Core Viewpoint - New Classics (603096) reported significant declines in revenue and profit for the first half of 2025, indicating a challenging operating environment in the book retail market [2][8]. Financial Overview - Total revenue for the first half of 2025 was 315 million yuan, a year-on-year decrease of 30.54% - Net profit attributable to shareholders was 46.88 million yuan, down 48.5% year-on-year - Non-recurring net profit was 41.40 million yuan, a decline of 49.3% year-on-year - In Q2 alone, revenue was 164 million yuan, a decrease of 27.99% year-on-year, with net profit at 22.38 million yuan, down 47.33% year-on-year [2][8]. Key Financial Metrics - Gross margin was 49.43%, an increase of 2.7% year-on-year - Net margin was 15.07%, a decrease of 26.12% year-on-year - Operating expenses as a percentage of revenue were 31.4%, an increase of 30.86% year-on-year - Earnings per share were 0.30 yuan, down 45.75% year-on-year - Cash flow per share from operating activities was -0.77 yuan, a decrease of 1837.29% year-on-year [5][6]. Revenue Composition - Revenue from physical books was 287 million yuan, accounting for 91.08% of total revenue, with a gross margin of 47.75% - Digital content revenue was 1.89 million yuan, representing 6.01% of total revenue, with a gross margin of 69.24% - Copyright operations generated 634,960 yuan, making up 2.02% of total revenue, with a gross margin of 53.45% [5]. Market Conditions and Strategic Actions - The overall book retail market in China faced significant pressure, with a 9.64% year-on-year decline in retail market value - New Classics launched 65 new titles during the reporting period and increased focus on original works - The company is implementing a special action plan to enhance quality and efficiency while exploring diversified IP business opportunities [7][8].