Core Viewpoint - Sophia achieved a unique performance in the home furnishing industry, reporting a total revenue of 10.494 billion yuan in 2024, a year-on-year decline of 10.04%, but a net profit attributable to shareholders of 1.371 billion yuan, an increase of 8.69% year-on-year, marking the third consecutive year of net profit growth since a significant decline in 2021 [1][2] Financial Performance - Total revenue for 2024 was 10.494 billion yuan, down 10.04% year-on-year [1] - Net profit attributable to shareholders reached 1.371 billion yuan, up 8.69% year-on-year, setting a historical high for the company [1] - Gross margin in the furniture manufacturing sector decreased to 34.73%, a reduction of 0.73 percentage points compared to the same period in 2023 [1] Cost Management - Sales expenses for 2024 were 1.011 billion yuan, down approximately 116 million yuan or 10.29% from 2023 [2] - R&D expenses decreased to 374 million yuan from 413 million yuan, a reduction of approximately 38.79 million yuan [2] - Financial expenses significantly decreased from 53.46 million yuan in 2023 to -10.52 million yuan in 2024, a drop of 119.67% due to optimized financial management and increased interest income [2] Workforce and Brand Strategy - The number of sales personnel at Sophia decreased to 2,213 by the end of 2024, down 422 from 2,635 at the end of 2023, representing a 16% reduction [2] - Sophia operates several brands targeting different market segments, including the "Sophia" brand for the mid-to-high-end market, "Milan" for the mass market, "Simi" for the light high-end market, and "Huahai" for the mid-to-high-end Chinese demographic [2]