Core Viewpoint - The company reported its Q3 2025 results, showing revenue growth but significant declines in net profit due to rising online traffic costs [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 1.6 billion, an increase of 8.2% year-on-year, while net profit attributable to shareholders fell by 52.9% to 0.16 billion [1]. - In Q3 2025, the company recorded revenue of 2.28 billion, up 8.9% year-on-year, but net profit dropped by 56.8% to 0.02 billion [1]. - The gross margin improved by 1.3 percentage points to 25.7%, attributed to an increase in self-produced goods and adjustments in channel structure [2]. - The net profit margin decreased by 1.7 percentage points to 0.7%, primarily due to increased e-commerce traffic costs [2]. Strategic Initiatives - The company is actively exploring new business models, including offline distribution and lifestyle stores, to mitigate the impact of rising online traffic costs [1][2]. - The lifestyle store initiative aims to develop a multi-category private label supply system and tap into instant retail opportunities [2]. - The company is shifting towards higher-end, quality, and differentiated products, leveraging its self-supply chain to support this transition [2]. Investment Outlook - In the short term, the company faces significant profit pressure due to rising traffic costs, but ongoing exploration of new business models may lead to future growth opportunities [3]. - Revenue projections for 2025-2027 are 11.62 billion, 13.65 billion, and 15.65 billion, reflecting year-on-year growth of 9.4%, 17.5%, and 14.6% respectively [3]. - Expected net profit for the same period is 0.22 billion, 0.33 billion, and 0.41 billion, with a projected decline of 47.1% in 2025, followed by increases of 53.4% and 23.9% in subsequent years [3].