Group 1 - The company's brand management business is expected to continue high growth, with revenue from brand incubation and management services in H1 2025 reaching 233 million yuan, a year-on-year increase of 86.46%. The core brand Cumlaude Lab saw over 70% growth in revenue during the same period and ranked first in the mid-to-high-end personal care category on Tmall and Douyin [1] - Third-party data indicates that Cumlaude Lab continued its high growth in Q3 2025, with a year-on-year GMV increase of approximately 94% on Tmall and Douyin platforms. Zuccari also experienced over 95% year-on-year revenue growth in H1 2025 [1] - The company signed a strategic cooperation agreement with Dermofarm in May, a well-known European pharmaceutical company focused on skin health, which is expected to further expand the existing collaboration with the Cumlaude Lab brand and enhance incremental changes from deepened cooperation [1] Group 2 - The company is actively embracing AI technology by establishing a dedicated AI team and building a series of data and technology platforms internally. It has developed various technical tools and systems, laying the foundation for the application of AI technology in e-commerce operations [2] - The investment suggestion highlights the dual-driven growth opportunity from brand management incubation and AI applications. The brand management business is anticipated to enter an explosive growth phase, with significant increases in the Cumlaude Lab and Zuccari brands, alongside the strategic cooperation with Dermofarm [2] - The company is recognized as one of the first ecological agent service providers for AI, with significant investments already yielding results. The focus is on the upward turning point in brand management and the cost-reduction and efficiency-enhancing potential of AI applications, with projected net profits of 130 million yuan and 180 million yuan for 2025 and 2026, respectively [2]

Financial Performance - In Q1 2025, the company reported a net profit of 10.02 million RMB, a decrease of 58.56% year-on-year, despite a revenue increase of 21.28% to 1.00159 billion RMB [2][3] - For the full year 2024, the company achieved a revenue of 1.153 billion RMB, a growth of 19.2%, and a net profit of 90.54 million RMB, up 73.8% from the previous year [7] Business Segments - The brand incubation business generated 307 million RMB in revenue in 2024, marking a significant growth of 126.5%, primarily driven by the Cumlaude Lab and Zuccari projects [4][6] - The e-commerce operation business achieved a revenue of 565 million RMB in 2024, reflecting a stable growth of 16.2%, with contributions from outdoor sports and trendy toy categories [3][10] Marketing and Sales Strategies - Sales expenses increased by 51.62% in Q1 2025, totaling 80.8 million RMB, mainly due to marketing investments in brand incubation projects [3][11] - The company expanded its live streaming operations, with over 75 live streaming rooms and a team of more than 450 personnel, resulting in a 121.52% revenue growth in live streaming services in 2024 [5][10] Technology and Innovation - The company is integrating AI technology into its operations, developing the "Qingling" AI system to enhance customer service, design, and marketing processes [4][5] - The proprietary IT systems, including Qingmu OMS and CRM, are aimed at improving operational efficiency and data management [9][12] Future Outlook - The company plans to continue investing in e-commerce operations and brand incubation, particularly in the health consumer goods sector, through partnerships and acquisitions [8][10] - The overall e-commerce market in China is expected to grow, supported by a large mobile internet user base and increasing online shopping penetration [11][12]