Core Insights - The company is projected to experience a decline in revenue from 5.164 billion RMB in 2023 to 4.921 billion RMB in 2024, representing a year-on-year decrease of 4.7% [1] - Adjusted net profit is expected to shift from a profit of 20.9 million RMB in 2023 to a loss of 919 million RMB in 2024 [1] Revenue Breakdown - Revenue from freshly brewed tea is expected to decrease by 4.2% to 3.388 billion RMB [2][3] - Revenue from baked goods is projected to decline by 3% to 528 million RMB [2][3] - Revenue from bottled beverages is anticipated to grow by 0.8% to 293 million RMB [2][3] - Revenue from other products is expected to increase by 6.4% to 711 million RMB [2][3] Store Network and Strategy - As of December 31, 2024, the company has expanded its tea shop network from 1,655 to 1,798 stores, including 1,453 direct-operated and 345 franchised stores [3] - The company has halted expansion of direct-operated and franchised stores since May of the previous year, focusing instead on ensuring profitability for each store [4] - A successful store transformation in Shenzhen led to a 31% increase in performance, prompting plans to replicate this model in first-tier cities [4] - The company is adjusting its product line to reduce SKUs and enhance quality in response to changing consumer behavior and cost pressures [4]