Core Viewpoint - Songcheng Performance's revenue and net profit declined in the first half of 2025, attributed to reduced income from light asset output and increased advertising expenses [1][3]. Financial Performance - In the first half of 2025, the company reported revenue of 1.08 billion yuan, a year-on-year decrease of 8.3% [1]. - The net profit attributable to shareholders was 400 million yuan, down 27.4% year-on-year [1]. - Sales expenses reached 78.7 million yuan, an increase of 48.6% compared to the previous year, primarily due to higher advertising investments [1]. Marketing and Advertising Strategy - The company has significantly increased its sales expenses over the years, with 2022's sales expenses at 8.15 million yuan, rising to 19.98 million yuan in 2023, and further to 52.96 million yuan in 2024 [2]. - In 2023, the company focused on promotional activities for its major projects in Xi'an, Hangzhou, and Shanghai, while in 2024, it emphasized online and offline marketing strategies [2]. - The company is leveraging influencer marketing and live streaming to enhance its promotional efforts, reporting record highs in live streaming sessions and total transaction volume [2]. Competitive Landscape - The company faces intense competition, both offline and online, with low-cost competition and digital entertainment options eroding its market share [4]. - Key projects such as Hangzhou, Lijiang, and Guangdong saw revenue declines of 0.48%, 12.60%, and 12.96% respectively, with significant drops in gross margins [4]. - The Zhangjiajie project experienced a revenue cut of over 50%, with net losses increasing by more than 160% [4]. Industry Insights - Experts suggest that the decline in audience engagement is due to increased competition and evolving consumer preferences, which demand higher quality performances [5]. - The "Qian Gu Qing" performances, while popular, are facing challenges in retaining audience loyalty, particularly among older demographics who may not have high repeat visitation rates [5].