Core Viewpoint - The company, Yaowang Technology, is expected to report a net loss of between 170 million to 240 million yuan for the first half of 2025, slightly improving from a loss of 220 million yuan in the same period last year, primarily due to challenges in its footwear business and high amortization costs [1] Group 1: Financial Performance - The projected net loss for the first half of 2025 is between 170 million to 240 million yuan, with a non-GAAP net loss also expected in the same range [1] - The footwear business has been a significant factor in the losses, but the company indicates that inventory clearance is nearing completion, which should improve gross margins in the future [1] - The amortization costs related to innovative digital marketing initiatives have accumulated to approximately 120 million yuan during the reporting period [1] Group 2: Strategic Adjustments - The company plans to adjust its strategy starting in the second half of 2024, focusing on operational model changes, management efficiency improvements, and exploring new growth avenues [1] - A "shutdown and transfer" strategy is being implemented for underperforming projects, reallocating resources back to profitable core projects [2] - The company aims to enhance its operational model by building a new consumer brand matrix based on an IP platform, reducing reliance on live streaming business [2] Group 3: New Initiatives - The company has successfully launched a sanitary napkin brand "Duo Wei," achieving total sales of approximately 125 million yuan from May 18 to July 11, leveraging a "transparent factory" concept and 100% self-built production capacity [2] - Ongoing discussions with multiple quality ODM factories are aimed at establishing a significant second growth curve for the company [2]