Core Viewpoint - The live streaming industry, particularly represented by the company Yaowang Technology, is facing significant challenges despite its initial success and celebrity endorsements, with continuous financial losses and a declining market position [2][4][10]. Company Overview - Yaowang Technology, a leading live streaming company in China, has signed over 70 celebrities and more than 150 influencers, including popular figures like Jia Nailiang and Wang Zulan [4][6]. - The company's stock price surged sevenfold within three months after entering the live commerce sector in 2019, but has since plummeted by 80%, returning to levels seen six years ago [2][4]. Financial Performance - In Q3 2025, Yaowang reported a net loss of 4.15 billion yuan, continuing a trend of losses that have accumulated to over 30 billion yuan since 2021 [4][6][10]. - The company's revenue for Q3 2025 was 7.17 billion yuan, with a net profit of -1.62 billion yuan, placing it at the bottom of the industry rankings [6][10]. - The gross profit margin for the live commerce business dropped dramatically from 21.80% in 2022 to -0.38% in 2023, although it slightly recovered to 7.25% in Q3 2025, still below the industry average of 13.48% [8][9]. Industry Trends - The live commerce sector is experiencing a slowdown, with a projected growth rate of 17.7% for 2024, down from nearly 200% in 2020 [24][23]. - The shift from a "placement fee" model to a "pure commission model" is evident, where income is now more closely tied to actual sales performance, impacting revenue stability for live streaming agencies [28][30]. Strategic Initiatives - To counteract declining performance, Yaowang is exploring new business avenues, including the transformation of physical spaces into commercial hubs and launching self-branded products [11][12][17]. - The company has partnered with celebrities like Huang Zitao to create new brands, such as the sanitary napkin brand "Domyway," which achieved sales of approximately 1.25 billion yuan shortly after launch [14][15]. Future Outlook - The future of Yaowang Technology and the live streaming industry hinges on successful strategic transformations and the establishment of sustainable profit models [43]. - The integration of AI technology is anticipated to play a crucial role in reshaping the live commerce landscape, potentially enhancing operational efficiency and customer engagement [34][39].

Core Viewpoint - The article discusses the challenges faced by the live-streaming e-commerce industry, particularly focusing on the performance decline of Yaowang Technology, despite its extensive roster of celebrity endorsements and attempts to pivot towards new business models [5][14][31]. Company Overview - Yaowang Technology is the largest live-streaming company in China, having gained significant attention through its celebrity partnerships and a documentary titled "The Era of Rapid Currents" produced by Tencent [3][4]. - The company's stock price surged sevenfold within three months after entering the live-streaming market in 2019 but has since plummeted by 80%, returning to levels seen six years ago [5]. Financial Performance - In the third quarter of 2025, Yaowang reported a revenue of 717 million yuan and a net loss of 162 million yuan, ranking at the bottom of the industry [16]. - The company has incurred net losses for four consecutive years, totaling over 3 billion yuan [17]. - Key revenue streams, including new media advertising and social e-commerce, have seen significant declines, with drops of 52.69% and 19.83% respectively in the first half of 2025 [20]. Industry Challenges - The live-streaming e-commerce sector has shifted from explosive growth to a phase of stock competition, with a projected total transaction volume of 5.8 trillion yuan in 2024, reflecting a slowdown in growth [36]. - The traditional revenue model based on placement fees is being replaced by a commission-based model, which reduces stable income for live-streaming agencies [42][44]. - Increased competition and rising customer acquisition costs have made profitability more challenging for companies like Yaowang [22][46]. Strategic Initiatives - To counteract declining performance, Yaowang is exploring new business avenues, including the transformation of physical spaces into commercial complexes and launching proprietary products [22][24]. - The company has partnered with celebrities to create new brands, such as the sanitary napkin brand "Domyway," which achieved sales of approximately 125 million yuan shortly after launch [27]. - Yaowang is also adapting to technological advancements, such as AI integration in live-streaming, which could enhance operational efficiency and customer engagement [48][52]. Future Outlook - The future of Yaowang Technology and the broader live-streaming industry hinges on successful strategic transformations and the establishment of sustainable profit models [56]. - The company is currently facing execution challenges in its transition from a service-oriented model to brand incubation, which will be critical for its long-term success [56].