16September2025|11:39PMHKT

ChinaConsumer

Pulsecheck:2Q25wrap-up:Softerdemandandpricingtrends;structuralgrowthgeneratealphaopportunities

Consumptiontrendsturnedsofterin2Q25andthe3Q-to-datedemandremainsunexciting,thoughsomecategoriesnotedsequentialimprovement(butmagnitudeisnotmeaningful)inAug(e.g.,restaurants,sportswear,preparedfoodandspirits

withsignsofpolicyimpactnormalizing).Into2H,companiesgenerallyheldaprudentoutlookgiventhedemanduncertainty.Policywise,trade-inrelatedsectorswillfacehigherbasefromAug/Sep;GSmacroteamexpectssigni?cantdemand-side

stimulustobeunlikelyintheneartermastheheadlineGDPnumberisstillresilient,thoughtherehavebeenmarginalpolicysupports(e.g.,temporaryinterestand

childbirthsubsidies).Onpricing,wecontinuetoseedownsiderisksamidthedemandsoftnessforsomecategories(e.g.,sportswear,spirits),andrestaurantsectorhasbeenseeingintensi?edpricingactivitiesduetoplatformfooddeliverysubsidyandmarketplayerseducatingnewcategories.

Onthebrightside,the

structuralgrowthopportunities

wehighlightedearlier

continuedtoplayout:1)demandforexperience-basedconsumption,includingIPretailerswhichhavebeendeliveringrobustgrowth,freshlymadedrink,petfoods;2)categoryexpansionandpenetrationopportunities,includingbeverage/freshly

madedrink,cosmetics,petfoods,andcompanieslikeLaopuwhichisatupward

brandcycle;3)overseasexpansion,wheremarketsharegain/penetrationcontinuetogeneratemeaningfulgrowthopportunity(e.g.,homeappliances)despitedemanduncertainty;4)lowertiercitiesarestillwhitespaceforsomecategories.

Meanwhile,withexpectationreset,wenotethemarketshowsinterestto

turnaround/”worstisover”theme.Shareholderreturnsarealsoasupporttostockprices.

Withinourconsumercoverage,ourmostpreferredsectorsaresportsbrands,diversi?edretailer,beverage,petfood;ourleastpreferredsectorsare

apparel/footwearOEM,furniture,projectors,discretionarysmallkitchenappliances,andnon-super-premiumspirits.RestaurantshavebeendowngradedfromPreferred

MichelleCheng

+852-2978-6631|

michelle.cheng@

GoldmanSachs(Asia)L.L.C.

LeafLiu

+852-3966-4169|

leaf.liu@

GoldmanSachs(Asia)L.L.C.

NicolasYi

+86(21)2401-8922|

nicolas.yi@

GoldmanSachs(China)SecuritiesCompanyLimited

CathyChen,CFA

+852-2978-6621|

kaiqi.chen@

GoldmanSachs(Asia)L.L.C.

ValerieZhou

+852-2978-0820|

valerie.zhou@

GoldmanSachs(Asia)L.L.C.

XinyuRuan

co82o-l9m77c

7hs|x(iiua.)ruLa..g.s.

CeciliaTang

+86(21)2401-8738|

cecilia.tang@

GoldmanSachs(China)SecuritiesCompanyLimited

CarolChen

+852-2978-7999|

carol.chen@

GoldmanSachs(Asia)L.L.C.

MollyDai

+852-3966-4000|

molly.dai@

GoldmanSachs(Asia)L.L.C.

ChristinaLiu

+852-2978-6983|

christina.liu@

GoldmanSachs(Asia)L.L.C.

MiaGu

+852-2978-6973|

mia.gu@

GoldmanSachs(Asia)L.L.C.

GoldmanSachsdoesandseekstodobusinesswithcompaniescoveredinitsresearchreports.Asaresult,

investorsshouldbeawarethatthe?rmmayhaveacon?ictofinterestthatcouldaffecttheobjectivityofthis

report.Investorsshouldconsiderthisreportasonlyasinglefactorinmakingtheirinvestmentdecision.ForRegACcerti?cationandotherimportantdisclosures,seetheDisclosureAppendix,orgoto

/research/hedge.html

.Analystsemployedbynon-USaf?liatesarenotregistered/quali?edasresearchanalystswithFINRAintheU.S.

GoldmanSachsChinaConsumer

toNeutralgiventheyareenteringalowseason,pricinguncertaintiesespeciallychangesindeliveryplatforms’strategies;whileweupgradejewelrytoNeutralfromleast

preferredonmorestabilizedsentimentongoldjewelryconsumption.

