Core Viewpoint - The return of Sun Dongxu to Dongfang Zhenxuan's live streaming platform marks a significant moment after his dismissal as CEO and executive director due to management issues related to the "small essay" incident [1][2][3]. Group 1: Management Changes - Sun Dongxu was removed from his position as CEO and executive director on December 16, 2023, due to poor management, which included inappropriate expressions during live broadcasts and breaches of privacy [2]. - The board of directors emphasized that Sun's departure was necessary to protect shareholder interests and allow more experienced directors to manage daily operations [2]. - On December 22, 2023, Sun Dongxu resigned from his position as a non-executive director, effective immediately [2]. Group 2: Company Response - Yu Minhong and Dong Yuhui addressed the "small essay" incident in a live stream, clarifying the reasons behind Sun's dismissal, which included management failures and the impact of live streaming conduct on the company's reputation [2]. - Yu Minhong reassured the public that Sun Dongxu would not leave Dongfang Zhenxuan, indicating a continued association with the company despite the management changes [3][4].

Core Insights - Douyin e-commerce reported significant growth during the 2024 "Double 11" shopping festival, with over 33,000 brands doubling their sales compared to the previous year, and nearly 17,000 brands experiencing sales growth exceeding 500% [1][3] - The platform's shelf e-commerce segment has gained traction, accounting for 42% of total sales, with "Super Value Purchase" sales increasing by 170% year-on-year [1][7] - The competition among e-commerce influencers has shifted, with notable changes in rankings, including the drop of Dong Yuhui's "Oriental Selection" from the top ten [2][4][5] Sales Performance - During the "Double 11" period, 111 e-commerce influencers achieved sales exceeding 100 million yuan, with 275 brands reaching over 100 million yuan in sales through live streaming [2][6] - The total sales for "Jiao Ge Peng You" surpassed 6.4 billion yuan, marking a 158% increase year-on-year, with over 7.14 million orders placed [4] - Xiaomi reported a record-breaking total payment amount of over 31.9 billion yuan during the "Double 11" event [5] Influencer Dynamics - The top three sales influencers on Douyin during "Double 11" were "Guangdong Couple," "Yu Hui Tong," and Jia Nailiang, with average transaction values of 345.6 yuan, 65.7 yuan, and 265.48 yuan respectively [3][4] - The absence of popular influencers like "Crazy Xiao Yang Ge" and "Dong Yuhui" impacted sales performance, leading to a competitive disadvantage for Douyin [5][8] E-commerce Strategy - Douyin has been focusing on enhancing its shelf e-commerce capabilities, with a reported GMV growth of 277% year-on-year for its shelf segment [7][8] - The platform is emphasizing content-driven marketing strategies, aiming to leverage high-quality content as a primary driver for business growth [8] - Despite the growth in shelf e-commerce, analysts caution that the overall growth rate of Douyin e-commerce is slowing, indicating potential challenges ahead [8]

【东方甄选：从未发送过自动扣费短信通知】东方甄选官方微博发布声明称，近日有网友反馈有人冒充 东方甄选发送自动扣费的短信通知。 东方甄选从未发送以上通知，请广大网友提高警惕，不要拨打电话或点击链接，避免上当受骗。 （中新经纬APP） ...

