内销增速承压，积极推进产品创新

Investment Rating - The investment rating for the company is adjusted to "Accumulate" [3]. Core Views - The company achieved a revenue of 3.557 billion RMB in 2023, a year-on-year decrease of 15.77%, and a net profit attributable to shareholders of 121 million RMB, down 75.97% year-on-year [1]. - The company plans to distribute a cash dividend of 3.00 RMB per 10 shares and has repurchased shares worth 17 million RMB, which together account for 30.66% of the net profit attributable to shareholders [1]. - The company is focusing on technological and product innovation to meet diverse consumer needs, with core business revenue from long-focus projection down 21.54% and revenue from innovative products up 18.3% and 28.8% [1]. - The company is actively expanding its overseas market presence, particularly in Europe, where it has made significant progress in offline channel construction [1]. Financial Performance - In 2023, the company's gross margin was 31.25%, down 4.73 percentage points year-on-year, and the net margin was 3.37%, down 8.5 percentage points year-on-year [1]. - The company’s sales, management, R&D, and financial expense ratios for 2023 were 18.13%, 4.22%, 10.72%, and -0.89%, respectively, with sales expense ratio increasing due to higher promotional and employee costs [1]. - The projected net profits for 2024-2026 are estimated at 160 million, 210 million, and 260 million RMB, with corresponding dynamic P/E ratios of 41.6x, 32.3x, and 26.5x [1].