Core Viewpoint - Songcheng Performance's financial performance in the first half of 2025 showed a decline in both revenue and net profit, attributed to reduced income from light asset output and increased advertising expenses [1][2]. Financial Performance - The company reported a 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 increased advertising investments [1]. Marketing and Competition - In 2023 and 2024, the company focused on both online and offline marketing strategies, utilizing platforms like WeChat, Weibo, and Douyin for promotions [2]. - Despite previous marketing successes leading to revenue growth, the effectiveness diminished in 2025, contributing to the decline in net profit [2]. - The company faces intense competition, with both online and offline sectors experiencing saturation, leading to a loss of customer base and profit margins [3]. Project Performance - Major projects like the "Eternal Love" series saw significant declines in performance, with the Zhangjiajie project experiencing a loss increase of over 160% [1][3]. - Revenue from key projects such as Hangzhou, Lijiang, and Guangdong declined by 0.48%, 12.60%, and 12.96% respectively, with corresponding drops in gross margins [3]. - Many projects have not returned to pre-2019 revenue levels, with the Hangzhou project revenue dropping from over 900 million yuan in 2019 to 640 million yuan in 2024, a reduction of one-third [3]. Audience Insights - The target audience for the company's performances tends to be older, with lower engagement and repeat spending, making them more susceptible to economic fluctuations [4].