Core Viewpoint - The company announced the gradual shutdown of its "Free Market" business, focusing instead on the "Official Verification" model for second-hand goods, ensuring a smooth transition for users [1][3][9] Summary by Sections Business Transition - The "Free Market" business, which operates on a C2C model, will cease operations starting September 24, 2025, with the closure of the product listing entry and the gradual removal of browse and purchase options by September 29, 2025 [1][3] - Customer service and after-sales support for orders placed during the transition will be extended for one month, with full closure of these services by October 31, 2025 [3][9] Rationale for Change - The decision to shut down the "Free Market" was described as difficult but necessary, as it has been associated with issues such as online fraud and disputes between buyers and sellers [3][9] - The company aims to enhance its "Official Verification" services to meet the evolving demands of consumers for quality and reliable second-hand transactions [9] Future Focus - The company will concentrate on its core C2B2C business, which has shown rapid growth and has achieved scalable profitability over the years [9] - The shift towards "Official Verification" is intended to standardize non-standard products and provide users with a more certain and satisfactory experience in second-hand trading [9]

Core Insights - The company, Zhuanzhuan Group, announced the gradual shutdown of its "Free Market" business to focus on its core C2B2C model, emphasizing the "Official Verification" service for second-hand transactions [1][5][2] - The "Official Verification" service has seen significant growth since its inception in 2019, becoming the mainstream choice for users on the platform, while the "Free Market" segment now accounts for less than 3% of the overall GMV [1][2] - The decision to close the "Free Market" is aimed at enhancing user experience and addressing the increasing consumer demand for quality and reliable second-hand products [1][5] Business Strategy - Zhuanzhuan Group aims to provide a more secure and standardized second-hand trading experience by focusing on the "Official Verification" model, which seeks to transform non-standard products into standardized offerings [1][5] - The company has established a closed-loop service for hundreds of product categories, including recycling, quality inspection, sales, shipping, and after-sales support, with a commitment to 7-day no-reason returns and 365-day warranty services [2] - The company achieved its first profitable year in 2022 and has maintained profitability for several consecutive years, indicating a successful business model transition [2] Transition Plan - The "Free Market" service will begin to be phased out on September 29, with a complete shutdown scheduled for October 31, 2023 [7] - Customer service and after-sales support for orders placed during the transition period will be extended by one month to ensure user concerns are addressed adequately [7] - The company expresses regret for the impact on "Free Market" users and commits to improving the "Official Verification" service to enhance user trust and satisfaction [5][6]