LYFEN(SH:603777) Xin Lang Cai Jing·2025-10-17 10:38Core Insights - The company reported a revenue increase of 8.21% year-on-year to 1.94 billion yuan for the first half of 2025, but faced significant challenges with a 14.2% decrease in total store count to 2,979 stores [1] - The gross profit margin fell below 33%, a decline of 8.66 percentage points, attributed to changes in the business structure and increased promotional activities [1] Group 1: Financial Performance - Revenue increased by 8.21% to 1.94 billion yuan, but the total number of stores decreased by 14.2% [1] - Gross profit margin dropped to below 33%, down 8.66 percentage points, primarily due to the rapid growth of lower-margin new business segments [1] - The company faced a 21% decline in revenue from direct-operated stores, while franchise revenue grew by 19% [1] Group 2: Business Strategy - The company is transitioning from a traditional retail model to a chain management service and supply chain platform, with a focus on increasing the proportion of franchise stores [1] - The "10,000 stores" strategy is now viewed as a long-term vision rather than a short-term operational goal, as the total store count has not increased as expected [1] - The company has entered seven new business segments, including beverages and prepared foods, aiming to create a "second growth curve," but this has negatively impacted overall gross profit [1] Group 3: Market Position and Future Outlook - The company is exploring new consumption areas such as children's snacks, launching 43 new products, but these currently represent a small sales proportion [2] - Management emphasizes a commitment to "high quality and high cost performance," but faces challenges in balancing price reductions with quality improvements amid declining gross margins [2] - The company is investing in AI and overseas expansion, but these initiatives have not yet significantly impacted short-term profitability [1]