Investment Rating - The investment rating for the company is "Hold" with a downward adjustment [3][6]. Core Insights - The company is undergoing a transformation from a heavy asset investment model to a light asset operation model, which includes extending from a single brand to multiple brands, expanding product offerings from finished wooden doors to upstream raw materials and downstream services, and shifting sales channels from offline to online [2][3]. - Financial performance for the first three quarters of 2025 shows a significant decline, with revenue of 1.3 billion yuan, a decrease of 43% year-on-year, and a net loss attributable to the parent company of 41 million yuan [1][3]. - The company has seen growth in its franchise service channel, with revenue of 100 million yuan, an increase of 21% year-on-year, while the export channel revenue increased by 86% [1]. Financial Performance Summary - For 2025, the company is projected to have a net profit of -9.19 million yuan, with earnings per share (EPS) of -0.05 yuan [3][5]. - Revenue is expected to decline significantly in 2025 to 1.86 billion yuan, a decrease of 38.03% compared to 2024 [5][11]. - The company's EBITDA is projected to be 261.90 million yuan in 2025, reflecting a substantial drop from previous years [5][11]. Business Model Adjustments - The company is shifting its organizational structure from a vertical to a flat and matrix-style approach to enhance collaboration and operational efficiency [2]. - A mixed model of agency, direct sales, and direct partnership systems is being established to optimize pricing strategies [2].

Core Viewpoint - Flexport CEO Ryan Petersen stated that since the implementation of tariffs, the shipping order volume from China to the U.S. has decreased by 60%, posing a significant threat to many small businesses in the U.S. that rely on this trade, potentially leading to thousands of company closures and millions of job losses, which he describes as an extinction-level risk [1]. Group 1 - The high tariffs are not just an additional cost but can directly destroy viable business models for many American small enterprises [1]. - The long-term maintenance of such high tariffs could result in severe economic consequences, including widespread business failures and job losses [1]. Group 2 - The article reflects on the interconnectedness of businesses that depend on importing goods from China, highlighting the potential for disruption in this ecosystem [2]. - It emphasizes the need for businesses to adapt to external changes, suggesting that adjustments to business models are a regular necessity [3]. Group 3 - The article provides practical advice for businesses affected by the tariffs, such as exploring new supply sources, including domestic options, to mitigate the impact of high tariffs [10][13]. - It suggests that businesses can pivot to exporting goods as an alternative strategy, leveraging existing relationships and networks [10]. - The potential for creating new business models, such as consulting based on the experience gained from adapting to new supply chains, is also discussed [14].