De Yong Jia (00321): The number of orders and revenue for September and October have basically returned to the same level as the same period last year.

Baleno's parent company Texwinca Holdings Limited (00321) CEO, He Likang, pointed out that Hong Kong people traveling abroad, shopping in the north, and the impact of e-commerce in the south have affected the retail industry in Hong Kong. The company has started promotional activities earlier than before, and the sales volume and turnover in September and October have basically returned to the same level as last year. The next step in promotion will depend on the volume of goods and market response. He Likang continued to say that the second half of the fiscal year is the traditional peak season, with Christmas and Chinese New Year, and believes that the performance will be better than the mid-term results as of September. As for the Hong Kong stores, He Likang mentioned that the leases of 5 stores will expire in March next year, and the decision on whether to renew the lease will depend on the intentions of the landlords to reduce rent and the performance of individual stores. More than 10 store leases will expire next year, and negotiations on rent reduction and renewal have begun. Texwinca's knit fabric factory in Vietnam started contributing profits in March this year, bringing sales revenue of 329 million yuan to the company's knitwear business. He Likang stated that in response to Trump's re-election, the company's customers are preparing for potential tariff policies. Japanese customers are the most active, hoping to quickly shift production from Dongguan to Vietnam. He Likang said that depending on the strength of the U.S. tariff policy, the progress of the construction of the second phase of the factory in Vietnam will be accelerated, and the capacity is expected to increase from the current 220,000 pounds to 400,000 pounds. The company has reserved $100 million for the second phase of the factory. As for the mainland, the company closed 273 self-operated stores in the first half of the fiscal year, all of which were losing money, and currently, the store level is profitable. He Likang mentioned that the company is unlikely to expand physical stores in the future. Instead, more "new with old" discount stores will be opened before the sales peak at the end of the year and Chinese New Year to clear inventory, and the e-commerce business will be a driving force for the company's future growth.