Core Viewpoint - The recent half-year report from the company shows a revenue increase but a decline in net profit, indicating challenges in maintaining profitability despite sales growth [1][4]. Financial Performance - The company achieved a revenue of 2.103 billion yuan in the first half of 2025, representing an 8.63% year-on-year increase [2]. - The net profit attributable to shareholders was 414 million yuan, down 13.56% compared to the previous year [2]. - The net profit after deducting non-recurring gains and losses was 390 million yuan, a decrease of 14.96% [2]. - Operating cash flow was 336 million yuan, reflecting a significant decline of 36.90% year-on-year [5]. Sales and Expenses - Sales expenses reached 871 million yuan, up 15.51% year-on-year, with significant increases in employee compensation, store operation costs, and e-commerce operation costs [5][6]. - The company’s gross profit margin for direct sales was 77.9%, while the franchise channel saw a decrease in revenue by 10.34% with a gross margin of 69.5% [7][8]. Strategic Initiatives - The company is focusing on e-commerce, with online sales revenue growing by 71.82% to 214 million yuan, maintaining a gross margin of 77.87% [8]. - The new general manager, who is the son of the chairman, is leading a strategic transformation towards youthfulness and internationalization [11][12]. - The company aims for a tenfold revenue increase over ten years, targeting 30 billion yuan to 300 billion yuan, with a focus on internationalization, high-end positioning, and appealing to younger consumers [12][14].