Core Viewpoint - The credit rating of Tianchuang Fashion Co., Ltd. remains at A- with a negative outlook due to declining sales, increasing losses, and high inventory pressure in the competitive women's footwear market [2][4][5]. Company Overview - Tianchuang Fashion has over 20 years of experience in the women's footwear industry, with a focus on self-owned brands that maintain a certain level of recognition in the mid-range market [2][4]. - The company has expanded its product line to include sports footwear, increasing the sales proportion of this category from 5.9% in 2023 to 16% in 2024 [2][19]. Financial Performance - In 2024, the company's operating income decreased by 13.74% year-on-year, with a net loss of 0.91 billion yuan [5][15]. - The total assets as of March 2025 were 16.34 billion yuan, with total liabilities of 3.66 billion yuan [2][3]. - The company's cash flow from operating activities was 0.32 billion yuan, indicating a decline in cash generation ability [3][5]. Market Environment - The domestic women's footwear market is highly competitive, with sales continuing to decline, although at a slower rate. The total sales for women's footwear in 2024 were 263.67 billion yuan, down 1.27% year-on-year [11][12]. - The industry faces significant pressure from high inventory levels and reduced consumer demand, leading to a challenging operating environment [11][12][14]. Inventory and Sales Pressure - The proportion of inventory to total assets was 14.63% in 2024, indicating a high level of inventory pressure that consumes working capital [5][20]. - The company closed 224 stores in 2024, resulting in a total of 944 stores as of March 2025, reflecting a strategy to streamline operations [16][17]. Competitive Position - The company competes with both domestic and international brands in the women's footwear market, where brand recognition, quality, and pricing are critical factors for success [14][12]. - The sales contribution from major brands like KISSCAT and TIGRISSO remains significant, with stable gross margins despite overall sales declines [19][15].