Summary of Baia Co., Ltd. Conference Call Company Overview - **Company**: Baia Co., Ltd. - **Focus**: E-commerce performance and strategic adjustments for 2026 Key Points 1. 2026 E-commerce Performance - The company anticipates a significant reduction in losses for 2026 due to internal reflections and strategic corrections made after substantial losses in 2025 [1] - Adjustments include personnel changes aimed at improving profitability in the e-commerce segment [1] 2. Impact of E-commerce Slowdown - Concerns were raised about whether the slowdown in e-commerce would disrupt the company's operational logic [1] - Historically, e-commerce has played a crucial role in driving product popularity and offline traffic [1] - For 2026, the company will continue to focus on its PRO, organic cotton, and pants series, which are expected to maintain a solid flow of customers [1] 3. Expansion into New Provinces - The company has successfully completed its expansion into approximately 10 new provinces beyond its original five [1] - Future market share growth in these new provinces will increasingly depend on the effectiveness of the offline sales team [1] 4. Shift in Resource Allocation - Following the slowdown in e-commerce, the company plans to allocate more resources to offline operations [1] - National expansion is identified as the core driver of growth for the next 3-5 years [1] 5. Growth Rate Concerns - There are questions regarding whether the company will face a slowdown in growth due to the e-commerce decline [1] Additional Insights - The company is committed to enhancing its profitability and operational efficiency in response to market challenges [1] - The strategic focus on offline expansion indicates a shift in business model to adapt to changing market conditions [1]