Investment Rating - The report assigns a rating of "Outperform" for the company, expecting a relative return exceeding the benchmark index by over 10% in the next 12-18 months [19]. Core Insights - The company's operating revenue for the 2024/25 fiscal year was 27.01 billion yuan, a decrease of 6.6% year-on-year, with the decline in the second half narrowing to 5.4% compared to 7.9% in the first half [2][8]. - The retail business, the main revenue source, saw a 6.8% decline to 23.03 billion yuan, with improvements in the second half attributed to online sales initiatives [2][8]. - The gross margin decreased by 3.4 percentage points to 38.4%, while net profit fell by 41.9% to 12.85 billion yuan, influenced by increased discount rates and changes in sales channel mix [4][10]. - The company maintained a strong cash flow, with net cash flow from operating activities increasing by 20% to 3.76 billion yuan, supporting a high dividend payout ratio of 135% [5][12]. Revenue Performance - The company's revenue for the 2024/25 fiscal year was under pressure, primarily due to a weak consumption environment and reduced offline foot traffic [2][8]. - Retail revenue declined by 6.8% year-on-year, with the main brand's sales down 6.1% to 23.31 billion yuan [2][8]. - The online business segment showed double-digit growth, contributing to an increase in its share of overall direct business to 30%-40% [3][9]. Margin and Profitability - The overall gross margin decreased to 38.4%, with a notable decline in net profit by 41.9% year-on-year [4][10]. - The company is focusing on expense control, with total expenses decreasing by 5.6% year-on-year, while aiming to improve profit margins through efficiency [4][10]. Cash Flow and Dividends - The company reported a robust cash generation capability, with free cash flow at 3.38 billion yuan, 2.6 times the net profit for the same period [5][12]. - A final dividend of 0.02 yuan per share and a special dividend of 0.12 yuan per share were proposed, maintaining a high dividend payout ratio [5][12].