Core Viewpoint - The recent divorce case involving the founder of Liren Lizhuang has concluded, resulting in significant changes in the company's shareholding structure, while the company faces declining financial performance and challenges in its business model [1][29]. Financial Performance - Liren Lizhuang reported a revenue of 831 million yuan for the first half of 2025, a year-on-year decrease of 13.98% [2][6]. - The net profit attributable to shareholders was a loss of 32.76 million yuan, a staggering decline of 1315.98% compared to the previous year [2][6]. - The total profit for the period was a loss of 40.50 million yuan, down 730.94% from a profit of 6.42 million yuan in the same period last year [2]. Stock Performance - Since its peak stock price of 54.89 yuan in September 2020, Liren Lizhuang's stock has plummeted nearly 80%, closing at 10.37 yuan on the day of the report [3][6]. - The company's market capitalization has shrunk by over 80%, now standing at approximately 4.15 billion yuan [3]. Business Model and Revenue Sources - The company's revenue model primarily consists of e-commerce retail and brand marketing services, with e-commerce retail accounting for 91.12% of total revenue, generating 757 million yuan [5][6]. - Liren Lizhuang's reliance on platforms like Tmall is significant, with Tmall domestic and international revenues at 516 million yuan and 27 million yuan, respectively [8][10]. Brand Development - The company's self-owned brands have seen a sales increase of over 80% year-on-year, although they still represent a small portion of total revenue [11][12]. - Liren Lizhuang operates six self-owned brands, with the brand Yuyongchu achieving top sales in its category shortly after launch [11]. Challenges and Market Position - The termination of partnerships with major Korean brands has put additional pressure on Liren Lizhuang, contributing to its financial struggles [2][36]. - The company faces intense competition from emerging platforms and other traditional TP companies that have successfully adapted to market changes [10][30]. - The recent divorce case of the founder has been linked to the company's declining performance, with significant operational disruptions during the legal proceedings [17][29]. Future Outlook - The company must accelerate its strategic transformation and enhance its core competitiveness to survive and thrive in a competitive market environment [36].