Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights that the company is undergoing a significant transformation in marketing strategies while managing inventory effectively amidst a challenging market environment [7] - The company has reported a substantial decline in revenue and net profit for the first half of 2025, with revenue down 35.32% year-on-year and net profit down 45.34% year-on-year [7] - The report emphasizes the company's proactive measures to adjust its operations, including the launch of new products to stabilize its market position [7] Financial Performance Summary - For 2023, total revenue is projected at 33,126 million RMB, with a year-on-year growth of 10.04% [1] - The forecast for 2024 shows a decline in revenue to 28,876 million RMB, a decrease of 12.83% [1] - By 2025, revenue is expected to drop further to 20,161 million RMB, reflecting a significant decline of 30.18% [1] - The company's net profit for 2023 is estimated at 10,016 million RMB, with a growth of 6.80% [1] - The net profit is projected to decrease to 6,673 million RMB in 2024, down 33.37% [1] - For 2025, the net profit is expected to further decline to 3,996 million RMB, a decrease of 40.12% [1] - The report anticipates a dynamic dividend yield of over 6.5% based on the company's commitment to distribute at least 70% of its net profit as dividends from 2024 to 2026 [7] Market and Operational Insights - The company is focusing on reducing inventory and enhancing sales strategies in response to ongoing market pressures [7] - The report notes a significant drop in sales for both mid-range and regular products, with declines of 36.52% and 27.24% respectively in the first half of 2025 [7] - The company is also adjusting its distribution strategy, with a focus on strengthening its presence in key markets while reducing the number of distributors in less profitable regions [7]