Nongfu Spring 25H1 Quick Interpretation: As the impact of public opinion gradually faded in the first half of the year, Nongfu increased the promotion of red bottled water and reduced subsidies for green bottled water, leading to a comprehensive recovery in the company's overall performance, which is a very good result.

1. Bottled Water Business: With the weakening of public opinion impact, the 25H1 bottled water business achieved revenue of 9.44 billion yuan, a year-on-year increase of 10.7%. After two consecutive financial reports of decline, the bottled water business has resumed positive growth.

Additionally, with the increase in the proportion of red bottled water, the operating profit margin of the bottled water business has risen back to 35%, basically returning to the level before the impact of public opinion.

2. Tea Beverage Business: Tea beverages achieved revenue of 10.09 billion yuan, a year-on-year increase of 20%. Dolphin Research speculates that the core reason is the "One Yuan Enjoyment" campaign launched by the company in April for the sugar-free tea flagship product, Oriental Leaves, which effectively increased consumer repurchase rates and drove high growth in sugar-free tea.

Moreover, with the release of operating leverage, the more impressive aspect is that the operating profit margin of the tea beverage business increased by 4 percentage points to 48%, setting a historical high.

3. Functional Drinks & Juice Business: As a relatively weak segment for Nongfu, the functional drinks and juice business benefited from the rapid distribution of Electrolyte Water Power Emperor and the new 17.5° NFC Orange Juice, exceeding market expectations, with operating profit margins reaching new highs.

4. Significant Decline in Sales Expense Ratio: Due to the company's significant reduction in subsidies for green bottled water in the first half of the year, combined with more precise expense allocation, the sales expense ratio fell by 2.8 percentage points to 19.6%, while the management expense ratio remained stable, ultimately achieving a net profit margin of 22.1%, exceeding market expectations. $NONGFU SPRING(09633.HK)