Stockpreference(Buynames):Anta(onCL),Eastroc(onCL),Midea,Haitian-H,Mixue,LaopuGold,WHGroup,CRbeer,Shenzhou,Tsingtao-H,GiantBiogene,Tingyi,Miniso,Guming,Gambol,Hisense,ChinaPetFoods.

Relevantreports:

ChinaConsumerStaples:AugCheckIn&ALC/2QWrap:Weakdemandamid

policy/weatherdrag;Widerdivergencewithstrongestgettingstronger

ChinaConsumerDurables:Xiaomi’sACpushtoenhanceindustryef?ciencybutmay

impactpro?tability;BuyMidea,Xiaomi;GreetoNeutral

ChinaCosmetics:2Q25wrap:ImprovedROI;stabilizingdemand;risingdivergenceon

brandcycle/turnaround;BuyGiant/Jahwa

ChinaSpirits:3QPreview:troughonrationalshipmentw/demandstilltiedto

policy/macro;stocksre?ectsentimentbottoming/divsupport

16September20252

GoldmanSachsChinaConsumer

16September20253

TableofContents

Key?ndingsfromthe2Q25resultsandALC6 Bysectortakeaways,whattoexpectinto2H25,andearningsrevisioncycles12 GSsector/stockpreferences20

2Q25macroheadlinenumberstillresilient,albeitwithmutedconsumption-ratedindicators23

Valuationmethodologyandrisks27

DisclosureAppendix

28

GoldmanSachsChinaConsumer

FortheexclusiveuseofXSLI@HHLRADVISORS.COM

Exhibit1:Summaryofcategorymomentum(Consumerdiscretionaryanddurables)

Sportsbrands

Textile/footwearOEM

Diversifiedretailers

Catering

Cosmetics

Jewelry

TraditionalAppliances

EmergingAppliances

Furniture

2025revenueyoy

11%

5%

143%

17%

20%

-1%

8%

30%

-1%

2025NPyoy

10%

-8%

244%

14%

35%

23%

10%

53%

22%

YTDsectorsharepricechg.(asofSep10)

21%

-15%

172%

46%

34%

107%

-2%

55%

-3%

2Q25resultssnapshot

Overalltrend(vs.1Q25)

Revenuegrowth(yoy)

4%

7%

188%

17%

19%

10%

10%

44%

-2%

2Q25vs.Marketexpectation:

Sales

Margin

ASP/promotion/discount

Discountremaineddeeperyoy;rationalspendingtrendcontinued

Mixed-someplayers'ASPfaced

headwindsfromtariff-sharing/

weakerproductmix/FXdrag,while

somedeliveredyoyASPgrowth

drivenbymorefavourable

customer/productmix

Pricingremainssolidsupported

byIPpopularity.Pricehike

actionforUSmarketfromPop

Mart

Continueddeliveryplatform

subsidiesledtolowerpurchase

price,thoughAugdensityeased;

FMDbrandsleveragemore

affordablepricetoeducatenew

categories

Relativelystablediscount

during618vs.lastyearDouble

11/618

ASPincreasedduetogold

priceincrease

HealthyASP/promotionoffline,but

moreintensecompetitiononlinefor

lower-endproducts

GenerallystableASP

thoughcompetitionremains

intense

Moredistributorsparticipated

thetrade-inprogramthatcould

helpASP,thoughthe

competitionremainintense

Inventory

Inventorylevelingeneralis

normal

Globalbrands'inventorylevelis

elevated,thoughpartiallydueto

front-loadedshipment

Healthychannelinventory

Monthlytrend

Junwasatroughlevelforall

playersduetolong618festival

(pricewar),whileJul-to-Augtrend

wasmixedfordifferent

companies

OEMs'Aprsaleswereconfirmed

earlierandthereforelargely

unaffectedbytariffhike,yetMay-

Junordermomentumor2Horder

visibilitydeterioratedespeciallyfor

casual/low-ASPbrands

PopMartgrowthaccelerated

from1Qwithstrong

performanceinbothChinaand

overseas;MinisoChina/US

SSSGturnedtopositivein2Q

andsawacceleration3Qtodate

-SSSrecoveryremainedat

relativelylowlevel

-ForFMDbrands,delivery

subsidysteppedupinJulwhile

normalizedinAug

May+Junacceleratedvs.Apr

stimulatedby618shopping

festival

momsequentialSSSG

improvementwhilenetstore

closurescontinued

GenerallyrobustgrowthmomentumwithACoutperformed

Continuedrobustgrowthfor

RVC;boosttoothersmall

appliancesremainlimited

thoughimprovedvspre

trade-in

Generallysluggishdemand

thoughsomeboostfrom618;

developerchannelisstillunder

pressure

Outlook

Guidance

Mixed-Antabrandlower;

