Core Viewpoint - After experiencing a downturn in 2021 and 2022, the company's performance showed slight recovery in 2023, although it still faced challenges in revenue and profit [1][3]. Financial Performance - In 2024, the company reported a revenue of 3.287 billion yuan, a year-on-year decline of 9%, and a net profit of 253 million yuan, down 10% year-on-year [1]. - For Q1 2025, the company achieved approximately 580 million yuan in revenue, a year-on-year decrease of 19.98%, and reported a net loss of approximately 18.775 million yuan compared to a net profit of 252.126 million yuan in the same period last year [1]. Market Position - The company has maintained the largest market share in the cup-based instant tea market for 13 consecutive years from 2012 to 2024 [1]. - The competitive landscape has stabilized, but new tea brands have emerged, posing challenges to the company's reliance on cup-based instant tea [1]. Strategic Response - The company has chosen to focus on the ready-to-drink segment rather than entering the fresh tea market, with ready-to-drink products having a shelf life of several months [2]. - In 2024, the company's instant tea business generated 2.271 billion yuan in revenue, a year-on-year decline of 15.42%, while the ready-to-drink business achieved 973 million yuan, a year-on-year increase of 8% [2]. - The Meco fruit tea line contributed 780 million yuan in revenue, reflecting a year-on-year growth of 20.69% [2]. - In Q1 2025, the ready-to-drink business saw a year-on-year growth of 13.89% and a quarter-on-quarter growth of 54.82% [2]. Product Innovation - The company has launched products like "Original Leaf Light Milk Tea" and "Original Leaf Milk Tea," which mimic the flavors of fresh tea drinks, and has experimented with offline pop-up stores [2]. - The product development aims to replicate successful flavors from offline tea shops while enhancing quality and cost-effectiveness to meet consumer demand beyond fresh tea scenarios [2]. Future Outlook - The company's ability to balance shelf life with immediacy, industrial standardization with fresh experience, and attract younger consumers will be crucial for its future growth [3].