Investment Rating - The report maintains a "Buy" rating for the company [7] Core Views - The company has shown stable performance with a revenue increase of 2% year-on-year for the first three quarters of 2025, reaching 15.6 billion yuan, while the net profit attributable to shareholders decreased by 2% to 1.86 billion yuan [1] - The main brand's revenue grew by 3% in Q3 2025, indicating healthy growth, while new business expansions are progressing smoothly [3] - The company is expected to achieve single-digit growth in revenue and net profit attributable to shareholders for 2025, with a more robust growth forecast for 2026 [5] Summary by Sections Financial Performance - For Q3 2025, the company reported a revenue of 4.03 billion yuan, up 4% year-on-year, and a net profit of 280 million yuan, also up 4% year-on-year [2] - The gross margin for Q3 2025 decreased by 1.0 percentage points to 41.8%, while the net profit margin fell by 2.0 percentage points to 6.3% [2] Brand Performance - The main brand's revenue for the first three quarters of 2025 decreased by 4% to 10.85 billion yuan, with a gross margin increase of 2.4 percentage points to 47.7% [3] - The group purchase and customization series saw a revenue increase of 29% to 1.88 billion yuan, although the gross margin decreased by 6.7 percentage points to 40.6% [3] - Other brands experienced a revenue increase of 37% to 2.41 billion yuan, with a gross margin decrease of 9.0 percentage points to 44.3% [3] Channel Performance - Offline sales grew by 6% to 12.05 billion yuan in the first three quarters of 2025, while online sales decreased by 3% to 3.09 billion yuan [4] - Direct sales outperformed franchise sales, with direct sales revenue increasing by 19% to 3.91 billion yuan, while franchise revenue decreased by 4% to 9.35 billion yuan [4] Cash Flow and Inventory Management - As of Q3 2025, inventory decreased by 6.6% to 11.52 billion yuan, with inventory turnover days increasing by 24.9 days to 371 days [5] - The net operating cash flow for the first three quarters of 2025 was 2.03 billion yuan, approximately 1.1 times the net profit attributable to shareholders for the same period [5]