Breo(SH:688793) Cai Jing Wang·2025-10-16 11:07Core Viewpoint - The Chinese e-commerce industry is transitioning from a phase of rapid growth to a stage that balances incremental expansion with competition for existing market share, leading to a decline in growth rates and increased price competition among platforms [1][19]. Industry Overview - In 2024, China's online retail sales are projected to reach 15.5 trillion yuan, with a year-on-year growth of 7.2%, a decrease of 3.8 percentage points from the previous year [1]. - E-commerce platforms are increasingly adopting low-price competition strategies, resulting in "involution" that affects merchants, consumers, and the industry as a whole [1][19]. Company Performance - In the first half of 2025, the company reported a revenue of 385 million yuan, a year-on-year decline of 36.22%, and a net loss of 36.11 million yuan, a decrease of 238.19% compared to the same period in 2024 [5][6]. - The company's online sales revenue fell significantly, with online direct sales dropping by 45.48% and online platform sales decreasing by 30.07% [9]. Sales Channel Analysis - Online sales accounted for over 60% of the company's total revenue, with a notable decline in online direct sales primarily due to increased competition and changing consumer behavior [2][6]. - The company’s online sales in the first half of 2025 were 246 million yuan, representing a 40.67% year-on-year decrease, while offline sales were 133 million yuan, down 26.27% [8][9]. Strategic Adjustments - The company plans to optimize its online and offline channel strategies, accelerate overseas market expansion, and develop more products catering to the aging population in response to the evolving consumer environment [3][18]. - The company aims to enhance its online presence by strengthening its marketing efforts on platforms like Douyin and optimizing user engagement on WeChat [16]. Market Trends - The aging population in China presents a significant opportunity for the company, which is focusing on developing products tailored for older consumers [10][18]. - The company has already introduced 13 products that are part of a government initiative aimed at enhancing smart home adaptations for the elderly [18].