ZIBUYU (02420) CEO Chen Caixiong: Firmly believes that the future belongs to China, taking ten years to build a trusted global brand.

In recent years, the uncertainty of the international macro environment has suddenly increased, with anti-globalization trends and trade protectionism resurfacing. However, in the face of this unprecedented change, the leading domestic shoe and clothing brand ZIBUYU (02420) has successfully navigated the transition into the "deep waters" under the leadership of the company's executive director and CEO, Chen Caixiong. Data shows that since 2024, ZIBUYU has made significant advancements in core financial data such as revenue, cash flow, and profits, breaking historical records. Recently, the rarely seen CEO delivered a speech at the annual meeting, where he elaborated on his many thoughts and the long-term strategic plan for the future of ZIBUYU. Chen Caixiong began with two stories, bringing forth the two major themes for ZIBUYU's next decade: the necessity for Chinese brands to win global premiums and how human organizations should adapt and evolve in the AI-driven world. In his speech, Chen not only addressed the question of what the CEO is thinking about, but also outlined clearly where he intends to lead this leading Chinese cross-border e-commerce brand. CEO's Considerations: Facing uncertainty by continuously questioning to find direction Chen Caixiong's speech was highly personal, as he didn't provide attendees with a set list of answers like conventional speakers. Instead, he used a series of "soul-searching questions" to lay out his thoughts, which is perhaps the essence of his thinking process. In response to the question of what the CEO thinks about every day, he listed 11 fundamental questions that he continually asks himself: from the fundamental logic of societal operations, the essence of business models, industry trends under the impact of AI, to the DNA and scarcity of organizations, resource allocation, and the rhythm of overcoming cycles. "The CEO doesn't have answers either," Chen Caixiong admitted, "because we are facing an uncertain world... even if there are answers, they are only dynamic answers." It is this rejection of certainty and the insistence on dynamic questioning that forms his core approach to dealing with changes. He defines the ability to ask good questions as the most important foundational skill for individuals and organizations in the AI era. Continuously asking and probing, Chen Caixiong confidently stated in the conference, "The next 100 years are destined to be China's world, Chinese culture will be highly valued, and Chinese brands will inevitably become global brands." In the blueprint he has planned for ZIBUYU, the goal is for ZIBUYU to become a globally trusted brand. In the AI era, factories, land, and cash could all be redefined in terms of value, but a globally loved brand that deeply resonates with trust is the most scarce and valuable asset, according to Chen Caixiong. This trust includes consumer trust in product quality and brand strength, as well as the belief of employees, partners, and suppliers in the company's long-term commitments. "Trust is the most valuable thing for us to inherit," he stressed. This understanding is driving ZIBUYU to undergo a profound transformation from within: shifting from pursuing quick turnover and popular products based on a "seller" logic, to focusing on brand value at the core and operating as a global fashion brand based on user trust. Leveraging AI while building an "emotional" moat for the organization After determining "where to go," the equally important question of "how to go about it" was addressed by Chen Caixiong in his speech. In the next stage, with the goal of becoming a century-old global brand, ZIBUYU will continue to deepen its organizational strength, product strength, and brand strength, and from 2026 onwards, it will follow Chen Caixiong's newly proposed five major strategies and nine structures to accomplish this great journey by breaking through, integrating, and executing relying on the most important path of the AI era. Chen Caixiong believes that in the future, AI can serve as a lever to amplify various abilities, but at critical junctures, companies need to break through, integrate, and execute on their own. Looking back at ZIBUYU's actions over the past two years, it is clear that ZIBUYU has been steadfastly advancing along this path: in breaking through, it decisively broke away from the past "stocking" model by establishing a brand business unit, focusing on ten core brands to achieve brand upgrades; in integration, actively expanding new channels such as TikTok, Temu, and establishing independent sites, while also expanding overseas production capacity in countries like Vietnam to optimize the global supply chain; ultimately, in execution, all these strategies were broken down into specific yearly goals and monthly tasks, leading to concrete achievements such as core brand revenue accounting for over 50%, and significant increase in revenue from non-Amazon channels. This is probably what Chen Caixiong emphasized, "The road may be long, but we will reach there." The most revolutionary insights emerged in the closing remarks of the speech. Looking at the world today, where seemingly trendy business logics point towards using AI to reduce costs and increase efficiency, Chen Caixiong pointed out, "The most important power in the AI era is the power of emotion." His logic was clear and calm: at the level of data analysis, optimization of calculations, and rational decision-making, humans can no longer compete with AI. Therefore, the true differentiating advantage and moat for human organizations in the future lies in the abilities that AI does not possess the "emotional" abilities such as empathy, connection, creating warmth, inspiring emotional resonance, and building deep trust. "We are not here to 'win', we are here to experience this world," he hoped to make ZIBUYU a organization that is benevolent, warm, and makes employees and partners feel dignified and happy. ZIBUYU's internal and external investment in "emotion" is consistent with the warm and trustworthy image that the brand aims to convey to consumers. This is not commercial theatrics, but rather a strong belief of Chen Caixiong, the helmsman of ZIBUYU; only a brand with strong emotional power can establish an irreplaceable emotional connection with users in the rational business world driven by AI, and this may be the biggest "moat" for ZIBUYU as a future world brand. Conclusion In summary, the blueprint outlined by Chen Caixiong for ZIBUYU is a new global offensive journey that combines deep philosophical thinking with a practical business path. Through continuous questioning to tackle uncertainty, aiming to create a globally trusted Chinese brand as the ultimate goal, and realizing the importance and urgency of building organizations' "emotional" competitive capabilities in the era of AI technology, GMTEight believes that the path Chen Caixiong envisions responds to his concluding statement of "being oneself and heading towards the world" - that is, firmly moving towards the center stage of the world while fully recognizing one's cultural traits and emotional value. For the market, this clear strategic declaration, along with ZIBUYU's strong financial data in recent years, mutually verify that ZIBUYU's transformation is no longer just talk, but has entered a new stage of clear strategy, strong execution, and early results. In the dual background of anti-globalization noise and AI technology anxiety, this differentiation path highlighted by "trust" and "emotion" provides a unique imaginative space for ZIBUYU in the long-term competition in the global consumer market.