Core Viewpoint - The company is adjusting its brand positioning for CERRUTI 1881 and Kent&Curwen due to ongoing declines in net profit, indicating a strategic shift in response to market conditions [2][3][5]. Financial Performance - In 2024, the company reported a revenue of 4.004 billion yuan, a year-on-year increase of 13.24%, but net profit fell by 14.28% [5]. - For the first half of 2025, revenue was 2.103 billion yuan, up 8.63%, while net profit decreased by 13.56% [5]. Brand Positioning Adjustments - The company will not position CERRUTI 1881 as a luxury brand and has lowered the positioning of Kent&Curwen to align with Ralph Lauren [2][3]. - The adjustments reflect a lack of confidence in managing these brands and a response to changing consumer demands [4][5]. Young Consumer Engagement - The company is focusing on a "youthful transformation," investing heavily in marketing to connect with younger consumers [7][8]. - Sales expenses increased by 22.96% in 2024, with advertising costs surging by 108.1% [8]. Market Challenges - The company faces challenges in the high-end market, with analysts suggesting it has reached a growth bottleneck [7]. - There is a disconnect between the brand's target demographic and the current consumer base, particularly among younger consumers [9][10]. Competitive Landscape - Other brands, such as Ralph Lauren, have successfully engaged younger consumers, highlighting the need for the company to enhance brand recognition among this demographic [10].