Financial Performance - The company reported a significant decline in net profit, down 96.26% year-on-year, with a total revenue of 829 million yuan, a decrease of 13.71% [1] - In Q2, total revenue was 491 million yuan, down 8.97% year-on-year, and net profit was 26.25 million yuan, a decrease of 36.6% [1] - Gross margin stood at 61.55%, a slight decrease of 0.35%, while net margin was only 0.14%, down 95.8% [1] - Total expenses (selling, administrative, and financial) amounted to 506 million yuan, accounting for 61.01% of revenue, an increase of 11.2% year-on-year [1] Cash Flow and Assets - Operating cash flow per share increased by 9.22% to 0.59 yuan, while earnings per share dropped by 92.86% to 0.01 yuan [1] - Accounts receivable decreased by 35.93% due to the recovery of receivables from the previous year and a reduction in clients for the Dragon Boat Festival [2] - Other non-current financial assets increased by 125.45% due to the appreciation of investments in funds [3] Liabilities and Equity - Deferred tax liabilities rose by 221.63% due to increased fair value changes from investments [4] - Other comprehensive income surged by 699.53% attributed to exchange rate fluctuations [5] - Undistributed profits decreased by 31.3% due to profit distribution for 2024 and a reduction in net profit [5] Revenue and Cost Analysis - Revenue decreased by 13.71% primarily due to market supply and demand dynamics [6] - Operating costs also fell by 13.22%, correlating with the decline in revenue [7] - Selling expenses decreased by 4.26%, while administrative expenses dropped by 14.18% due to lower office and personnel costs [8] Business Model and Future Outlook - The company's business model is heavily reliant on marketing strategies, necessitating further investigation into the underlying drivers [9] - Analysts project the company's performance for 2025 to be around 213 million yuan, with an average earnings per share of 0.89 yuan [10] Fund Holdings - The largest fund holding in the company is the Southern Small and Medium Growth Stock A, with 570,500 shares held, and a current scale of 277 million yuan [11] New Developments - A new subsidiary, Yuanzu High-tech Co., Ltd., commenced production in October 2024, focusing on Chinese and Western pastries, with ongoing product innovation planned [12]