Core Viewpoint - The company reported a mid-year performance for 2025, achieving a revenue of 5.7 billion yuan, a year-on-year increase of 11.0%, and a profit attributable to equity holders of 860 million yuan, up 8.6%, meeting expectations [1][2]. Revenue Analysis - Adult footwear and apparel saw revenue growth, with footwear revenue reaching 2.57 billion yuan, up 12.8%, and apparel revenue at 1.6 billion yuan, up 1.6% [1]. - The children's apparel segment experienced a revenue increase of 11.4% to 1.26 billion yuan, with footwear growing by 27.8% and apparel declining by 7.6% [1]. Store Expansion and E-commerce Growth - As of June 2025, the company operated 5,669 adult apparel stores and 2,494 children's apparel stores, with 49 new super stores opened, enhancing customer experience and sales [1]. - E-commerce sales reached 1.82 billion yuan, a significant increase of 45.0%, accounting for 31.8% of total revenue, with strong quarterly growth rates [2]. Profitability and Cost Management - The gross profit margin improved by 0.2 percentage points to 41.5%, with adult footwear and apparel margins at 43.3% and 41.3%, respectively [2]. - Operating expenses showed a mixed trend, with advertising costs decreasing while employee costs increased slightly [2]. Cash Flow and Inventory Management - The company improved its accounts receivable turnover days by 3 days to 146 days, while inventory turnover days increased by 2 days to 109 days due to increased stock for e-commerce [3]. - As of June 2025, the company had a net cash position of 4.3 billion yuan and a net cash flow from operating activities of 520 million yuan, significantly up from 160 million yuan in the previous year [3]. Future Outlook - The company is expected to maintain its growth trajectory, with projected net profits of 1.301 billion yuan, 1.495 billion yuan, and 1.715 billion yuan for 2025 to 2027, reflecting year-on-year growth rates of 13%, 15%, and 15% respectively [3].