Macro Dynamics - The 26th Germany-China Automotive Suppliers CEO Roundtable was held in Shanghai, where representatives from both countries emphasized the need for cooperation in the automotive industry, particularly in the fields of new energy and intelligent connected vehicles, to create a fair trade environment [1] Financial Institutions - WeBank announced it will cooperate with government and regulatory authorities to combat illegal loan intermediaries misusing its name for malicious marketing, which has harmed customer rights and the bank's reputation [1] Market Data - The London Stock Exchange (LSEG) is considering laying off about 200 employees, primarily in the sales department, as part of a global business evaluation [2] - U.S. stock market showed mixed results with the Dow Jones down 0.61%, while the Nasdaq rose 0.56% on October 25 [2] - Spirit Airlines shares surged over 15% after announcing plans to sell 23 Airbus aircraft and implement cost-cutting measures [3] - Popular Chinese stocks saw gains, with XPeng Motors rising over 6% and the Nasdaq Golden Dragon China Index increasing by 1.38% [3] Company Dynamics - BMW's first 5S store in the world, Beijing Xingdebiao Automotive Sales Service Co., has closed due to severe financial pressure, with the brand's authorization terminated as of October 20, 2024 [3] - Eli Lilly's Alzheimer's drug Donanemab (Kisunla) has been approved for marketing in the UK, following previous approvals in the U.S., UAE, Japan, and Qatar [4]

Core Viewpoint - The company, Dongfang Zhenxuan, has issued a warning regarding fraudulent messages impersonating the company, while also reporting significant growth in its financial performance for the fiscal year 2024 [1] Financial Performance - For the fiscal year 2024, Dongfang Zhenxuan reported a total GMV of 14.3 billion, representing a year-on-year growth of 43% [1] - The total revenue reached 7.1 billion, an increase of 56.8% compared to 4.5 billion in the fiscal year 2023 [1] - The net revenue from self-operated products and live e-commerce increased by 68.1%, rising from 3.9 billion in 2023 to 6.5 billion in 2024 [1] - The adjusted net profit from continuing and discontinued operations was 2.2 billion, which includes a post-tax gain of 1.3 billion from the sale of the education business, compared to 1.1 billion in the same period last year [1] Operational Metrics - The total number of paid orders on Douyin reached 181.1 million, a significant increase from 136.3 million in the fiscal year 2023 [1] - The gross margin for continuing operations decreased from 38.2% in fiscal year 2023 to 25.9% in fiscal year 2024, primarily due to promotional activities and increased sales of lower-margin agricultural products [1] Business Growth - The self-operated products and live e-commerce segment has become the core driver of growth for Dongfang Zhenxuan, achieving total revenue of 6.5 billion, up from 3.9 billion in the previous fiscal year [1]

证券时报网讯，恒生科技指数跌逾2%，截至发稿，东方甄选以8.61%的跌幅领跌。 金蝶国际下跌6.18%，哔哩哔哩-W下跌3.99%，阿里健康下跌4.23%，快手-W下跌3.72%，阿里巴巴-W 下跌3.70%，蔚来-SW下跌3.64%，美团-W下跌3.28%，商汤-W下跌3.01%。 校对：杨立林 ...

Financial Performance - Total revenue for 2024 fiscal year reached RMB 7,072.56 million, a significant increase from RMB 4,509.85 million in 2023[3] - Net profit attributable to the company's owners for 2024 fiscal year was RMB 1,719.50 million, compared to RMB 971.29 million in 2023[3] - Adjusted EBITDA for 2024 fiscal year was RMB 904.59 million, down from RMB 1,207.45 million in 2023[3] - Gross profit for 2024 fiscal year was RMB 2,119.01 million, up from RMB 1,954.77 million in 2023[4] - Adjusted net profit for 2024 fiscal year was RMB 2,180.71 million, up from RMB 1,089.33 million in 2023[4] - Basic earnings per share for 2024 fiscal year was RMB 1.68, compared to RMB 0.97 in 2023[3] - The company recorded a post-tax gain of RMB 1.3 billion from the sale of its education business in 2024[7] - Total net revenue increased by 56.8% from RMB 4.5 billion in FY2023 to RMB 7.1 billion in FY2024[13] - Net revenue from self-operated products and live-streaming e-commerce grew by 68.1% from RMB 3.9 billion in FY2023 to RMB 6.5 billion in FY2024[13] - Adjusted net profit for continuing operations was RMB 709.4 million in FY2024, compared to RMB 916.1 million in FY2023[13] - Adjusted profit for the year was RMB 709.4 million, compared to RMB 916.1 million in the previous year[46] - Adjusted EBITDA for the year was RMB 773.8 million, compared to RMB 1,080.8 million in the previous year[47] - Net profit from continuing operations decreased from RMB 799.2 million in FY2023 to RMB 249.1 million in FY2024[44] - The self-operated products and live e-commerce segment's gross margin decreased from 38.2% in FY2023 to 25.9% in FY2024 due to promotional activities and a shift towards lower-margin agricultural products[33][34] - Gross profit for the self-operated products