Group 1 - The core point of the article is that Baoshan International (03813) reported a significant decline in its net operating revenue for January 2026, amounting to 1.748 billion yuan, which represents a 32.5% decrease compared to the same month in the previous year [1][1][1] - The cumulative net operating revenue for the month ending January 31, 2026, is also reported as 1.748 billion yuan, down from 2.589 billion yuan in January 2025, indicating a consistent downward trend in revenue [1][1][1]

Core Viewpoint - The company, Lianya Group, has decided to strategically review its franchise brand portfolio and business objectives, leading to the early termination of its Reebok franchise agreement in certain regions, which is expected to result in a non-cash gain of approximately HKD 120 million to HKD 130 million by the end of 2025 [1][2]. Group 1 - The company will terminate its Reebok franchise agreement in mainland China, Hong Kong, Macau, and Taiwan, effective December 31, 2025, to better allocate resources for long-term growth [1]. - The early termination of the Reebok franchise agreement will allow the company to avoid future minimum franchise fee payments, which were initially recognized at the start of the agreement [1]. - The anticipated non-cash gain from the termination will be recorded in the consolidated financial statements for the year ending December 31, 2025 [1]. Group 2 - Despite the termination of the Reebok franchise agreement, the company will continue to operate its multi-brand distribution business through other franchises and its own brands, complementing its robust garment business [2].