A：At the press conference, we shared the performance data and operational highlights for the first half of 2025. We highlighted the impact of the newly sponsored events on brand enhancement, as well as the positive effects brought by the "small ball" projects such as badminton and tennis. In addition, we mentioned the strategic success of the super stores, with 75 stores currently open and expected to exceed 100 by October 31st.

A：The company has achieved significant results in its overseas market layout. Sales data from overseas sites cover 60 countries, and online sales volume has performed well. Currently, the company's subsidiary established in Mazda is operating well, with branches set up in Malaysia, Europe, the United States, South America, and other locations, showing significant global valuation effects.

A：Cross-border e-commerce sector has shown outstanding performance, leading the industry and achieving 100% profitability in e-commerce manufacturing. The growth and development of cross-border e-commerce are evident, with monthly growth rates continuing to rise, and profitability has already been achieved.

A：According to the board of directors' resolution, the company will distribute stock dividends of 0.20 RMB per share to reflect the principle of sharing the company's profits with shareholders.

A：In the future, the brand plans to achieve growth through a series of strategic measures, including completing the integration of the acquired Finnish brand, opening at least five physical stores before October 1st, and strengthening the marketing efforts of outdoor brands. In addition, the children's clothing business will also be one of the faster-growing brands.

A：Financial highlights include a 10% increase in total sales in the first half of 2025, a 98.65% increase in net profit margin, and a significant increase in operating cash flow of more than double to 1.52 billion yuan. Among them, e-commerce and children's business showed strong growth, gross profit margin improved, sales and distribution costs, advertising expenses, and administrative expenses were effectively controlled, and net profit increased by 90% to 860 million yuan. The balance sheet data shows an increase in current assets and shareholders' equity, and the debt ratio remains at the industry's lowest level, with an equity return rate of 88%.

A：Yes, our accounts receivable turnover days have decreased from 146 days last year to a more optimal level, while the average maintenance period for inventory has increased from 1.09 days to 170 days. Although the inventory amount has decreased, there is still room for continuous improvement in turnover days.

A：We actively cooperate with high-quality suppliers, strive for the fastest delivery support, and accelerate payment under reasonable conditions to maintain stable operations and the highest quality output. In addition, due to a decrease in inventory of over 200 million RMB and a slowdown in accounts receivable growth, net cash flow increased by more than twice compared to the same period last year, reaching 520 million RMB.

A：Currently, our cash situation is 4.6 billion Chinese yuan. After deducting the bank loan of 310 million Chinese yuan, the remaining cash reaches a high level of over a hundred million Chinese yuan, providing a solid foundation for our group to face future opportunities.

A：Our brand stores continue to develop through technological innovation, leading the market with a strategic positioning of specialization, youthfulness, and internationalization. We have sponsored many large sports events including the Asian Games and e-sports, enhancing the brand's professionalism and international influence. At the same time, we have increased advertising investment, sponsored numerous large sports events both domestically and internationally, as well as national teams and sports and entertainment celebrities, creating a series of groundbreaking professional equipment to meet consumer demands.

A：Currently, there are a total of 2494 channel stores nationwide, with an average store area of 117 square meters, an increase from the average store area at the end of 2024. We have been encouraging the opening of larger stores, and will continue to implement differentiated management in terms of store image, products, customer spend, repeat purchase rate, cross-selling rate, and other operational aspects. At the same time, we will strengthen the expansion of independent stores and children's clothing stores.

A：Our e-commerce mainly adopts a self-operated model, which is different from others in the same industry. We can quickly respond to consumer trends and match consumer demand, providing high-quality, high-tech, and cost-effective online exclusive products. In terms of business strategy, we adhere to the advantages of online exclusive products, continuously improve product design and organization, launch new products every month, and ensure the complementary nature of online and offline channels. In addition, we strengthen cooperation with e-commerce platforms, increase target audience penetration through precise operations, and expand business effectiveness. In the first half of this year, e-commerce revenue was 1.825 billion, accounting for 32% of the group's revenue, and is expected to continue growing.

A：The improvement of cash flow is mainly due to a decrease of over 220 million in inventory and a significant improvement in accounts payable. The decrease in inventory was caused by the impact of the early Spring Festival last year, with the rapid growth of e-commerce leading to a significant increase in inventory. However, with the disappearance of the Spring Festival effect and the continued strong growth of e-commerce, we have appropriately maintained a high level of inventory to ensure timely replenishment and delivery. In the future, we will continue to study and optimize inventory levels to maintain a reasonable level while effectively supporting sales. The increase in revenue in the first half of the year mainly came from the Fujian region, and the specific factors driving the growth were not detailed in the statement. However, the company overall achieved continuous revenue growth through innovation in technology content, monitoring consumer preferences, and optimizing operational models (such as recommendation mechanisms and fixed-price sales strategies).

A：In the past two months (July and August), the trend of cash flow has remained stable, without further improvement, but specific data was not provided in the speech. Regarding the process, the decrease in inventory is due to special circumstances at the end of last year, while the improvement in accounts receivable is a result of our efforts to negotiate shorter payment periods with large distributors in mature markets at the beginning of this year, with some results already being seen. We will continue to work towards making further progress in the future.

A：Among the consumers obtained, there is indeed a portion of young consumers, especially by seizing the market share of international brands to attract young consumer groups. At the same time, the company is also committed to finding new consumer groups, such as by opening collector stores, adopting a humanistic management mode, focusing on high-end products, continuously verifying the supply chain capabilities and operating efficiency.

A：Cross-border e-commerce is developing towards profitability, but the logistics issues need to be resolved first. The company has already established logistics in some countries, and domestic brands' cross-border e-commerce has been fully launched. The goal is to change the positioning of merchants and consumers in e-commerce by providing high cost-effective products, not just limited to low-priced products, but focusing on high-value, high-tech products. It is believed that cross-border e-commerce will gradually become profitable and become an important part of the company's future growth.

A：We do not adopt the ATC mode, but rely on five distributors to promote our products in each province. These distributors have a solid foundation and stable business situation locally, through them we can expand the market and increase market share according to the different needs of each region.

A：Although we are seeking to shorten the collection period to optimize the accounts receivable algorithm on the balance sheet, considering the stable cooperative relationships and cultural and demand differences in different regions, we prefer a shorter period of time, but we will also strive to achieve a shorter collection period based on specific circumstances.

A：Currently, overall revenue has continued the trend from the second quarter. Offline business maintained a growth of around 10% in the first two months from July to August, while the online e-commerce sector also remained at a similar level to the second quarter, at around 20%. With the arrival of the back-to-school season on August 15th, it is expected that the last two weeks will have a strong impact on total revenue across all channels.

A：The Black Panther brand has performed very well in its stock price so far this year, reaching a 50% increase and 301 has already reached a ten-year high. Tracking the development of this brand over the past 20 years, its performance is exciting.

A：Our brand positioning is clear. Starting from our products, we ensure that the quality of our products is comparable to those in the globally renowned automotive accessories market. In terms of opening stores, we may do this through direct sales or through dealerships. We will focus on developing brands and product categories that are in high demand based on market needs and consumer feedback. Our brand tone and positioning have been clearly defined, and we will focus on delivering high value products. Our products will be compared with well-known high-quality brands in the industry, and by comparing styles, materials, and pricing, our products will maintain a lower price point while having a larger profit margin, making them have great market potential.

A：We will test the waters in five sectors to determine which sector can achieve rebranding and drive rapid growth more quickly. By observing the performance of key products in different sectors, we will focus on developing the sector with the fastest growth to ensure that all three brands can bring different successful results.