Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Insights - In Q3 2025, the company achieved revenue of 2.18 billion yuan, a year-on-year decline of 16.7%, but the revenue decline narrowed compared to Q2. The net profit attributable to the parent company was 290 million yuan, a year-on-year increase of 13.6%. For the first three quarters, the company reported revenue of 6.77 billion yuan, down 37.3% year-on-year, with a net profit of 880 million yuan, up 3.1% year-on-year [2][4]. Summary by Sections Financial Performance - In Q3 2025, the company's gross profit margin was 28.5%, an increase of 1.0 percentage points year-on-year. The revenue from self-operated stores, e-commerce, and franchise businesses was 450 million, 780 million, and 920 million yuan respectively, with year-on-year changes of +16%, +68%, and -47% [12]. - The total gross profit decreased by 14% year-on-year, reflecting the pressure on revenue despite improved product offerings and channel construction [12]. Operational Adjustments - The company has been optimizing channel quality by closing underperforming stores, with a total of 4,675 stores at the end of Q3 2025. The net number of closed stores decreased each quarter, with 43 stores closed in Q3 [12]. - The company is focusing on enhancing the supply capacity of lightweight and fashionable products, which have shown good growth despite overall demand pressure [12]. Future Outlook - The company is expected to continue its strategy of "stable growth, improving gross profit, and controlling risks" into Q4 2025. The estimated EPS for 2025-2027 is projected to be 1.02, 1.14, and 1.28 yuan respectively [12].