Core Viewpoint - Mousse Health Sleep Co., Ltd. is facing allegations from several distributors regarding profit manipulation and management practices, which the company denies, asserting compliance with accounting standards and audit approvals [1][2]. Financial Performance - In the first half of 2025, Mousse reported revenue of 2.478 billion yuan, a decrease of 5.76% year-on-year, and a net profit of 358 million yuan, down 4.14% year-on-year [2][3]. - The mattress segment saw a slight revenue increase of 1.25% to 1.256 billion yuan, while revenues from bed frames, sofas, bedding, and other products declined [2][3]. Business Operations - The company has approximately 5,300 offline specialty stores through distribution channels, indicating a reduction of about 300 stores over the past year [4]. - Mousse's distribution model is crucial for expanding its marketing and service networks, but it also presents management challenges due to the dispersed nature of its distributors [4]. Investment Projects - The "East China Health Bedding Production Line Construction Project" has not yet achieved the expected benefits, with production capacity gradually being released [4][5]. Market Performance - As of the afternoon of the 19th, Mousse's stock price was 27.89 yuan per share, with a total market capitalization of 12.134 billion yuan, reflecting a decline of 16.78% since the beginning of 2025 [5].

Core Insights - The company reported a revenue decline of 5.76% year-on-year to 2.478 billion yuan in the first half of 2025, with a net profit attributable to shareholders decreasing by 4.14% to 358 million yuan [2] - The overall demand in the home furnishing industry remains weak due to a deep adjustment in the real estate market and sluggish domestic consumption [2] - The mattress category remains the largest revenue contributor, with a 1.25% increase in revenue to 1.256 billion yuan, accounting for 50.69% of total revenue [2] Financial Performance - The company's net profit excluding non-recurring items fell by 20.97% to 285 million yuan [2] - Gross margins for mattresses and bed frames increased slightly, with mattress gross margin rising by 1.79% to 63.55% and bed frame gross margin increasing by 1.56% to 49.35% [3] - The furniture manufacturing industry experienced a revenue decline of 5.81% and a cost decline of 6.61%, with a slight gross margin increase of 0.42% [4] Market Segmentation - Domestic market revenue decreased by 7.71% to 2.369 billion yuan, representing 95.60% of total revenue, while the overseas market saw a significant increase of 73.97% to 109 million yuan, accounting for 4.40% [6] - The company operates through a multi-channel sales strategy, primarily relying on distributors, with a presence in major retail locations and direct stores in cities like Beijing, Shanghai, and Hong Kong [6] Store Operations - The company reduced its number of offline stores from 5,700 to over 5,300 in the past year, averaging a closure of more than one store per day [6] - The company is optimizing its traditional channel by enhancing core store locations and focusing resources on high-traffic areas [6]