Investment Rating - The investment rating for the company is "Outperform the Market" [5][3]. Core Views - The company is experiencing ongoing operational pressure, with a significant decline in revenue and net profit for the first three quarters of 2025. Revenue decreased by 34.1% to 550 million, and net profit dropped by 601.0% to -70 million. The third quarter alone saw a revenue decline of 28.5% to 170 million, with net profit losses expanding [1][3]. - The company is actively exploring new growth opportunities by transforming its offline stores into a new model that combines "technology products + quick-effect massage." The launch of the "Light Relaxation Moment" health management brand aims to enhance customer traffic and revenue [2][3]. - The company's gross margin has decreased by 5.9 percentage points to 60.9% in Q3, with rising expense ratios impacting profitability. The net profit margin for Q3 fell by 12.1 percentage points to -17.7% [3][4]. Financial Performance Summary - For 2025, the company is projected to have a total revenue of 835 million, a decrease of 23.1% year-on-year. The net profit is expected to be -54 million, reflecting a significant decline of 622.3% [4][26]. - The company anticipates a gradual recovery in revenue and profitability from 2026 onwards, with projected net profits of 25 million in 2026 and 48 million in 2027, indicating a turnaround [4][25]. - The company’s gross margin is expected to stabilize around 60% from 2025 to 2027, while the net profit margin is projected to improve as new business models and products are rolled out [20][23].