Pu'er Lancang Ancient Tea Co. Ltd. reported its financial results for the first half of 2025, revealing a significant decline in key financial metrics as compared to the same period in 2024. The company's revenue fell by 38.8% to RMB119.5 million from RMB195.1 million. The gross profit dropped by 50.5% to RMB61.7 million, down from RMB124.7 million in the previous year. The company posted a loss attributable to owners of RMB28.9 million, a stark contrast to a profit of RMB5.1 million in the first half of 2024. This decline is attributed to the sluggish recovery of the consumer market and a management restructuring period during the reporting period. Sales from distributors saw a 71.5% decrease, amounting to RMB35.1 million, while direct sales to customers increased by 20.8% to RMB30.9 million. Sales to large customer channels experienced a substantial growth of 103.7%, reaching RMB24.8 million. This growth is credited to the unique sales model and improved brand recognition. In a strategic update, the company announced the appointment of Mr. Zhou Xinzong as the new president in May 2025, following the resignation of the former president due to health reasons. Additionally, the company has been recognized once again as a leading enterprise in agricultural industrialization by China's Ministry of Agriculture and Rural Affairs. Pu'er Lancang Ancient Tea Co. Ltd. plans to issue H shares to raise approximately HKD59.04 million to bolster its financial position, with the subscription process currently underway.