Financial Performance - The company reported total revenue of 30.57 million yuan for the first half of 2025, a decrease of 28.03% year-on-year [1] - The net profit attributable to shareholders was 3.01 million yuan, down 69.36% compared to the previous year [1] - In Q2 2025, total revenue was 7.06 million yuan, reflecting a decline of 43.63% year-on-year, with a net profit of -3.54 million yuan, a staggering drop of 7626.53% [1] - The gross margin was 82.05%, down 3.91% year-on-year, while the net margin fell to 9.86%, a decrease of 57.33% [1] - Total expenses (selling, administrative, and financial) amounted to 13.90 million yuan, accounting for 45.47% of revenue, an increase of 13.36% year-on-year [1] Cash Flow and Debt - The net cash flow from operating activities decreased by 55.34%, attributed to reduced cash receipts from sales and related activities [3] - The company’s cash assets are reported to be very healthy, indicating a strong ability to meet short-term obligations [4] Business Model and Strategy - The company relies heavily on research and marketing to drive its performance, necessitating a thorough examination of the underlying factors behind these drivers [5] - Plans to develop smart education products include creating integrated solutions for educational digitalization and smart upgrades, collaborating with vocational schools and research institutions [6] - The company aims to launch consumer electronic products designed for children by 2025, focusing on emotional support, psychological guidance, and personalized learning experiences [6]