Investment Rating - The report maintains a "Buy" rating for the company [4][6] Core Views - The company's revenue for Q1 2025 decreased by 39.71% year-on-year, with a net profit attributable to shareholders dropping by 62.96% [1] - In 2024, the company achieved a revenue of 604.64 billion yuan, a year-on-year increase of 7.27%, while the net profit attributable to shareholders decreased by 15.93% [1] - The company is focusing on optimizing its store structure by closing underperforming stores and plans to open new stores in the future [3] - The company is enhancing its product offerings with culturally creative jewelry and improving its gold recycling processes [3] Summary by Sections Financial Performance - Q1 2025 revenue was 110.03 billion yuan, down 39.71% year-on-year, with a net profit of 1.35 billion yuan, down 62.96% [1] - For 2024, the company reported a revenue of 604.64 billion yuan, up 7.27%, and a net profit of 8.18 billion yuan, down 15.93% [1] - The comprehensive gross margin for Q1 2025 was 5.65%, an increase of 1.55 percentage points year-on-year [2] Cost and Expenses - The period expense ratio for Q1 2025 was 1.28%, an increase of 0.29 percentage points year-on-year [2] - The sales, management, R&D, and financial expense ratios for Q1 2025 were 0.87%, 0.38%, 0.03%, and -0.01%, respectively [2] Business Strategy - The company is optimizing its store network by closing 2 direct-operated stores and 86 franchise stores in Q1 2025, while planning to open 4 direct-operated and 25 franchise stores in the future [3] - The company is focusing on high-end products with cultural value to enhance brand premium [3] Profit Forecast - The profit forecasts for 2025 and 2026 have been reduced by 24% and 25% to 9.82 billion yuan and 10.87 billion yuan, respectively [4] - The company is expected to achieve a net profit of 11.78 billion yuan in 2027 [4] Valuation Metrics - The estimated revenue for 2025 is 62.898 billion yuan, with a growth rate of 4.03% [5] - The estimated net profit for 2025 is 982 million yuan, with a growth rate of 19.95% [5]