Core Viewpoint - The company, Liren Lizhuang, is facing a legal dispute involving its controlling shareholder, Huang Tao, which may lead to a transfer of shares to his children, but the company asserts that this will not significantly impact its operations [1][3]. Company Summary - Huang Tao, the controlling shareholder, has been notified of a court summons regarding a divorce-related property dispute, where his ex-wife, Weng Shuhua, is requesting the transfer of 16.7475 million shares to their child [1][3]. - As of the announcement date, the lawsuit has not yet gone to trial, and the outcome remains uncertain, although the share transfer has already been completed [3]. - Following the share transfer, Huang Tao's ownership percentage decreased from 32.46% to 28.28%, while Weng Shuhua now holds 4.18% of the total shares, making her a significant shareholder [3]. - The company reported a significant decline in performance for the first half of 2025, with revenue of 831 million yuan, a year-on-year decrease of 13.98%, and a net loss of 32.7597 million yuan, marking the worst interim report since its listing [3][5]. Industry Summary - The beauty industry is experiencing weak demand, with a notable divergence in brand performance; Japanese and Korean cosmetics show no signs of recovery [5]. - The company's overall revenue continues to decline, influenced by operational changes and the termination of partnerships by some brands in 2024 [5].