and live e-commerce segment increased by 14.1% from RMB 1.5 billion in FY2023 to RMB 1.7 billion in FY2024[33][34] - University education segment gross margin improved from 74.6% in FY2023 to 77.5%, driven by strong market demand and reduced low-price entry-level courses[35] - Institutional clients gross margin increased from 79.9% in FY2023 to 89.7%[36] - The company's total revenue for the fiscal year 2024 was RMB 7,072,564 thousand, accounting for 100% of the group's total revenue, compared to RMB 4,509,849 thousand in fiscal year 2023[102] Assets and Liabilities - Total assets increased to RMB 6,541.52 million in 2024 from RMB 3,852.94 million in 2023[6] - The company's equity attributable to owners increased to RMB 4,969.22 million in 2024 from RMB 2,803.81 million in 2023[6] - Current assets increased significantly to RMB 6,163.89 million in 2024 from RMB 3,436.92 million in 2023[6] - Cash and cash equivalents increased to RMB 2.26 billion at the end of the fiscal year, up from RMB 1.17 billion in the previous year[50] - Total monetary funds, including cash, cash equivalents, and financial assets at fair value, amounted to RMB 4.6 billion at the end of the fiscal year[49] - The company's asset-liability ratio decreased to 24.0% from 27.2% in the previous year[49] - The company has no bank loans or other borrowings and maintains sufficient cash and capital resources to fund operations and expansion, with no plans for borrowing in the next 12 months[61] - As of May 31, 2024, the company has no significant contingent liabilities[63] - The company has no mortgaged assets as of May 31, 2024[62] - No major litigation or arbitration cases were reported during the period, and the company is not aware of any pending or threatened significant legal claims as of May 31, 2024[65] - The company has no distributable reserves as of the end of FY2024[66] Operational Highlights - GMV increased from RMB 10.0 billion in FY2023 to RMB 14.3 billion in FY2024, representing a 43% growth[11] - The number of followers on Douyin grew from 41.8 million in FY2023 to 65.0 million in FY2024, a 55.5% increase[11] - Paid orders on Douyin rose from 136.3 million in FY2023 to 181.1 million in FY2024, a 32.9% growth[11] - The company developed and launched 488 SKUs of self-operated products in two years, expanding from 120 SKUs in FY2023[16] - Self-operated products accounted for approximately 40% of total GMV in FY2024, up from 30% in FY2023[16] - The company's app became a core channel for self-operated products, with some products generating over 40% of their total GMV on the app[15] - The company implemented a multi-platform strategy, with the "Dongfang Zhenxuan Self-operated Products" Douyin account consistently achieving monthly GMV exceeding RMB 100 million[14] - The company's GMV increased by 43% to RMB 14.3 billion in the 2024 fiscal year, with 8.4% of GMV coming from the app[19] - The company has achieved 99% coverage for domestic ambient delivery and 97% coverage for cold chain delivery[18] - The company has established 27 front-end delivery warehouses in Beijing, covering 92% of the area within the Fifth Ring Road, with a member coverage rate of 73.5% and an average delivery time of 44 minutes[18] - The company's self-operated products and live e-commerce team reached 1,883 people, including 1,318 full-time and 565 part-time employees[18] - The company's supply chain and product team reached 830 people, including 565 full-time and 265 part-time employees[18] - The company plans to expand offline self-operated product promotion in the 2025 fiscal year, starting with a pilot in Beijing in the second half of 2024[24] - The company has invested in a sausage factory and strengthened upstream supply chain management to optimize raw material costs[17] - The company has partnered with logistics companies such as SF Express and JD Logistics, achieving a user satisfaction rate of 96.3% for instant orders in Beijing[18] - The company has sold its education business to focus on self-operated and live e-commerce operations, which have become the main revenue source[20] - The company emphasizes product quality control, including traceability of meat products and pesticide residue testing for vegetable products[23] Expenses and Investments - Sales and marketing expenses surged by 174.5% from RMB 315.5 million in FY2023 to RMB 866.1 million in FY2024, primarily due to increased employee costs in the self-operated products and live e-commerce business[38] - R&D expenses doubled, increasing by 101.6% from RMB 65.3 million in FY2023 to RMB 131.6 million in FY2024[39] - Capital expenditures for property and equipment were RMB 35.9 million, up from RMB 12.8 million in the previous year[54] - The company raised approximately HKD 1.783 billion in net proceeds from the 2020 subscription, with HKD 149.9 million utilized in FY2024[87] - The remaining balance