On August 8th, Guolianhui reported that U-Presid China's first-half revenue increased by 6% to 15.449 billion yuan, which is consistent with market expectations. Its net profit increased by 10.2% to 0.966 billion yuan, exceeding market expectations by about 7%. Operating surplus increased by 55.6% more than the market expected, benefiting from gross margin growth of 2.7 percentage points. This is mainly due to the reduction of discounts, the decline in raw material costs, and the improvement of capacity utilization. In addition, U-Presid management lowered its revenue growth target for this year from low double-digit to mid-to-high single-digit based on intensified competition. They expect to invest more in sales and marketing expenses in the second half to improve the revenue growth of the beverage and noodle business. The management expects that the company's gross margin will continue to expand due to improved utilization and controlled discounts. The bank expects that investors will react positively based on U-Presid's strong growth in operating surplus in the first half of the year. The bank also gives U-Presid a "buy" rating with a target price of HK$8.05.