Descente/Kolonhigher;other

brandsmaintainedoutlook

Guidancehavebeenresetearlierandaregenerallymaintained

PopMartandMinisoraised

guidance;butBloksand

ShanghaiM&Gtrackingbehind

ofearlierguidance

Prudentexpansionplan/outlook

forrestaurantplayers.But

selectiveFMDbrands'store

expansionaboveearlierguidance

(e.g.Guming,LuckyCup)

Maintained,withselective

name(i.e.MGP)nudgedupNI

guidanceonbetterefficiency

CTStoneddownontopline;

CTF/LFmaintained;expect

storeclosuretocontinuewhile

graduallymitigated;improved

confidenceinwitnessof

narrowingofSSSdeclineor

turningpositive

Companydivergencewithmost

companiesmaintainedtheirannual

guidance

Demandoutlook

Mixed-Largebrands/retailers

generallytoneconservativeon2H

demandtrend;whilenichebrands

momentumstayrobustand

Bosidengexpectsgrowth

acceleration

Mixed-somearecautious2H25

orderbookwhileselectplayers

havebettervisibilitythanksto

walletsharegain/diversified

RemainconstructiveonIP

demandinbothChinaand

overseas.Newproduct/IP

launchaccelerationin2H(e.g.

Bloks,ShanghaiM&G,Miniso's

selfownedIPs)

-Easierbaseinto2Hbut

restaurantbrandsremainprudent

-Deliveryplatforms'subsidy

continuetoboostvolume,GS

Internetteamexpectsinvestment

topeakin3Qbutwillstilllast

Overallstillsoftdemandwith

initialsignsofbottomingas

2025YTDonlineGMV

acceleratedyetdivergent

trendswithselectlocalleaders

outperforming

Higherbaseinto2Hbut

expectstoreclosureand

morestablegoldsentimentto

supportanacceleration

Domesticdemandisstillsupported

in3Qbytrade-instimulusonalow

base,butwillfacegrowthpressure

onahighbasein4Q;Exports

demandtomoderateonahigh

base,butstructurallybetterdemand

fromEM

Solidgrowthforstructurally

growingcategories;recovery

ofmostsmallappliancesis

limitedandwilllargely

dependentonmacro

conditions

Demandpressureconsidering

completionsdeclineinprimary

marketandmutedsecondary

propertymarket

Marginoutlook

GPMfacescontinuous

headwindsfromdiscount,channel

shifttowardsonline,

enhancedmaterialswithout

raisingpricesetc;OPMpressure

tointensifyin2Hduetobaseand

brandinvestments

Tariffsharing,lessoperating

leveragefromweakerdemand,

reducedoperatingefficiencydue

toramp-up/orderallocation

amongdifferentproductionbases,

competitioncontinuetobring

headwindstomargin

Positiveoperatingleverage,

especiallywithoverseasenteringpeakseason(PopMart,Miniso)

Rawmaterialpriceremained

favorableinthenearterm,cost

controlefforts.Butneedtowatch

pricing/promotiontrends

Marginpressuremay

marginallyimproveasbrands

becomemoredisciplinedon

promotionsandprioritizeROI,

inadditiontoenhancing

operatingefficiency

Marginexpansionwiththe

increaseofrevenuemixof

fixed-priceproducts,while

potentiallylessgoldprice

uptrendsupport

Consistentguidanceformildmargin

expansion;stillfastergrowthof

premiumproducts,easing

commodityprices,andefficiency

gainstodrivemarginexpansion

whilerisingcompetitiononlower-

endproductsandtariffcostsremain

majordownsiderisk

Mixedmargins:continued

marketing/branding

investmentinRVCtopose

downwardpressureon

margins,yetprojectors'

marginsimprovefromalow

base

Moreemphasisonefficiencies

tomaintainhealthymargins,

thoughitmightbestillimpacted

bypropertyrelatedimpairment

losses

Catalysts

NationalHoliday,3Q25trading

updateinOct,Double-11

shoppingfestival

Holidaydemand,globalbrands'

results,initial2026ordersinlate

4Q

IP/newproductserieslaunch,IP

momentum,overseasmarket

peakseason

Platform'sdeliverysubsidy

update,NationalDayholiday

spending,policysupport

Double11

Nationaldayholiday

spending;2QFY26

operationalupdatesforHK

jewelersinOct

Trade-in/tariffpolicydevelopment,

weekly/monthlysalesdata,Singles'

Daypricing/demand

Newproductlaunches,trade

in/tariffpolicydevelopment,

Singles'Daypricing/demand

Propertymarketpolicy,housing

data

Revenue/NP/OPyoygrowtharebasedonmarketcapweightedaverageofGScoveredcompanies.

