Core Viewpoint - The performance of the company, Tao Li Bread, has significantly declined in the first half of 2025, with revenue and net profit both experiencing substantial year-on-year decreases, raising concerns among over 60,000 shareholders [1][12]. Financial Performance - In the first half of 2025, the company reported a revenue of approximately 2.611 billion yuan, a year-on-year decline of 13.55% [3]. - The net profit attributable to shareholders was about 204 million yuan, down 29.7% year-on-year [3]. - The net profit after excluding non-recurring gains and losses was approximately 194 million yuan, reflecting a 30.03% decrease compared to the previous year [3]. Cost and Expense Analysis - The decline in net profit is attributed to increased depreciation expenses from newly established projects and rising advertising and promotional costs [4]. - Advertising and promotional expenses increased to approximately 429 million yuan, up from about 306 million yuan in the previous year [9]. Market Competition and Challenges - The industry is facing intensified competition, leading to market share erosion, increased promotional expenses, and pressure on profit margins [2][8]. - The company has seen a reduction in the total number of distributors, with a net decrease of 9 distributors compared to the previous year, totaling 971 [6][7]. Regional Performance - Revenue in various regions, including North China, Northeast, East China, Southwest, Northwest, and South China, has declined year-on-year, with only Central China showing growth [5]. Food Safety Issues - The company has faced multiple food safety crises, including a recent incident in July where a batch of its products failed safety inspections due to high bacterial counts [2][13]. - The company acknowledged the need for improved quality control and has implemented corrective measures following the food safety issues [17][18].