Investment Rating - The report maintains an "Outperform" rating for the company [2] Core Insights - The company reported a total revenue of 3.532 billion yuan for H1 2025, a year-on-year decline of 23.4%, while the net profit attributable to shareholders was 737 million yuan, down 17.3%. In Q2 2025, revenue was 1.741 billion yuan, a decline of 11.5%, but net profit increased by 71.4% to 282 million yuan, aligning with market expectations [7] - Due to the ongoing external consumption environment and unstable market competition, the profit forecasts for 2025 and 2026 have been adjusted downwards, with new forecasts for 2027 introduced. The projected net profits for 2025-2027 are 707 million, 813 million, and 934 million yuan, respectively, reflecting year-on-year growth rates of 8.3%, 15.0%, and 14.9% [7] - The company is focusing on high-quality operations and actively reforming online and offline channels to adapt to external changes. Long-term growth is expected as the population's age structure improves and public health awareness increases [7] Financial Data and Profit Forecast - Total revenue projections for 2025 are set at 6.179 billion yuan, with a year-on-year decline of 9.6%. The gross profit margin is expected to be 67.3% [6] - The company achieved a gross profit margin of 68.4% in Q2 2025, an increase of 1.68 percentage points year-on-year, attributed to improved product structure from high-value new products [7] - The net profit margin for Q2 2025 reached 17.1%, up 8.86 percentage points year-on-year, driven by effective cost control [7] Revenue Breakdown - The main brand and "Jianli Duo" benefited from effective operational adjustments, with Q2 revenue for the main brand at 905 million yuan, down 17.0% year-on-year, and "Jianli Duo" at 210 million yuan, down 3.67% [7] - Online channel revenue was 918 million yuan, a decline of 12.07%, while offline channel revenue was 810 million yuan, down 10.69% [7] Price Performance Catalyst - Key catalysts for stock price performance include better-than-expected growth in major products and accelerated online channel development [7]

Group 1: Financial Performance - The company's revenue decline in Q2 narrowed, and net profit increased year-on-year due to effective strategies in product and operations [1] - The gross margin remained stable compared to the same period last year, with a slight increase in Q2 due to changes in product and platform structure [1] - Online sales improved quarter-on-quarter in Q2, reflecting a stable pricing environment [5] Group 2: Market Trends and Competition - Market concentration is decreasing, with ongoing challenges from a sluggish offline market and intense online competition, particularly from interest e-commerce [2] - The company plans to enhance marketing resource allocation to expand offline product distribution in the second half of the year [2] Group 3: Brand and Product Development - The main brand and LSG are the primary contributors to revenue, with both showing good performance in product innovation and market expansion [3] - LSG's cross-border e-commerce accounts for approximately 70% of its sales, indicating its significance as a growth channel [4] - The company launched its first OTC product, "Jianliduo Sulfate Amino Glucosamine Capsules," in July, with plans for more products based on consumer demand [6] Group 4: Strategic Initiatives - The company aims to explore and optimize the business model for the Yep brand, focusing on attracting younger consumers online [7] - The company is adjusting its procurement strategies to mitigate the impact of raw material price fluctuations [9] - The decision to change the fundraising investment to a liquid bar production line is driven by the rapid growth of liquid beverage products [9]