Core Viewpoint - The company reported a decline in both revenue and net profit for the first half of 2025, attributed to intense competition in the home and bathroom industry and a slowdown in demand linked to the real estate sector [1][2]. Financial Performance - In H1 2025, the company achieved revenue of 920 million yuan, a year-on-year decrease of 19.49%, and a net profit attributable to shareholders of 52 million yuan, down 43.20% [1]. - For Q2 2025, revenue was 508 million yuan, a decline of 18.02% year-on-year, with a net profit of 30 million yuan, down 6.88% [1]. - The gross profit margin for H1 2025 was 25.95%, a decrease of 3.08 percentage points year-on-year [3]. Product Performance - Revenue from water tanks and accessories was 263 million yuan, down 18.42%, while revenue from smart toilets and covers was 531 million yuan, down 22.72% [2]. - The gross profit margins for these products were 26.18% and 24.17%, respectively, reflecting declines of 1.30 and 2.54 percentage points [2]. Market Environment - Domestic revenue was 585 million yuan, a year-on-year decrease of 27.76%, while overseas revenue was 335 million yuan, an increase of 0.60% [2]. - The demand for smart toilets is being affected by a reduction in new home renovations and cautious consumer behavior regarding existing home upgrades [2]. Regulatory Changes - As of July 1, 2025, electronic toilet products are required to undergo CCC certification, which may lead to a market reshuffle, eliminating brands lacking in innovation and quality [2]. Future Outlook - The company is expected to benefit from a dual strategy of "self-owned brands + OEM," with anticipated revenue growth in the smart toilet segment as market penetration increases [4]. - Projected revenues for 2025-2027 are 2.029 billion, 2.273 billion, and 2.497 billion yuan, with corresponding net profits of 127 million, 153 million, and 177 million yuan [4].