Core Viewpoint - The company, Huasi Co., Ltd., reported a resilient performance in its core business despite facing short-term challenges in overall revenue, with significant growth in high-value fur clothing and a strong shift towards brand operation [1][2]. Financial Data and Business Structure Optimization - During the reporting period, Huasi achieved a revenue of 155 million yuan, indicating a structural adjustment phase with a focus on optimizing business layout [2]. - The fur clothing business, as a core high-value product, generated revenue of 71.5 million yuan, reflecting a substantial year-on-year increase of 43.88% [2]. - The OBM (Own Brand Management) model contributed 119 million yuan in revenue, marking an 18.71% increase, with its share of total revenue reaching 76.88%, indicating a successful transition to a brand-centric development model [2]. Core Competitiveness Amidst Adversity - Huasi's core business demonstrated growth against market trends, with significant breakthroughs in online sales channels, particularly through Douyin, which saw sales revenue of 3.83 million yuan, a staggering increase of 2236.69% [3]. - The establishment of a wholly-owned subsidiary in Xinjiang aims to expand the company's market presence in the northwest region, enhancing brand influence [3]. - The company maintains a comprehensive supply chain from raw material procurement to brand operation, ensuring strong cost control and quality assurance, with R&D investment of 4.09 million yuan, a 6.95% increase [3]. Strategic Layout for Future Development - The company’s brands, including "Heras," "Yijiaqi," and "Yishangdi," have clear positioning, with "Yijiaqi" recognized as a "Chinese Famous Trademark," contributing to stable growth [4]. - The company received high-tech enterprise certification, allowing for a 15% corporate income tax rate, which optimizes tax burdens and reflects ongoing innovation capabilities [4]. - The offline direct sales system operates efficiently, with 12 stores covering a total area of 8,439 square meters, and the top five stores generating a combined revenue of 16.9 million yuan, showcasing effective channel operations [4].