Core Viewpoint - The recent salary reduction at Peak has raised concerns about the company's financial health, especially in light of its recent charitable donation of 100 million yuan, creating a stark contrast that has led to speculation about its true financial status [4][7]. Group 1: Salary Reduction Details - Multiple employees have confirmed the authenticity of the salary reduction rumors, indicating a tiered salary cut, with the largest reductions affecting office staff in direct sales, while store employees remain unaffected [2]. - Chairman Xu Jingnan stated that salaries below 3000 yuan will be subsidized to ensure employees' livelihoods are not impacted, emphasizing that only fixed salaries are adjusted, while performance pay remains unchanged [3]. - The salary adjustments were reportedly in consideration since May 2025, primarily targeting loss-making direct sales departments and high-salary positions, with direct sales experiencing a cumulative loss of over 130 million yuan from January to July [6][7]. Group 2: Financial Performance and Market Position - Peak's last complete fiscal report before privatization in 2016 showed annual revenue of 3.11 billion yuan, significantly lower than competitors like Anta and Xtep, indicating a widening gap in the domestic sportswear market [4][5]. - The company has struggled to maintain its market position, with significant revenue declines from 2011 to 2013, and a failure to recover to peak performance levels despite some recovery in 2014 and 2015 [11][12]. - Peak's privatization in 2016 was largely interpreted as a move to better integrate resources and pursue higher valuations in the A-share market, as its stock price had plummeted over 60% from its initial offering [12][13]. Group 3: Challenges in Direct Sales and Product Competitiveness - The direct sales model, while eliminating intermediaries and potentially increasing revenue and profit margins, has also led to high operational costs and significant losses for Peak, highlighting the risks associated with this strategy [15][16]. - Peak's core product competitiveness is lacking, with its most successful products being limited to specific categories like the Tai Ji series, which does not significantly enhance brand image compared to competitors' offerings [17][18]. - The company faces intense competition from both domestic brands and international players like Nike and Adidas, particularly in lower-tier cities, where Peak's brand strength is insufficient to compete effectively [18]. Group 4: Future Strategies and Market Adaptation - Peak aims to enhance its international presence, with a goal of achieving over 10 billion yuan in export sales and 20 billion yuan in domestic sales by 2035, focusing on building a strong international brand [21]. - The company is shifting from simple product exports to a more strategic approach involving direct sales and localized operations in overseas markets, which poses a comprehensive challenge to its product strength and retail precision [22]. - The long-term challenge for Peak and similar brands lies in rejuvenating their brand image and engaging with younger consumers, who will ultimately determine the future of these brands [23].