Core Viewpoint - The company, 巨星传奇, has disclosed its performance expectations, indicating that its consolidated profit for the first half of 2025 may not exceed RMB 8.5 million, representing a year-on-year decrease of approximately 67% due to fair value losses on Hong Kong-listed equity securities [1][3]. Group 1: Profit Decline Reasons - The management has attributed the profit decline primarily to changes in the fair value of investments, specifically a loss of approximately RMB 19.5 million from the valuation adjustment of Hong Kong-listed equity securities, which is not directly related to the company's core business performance [3]. - Such gains and losses are typically volatile and non-recurring, significantly impacting financial performance for a specific period. Excluding this factor, the company's core profitability has not experienced substantial shrinkage during the same period [3]. - The adjusted consolidated profit is expected to remain below RMB 28 million, with a year-on-year growth rate not exceeding 9.8% [1][3]. Group 2: Main Business Operations - The company's main business includes IP creation and operation, as well as a new retail segment. The revenue share from the IP business has been steadily increasing, surpassing 50% of total revenue in the first half of 2024 [4]. - The company has diversified its commercialization paths around its core star IP through licensing, derivative product development, offline activities, and cultural tourism projects, establishing a relatively stable revenue source [4]. - In the new retail business, synergy with IP operations enhances the deep integration of IP with consumer engagement, improving user stickiness and the commercial monetization efficiency of IP [4]. - The announcement indicates that the main business operations are running normally, with performance growth aligned with established strategies, unaffected by the non-operating investment losses [4].