Source:Companydata,VisibleAlphaConsensusData,GoldmanSachsGlobalInvestmentResearch

16September20254

GoldmanSachsChinaConsumer

16September2025s

FortheexclusiveuseofXSLI@HHLRADVISORS.COM

Exhibit2:Summaryofcategorymomentum(Consumerstaples)

foo

2025revenueyoy

2%

0%

6%

0%

18%

6%

23%

7%

2025NPyoy

2%

8%

2%

16%

25%

-5%

17%

14%

YTDsectorsharepricechg.(asofSep10)

-1%

0%

-9%

-7%

40%

13%

34%

7%

2Q25resultssnapshot

Overalltrend(vs.1Q25)

Revenuegrowth(yoy)

2%

-2%

5%

3%

17%

15%

25%

8%

2Q25vs.Marketexpectation:

Sales

Margin

ASP/promotion/discount

Wholesalepricesweakeningunderpolicyimpact

(-)ASPstillunderpressure

ofweakon-tradechannel

(+)On-trackin-home

channelmixupgrades

Noplanforpricehike

(=)Rawmilkprice

stabilizing,yoydecline

narrowedtoSD%

(-)Morevalueofferings

Mixedbagwithbeverage

launchinglargepack

Ongoingpricingheadwind

andpromotion

FavourableASPtrenddrivenbyinnovativeproducts

Pricingpressuredueto

promotion

Inventory

Higherthannormal,espfor

uppermidend

Maintainedatdisciplined

level,healthieryoy

Normallevel

Normallevel

Normallevel

Normallevel

Normallevel

Monthlytrend

Demandweakeningunderanti-

extravaganceimpact;

Somepressurefromweak

on-trade

Somepressurefromweakon-

trade

Demandyettoimprove

despitelowbase

Stillstrongseculargrowth;

competitionakeyswing

factor

Pressureontraditional

channelonsoftermarketor

strategicadjustment;

discountersandCVS/mom-

popremainsolid

Stillstrongseculargrowth

(-)Somepressurefromweakon-trade;(+)better2C

Outlook

Guidance

Pressureonfulfilling2025

growthtargetsespforupper-

mid-end

Largelyresilientinmargin

Largelyresilientinmargin

LookforS/Drebalancein

2H25~1H26

Competitionaswingfactor

Higherbasein2Hbutfull

yearguidancemaintained

Remainpositiveforthefull

yeardomesticsales

Sequentialimprovementfrom

Augwithsmallmagnitude;

morenormalisedcompetition

Demandoutlook

Demandunderanti-

extravagancepolicy,esp.for

upper-mid-end

Lookforcontinuedsolidin-

homegrowth,whileon-

tradeconsumptionstilllags

Lookingforopportunitiesfrom2Bchannel;2Cstillsoftwithsomefocusonhealthytrend

Lookforimprovementin

rawmilksupply/demand

balancein2H25

Longtermpotentialforper-

cappenetration

Remainpositiveforthenew

category,e.g.Konjac

development

Longtermpotentialforper-

cappenetrationand

premiumisationtrend

Lookingforopportunitiesfrom

2Cchannel;2Bvolatileon

policyandon-trade

Marginoutlook

Intensifiedpressureunderanti-extravaganceimpact

costtailwinds

costtailwinds,competitiona

swingfactor

costtailwinds;operating

efficiencymeasures

costtailwinds,competitionaswingenteringpeakseason

Marginoutlookintactwith

costsavings

Someimpactsandlow

visibilityforoverseas,but

domesticintact

Morestablemarginprofilebymorerationalpricingandnofurtherrisingcostheadwind

Catalysts

Anti-extravagancepolicies

normalizing;Mid-

Autumn/NationalDaypeak

season;Consumptionstimulus

Consumptionstimulus;

recoveryincatering/nightlife

channels

Consumptionstimulus;recoveryincateringchannels

Supplysideimprovement;

Dairyproductconsumption

stimulus

Newproductrampup

Konjac/newproductramping

up

Double11;Newproducts

launchingwith

premiumisationtrend

Consumptionstimulus;

recoveryincateringchannels

Revenue/NP/OPyoygrowtharebasedonmarketcapweightedaverageofGScoveredcompanies.

