Core Viewpoint - Huitongda Network has transformed into an AI-driven comprehensive service provider after over a decade of focusing on the sinking market, leveraging resources from Alibaba and government to unlock a second growth curve [1] Group 1: Market Opportunity - The rural consumption space in China is vast, with a CAGR of 6.00% for rural retail from 2020 to 2024, outpacing urban consumption growth of 5.57% [1] - Rural income elasticity is consistently higher than urban income, with a CAGR of 10.48% for rural disposable income compared to 8.07% for urban from 2013 to 2024 [2] - Supportive policies for rural revitalization and trade-in programs are expected to further enhance market growth [2] Group 2: Product and Channel Dynamics - The product landscape in the sinking market is dominated by fast-moving consumer goods, with significant growth in home appliances and 3C products, projected to grow at 18% and 15% respectively in 2024 [2] - The primary channel in the sinking market consists of small family-run stores, which have flexible costs and generate annual profits of 200,000 to 500,000 yuan, with a net profit margin of approximately 16.7% for durable goods [2] Group 3: Competitive Advantage and Strategy - Huitongda's differentiation lies in its extensive product categories and dual-channel integration, combining online and offline services with supply chain and digital services [3] - The company is actively removing low-margin categories while focusing on high-margin products like 3C and home appliances, enhancing external partnerships and developing proprietary brands [3] - AI integration is expected to boost SaaS business growth, with AI-related revenue accounting for 20% of total service revenue as of the first half of 2025 [3] Group 4: Financial Outlook - The company anticipates revenue recovery and rapid improvement in profitability, projecting revenues of 51.608 billion, 54.120 billion, and 57.776 billion yuan from 2025 to 2027, with corresponding net profits of 369 million, 495 million, and 650 million yuan [4]