Core Viewpoint - The decline of ZEBRA, once a leading player in cross-border e-commerce, is attributed to internal conflicts, management issues, and a failure to adapt to changing market conditions, leading to significant financial losses for its parent company, Xinghui Co., Ltd [2][3][11]. Financial Performance - Xinghui Co., Ltd reported a revenue of 1.51 billion yuan for 2024, a year-on-year decrease of 7.13%, with a net profit attributable to shareholders of -460 million yuan, marking a staggering increase in losses of over 504% year-on-year [2][3]. - ZEBRA's cross-border e-commerce business saw a revenue decline of 37.32%, now accounting for only 33.54% of total revenue, indicating its role as a financial burden for Xinghui [3][11]. Historical Context - ZEBRA was acquired by Xinghui Co., Ltd in 2018 for 1.53 billion yuan, promising profit targets of 108 million yuan, 145 million yuan, and 190 million yuan for the years 2018 to 2020, which it exceeded during the initial years [4][6]. - The rapid growth of ZEBRA was halted by a significant account suspension event in 2021, resulting in the closure of 367 stores and freezing of approximately 32.23 million yuan in funds [6][11]. Management Issues - Internal conflicts between ZEBRA's founding team and Xinghui's management have led to lawsuits and a breakdown in collaboration, further exacerbating ZEBRA's decline [3][9]. - The management transition from ZEBRA's original team to Xinghui's leadership resulted in a lack of understanding of the cross-border e-commerce landscape, leading to ineffective strategies and missed opportunities [9][10]. Market Dynamics - The shift in the e-commerce landscape towards compliance and brand building has rendered ZEBRA's previous reliance on a high-volume, low-margin business model unsustainable [10][24]. - ZEBRA's failure to pivot towards a brand-focused strategy has left it vulnerable to market pressures, particularly as competitors have successfully adopted more refined operational strategies [11][24]. Legacy and Future - Despite ZEBRA's decline, former executives have launched new brands, collectively referred to as the "ZEBRA system," which continue to leverage the supply chain expertise and market knowledge gained during their time at ZEBRA [13][19]. - These new brands are focusing on niche markets and brand development, indicating a potential continuation of ZEBRA's legacy in a different form [22][24].