Core Viewpoint - The company reported a significant decline in revenue for its FUN brand, attributed to ongoing channel optimization and the closure of underperforming stores, while direct sales through company-owned stores showed growth due to strategic upgrades and a shift towards direct-to-consumer (DTC) business models [6]. Financial Data Summary - The company's FUN brand revenue decreased by 26.77% compared to the same period last year [6]. - Directly operated stores generated revenue of 113,333.95 million yuan, an increase of 14.91% year-on-year, driven by channel structure optimization and an increase in DTC business [6]. - Franchise store revenue fell by 27.79% to 70,461.62 million yuan, as some franchise stores were converted to direct-operated stores [6]. Investment and Financial Management - The company has significant equity investments managed by two wholly-owned subsidiaries, focusing on various sectors including fashion and insurance [8]. - Notable investments include stakes in UR Group Inc. and Sunshine Insurance Group, which was listed on the Hong Kong Stock Exchange in December 2022 [8]. - The company is actively managing financial assets and has a structured approach to entrusted financial management [8].