Core Viewpoint - The recent announcement by the founder of Shangmei Co., Ltd., Lu Yixiong, opposing overtime work has sparked widespread discussion online, highlighting the company's internal culture and employee sentiments [1][5]. Company Culture and Employee Sentiment - Lu Yixiong emphasized the importance of completing work during regular hours and maintaining a work-life balance, questioning management practices that encourage late hours while managers leave early [5][6]. - Despite the initial positive reception of the "no overtime" policy, employees reported that benefits such as meal allowances and taxi reimbursements were subsequently revoked, leading to dissatisfaction [6][8]. Business Performance and Challenges - Shangmei Co., Ltd. has experienced fluctuating performance, with significant revenue growth in 2023, achieving 4.191 billion RMB, and a notable increase in 2024 to 6.793 billion RMB, representing a 62.1% year-on-year growth [9][10]. - The company's core brand, Han Shu, contributed significantly to revenue, accounting for 82.3% of total income in 2024, but the reliance on a single brand raises concerns about sustainability [10][11]. Marketing and Sales Strategy - The company heavily relies on the Douyin platform for sales, with Han Shu generating 6.135 billion RMB in GMV in 2024, which constitutes 90.5% of its revenue, indicating a high concentration risk [12][13]. - Marketing expenses have surged, reaching 3.947 billion RMB in 2024, which is 58.1% of total revenue, while R&D investment remains low at 1.8 billion RMB, only 2.6% of revenue, suggesting a potential long-term risk [13]. Product Compliance and Trust Issues - Han Shu has faced criticism for false advertising and product compliance issues, with recent allegations regarding misleading claims about product efficacy and unapproved ingredients [15][16]. - The company has a history of regulatory challenges, including past incidents of false advertising and product quality issues, which could undermine consumer trust and brand reputation [15][16].