Core Viewpoint - The company reported a significant decline in revenue and net profit for the first half of 2025, attributed to a challenging book retail market and a decrease in demand for non-essential reading materials [2][3][4]. Financial Performance - The company's operating revenue for the first half of 2025 was approximately 314.90 million yuan, a decrease of 30.54% compared to the same period last year [2][3][4]. - Total profit for the period was about 61.41 million yuan, down 46.61% year-on-year [2][3]. - The net profit attributable to shareholders was approximately 46.88 million yuan, reflecting a 48.50% decline compared to the previous year [2][3][4]. - The net cash flow from operating activities was negative 118.71 million yuan, a significant drop from the previous year's negative 6.46 million yuan [2][3]. Industry Overview - The overall book retail market in China faced downward pressure, with a reported decline in retail sales revenue (码洋) of 9.64% year-on-year for the first half of 2025 [3][4]. - The decline was particularly pronounced in the second quarter, with sales dropping over 10% in May and June [3][4]. - Only a few niche categories, such as books related to AI and health solutions, showed growth, while classic literature and children's books, which are significant for the company, also experienced declines [3][4]. Business Operations - The company launched 65 new titles during the reporting period, including works from notable authors, but faced challenges in adapting to changing consumer preferences [4][5]. - Domestic book planning and publishing operations generated approximately 241.95 million yuan in revenue, down 35.89% year-on-year [4][5]. - The company is focusing on enhancing its digital content business, which achieved a slight revenue increase of 0.47% to 8.32 million yuan [4][5]. International Business - The overseas business segment reported a revenue of approximately 61.63 million yuan, with a loss of about 11.18 million yuan, an increase of 59.75% in losses compared to the previous year [4][5]. - The company aims to optimize its international operations by consolidating or pausing underperforming business units and enhancing communication between headquarters and overseas subsidiaries [5][6]. Strategic Initiatives - The company is committed to improving operational quality and governance, focusing on core business areas while exploring diversification in IP and content development [6][7]. - A cash dividend of 0.8 yuan per share was distributed, totaling approximately 123.39 million yuan, which represents 97.45% of the net profit attributable to shareholders [6][7].