Group 1: Operational Overview - The understance brand generated approximately 60 million RMB in revenue last year, with a gross margin of about 57%. The primary markets are Canada and the United States [1] - Due to frequent changes in tariff policies, the company decided to terminate the understance brand's operations in December 2025 and will gradually clear inventory [1] Group 2: Inventory and Impairment Provisions - In 2024, the company recorded asset impairment provisions totaling approximately 92 million RMB, which reduced the net profit attributable to shareholders by about 19 million RMB [2] - The company has implemented strict requirements for inventory impairment provisions for items older than two years, resulting in a balance of approximately 3% for such inventory at the end of 2024 and the first half of 2025, indicating relatively good inventory aging [2] - Due to the termination of the understance brand, an additional inventory impairment provision of approximately 18.1 million RMB is expected to be recorded in the fourth quarter of this year [2]