of the 2020 subscription proceeds as of FY2024 is HKD 527.9 million, with HKD 250.4 million allocated for sales and marketing, HKD 3.9 million for technical infrastructure, HKD 105.6 million for teachers and other business-related personnel, and HKD 168.0 million for working capital[87] Shareholder and Equity Information - The company did not repurchase any shares on the Hong Kong Stock Exchange during fiscal year 2024, despite having authorization to repurchase up to 10% of its issued shares[90] - No final dividend was recommended for fiscal year 2024, consistent with the previous fiscal year[94] - The company did not issue any debentures during fiscal year 2024[92] - No stock-linked agreements were entered into or existed during fiscal year 2024, except as disclosed in the annual report[93] - The company did not hold any treasury shares at the end of fiscal year 2024[91] - The company's integrated affiliated entities generated total revenue of RMB 7,072,564 thousand, representing 100% of the group's total revenue for the reporting period[102] - The company's contract arrangements with Beijing Xuncheng and its subsidiaries remained unchanged during fiscal year 2024, with no significant changes or terminations[103] - The company's directors and senior management did not receive any discretionary bonuses during fiscal year 2024[95] - The company's contract arrangements with Beijing Xuncheng and its subsidiaries provided the company with control over the economic benefits generated by these entities[104] - Exclusive option agreement signed on May 10, 2018, allowing Dexin Dongfang to acquire Beijing Xuncheng's equity at the minimum permissible cost under Chinese law[108] - Equity pledge agreement signed on May 10, 2018, ensuring previous registered shareholders pledge their equity in Beijing Xuncheng to Dexin Dongfang[109] - Irrevocable power of attorney signed on May 10, 2018, authorizing Dexin Dongfang to appoint directors and vote on behalf of previous registered shareholders[110] - Supplementary agreement signed on October 10, 2019, making Zhuhai Chongsheng a party to the contractual arrangements with Beijing Xuncheng[111] - Second supplementary agreement signed on February 1, 2021, involving Xi'an Ruiying, Hainan Haiyue, and Wuhan Dongfang as parties to the contractual arrangements[112] - Third supplementary agreement signed on May 24, 2023, terminating rights and obligations of Linzhi Tencent and Tianjin Limited Partnership in Beijing Xuncheng[113] - Fourth supplementary agreement signed on March 7, 2024, terminating rights and obligations of Kuxue Huisi, Xi'an Ruiying, and Wuhan Dongfang in Beijing Xuncheng[114] - Contractual arrangements established to navigate foreign investment restrictions in China, particularly in online and mobile platforms and live e-commerce businesses[115] - Risks associated with contractual arrangements include potential non-compliance with Chinese laws, changes in foreign investment laws, and reliance on contractual control over operational control[117] - The 2023 New Oriental Framework Agreement involves transactions including advertising, marketing, and promotion services, with an annual cap of RMB 52.42 million and actual transaction amount of RMB 27.68 million[122] - The company's procurement of goods from New Oriental Group has an annual cap of RMB 26.82 million and actual transaction amount of RMB 3.25 million[122] - The company's provision of goods to New Oriental Group has an annual cap of RMB 47.57 million and actual transaction amount of RMB 37.24 million[122] - The company's transfer of TPO exam materials license to New Oriental Group has an annual cap of RMB 4.59 million and actual transaction amount of RMB 4.16 million[122] - The company's receipt of online or offline educational resources from New Oriental Group has an annual cap of RMB 10.50 million and actual transaction amount of RMB 0.02 million[122] - The company's provision of online or offline educational resources to New Oriental Group has an annual cap of RMB 2.54 million and actual transaction amount of RMB 0.00 million[122] - The 2023 Tigerstep Framework Agreement involves property leasing and property management services, with an annual cap of RMB 1.00 million and actual transaction amount of RMB 0.17 million[123] - The company has implemented internal control measures to ensure related party transactions are conducted under normal commercial terms and are not inferior to terms available to third parties[124] - The company's independent non-executive directors confirmed that the transactions conducted in FY2024 were in accordance with the relevant provisions of the continuing connected transactions agreements[126] - The company's independent external auditors confirmed that there were no instances where the disclosed continuing connected transactions exceeded the annual caps set by the company[128] - The company