Core Viewpoint - Naixue's Tea reported a significant decrease in revenue for the first half of 2025, but managed to reduce its net loss substantially compared to the previous year, indicating a potential recovery in operational efficiency and cash flow management [1] Financial Performance - Revenue for the first half of 2025 was RMB 21.78 billion, down 14.4% from RMB 25.44 billion in the first half of 2024 [1] - Adjusted net loss decreased by 73.1% from RMB 4.38 billion in the first half of 2024 to RMB 1.18 billion in the first half of 2025 [1] - Net cash generated from operating activities increased by 33.1% to RMB 1.38 billion, up from RMB 1.04 billion in the first half of 2024 [1] Store Expansion and Strategy - As of June 30, 2025, the company operated a total of 1,638 tea shops, including 1,321 directly operated stores and 317 franchised stores [1] - The company plans to enhance store revenue and optimize cost structures in the second half of 2025 by improving existing stores and adjusting store formats [1] - New store models, such as the "Naixue Green" store, will be further developed to attract a broader consumer base [1] - The company aims to create high-quality, cost-effective health products and implement diversified product strategies to meet the consumption needs of different age groups [1]