Core Viewpoint - The company is actively adapting to external challenges, including aggressive tariff policies, by expanding its overseas factories and enhancing its domestic market presence to seek new revenue and profit growth points [2]. Group 1: Financial Performance - In Q2 2025, the company reported revenue of 700 million, a decrease of 4% year-on-year, while net profit attributable to the parent company was 60 million, an increase of 52% year-on-year, and the net profit after deducting non-recurring items was 60 million, a decrease of 9% year-on-year [1]. - For the first half of 2025, the company achieved revenue of 1.5 billion, remaining flat year-on-year, with net profit attributable to the parent company at 100 million, an increase of 24% year-on-year, and net profit after deducting non-recurring items at 110 million, a decrease of 8% year-on-year [2]. Group 2: Product Innovation - The company launched the world's first AI sleep smart device "AI Xiao Shu" on March 21, 2025, at the AWE, marking a significant upgrade from passive monitoring to active health management for sleep-related issues [2]. - "AI Xiao Shu" integrates AI algorithms, sensor innovations, and medical resources to create a comprehensive "closed-loop experience" for users, focusing on personalized solutions for sleep disorders [2]. Group 3: Global Expansion - The company opened its second overseas store in Seoul on May 26, 2025, following the Singapore store, as part of its global strategy to provide consumers with a comprehensive sleep solution [4]. - The company is progressing with the construction of its headquarters project for producing 4 million smart electric beds annually, with the second and third phases expected to be operational by the end of 2025 [4]. Group 4: Earnings Forecast Adjustment - Based on the performance in the first half of 2025 and changes in the external trade environment, the company adjusted its earnings forecast, expecting revenues of 3.1 billion, 3.4 billion, and 3.9 billion for 2025-2027, and net profits of 200 million, 220 million, and 260 million for the same period [5].

Investment Rating - The investment rating for the company is "Accumulate" with a target price not specified [6]. Core Views - The company reported a revenue of 700 million in Q2 2025, a decrease of 4% year-on-year, while the net profit attributable to the parent company was 60 million, an increase of 52% year-on-year. For the first half of 2025, the revenue was 1.5 billion, flat year-on-year, and the net profit attributable to the parent company was 100 million, an increase of 24% year-on-year [1]. - The company is actively expanding its overseas factories to adapt to the challenges posed by aggressive tariff policies in the U.S. and is also accelerating its domestic market expansion to seek new revenue and profit growth points [1]. - The launch of the world's first AI sleep smart device "AI Xiao Shu" marks a significant upgrade in smart beds from passive monitoring to active health management, providing personalized solutions for sleep disorders [2]. - The company opened its second overseas store in Seoul, South Korea, enhancing its global strategy and allowing local consumers to experience a comprehensive sleep solution [3]. - The construction of the headquarters project for producing 4 million smart electric beds is progressing well, with the second phase expected to be operational by the end of 2025 [4]. - The company has adjusted its profit forecast for 2025-2027, expecting revenues of 3.1 billion, 3.4 billion, and 3.9 billion respectively, with net profits of 200 million, 220 million, and 260 million respectively [5]. Financial Data Summary - The total A-share capital is approximately 352.99 million shares, with a total market value of approximately 5.93 billion [7]. - The earnings per share (EPS) for 2025 is projected to be 0.6 yuan, with a price-to-earnings ratio (P/E) of 30 times [5][11]. - The company has a debt-to-asset ratio of 32.52% and a net asset value per share of 8.84 yuan [7].