Core Viewpoint - The management of the company maintains guidance for full-year net profit to be flat year-on-year, with an improvement in net profit margin, while recent sales trends are similar to those in the second quarter, with discounts deepening year-on-year [1] Group 1: Financial Performance - For the first half of the fiscal year 2026, the company's revenue was 12.3 billion RMB, a year-on-year decrease of 5.8%, primarily due to fluctuations in consumer demand for sports products and offline foot traffic [1] - The company's gross margin slightly decreased by 0.1 percentage points to 41.0%, impacted by discount changes and an increase in online revenue share, although the contribution from retail business and support from brand partners partially offset negative effects [1] - The net profit for the first half of the year was 790 million RMB, a year-on-year decline of 9.8%, which was broadly in line with expectations [1] Group 2: Brand and Store Management - By brand, the main brand and other brands saw year-on-year declines of 4.8% and 12.2% respectively, with the main brand performing better than others and the overall performance [2] - The company is actively collaborating with main brands to improve online and offline channel management and overall discount levels [2] - The company plans to deepen its focus on running and outdoor segments, developing new brands such as norda, soar, Ciele, and Norr?na [2] Group 3: Store Structure and Online Business - As of August 2025, the number of direct-operated stores decreased by 332 to 4,688, continuing a downward trend, while total sales area decreased by 14.1%, but the average store area increased by 6.5% year-on-year [2] - The company is implementing a "selection + optimization" principle, applying stricter standards for new and renovated stores, resulting in larger store areas with more restrained renovation investments [2] - Online retail business experienced double-digit growth year-on-year, with the company exploring a multi-dimensional operational model of "1 (offline store) + N (online multi-scenario layout)" [2]