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][6]. Financial Performance - The company reported a revenue of 1.08 billion yuan, a year-on-year decrease of 8.3% [1]. - 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 higher advertising investments [1]. Marketing and Advertising - The company has seen a continuous rise in sales expenses over the years, with a significant increase from 8.15 million yuan in the first half of 2022 to 52.96 million yuan in the first half of 2024 [3]. - In 2023 and 2024, the company focused on both online and offline marketing strategies, utilizing major social media platforms and organizing themed events [3][6]. Project Performance - Major "Eternal Love" projects experienced a decline in net profit, with the Zhangjiajie project suffering a loss that expanded over 160% [2][8]. - Revenue from key projects such as Hangzhou, Lijiang, and Guangdong saw declines of 0.48%, 12.60%, and 12.96% respectively, with corresponding gross margin reductions [7]. - The Zhangjiajie project reported a revenue drop of over 40%, while the Sanya project revenue was halved to less than 200 million yuan [8]. Industry Competition - The company faces intense competition from both offline and online sectors, with low-cost competition and digital entertainment options eroding market share and profit margins [7][9]. - The audience for the company's performances is aging and lacks high retention, making it challenging to maintain customer loyalty during economic downturns [9].