Investment Rating - The report maintains a "Buy" rating for the company [1][11][12] Core Insights - The company is focusing on expanding its IP derivative business and has shown a relatively stable performance despite short-term pressures on earnings [5][6][11] - The company has implemented an employee stock ownership plan, indicating long-term confidence in its growth strategy [7][11] - The company is actively addressing the decline in its infant and toddler business by enhancing market promotion efforts and expanding its global sales channels [8][11] Financial Performance - In Q3 2025, the company reported revenue of 689 million yuan, a year-over-year decrease of 2.42%, and a net profit of 14 million yuan, down 16.63% year-over-year [8] - For the first three quarters of 2025, total revenue was 1.887 billion yuan, a decline of 6.16% year-over-year, with a net profit of 51 million yuan, down 29.05% year-over-year [8] - The company expects revenue and net profit to improve in the coming years, projecting revenues of 2.529 billion yuan in 2025 and 2.901 billion yuan in 2026 [11][12] Business Strategy - The company is enhancing its product lines with multiple IP toy products and is set to launch new high-end collectible items in Q4 2025 [8][11] - It is transitioning its traditional IP toy products into a long-term operation model centered around competitive entertainment, aiming to create a closed-loop operation system [8][11] - The company is also focusing on expanding its presence in the U.S. market and developing sales in Latin America, the Middle East, and Asia [8][11]