Core Viewpoint - Chinese tea is gaining international recognition, highlighted by its selection as the official tea for the Shanghai Cooperation Organization summit in Tianjin, showcasing cultural confidence and enhancing the global influence of Chinese tea culture [1][20][23]. Group 1: Event Highlights - The 2025 Shanghai Cooperation Organization summit took place in Tianjin from August 31 to September 1, marking the largest summit since the organization's inception [1]. - Eight Horse Tea, a leading Chinese tea brand, successfully provided three renowned teas: black tea, rock tea, and Tieguanyin, for the summit's official tea service [1][22]. - The tea service at the summit was attended by over 20 national leaders, further promoting the charm of Chinese tea on a global stage [20]. Group 2: Brand Recognition and Achievements - Eight Horse Tea has achieved significant market recognition, being the top seller in China for black tea for four consecutive years, rock tea for five years, and Tieguanyin for 14 years [26][33]. - The brand has been involved in various high-profile international events, including the BRICS summit and dialogues with leaders from multiple countries, enhancing its role as a cultural ambassador for Chinese tea [26][35]. Group 3: Cultural and Business Integration - Eight Horse Tea is redefining the tea consumption landscape by integrating cultural, aesthetic, and fashionable elements into its offerings, promoting a new business social style [26]. - The brand's "Harmony and Coexistence" philosophy is reflected in its service details, aiming to create a unique tea experience that resonates with both domestic and international audiences [23][35]. Group 4: Future Initiatives - Eight Horse Tea plans to continue its international outreach, having already engaged with 31 countries and 81 cities, and aims to further integrate Chinese tea culture into global dialogues [26][35]. - The brand has launched the "SCO Gift" series, which includes a selection of its top teas and tea utensils, aimed at promoting Chinese tea culture worldwide [23].

Core Viewpoint - Eight Horse Tea Industry Co., Ltd. is undergoing a tactical retreat in its performance for the first half of 2025, which is seen as a strategic adjustment for long-term operations, demonstrating resilience amid macroeconomic uncertainties [1] Transformation and Upgrading - The adjustment in the first half of the year is a self-transformation focused on long-term value, primarily reflected in two core areas [2] Offline Channel Strategy - The company is reducing the number of ordinary stores to focus on flagship stores that enhance brand image and provide top-tier experiences, aiming to solidify its position as the leading brand in Chinese original leaf tea and Chinese tea houses [3] Online Business Expansion - Eight Horse Tea is launching a new sub-brand "Wanshanhong" in 2024, targeting the young and female consumer demographic, which is a strategic investment for future growth rather than a cost [4] Market Potential - The Chinese tea market is projected to reach RMB 325.8 billion by 2024 and exceed RMB 400 billion by 2029, with the high-end tea market expected to grow from RMB 103.1 billion in 2024 to RMB 135.3 billion in 2029, reflecting a compound annual growth rate of 5.6% [5] - The tea industry has high entry barriers due to brand building, cross-regional operations, and a comprehensive product system, which are core advantages for Eight Horse Tea [5] - The demand for tea is relatively inelastic, making it a stable investment option amid economic uncertainties [6] Strategic Clarity and Competitive Advantage - Eight Horse Tea has built a robust omnichannel sales network, with 3,585 offline stores as of June 30, including over 3,300 franchise stores, enhancing customer loyalty through immersive tea culture experiences [8][9] - The online revenue share has increased from 27.2% in 2022 to 35.4% in the first half of 2025, with over 26 million members and 40.9 million online fans [9] Product Strategy - The main brand "Eight Horse" dominates the high-end market, with notable products like "Saizhenzhu" Tieguanyin and "Niu Yi" Wuyi Rock Tea leading in sales [10] - The company has launched sub-brands to cater to diverse consumer needs, including "Xinjihao" for collectible Pu'er tea and "Wanshanhong" targeting young consumers [10] Innovation and Technology - Eight Horse Tea combines traditional craftsmanship with modern technology, significantly increasing R&D investment from RMB 8.22 million in 2022 to RMB 16.5 million in 2024 [11] - The company has established advanced digital and intelligent production lines, ensuring product quality and operational efficiency [11] Future Growth Prospects - The company is expected to see a rebound in performance in the second half of the year due to completed strategic adjustments and the upcoming traditional sales peak during festivals [12] - Eight Horse Tea is positioned as a stable, growth-oriented investment opportunity amid high valuations in the tech sector, appealing to investors seeking long-term value [12]