Source:Companydata,VisibleAlphaConsensusData,GoldmanSachsGlobalInvestmentResearch

GoldmanSachsChinaConsumer

Key?ndingsfromthe2Q25resultsandALC

FluiddomesticsdemandwithweaktrendinJul-Augandprudentoutlook

TheNBSretailsalesgrowthwasat5.4%in2Q25,sequentiallyimprovedfrom4.6%in1Q25.Thatsaid,wehaveseenasequentiallyweakermonthlytrend,withJul/Augretailsalesgrowthnarrowingto3.7%and3.4%respectively.Atacompanylevel,average

salesgrowthforthecompanieswecoverat+8%in2Q25comparedto+9%/+8%in1Q25/4Q24.

Companies’outlookremainsprudentonthedemanduncertaintieswitha

broad-basedmuted3QTDtrend,butselectsectors/companiespointtosignsof

modestsequentialimprovementinAugust.Sportswearcompaniesgenerallyholdacautiouslyoptimistictoneon2H25inviewoftheunexciting3QTDtrend,but

Antagroup

seessomeacceleration

inlateAugandhopesforabetterSeptemberthoughwill

closelymonitorthetrend;restaurantSSSrecoveryremainedatarelativelylowlevelinJul,whilewesawsomesequentialimprovementinAug,thoughmagnitudeissmall,

andwestillneedtowatchsustainabilitypostthesummerholidaypeakseason;

cosmeticsJul-Augonlinesalesgrowthacceleratedfrom2Qoneasierbase,butthe

overalldemandremainssoft;inpreparedfood,afteratough2Q25,weobserve

sequentialimprovementintoAug

albeitmagnitudeisstillsmall;for

spirits

,year-on-yearstillunderpressurebutmultiplecompaniescommentedsequentialimprovementin

Aug,andsharepricesawreboundrecentlywiththeongoing“worstisover”theme.Weobservedsignsofpolicyimpactnormalizing,butoutlookfortheupcoming

Mid-AutumnFestivalandNationalDaypeakseasonremaincautiousandbanquetwill

continuetodrag.Fortrade-inbene?tedappliancecategory,whiledomesticappliance

datacontinued

robustmomentuminJul

andAugstillheldupwell(retailsalesgrowthupdoubledigityoy)withsequentiallybetterASP,weexpectdomesticgrowthto

sequentiallymoderategoingforwardwithhigherbasefromAug/Sep;yetwedonotexpectasigni?cantyoydeclineasdemandisstillsupportedbyorderlystimulus

execution.

16September20256

16September20257

Exhibit3:RetailsalesgrowthinAprslightlymoderated,bouncedbackinMaypartiallythankstotheearlystartof618,whilefurthermoderatedinJun,JulandAug

Chinaretailsalesyoy

60.0%

50.0%

40.0%

30.0%

20.0%

10.0%

0.0%

-10.0%

-20.0%

-30.0%

-40.0%

Sep-24Oct-24Nov-24Dec-24Jan/Feb-25Mar-25Apr-25May-25Jun-25Jul-25Aug-25

16.8%16.9%

7.3%14.3%12.4%

3.4%

5.8%

。I

3.1%i

5.1%

i0.8%l1.0%2.1%

-2.3%

Benefiting

fromtrade-

inpolicy

AutomobileCatering

(above

CateringOnline(goods+service)

Apparel,

Shoes,Hats&

Textile

CosmeticsGold,SilverandJewelry

Sporting

goodsand

Recreation

Activity

TelecomEquipment

Household

Appliances,

Video

Equipment

TotalRetailCereals,OilsTobacco&Sales&FoodstuffsLiquor

Designated

size)

18.0%

16.0%

14.0%

12.0%

10.0%

8.0%

6.0%

4.0%

2.0%

0.0%

-2.0%

Chinaretailsales5-yr/6-yrCAGRfrom2019

Sep-24Oct-24Nov-24Dec-24

Jan/Feb-25Mar-25Apr-25May-25Jun-25Jul-25

Aug-25

9

.5%

8.8%

7.0%

6.5%

5.0%

5

.2%

3.1%

1.5%

3.2%

2.7%

2.1%

2.6%

2.2%

AutomobileCatering

(above

CateringOnline(goods+service)

