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, leading to speculation about its true financial status [3][10]. Salary Reduction Details - Peak has implemented a tiered salary reduction, with the largest cuts affecting office staff in direct sales, while store employees remain unaffected [1][2]. - The salary cuts range from 10% for those earning between 5,000 to 10,000 yuan, 20% for those earning between 10,000 to 20,000 yuan, and 30% for those earning over 20,000 yuan [2]. - The chairman has stated that salaries below 3,000 yuan will be subsidized to ensure employees' livelihoods are not impacted [2]. Financial Performance and Challenges - Peak's direct sales segment has been struggling, with losses exceeding 13 million yuan from January to July 2025, prompting the salary adjustments [6][11]. - The company has faced significant competition in the domestic sportswear market, with rivals like Anta and Xtep achieving substantial revenue growth [5][10]. - Peak's last complete financial report before privatization in 2016 showed revenues of 3.11 billion yuan, significantly lower than competitors [3][8]. Market Position and Strategy - Peak has been attempting to navigate a challenging market landscape, with its direct sales model leading to increased operational costs and inventory pressures [11][13]. - The company has made efforts to diversify its brand portfolio through acquisitions, but achieving synergy among multiple brands remains a challenge [17]. - Peak's international sales have shown some growth, with plans to reach 10 billion yuan in exports and 20 billion yuan in domestic sales by 2025 [19].