Core Viewpoint - The company is facing challenges in its performance due to emerging channel impacts and a decline in store numbers, prompting strategic adjustments to improve profitability and operational efficiency [1][2]. Group 1: Store Optimization and Strategy - The company has proactively adjusted its store structure, resulting in a total of 2,979 stores by the end of the first half, a year-on-year decrease of 14.2% [1]. - The strategy focuses on optimizing traditional small direct-operated stores and expanding franchisee partnerships, while also investing in new store formats based on lifestyle standards [1]. - The company aims to enhance store profitability through innovation in product categories and digital transformation of existing stores to reduce costs and improve efficiency [1]. Group 2: Financial Support for Franchisees - The company plans to provide financial support of up to 50 million yuan to franchisees in key cities or regions to alleviate liquidity pressures, particularly during the nurturing phase of new stores and expansion of mature ones [2]. - Financial assistance will be limited to 1 million yuan per franchise or joint venture store, with a maximum of 5 million yuan for any single franchisee or related party [2]. - The company will submit this financial support initiative for shareholder approval as a precautionary measure [2]. Group 3: Financial Performance - In the first half of the year, the company reported revenue of 1.94 billion yuan, representing a year-on-year increase of 8.21% [3]. - The net profit attributable to shareholders was a loss of 50.68 million yuan, compared to a profit of 14.92 million yuan in the same period last year [3].