Core Viewpoint - The company reported a decline in revenue and net profit for Q2 2025, attributed to various market and operational challenges, while also focusing on upgrading product structure and enhancing user engagement to drive growth [1][5]. Financial Performance - For Q2 2025, the company's operating revenue, net profit attributable to shareholders, and net profit excluding non-recurring items were 651 million, 64 million, and 58 million yuan respectively, showing year-on-year declines of 4.02%, 12.78%, and 27.25% [1]. - The gross margin and net margin decreased by 1.01 and 1.53 percentage points to 63.67% and 9.21% respectively, primarily due to increased promotional activities in response to the "ban on alcohol" [4]. Product and Revenue Structure - Revenue from products priced above 300 yuan, between 100-300 yuan, and below 100 yuan were 136 million, 340 million, and 145 million yuan respectively, with year-on-year changes of +11.32%, +0.31%, and -26.61% [2]. - The proportion of revenue from these product categories changed by +3.35, +3.31, and -6.65 percentage points to 21.84%, 54.77%, and 23.39% [2]. Market and Channel Performance - Revenue from domestic and foreign markets for Q2 2025 was 476 million and 144 million yuan, reflecting declines of 4.77% and 8.81% [3]. - The company’s sales through distribution, direct sales (including group purchases), and online channels were 586 million, 15 million, and 20 million yuan, with year-on-year changes of -7.62%, +18.60%, and +70.32% respectively [3]. Cost and Cash Flow Management - The sales expense ratio, management expense ratio (including R&D), and financial expense ratio increased by 1.59, 0.77, and 0.37 percentage points to 22.62%, 15.43%, and -0.51% respectively [4]. - The company reported operating cash flow of 52 million yuan, a significant year-on-year increase of 1651.23% [4]. Investment Outlook - The company is adjusting its profit forecasts for 2025-2027, expecting net profits attributable to shareholders to be 375 million, 401 million, and 455 million yuan respectively, down from previous estimates [5].