Core Viewpoint - Red Star Macalline Home Group Co., Ltd. reported significant changes in its operational structure and financial performance for the first half of 2025, including a decrease in revenue and adjustments in the number of self-operated and managed malls [1][3][8]. Group 1: Operational Changes - As of June 30, 2025, the company operated 76 self-owned malls and 235 managed malls, with 7 additional malls operated through strategic partnerships [1][3]. - During the reporting period, the company closed 2 self-owned malls and transitioned 3 managed malls to self-operated status, while 2 self-operated malls were converted to managed status [1][3]. - A total of 22 managed malls were closed across various provinces, including Zhejiang, Hebei, and Guangdong [1][3]. Group 2: Financial Performance - The revenue from self-operated malls for the reporting period was approximately CNY 2.48 billion, representing a 16.4% decrease compared to the same period last year [8]. - The gross profit margin for self-operated malls was reported at 71.1%, a slight decrease of 0.3 percentage points year-on-year [8]. - Revenue from self-owned malls decreased by 12.5% to approximately CNY 2.24 billion, while revenue from managed malls saw a significant decline of 44.7% [8]. Group 3: Regional Performance - Revenue from self-operated malls in Beijing was CNY 330.25 million, down 9.4%, while Shanghai reported CNY 612.39 million, a decrease of 15.8% [8]. - The Northeast region experienced a minor decline of 1.3% in revenue, totaling CNY 226.37 million, with a gross margin increase of 2.8 percentage points [8]. - The South China region faced the most significant revenue drop of 53.6%, with a gross margin increase of 25.3 percentage points [8].