Group 1 - The core transformation in content consumption for 2026 is the rise of "ordinary people," moving away from grand narratives, as the value judgment shifts from elites and institutions to relatable individuals [1][6][10] - In the entertainment and content industry, stories of ordinary people's struggles and triumphs are becoming mainstream, with a focus on small character narratives in film and television [23][24][26] - Short dramas are emerging as emotional "quick fixes," while healing variety shows provide low-conflict environments for audiences [31][39] Group 2 - In the commercial retail sector, brands are moving away from elitism and are encouraged to connect with ordinary consumers, emphasizing authentic communication and emotional connections [2][12][29] - The marketing approach is shifting towards "micro-touchpoint" creativity, where everyday items become vehicles for emotional engagement [2][12] - Young consumers are redefining value through "aesthetic simplicity" and "wisdom in imperfection," challenging traditional brand pricing strategies [2][12] Group 3 - In the realm of travel and lifestyle, there is a trend towards local experiences and self-exploration, with "county travel" and local markets gaining popularity [2][10] - The democratization of technology and the internet is empowering ordinary individuals, making AI tools accessible for practical needs and creative expression [2][10] - Health and wellness are becoming integral to daily life, with a focus on cost-effective, situational care, and grassroots sports gaining traction [2][10] Group 4 - The brand marketing landscape is undergoing a "people's revolution," shifting from "hero-making" narratives to genuine dialogue with consumers [2][12] - Emotional compensation is becoming a key value in advertising, with brands needing to engage in two-way interactions rather than one-sided promotions [2][12] - The ultimate goal for brands is to authentically document the everyday lives of consumers, reflecting their stories and struggles [29][30]

Core Viewpoint - The management of the company maintains guidance for full-year net profit to remain flat year-on-year, with an improvement in net profit margin, while recent sales trends are similar to those in the second quarter, although discounts have deepened year-on-year [1] Financial Performance - For the first half of the 2026 fiscal year, the company's revenue was 12.3 billion RMB, a year-on-year decrease of 5.8%, primarily due to fluctuations in consumer demand for sports products and offline foot traffic [1] - The gross profit margin slightly decreased by 0.1 percentage points to 41.0%, impacted by discount changes and an increase in online revenue share, although the contribution from retail business and support from brand partners partially offset negative effects [1] - The operating expense ratio increased by 0.1 percentage points to 33.2%, benefiting from rental structure and operational team optimization; the net profit margin decreased by 0.3 percentage points to 6.4%, with net profit declining by 9.8% to 790 million RMB, roughly in line with expectations [1] Brand Performance - By brand, the main brand and other brands saw year-on-year declines of 4.8% and 12.2% respectively, with the main brand performing better than other brands and the overall performance [2] - The company is actively collaborating with the main brand to improve online and offline channel management and enhance overall discount levels [2] Store Management and Strategy - The company continues to adjust its store structure and improve quality, with a net decrease of 332 directly operated stores to 4,688 as of August 2025, indicating a downward trend; total sales area decreased by 14.1%, but average store area increased by 6.5% year-on-year [2] - The management noted ongoing pressure on offline foot traffic, with a double-digit decline in same-store traffic during the period; the company is implementing stricter standards for new and renovated stores under the "selection + optimization" principle [2] - Online retail business experienced double-digit growth year-on-year, with the company exploring a diversified operational model of "1 (offline store) + N (online multi-scenario layout)" [2]