Core Viewpoint - The company reported a decline in revenue and net profit for 2024 and Q1 2025, primarily due to the impact of deferred tax asset adjustments and the strategic decision to divest low-margin traditional e-commerce operations while increasing content investment. Group 1: Financial Performance - In 2024, the company achieved revenue of 14.08 billion, a year-on-year decrease of 3.75%, and a net profit attributable to shareholders of 1.364 billion, down 61.63%, mainly due to the adjustment of deferred tax assets [1] - For Q1 2025, the company reported revenue of 2.9 billion, a year-on-year decline of 12.76%, and a net profit of 378 million, down 19.80%, attributed to the divestment of low-margin traditional e-commerce business and ongoing content investment [1][2] Group 2: Business Structure and Revenue Sources - In 2024, membership revenue reached 5.148 billion, an increase of 19% year-on-year, with the effective membership base of Mango TV reaching 73.31 million, a 10% increase, and ARPU improving by 8%, contributing over 50% to internet video business revenue [2] - Advertising revenue in 2024 was 3.438 billion, a decline of 3% year-on-year, while operator revenue fell significantly by 42% to 1.59 billion, impacted by the optimization of TV screen-related services [2] Group 3: Tax Policy Impact and Future Outlook - The company's profit in 2024 was significantly affected by tax policy changes, with a net impact of -190 million from deferred tax asset adjustments due to the extension of the tax exemption period for state-owned cultural enterprises [3] - The company has a strong content pipeline for 2025, with popular shows expected to drive performance recovery, and forecasts net profits of 1.852 billion and 2.009 billion for 2025 and 2026, respectively, corresponding to PE ratios of 23x and 21x [4]