Core Viewpoint - The company, Taiping Bird, is experiencing a significant decline in performance despite undergoing structural reforms over the past two years, with a projected net profit drop of over 50% for the first half of 2025 compared to the previous year [3][4]. Financial Performance - For the first half of 2025, Taiping Bird expects a net profit of approximately 77.7 million yuan, a decrease of about 55% year-on-year, and a net profit excluding non-recurring gains and losses of around 13.7 million yuan, down approximately 79% [4]. - The company's revenue is projected to decline by about 8% due to poor retail performance, with fixed costs such as rent and employee salaries contributing to the profit drop [4]. - In Q1 of this year, Taiping Bird reported revenue of 1.668 billion yuan, a year-on-year decline of 7.63%, and a net profit of 124 million yuan, down 21.97% [5]. - The total revenue for 2024 was 6.802 billion yuan, a decrease of 12.7%, with net profit down 38.75% to 258 million yuan [5]. Inventory Management - As of the end of 2024, Taiping Bird's inventory amounted to 1.736 billion yuan, an increase of 15.05% year-on-year, with inventory turnover days at 192 days, which is higher than competitors like Uniqlo and H&M [5][4]. Marketing and Strategy - Taiping Bird's rapid growth prior to 2022 was driven by aggressive marketing and frequent product launches, with over 50 collaborations in 2020 alone [7][9]. - The company has shifted its strategy to focus on structural reforms, including the establishment of new functional centers for product development, supply chain management, and retail operations [10]. - In 2024, Taiping Bird announced a 600 million yuan investment to build a fashion research and development center, indicating a shift towards sustainable growth through innovation in materials and functionality [10].