Apparel,

Shoes,Hats&

Textile

CosmeticsGold,SilverandJewelry

Sporting

goodsand

Recreation

Activity

TelecomEquipment

Household

Appliances,

Video

Equipment

TotalRetailCereals,OilsTobacco&Sales&FoodstuffsLiquor

Designated

size)

Source:NBS

Exhibit4:Onlineretailsaleshavebeenoutpacingtotalretailsalesinrecentmonths

Chinaretailsalesyoygrowth

Jan/Feb-…

Mar-23

Apr-23

May-23

Jun-23

Jul-23

Aug-23

Sep-23

Oct-23

Nov-23

Dec-23

Jan/Feb-…

Mar-24

Apr-24

May-24

Jun-24

Jul-24

Aug-24

Sep-24

Oct-24

Nov-24

Dec-24

Jan/Feb-…

Mar-25

Apr-25

May-25

Jun-25

Jul-25

30%

25%

20%

15%

10%

5%

0%

-5%

OnlineretailsalesgrowthTotalretailsalesgrowth

Exhibit5:Atthecompanylevel,wealsoseeonlinegenerallyoutperformingvs.of?inein2Q25

Selectivecompanies’onlinevsoverallgrowth

PopMart(MLChina,upperaxis)

Proya

Chinaretailsales

LiNing

Antacore

Xtepcore

175.0%

282.0%

Online

0.0%50.0%100.0%150.0%200.0%250.0%300.0%

6%

7%

9%

5%

+LSD

+MSD

+LSDmm+LSD

+LSD

+>LSD

Total

0.0%2.0%4.0%6.0%8.0%10.0%

Source:NBSSource:Companydata,DatacompiledbyGoldmanSachsGlobalInvestmentResearch,NBS

16September20258

Marginstillamixedbag

Onthepositiveside,amiddemandsoftness,weseesomecompaniescontrolledcost

orkeptenhancingoperationalef?ciencywhichgeneratesmarginupside,andtheraw

materialcostremainedlargelyfavorable.Forcompanieswithgrowthacceleration(e.g.,MinisowhoseSSSGturnedtopositive,PopMartandfreshlymadedrinkleaders

deliveredrobustgrowth),wealsoseeoperatingleveragebringingmarginbeat.Whileonthe?ipside,investmentinmarketing/marketshareledtomarginmissforsome

companiesincategoriesincludingcosmetics(Proya,Botanee),beverage(CRBeverage)whichseegrowthopportunities,thoughwealsoseedivergentcompanyperformancewhereGiant/MGPbeatonOPwithbetteroperatingef?ciency,andNongfubeaton

economiesofscaleandproductmiximprovement;andoperatingdeleverageisanothersourceofmarginpressure.

Structuralgrowthopportunitieskeepgeneratingalpha

Despitetheoveralldemandsoftness,the

structuralgrowthopportunities

weearlier

highlightedcontinuedtoplayout.Morespeci?cally,1)Demandforexperience-basedconsumption.IPsalesremainedrobustorevenfurtheraccelerated,andPop

Mart/Minisobothreportedsolidbeatwithguidanceraise;petfoodsgenerallyreportedstronggrowthandoutlookremainspositive;withinsportswear,outdoorsbrands

momentumwasapositivesurprise(e.g.,Descente,Kolon,

Amer

)withguidanceupwardrevision;2)Categoryexpansionandpenetrationopportunities.Forexample,freshlymadedrinkleadersMIXUE/Gumingreportedstronggrowthin1Hsupportedbyfood

deliverysubsidyaswellasnewproducts(e.g.,coffeecategoryforGuming).In

beverage,NongfudeliveredsalesbeatinmultiplebeveragesegmentsandEastroc

reportedrobustgrowth.Inthecosmeticsspace,premiumbrandsoperatedbylocal

players(e.g.,MAOGEPING,EDB,RéVive,Galenic,Aoxmed)relativelyoutperformedin1H25.Concurrently,localplayersarestrategicallyexpandingtheirproductportfoliosintowhitening/anti-aging/sunscreen/foundationmakeup.Majorjewelersalsosaw

opportunitiestoexpandintopremiummarketasLaopudeliveredtriple-digit%sales/NIgrowth.3)Overseasmarket.Althoughtherehavebeenuncertaintiesontariffsand

demand,marketsharegainandmarketexpansioncanstillgeneratemeaning