Core Viewpoint - The company acknowledges significant fluctuations in quarterly sales and profits, attributing these variations to market demand, sales policies, promotional activities, and expenditure timing [1] Group 1 - The company received an inquiry regarding the substantial differences in sales and profits from the first quarter to the fourth quarter [1] - The company indicated that the majority of sales occur in the first quarter, raising questions about the sales challenges in other quarters [1] - The company expressed gratitude for the investor's interest and provided insights into the factors influencing quarterly revenue and profit fluctuations [1]

Investment Rating - The investment rating for the company is "Maintain Buy" [6] Core Views - The company reported a significant improvement in profitability due to optimized sales expense allocation, with a notable recovery in net profit margins in Q2 2025 [2][3] - The revenue decline has narrowed, supported by enhanced user operations and new product launches, particularly in the high-price segment online and improved pricing strategies offline [1][2] - The company is expected to see revenue growth turn positive in H2 2025, driven by low base effects and contributions from new products [2][3] Financial Performance Summary - For H1 2025, the company achieved revenue of 3.53 billion yuan, a year-on-year decline of 23.4%, and a net profit of 740 million yuan, down 17.3% [1] - In Q2 2025, revenue was 1.74 billion yuan, a year-on-year decline of 11.5%, but net profit increased by 71.4% to 280 million yuan [1] - The gross margin for Q2 2025 improved by 1.7 percentage points to 68.4%, while the sales expense ratio decreased by 11.0 percentage points to 39.6% [2] - The net profit margin for Q2 2025 rose by 8.9 percentage points to 17.1%, indicating a significant improvement in profitability [2] Future Outlook - The company anticipates that the revenue growth will turn positive in H2 2025, supported by new product launches and strategic marketing resource allocation [2] - The forecast for net profit for 2025-2027 has been slightly adjusted to 830 million, 970 million, and 1.09 billion yuan respectively, reflecting a year-on-year growth of 26.7%, 17.5%, and 12.1% [3]