Dehong Jia (00321): It is expected that the retail performance of the Hong Kong business in the second half of the fiscal year will be better than the first half.

In terms of Hong Kong business, the CEO of Baleno's parent company, Texwin Fine (00321), He Likang, stated that the group is increasing sales through a more diverse range of early discount promotions. The group started discounting new goods earlier, and from October 2024 to January this year, sales in Hong Kong saw a year-on-year increase, and gross profit also grew. It is expected that the performance of the group's retail business in Hong Kong in the second half of the fiscal year will be better than in the first half. Regarding the issue of the US imposing tariffs, He Likang stated that the impact on the group is minimal because the group does not directly export ready-to-wear products to the US, and mainly focuses on domestic sales. He Likang further pointed out that in Hong Kong, the group is negotiating lower rents for lease renewals, while also closing underperforming self-owned stores, streamlining operations to reduce logistics costs. It is possible that 4 to 5 stores may be closed this year. He also mentioned that 17 stores have already completed lease renewals in 2024 and have significantly reduced related rents, with over ten more stores expected to need renewals in 2025.