Core Viewpoint - The company held an online investor reception day to discuss business development and AI applications, emphasizing its strategic direction and operational improvements [1][6]. Group 1: Investor Relations Activity - The investor relations activity was categorized as an online collective reception day [2]. - The event took place on September 19, 2025, from 15:30 to 17:00 [3]. - The meeting was conducted via the Panoramic Network's "Investor Relations Interactive Platform" [4]. Group 2: Company Operations and Strategy - The company discussed its local life service live streaming, highlighting its competitive advantages compared to platforms like Douyin and Meituan, stating it operates within the local life industry without direct competition [6]. - The operational status of the Hangzhou flagship project, "Yaowang X27 PARK," is reported as good, with plans for a light asset operation model to expand the X27 series nationwide [6]. - The company is focusing on its self-developed AI product "V5chat," which is expected to be fully implemented in Q3 2025, currently in the tuning phase [6]. - The company is undergoing strategic adjustments to improve profitability, including increasing investment in profitable projects and restructuring innovative incubation projects [6][7]. Group 3: Financial and Market Performance - The company reported a significant increase in overseas business, with a notable sales figure of $2.74 million from a live streaming event in North America in July 2025 [6]. - The company is adjusting its fundraising plans, terminating two projects due to changes in technical development needs and business focus, reallocating remaining funds to support working capital [7]. - The company expressed confidence in its long-term development and efforts to improve operational performance [7].

Group 1: Business Expansion and Strategy - The company is expanding its local life service live streaming business, with a focus on cities and partnerships, positioning itself as a key player in the live commerce sector without direct competition with platforms like Douyin and Meituan [2][3] - The company plans to implement a light asset operation model for its X27 series projects nationwide, following the successful launch of the X27 PARK flagship in Hangzhou and the X27S base in Humen [3][4] - The company is actively developing its proprietary AI product "V5chat," expected to enhance operational efficiency and effectiveness by Q3 2025 [4][5] Group 2: Financial Performance and Challenges - The company has faced losses primarily due to increased personnel and costs associated with innovation initiatives since 2024, but is taking measures to improve profitability by focusing on successful projects like live commerce [4][7] - The company anticipates a significant reduction in asset impairment losses related to its footwear business in the second half of the year, as inventory clearance approaches completion [10][12] - The company is committed to improving its financial performance and aims to achieve profitability, with management expressing confidence in long-term growth despite current challenges [11][12] Group 3: Marketing and Brand Strategy - The company is shifting its focus towards social e-commerce and self-owned brand development, leveraging its strong IP resources and marketing capabilities to enhance brand visibility and sales [6][8] - The company is exploring partnerships with quality ODM factories to create a new growth curve, aiming to establish a multi-dimensional sales system that integrates online and offline channels [6][8] - The company is utilizing its marketing advantages to replicate the success of its "Duo Wei" brand, which has shown promising sales figures despite lower profit margins [7][8] Group 4: International Expansion - The company has seen growth in its overseas business, with the North American "Deals For Your Days" live event generating $2.74 million in sales and over 120,000 orders [8][13] - The company plans to adapt its successful domestic business model to international markets, utilizing its Los Angeles selection base to support influencers with product selection and live streaming [8][13] Group 5: Investor Relations and Communication - The company acknowledges the need for improved communication with investors and is considering hosting investor engagement activities to enhance transparency and confidence [9][13] - The company is committed to addressing investor concerns regarding its financial health and operational strategies, emphasizing ongoing efforts to turn around its performance [11][12]