Core Viewpoint - The article highlights the challenges faced by Xinhua Bookstore due to declining school-age population and strict educational policies affecting the supplementary education materials market, leading to a significant drop in revenue and profit for the company in 2024 [1][9]. Group 1: Revenue and Profit Decline - In 2024, Xinhua Bookstore's revenue was 137.165 billion yuan, and net profit was 10.741 billion yuan, marking the first occurrence of both revenue and profit decline in recent years, with a revenue drop of 5.1% and a profit drop of 27.25% [1][9]. - The decline in revenue is attributed to the reduction in the sales of educational materials due to a decrease in school-age population and changes in educational policies [3][4]. Group 2: Impact of Educational Policies - The Ministry of Education's new policies, which include strict regulations on the subscription of supplementary educational materials, are expected to further pressure the sales of Xinhua Bookstore's educational products [4][7]. - The educational policy changes have led to a significant decrease in the sales of supplementary materials, with companies like Longban Media and Urban Media reporting revenue declines of 24% and 21.4%, respectively, due to these factors [3][4]. Group 3: Shift in Sales Channels - There is a notable shift from traditional sales channels to online platforms, with Xinhua Bookstore exploring live streaming and e-commerce to adapt to changing consumer behavior [16][17]. - The retail market for supplementary educational materials is expanding, with a reported 18.73% increase in retail sales in 2024, indicating a transition from school subscriptions to retail purchases by parents [12][16]. Group 4: Future Strategies - Xinhua Bookstore is compelled to innovate its sales strategies, including the establishment of new media teams and the exploration of various online platforms to enhance its market presence [17][19]. - Despite the challenges, there is an acknowledgment that the demand for educational materials remains, but the sales channels are evolving, necessitating a strategic pivot for Xinhua Bookstore [12][19].