Core Viewpoint - The company, Liangpinpuzi, reported a significant decline in revenue and net loss for the first three quarters of 2025, indicating ongoing challenges in both online and offline channels [4][5]. Revenue Performance - For Q1-Q3 2025, the company achieved a revenue of 4.14 billion yuan, a year-on-year decrease of 24.45%. The net loss attributable to shareholders was 122 million yuan, compared to a profit of 19 million yuan in the same period of 2024 [4]. - In Q3 2025, the company recorded a revenue of 1.31 billion yuan, down 17.72% year-on-year, with a net loss of 29 million yuan, compared to a loss of 4.5 million yuan in Q3 2024 [4]. Channel Analysis - Revenue from online and offline channels in Q3 2025 was 561 million yuan and 902 million yuan, respectively, reflecting declines of 14.02% and 20.15% year-on-year. The online channel faced pressure due to a general decline in e-commerce platform traffic, while the offline channel struggled with competition from snack wholesale formats [5]. - The company’s direct sales, franchise, and group purchase businesses generated revenues of 374 million yuan, 377 million yuan, and 152 million yuan in Q3 2025, showing year-on-year declines of 19.83%, 25.58%, and 3.58% respectively [5]. Store Count and Expansion - As of the end of Q3 2025, the total number of stores was 2,227, a net decrease of 218 stores since the beginning of the year. This included a net reduction of 70 franchise stores and 148 direct stores [5]. - The company has signed contracts for 18 new stores (14 franchise and 4 direct) that are pending opening [5]. Regional Performance - Revenue by region in Q3 2025 showed significant declines: Central China (431 million yuan, -14.75%), East China (85 million yuan, -36.33%), Southwest (101 million yuan, -31.44%), South China (103 million yuan, -27.40%), North China (31 million yuan, -31.08%), and Northwest (not specified) [5]. Profitability and Cost Structure - The gross margin for Q1-Q3 2025 was 24.96%, while Q3 2025 saw a gross margin of 26.14%, reflecting a year-on-year decrease of 1.81 percentage points due to price reductions on certain products [6]. - The sales expense ratio for Q1-Q3 2025 was 24.27%, with Q3 2025 at 23.74%, showing a year-on-year increase of 0.78 percentage points. This increase was attributed to reduced scale effects amid declining revenue and rising online traffic costs [6]. - The net profit margin for Q1-Q3 2025 was -2.95%, and for Q3 2025 it was -2.19%, indicating ongoing pressure on profitability [6].

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [6]. Core Views - The company is experiencing significant operational pressure, leading to continuous adjustments in its business strategy. The revenue for the first three quarters of 2025 is reported at 4.14 billion yuan, a year-on-year decline of 24.45%, with a net loss attributable to shareholders of 122 million yuan compared to a profit of 19 million yuan in the same period last year [1][4]. - The online and offline channels are both under pressure, with Q3 2025 revenues from online and offline channels at 561 million yuan and 902 million yuan, respectively, reflecting declines of 14.02% and 20.15% year-on-year [2]. - The company is adjusting its product structure, which has negatively impacted its gross margin. The gross margin for Q1-Q3 2025 is 24.96%, with a year-on-year decrease of 1.81 percentage points [3]. Summary by Sections Financial Performance - For Q3 2025, the company reported a single-quarter revenue of 1.31 billion yuan, down 17.72% year-on-year, and a net loss of 29 million yuan compared to a loss of 4.5 million yuan in Q3 2024 [1][2]. - The total number of stores decreased to 2,227 by the end of Q3 2025, with a net reduction of 218 stores in the year [2]. Revenue and Profitability Forecast - The forecast for 2025 has been revised down to a net loss of 145 million yuan, with previous estimates predicting a profit of 20 million yuan. The 2026 and 2027 net profit forecasts have also been reduced to 28 million yuan and 93 million yuan, respectively [4]. - The report indicates that the company has a certain brand strength and that ongoing reforms and adjustments may benefit long-term development [4]. Valuation Metrics - The estimated earnings per share (EPS) for 2025 is projected at -0.36 yuan, with corresponding price-to-earnings (P/E) ratios for 2026 and 2027 at 177 and 53 times, respectively [4].