Core Viewpoint - The company reported a significant decline in both revenue and net profit for Q1 2025, primarily due to delayed revenue recovery and increased expenses from prior personnel expansion [1][3]. Financial Performance - Revenue for Q1 2025 was 430 million yuan, down 10.29% year-over-year [1]. - Net profit attributable to shareholders was 8.07 million yuan, a decrease of 91.94% year-over-year [1]. - Gross margin for Q1 2025 was 63.2%, down 6.2 percentage points year-over-year [2]. Industry Trends - The ultrasound imaging diagnostic equipment market in China grew nearly 90% year-over-year in Q1 2025, indicating ongoing industry recovery [2]. - The company faced challenges in revenue due to industry-wide adjustments and high channel inventory levels, but expects gradual recovery as inventory is digested [2]. Cost and Profitability - The company expanded its workforce by 425 employees (approximately 16% year-over-year) in 2024, leading to increased employee costs [3]. - The company anticipates that as revenue recovers and product offerings shift towards higher-end solutions, the expense ratio will improve throughout the year [3]. Earnings Forecast and Valuation - The company maintains its EPS forecast for 2025 and 2026 at 0.84 yuan and 1.13 yuan, respectively [4]. - The target price remains at 41.6 yuan, reflecting a potential upside of 37.2% based on a DCF valuation model [4].