Summary of Jiangnan Buyi Conference Call Company Overview - Jiangnan Buyi has shown improving growth rates from low single-digit to high single-digit growth since the beginning of the year, with an expected annual revenue growth close to 5% and profit growth potentially exceeding previous low expectations [2][4][33]. Key Points Revenue and Profit Guidance - The company anticipates a conservative internal guidance for revenue growth at mid-single digits and profit growth at low single digits for the fiscal year 2025, with potential for better-than-expected performance [2][4]. Inventory Management - Promotional events have limited impact on inventory reduction, relying more on online off-season discounts and offline outlet channels. The sell-through rate for autumn/winter products decreased, leading to increased inventory, but the long product lifecycle maintains profitability [2][7]. Brand Strategy - The LESS brand division operates independently, experimenting with the Classita brand. If successful, this model may be extended to other brands to enhance operational efficiency and brand vitality [2][8]. Membership Growth - The company adds approximately 60,000 new members monthly, with a stable increase in membership. High-repurchase-rate members value unique experiences and privileges, such as exclusive events and stylist services [2][9][11]. Discount Management - Discounts improved year-on-year in the first half of fiscal 2025, with expectations to maintain this trend in the second half. Overall discount management is effective, contributing to healthy retail growth [2][14]. Sales Performance - Sales performance in April and May showed sequential improvement, with April experiencing mid-single-digit growth and May exceeding double-digit growth in the first half, although there was a slowdown in the latter half of May [3][4]. Distribution Strategy - The performance of distribution areas slightly outperformed direct sales areas, with high-tier cities being sensitive to economic fluctuations but showing recent improvements. The transition from direct sales to distribution is stable, with no major changes expected in future strategies [5][17][18]. Brand Performance - Different brands within the company showed varied performance, with women's and children's clothing performing better than men's clothing. This trend is expected to continue into the second half of the year [22]. Product Innovation - The company maintains a balance between classic and innovative designs, with approximately 70-80% of products being classic or safe styles and 20-30% being new designs [23]. Future Plans - Jiangnan Buyi plans to open offline stores, starting with pilot locations near its headquarters, and aims to establish single-brand and children's collection stores [28]. Dividend Policy - The company intends to maintain a stable dividend policy, with an expected payout ratio of 75% for fiscal 2025, signaling a commitment to high dividends [5][32]. Overall Development - Despite the broader economic environment not fully recovering, the company has achieved steady positive growth and maintains high-quality development without resorting to discount promotions [33].