Investment Rating - The investment rating for the company is "Outperform the Market" [6][27]. Core Views - The company experienced a revenue decline of 11.7% year-on-year in H1 2025, with a total revenue of 344 million yuan. The net profit attributable to shareholders was 131 million yuan, down 3.5% year-on-year [9][27]. - In Q2 2025, the company reported a revenue of 213 million yuan, a decrease of 14.22% year-on-year, and a net profit of 103 million yuan, down 8.06% year-on-year. The management training business showed relative resilience with a revenue of 285 million yuan, down 8.9% [9][12]. - The company is leveraging AI technology to enhance operational efficiency, resulting in a gross margin increase to 77.5%, up 1.3 percentage points year-on-year [2][22]. Summary by Sections Financial Performance - In H1 2025, the company achieved a gross margin of 77.5%, benefiting from a higher proportion of high-margin management training services and improved efficiency through AI [2][22]. - The net profit margin for H1 2025 was 38.2%, an increase of 3.2 percentage points year-on-year [2][22]. - The company’s cash receipts from sales in Q2 2025 were 233 million yuan, a decline of 20.17% year-on-year, but the decline was less severe compared to Q1 2025 [15][27]. Business Strategy - The company has initiated an "AI Strategy" and a "Hundred Schools Plan," which have begun to show results, including a 46% year-on-year increase in new employee performance and a significant improvement in customer outreach efficiency [3][25]. - The "Hundred Schools Plan" has successfully replicated nine branch managers from March to July 2025, indicating a strong potential for organizational growth driven by AI [25][26]. Shareholder Returns - The company plans to distribute a cash dividend of 119 million yuan for H1 2025, representing a payout ratio of 90.74% of net profit [3][26]. - The current dividend yield (TTM) stands at 6.09%, highlighting the company's commitment to returning value to shareholders [3][27].