Core Viewpoint - The chairman of the company, Xia Guoxin, stated that the inventory impairment will be fully accounted for within two years, alleviating concerns about potential risks [2][4]. Group 1: Financial Performance - The company has experienced a consistent increase in revenue over the past decade, but its market value has not kept pace, leading to questions from shareholders [4]. - The company faced a significant decline in profitability due to the underperformance of the acquired French brand IRO, resulting in substantial asset impairment [5]. - As of the end of the 2024 fiscal year, the company's inventory impairment provision stood at 440 million yuan, with finished goods accounting for 351 million yuan [5][6]. Group 2: Strategic Direction - The company aims to become a globally competitive high-end fashion brand group, a goal established in 2015 that remains unchanged [7]. - The company focuses on high-end fashion rather than luxury brands, believing that the overall development of Chinese fashion is progressing positively [7]. - The company is committed to balancing online and offline sales, with offline sales currently accounting for 80% of total revenue, while online sales are growing at a faster rate [8]. Group 3: Brand Portfolio - The company has expanded its brand portfolio to include six brands, with some already in the harvest phase while others are still being nurtured [5][8]. - The brands under the company include ELLASSAY, Laurèl, Ed Hardy, IRO, self-portrait, and nobus, showcasing a diverse range of high-end fashion offerings [8]. Group 4: Market Trends - The company recognizes a K-shaped structure in consumer behavior, with both consumption upgrades and downgrades occurring simultaneously [7]. - The company believes that high-end consumption will continue to expand, driven by emotional value and brand premium [7].

Core Viewpoint - The company is currently experiencing a situation of increasing revenue but not increasing profit, primarily due to the underperformance of the acquired French brand IRO, which has led to significant asset impairment [5][6]. Group 1: Financial Performance - The company has maintained a growth trend in operating revenue over the past ten years, but its market value has not increased and has even declined [5]. - The acquisition of IRO in 2019 has not met expectations, resulting in a large impairment of goodwill due to performance issues exacerbated by the pandemic and geopolitical conflicts [5][6]. - As of the end of 2024, the company's inventory impairment provision stands at 440 million yuan, with finished goods accounting for 351 million yuan [6][7]. Group 2: Brand Strategy and Market Position - The company has expanded its brand portfolio from a single brand to six brands, with some already entering a harvest phase while others are still in cultivation [6]. - The long-term goal of the company is to become an internationally competitive high-end fashion brand group, focusing on high-end and fashion elements [8][9]. - The company believes that high-end consumption will continue to expand, despite the presence of both upward and downward trends in consumer behavior [8][9]. Group 3: Online and Offline Sales Strategy - Currently, offline sales account for over 80% of total sales, but the company is increasing its online investment as online growth is significantly faster [9][10]. - The company plans to continue expanding its offline presence but will be more selective about store locations and sizes to ensure better performance [9].