Investment Rating - The report maintains a "Buy" rating for the company [4][7]. Core Insights - The company reported a revenue of Rmb12.9 billion for 2025, reflecting a 4% year-over-year growth, while net profit attributable to ordinary shareholders declined by 52% to Rmb1.14 billion, which was below expectations due to weaker same-store sales and negative operating leverage [6][7]. - The forecast for earnings per share (EPS) for 2026 has been revised down from Rmb18.1 to Rmb7.4, and for 2027 from Rmb21.4 to Rmb8.1, with a new forecast for 2028 introduced at Rmb8.5. The target price has been adjusted from US$38.3 to US$14 based on the DCF model [6][7]. - The company experienced a net addition of 1,013 stores in 2025, with a total of 7,453 stores, marking a 16% year-over-year increase [8]. - Same-store sales fell by 25.5% year-over-year in Q4 2025, attributed to slower responsiveness from internal adjustments and strategic delays in new product launches [9]. - The company aims to recover same-store sales as its top KPI for 2026, focusing on store operations, user experience, product innovation, and organizational efficiency, with plans to open approximately 300 new domestic stores and 200 overseas stores [10]. - The company is transitioning to a brand commission cooperation model to align closely with franchisees while emphasizing product innovation and cost efficiency [10]. - The report expresses confidence in the company's high standardization, brand positioning, and long-term global expansion potential [11].