Group 1: Company Overview - 85度C is closing its last store in Beijing, with the final closure scheduled for October 31 [1] - The brand has been experiencing significant operational adjustments, leading to the closure of over 40 stores in mainland China this year, marking the largest reduction in five years [1] - The parent company, 美食-KY, reported a loss of approximately 2 billion New Taiwan Dollars (around 46.3 million RMB) in the first half of last year, with projections indicating potential losses exceeding 4 billion New Taiwan Dollars (around 92.6 million RMB) by 2025 if operational changes are not made [1] Group 2: Industry Context - As of October 15, there are 3,162 bakery brands in China, with over 360,000 stores, predominantly small-scale, averaging only 25 stores per 100,000 people [4] - Despite over 76,000 new bakery stores opening in the past year, the net growth is negative at -21,800 stores, indicating that more than 90,000 bakery stores have closed [4] - The bakery market in China is undergoing significant transformation due to changing commercial environments and consumer demands, with trends such as the rise of new categories, innovative business models, and a focus on healthier products reshaping the industry [4] - The retail market for baked goods in China is projected to reach 611.07 billion RMB in 2024 and 662.15 billion RMB in 2025, reflecting an 8.4% year-on-year growth [4]