Core Viewpoint - The company reported a slight increase in revenue but a significant decline in net profit for Q1 2025, indicating short-term profitability challenges [1][2]. Financial Performance - The company achieved revenue of 3.723 billion yuan, a year-on-year increase of 2.13% - The net profit attributable to shareholders was 239 million yuan, a year-on-year decrease of 22.46% - The net profit excluding non-recurring items was 162 million yuan, a year-on-year decrease of 38.31% [1]. Profitability Metrics - Gross margin slightly decreased by 0.66 percentage points to 26.74% - Net profit margin for Q1 2025 was 6.40%, down 2.06 percentage points year-on-year - Selling expense ratio increased by 2.41 percentage points to 18.67%, reflecting increased investment in offline distribution and community retail strategies [2]. Strategic Initiatives - The company is focusing on enhancing online sales through a "D+N" omnichannel collaboration system and aims to drive growth in e-commerce - Offline, the company launched a new regional distribution model with a target of "one million terminals and one hundred billion scale" [2]. - The company is accelerating the launch of snack products, with over 1,000 SKUs introduced in 2024, under the "high-end cost performance" strategy [3]. Acquisitions and Market Position - The company announced the acquisition of "Love Discount" to enhance its community discount business layout [3]. - The company is expected to maintain stable online sales and expand offline distribution under its current strategic framework [3]. Financial Forecast - Adjusted profit forecasts for 2025-2027 are 458 million yuan (previously 537 million yuan), 581 million yuan (previously 747 million yuan), and 731 million yuan (previously 972 million yuan) - Corresponding EPS estimates are 1.14, 1.45, and 1.82 yuan, with PE ratios of 24.3, 19.1, and 15.2 times based on the closing price on April 29 [3].