Investment Rating - The investment rating for the company is "Buy" and is maintained [7] Core Insights - In the first half of 2025, the company achieved revenue of 4.6 billion yuan, a year-on-year decline of 43.9%, while the net profit attributable to the parent company was 590 million yuan, down 1.3% year-on-year. In the second quarter alone, revenue was 1.9 billion yuan, a year-on-year decline of 38.5%, but net profit attributable to the parent company increased by 31.3% to 340 million yuan, with a non-recurring net profit also up by 36.1% [2][4] Summary by Sections Financial Performance - The company reported a total revenue of 4.6 billion yuan for the first half of 2025, reflecting a 43.9% decrease year-on-year. The net profit attributable to the parent company was 590 million yuan, a slight decline of 1.3% year-on-year. In Q2 alone, revenue was 1.9 billion yuan, down 38.5% year-on-year, but net profit increased by 31.3% to 340 million yuan, with a non-recurring net profit also showing a growth of 36.1% [2][4] Operational Highlights - The company continued to open self-operated stores, with a net increase of 43 and 11 stores in Q1 and Q2 respectively, while the number of franchise stores decreased by 290 to 4,718. The second quarter saw a positive growth in self-operated and e-commerce revenues, with increases of 9% and 2% year-on-year respectively, despite a significant decline in franchise revenue [10] Strategic Initiatives - The company is focusing on a brand matrix strategy, enhancing its product development around the "National Treasure Activation" system and international art IP collaborations. New product lines inspired by cultural heritage and art are being introduced, including a series set to launch in October 2025 featuring exclusive Da Vinci IP [10] Future Outlook - The company is expected to achieve earnings per share (EPS) of 1.03, 1.14, and 1.27 yuan for the years 2025, 2026, and 2027 respectively, indicating a positive growth trajectory. The focus on self-operated channels and product innovation is anticipated to strengthen the company's market position [10]