Core Viewpoint - The company, Zhuanzhuan Group, announced the gradual shutdown of its "Free Market" business, focusing instead on the "Official Verification" model to provide a more secure second-hand trading experience for users [1][2]. Group 1: Business Strategy - The decision to close the "Free Market" was described as a difficult but necessary choice, aimed at eliminating the space for online fraud and gray market transactions [1]. - The "Free Market" business accounted for less than 3% of the overall GMV (Gross Merchandise Volume) of Zhuanzhuan, indicating that its closure would not significantly impact the company's overall operations [2]. - The company aims to enhance user experience by focusing on the C2B2C model, which has shown rapid growth and profitability in recent years [2][7]. Group 2: Market Positioning - Zhuanzhuan's shift from C2C to C2B2C reflects a broader trend in the second-hand market, where platforms are increasingly differentiating based on user needs, with Zhuanzhuan emphasizing service quality and reliability [4][5]. - The company has established a complete closed-loop service for second-hand transactions, addressing issues such as information asymmetry and trust, which enhances user experience and transaction efficiency [7]. Group 3: Quality Assurance and Standards - Zhuanzhuan has developed its own standards for second-hand product verification, including a comprehensive 367-step inspection process for mobile phones, ensuring quality and reliability [6]. - The company has set up quality inspection centers across the country and employs over 2,500 quality inspectors to maintain high standards in its offerings [6]. - The focus on standardization in the second-hand market is seen as essential for meeting the evolving demands of consumers who prioritize product quality and service experience [7].

Core Viewpoint - The company announced the gradual shutdown of its "Free Market" business, focusing instead on the "Official Verification" model for second-hand goods, ensuring a smooth transition for users [1][3][9] Summary by Sections Business Transition - The "Free Market" business, which operates on a C2C model, will cease operations starting September 24, 2025, with the closure of the product listing entry and the gradual removal of browse and purchase options by September 29, 2025 [1][3] - Customer service and after-sales support for orders placed during the transition will be extended for one month, with full closure of these services by October 31, 2025 [3][9] Rationale for Change - The decision to shut down the "Free Market" was described as difficult but necessary, as it has been associated with issues such as online fraud and disputes between buyers and sellers [3][9] - The company aims to enhance its "Official Verification" services to meet the evolving demands of consumers for quality and reliable second-hand transactions [9] Future Focus - The company will concentrate on its core C2B2C business, which has shown rapid growth and has achieved scalable profitability over the years [9] - The shift towards "Official Verification" is intended to standardize non-standard products and provide users with a more certain and satisfactory experience in second-hand trading [9]