Core Viewpoint - The report highlights that Yuyuan Inc. is actively adjusting its jewelry fashion business and expanding its overseas strategy, which is expected to create growth opportunities despite recent financial challenges [2][3]. Financial Performance - In H1 2025, Yuyuan Inc. reported revenue of 19.112 billion yuan, a decrease of 30.7% year-on-year, and a net profit attributable to shareholders of 63 million yuan, down 94.5% [2]. - For Q2 2025, the company achieved revenue of 10.33 billion yuan, a slight decline of 0.2%, with a net profit of 11 million yuan, reflecting a significant drop of 98.9% [2]. Jewelry Fashion Business Adjustments - The jewelry fashion segment generated revenue of 12.791 billion yuan in H1 2025, down 37.5%, primarily due to high gold price volatility affecting sales [3]. - The gross margin for this segment improved to 7.34%, an increase of 0.43 percentage points year-on-year [3]. - The company has been actively restructuring its product offerings, with notable sales of over 2.3 billion yuan for ancient-style gold products in Q2 2025 and over 150 million yuan for the "One String of Good Luck" series since its launch [3]. Global Expansion Strategy - Yuyuan Inc. is committed to empowering its business through "culture + technology" and is making steady progress in its global strategy [4]. - The company has introduced several brands, including Laomiao Gold and Nanxiang Steamed Bun Shop, to international markets such as Thailand, aiming to establish benchmarks for Chinese cultural exports [4]. - The overseas revenue is anticipated to become a significant growth driver for the company [4]. Profit Forecast - The profit forecast for Yuyuan Inc. remains unchanged, with expected net profits of 1.262 billion yuan, 1.485 billion yuan, and 1.625 billion yuan for 2025, 2026, and 2027, respectively [2][6]. - Corresponding earnings per share (EPS) are projected to be 0.32 yuan, 0.38 yuan, and 0.42 yuan for the same years, with current price-to-earnings (PE) ratios of 18.9, 16.0, and 14.7 times [2][6].