announced that Dong Yuhui resigned and will no longer be employed by the group, with a distribution of approximately RMB 129 million from the undistributed profits of the target company to Dong Yuhui[132] - Beijing Xuncheng transferred 100% equity of the target company to Dong Yuhui for a consideration of RMB 76.585 million, and the target company is no longer a consolidated subsidiary of the group[133] - The company will suspend the registration of share transfers from October 29, 2024, to November 1, 2024, to determine the shareholders eligible to attend the annual general meeting[136] - Mr. Yu holds 24,195,285 shares, representing 2.35% of the company's total issued shares[139] - Tigerstep, wholly owned by Mr. Yu, holds 28,682,832 shares, representing 2.78% of the company's total issued shares[139] - Ms. Sun holds 30,000 shares, representing 0.00% of the company's total issued shares[139] - First Bravo, wholly owned by Ms. Sun, holds 151,000 shares, representing 0.01% of the company's total issued shares[139] - Mr. Yin holds 4,700,000 shares, representing 0.46% of the company's total issued shares[139] - Mr. Yu holds 199,072,160 shares in New Oriental, representing 11.6% of New Oriental's total issued shares[143] - New Oriental holds 589,585,500 shares in the company, representing 57.17% of the company's total issued shares[147] - The company has issued 30,000 new shares under the 2023 plan, representing approximately 0.00% of the company's weighted average issued share capital[148] - As of May 31, 2024, 25,940,885 shares remain exercisable under the Pre-IPO Plan, representing approximately 2.52% of the company's total issued share capital[151] - The exercise price for the pre-IPO share option plan is HK$8.88 per share (approximately US$1.13 per share before listing)[154] - The pre-IPO share option plan has a remaining term of approximately 7 months, expiring on March 27, 2025[155] - As of May 31, 2024, a total of 34,483,946 share options under the 2019 plan remain unexercised, representing approximately 3.32% of the total issued share capital[162] - During the reporting period, 3,942,676 share options under the 2019 plan were exercised, 1,519,999 were canceled, and 516,189 expired[162] - The maximum number of shares that may be issued under the 2019 plan and other plans cannot exceed 10% of the total issued shares at the listing date (91,395,910 shares)[162] - Each eligible participant under the 2019 plan can only be granted share options equivalent to 1% of the company's total issued share capital within any 12-month period[163] - The 2019 plan was terminated on March 9, 2023, and no further share options will be granted under this plan[165] - The weighted average closing price of shares immediately before the exercise date in FY2024 was HK$27.04[167] - The exercise price for share options granted under the 2019 plan is determined by the board and cannot be lower than the highest of: closing price on grant date, average closing price of the 5 preceding business days, or the nominal value per share[166] - The total number of share options granted under the 2019 plan as of June 1, 2023, was 40,462,810, with 27,962,810 remaining unexercised at that time[167] - The total number of shares authorized for issuance under the 2023 Plan is 101,351,871 shares, representing 10% of the issued shares as of the adoption date of the plan[173] - As of June 1, 2023, 70,976,871 shares were available for granting under the 2023 Plan, with 30,000 shares granted during the reporting period[174] - The maximum number of shares that can be issued to service provider participants under the 2023 Plan is 2,027,037 shares, representing 2% of the total plan authorization[173] - As of May 31, 2024, 89,053,201 shares remain available for issuance under the plan authorization, representing 8.63% of the total issued share capital as of the latest practicable date[173] - The 2023 Plan has a validity period of 10 years, from March 9, 2023, to March 8, 2033, with approximately 9 years remaining[180] - The exercise price of stock options cannot be lower than the higher of: (i) the closing price on the grant date, or (ii) the average closing price over the five business days preceding the grant date[177] - The vesting period for awards under the 2023 Plan must be at least 12 months from the grant date, except in limited circumstances[179] - As of the end of the reporting period, 1,005,000 shares were unvested, 495,000 shares were vested, and 399,000 shares were forfeited[180] - The fair value of the awarded shares during the reporting period was HKD 30.25 per share[180] - The total number of shares available for granting under the 2023 Plan as of May 31, 2024, is 71,406,871 shares[174] - The fair value of the awarded shares during the period is determined based on the fair value of the company's ordinary shares on the grant date[182] - The total vesting period for the awarded shares is three years, with 20% to 50% vesting on each anniversary of the grant

