Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing significant pressure on profitability, with a notable decline in domestic market revenue, while the overseas market expansion shows promising results [7] - The company reported a total revenue of 2.755 billion yuan in the first half of 2025, a year-on-year decrease of 14.18%, and a net profit attributable to shareholders of -30 million yuan, compared to a profit of 5 million yuan in the same period last year [7] - The company is focusing on integrating and expanding new product categories while enhancing product capabilities, aiming to improve service capabilities and iterate sales and product models during the industry downturn [7] Financial Performance Summary - Total revenue forecast for 2023A is 7.802 billion yuan, with a projected decline to 6.118 billion yuan in 2025E, followed by a recovery to 6.646 billion yuan in 2026E and 7.235 billion yuan in 2027E [1] - Net profit attributable to shareholders is expected to drop from 324.01 million yuan in 2023A to 175.23 million yuan in 2025E, before increasing to 272.03 million yuan in 2026E and 327.97 million yuan in 2027E [1] - The latest diluted EPS is projected to be 0.50 yuan per share in 2025E, with a P/E ratio of 44.79 [1] Market and Operational Insights - The company’s overseas revenue reached 477 million yuan in the first half of 2025, marking a year-on-year increase of 30.75%, indicating a growing share of overseas sales [7] - The gross margin for the first half of 2025 was 30.37%, slightly down by 0.9 percentage points year-on-year, with the company managing expenses effectively despite revenue pressures [7] - The company’s asset-liability ratio was 38.74% at the end of the first half of 2025, showing a downward trend compared to the beginning of the year [7]