capabilities [18] Future Outlook - Despite uncertainties in the macro environment and a declining trend in the infant formula industry, Aoyou remains confident in its market position and future growth [19]