Core Viewpoint - Water Sheep Co., Ltd. reported a revenue of approximately 2.5 billion yuan for the first half of the year, marking a year-on-year increase of 9.02%, and a net profit attributable to shareholders of 123 million yuan, up 16.54% year-on-year, driven by a focus on high-end brand development [2] Group 1: Financial Performance - The company achieved a revenue of about 2.5 billion yuan, reflecting a 9.02% increase compared to the previous year [2] - The net profit attributable to shareholders reached 123 million yuan, representing a year-on-year growth of 16.54% [2] - The self-owned brand revenue for the first half of the year was 1.039 billion yuan, accounting for 41.55% of total revenue, with a gross margin of 76.83%, an increase of 5.7 percentage points year-on-year [2] Group 2: Brand Strategy - Water Sheep Co., Ltd. operates through both self-owned brands and CP brands, with a diverse brand portfolio including "EDB," "RV," "PA," "H&B," "VAA," and "Yunifang," covering various product categories [2] - The company has successfully transitioned its self-owned brand system towards high-end and global markets [2] - The high-end skincare brand EDB has strengthened its luxury image through collaborations with celebrities and high-fashion events, targeting high-net-worth customers [3] Group 3: Channel Development - EDB has enhanced its online and offline channel strategies, with a focus on increasing the proportion of direct sales and reducing reliance on top influencers [3] - The brand's Tmall channel saw a growth of approximately 40% in direct sales [3] - EDB opened its first castle store in Shanghai, exceeding performance expectations, and has plans to establish 50 physical stores with SPA services across China by 2027 [3][4]