Investment Rating - The investment rating for the company is "Buy" with a target price of 13 HKD, maintaining the rating as of August 31, 2024 [1]. Core Insights - The company reported FY24 revenue of 7.07 billion, a 57% increase year-on-year, with continuous operating business revenue at 6.53 billion, up 68% [1]. - The net profit attributable to shareholders reached 1.72 billion, a 77% increase, while the net profit from continuous operations was 249 million, down 69% [1]. - The company has successfully expanded its self-operated product line, which now accounts for approximately 40% of total GMV in FY24, up from 30% in FY23 [1]. - The company has launched 488 self-operated SKUs since April 2022, significantly diversifying its product offerings [1]. - A strategic partnership with New Oriental has been established to enhance offline marketing and sales channels, with a focus on leveraging New Oriental's extensive network [3]. Summary by Sections Financial Performance - FY24 revenue was 7.07 billion, a 57% increase year-on-year; continuous operating business revenue was 6.53 billion, up 68% [1]. - Net profit attributable to shareholders was 1.72 billion, a 77% increase; continuous operations net profit was 249 million, down 69% [1]. - Non-GAAP adjusted net profit was 2.18 billion, a 100% increase, with continuous operations net profit at 710 million, down 23% [1]. Product Development - The company has developed and launched 488 self-operated SKUs, expanding its product line significantly [1]. - Self-operated products have become a major growth driver, contributing approximately 40% to total GMV in FY24 [1]. Strategic Initiatives - The company has entered into a framework agreement with New Oriental for promotional services and product sales, with a transaction cap of 100 million RMB for FY25 [3]. - The partnership aims to enhance channel capabilities and create a differentiated competitive advantage [3]. Market Positioning - The company is focused on becoming a leading live shopping platform, emphasizing high-quality self-operated agricultural products and a strong customer experience [1]. - The strategic focus includes comprehensive market research and analysis to define optimal product positioning and target consumer demographics [1].

海 外 公 司 （ 中 国 香 港 ） ——东方甄选 FY2024 业绩点评 | --- | --- | --- | |----------|---------------------|------------------------------| | | 刘越男(分析师) | 庄子童(分析师) | | | 021-38677706 | 021-38032683 | | | liuyuenan@gtjas.com | zhuangzitong026312@gtjas.com | | 登记编号 | S0880516030003 | S0880524070002 | 本报告导读： 业绩符合预期，其中客单价略超预期，员工薪资增加对利润率有所拖累。 股票研究 /[Table_Date] 2024.08.27 业绩符合预期，关注平台延展及客单走势 东方甄选(1797) [Table_Industry] 教育产业 [Table_Invest] 评级： 增持 [当前价格 Table_CurPrice] (港元)： 11.56 [Table_Market] 交易数据 | --- | --- | |-------------- ...

Investment Rating - The report assigns a "Neutral" rating to the company with a target price reduced from HKD 13.4 to HKD 8.5, indicating a potential downside of 21.9% from the current closing price of HKD 10.88 [1][8]. Core Insights - The company reported that self-operated products accounted for 40% of its GMV in the fiscal year 2024, with expectations for profit margins to recover as normal business operations resume [1]. - The forecast for fiscal year 2025 has been adjusted downwards by 43% for GMV, 19% for revenue, and 33% for profit due to the impact of brand day activities and sales adjustments [1]. - The company plans to enhance its influencer team and brand influence while seeking synergies with New Oriental and expanding its offline presence [1]. Financial Performance Summary - For fiscal year 2024, the company expects total GMV and revenue from self-operated products and live e-commerce to reach RMB 14.3 billion and RMB 6.53 billion, respectively [1]. - The self-operated product GMV is projected to be RMB 5.7 billion, up from approximately 30% in the previous fiscal year [1]. - The company launched 488 SKUs of self-operated products in fiscal year 2024, compared to 120 in fiscal year 2023 [1]. - The monthly GMV from the company's Douyin account has consistently exceeded RMB 100 million, with plans to add over 10 vertical accounts on Douyin [1]. - The company aims to ensure food safety and stabilize online public opinion, enhance its influencer team, and improve online traffic and user engagement [1]. Financial Forecast Adjustments - Revenue forecasts for fiscal year 2025 have been revised to RMB 6.02 billion, a decrease of 19% from previous estimates [4]. - Gross profit is expected to decline to RMB 1.14 billion, reflecting a 39.4% reduction [4]. - The adjusted operating profit is forecasted at RMB 458 million, down 41.3% from earlier predictions [4]. - The adjusted net profit attributable to shareholders is projected to be RMB 558 million, a decrease of 33.3% [4].