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- **Market Recovery**: China and U.S. market recoveries offset challenges, with 30 new stores opened in China and global expansion efforts.
- **Production Shift Impact**: Moving production to Italy reduced tariff risks but strained margins; new factory in China aims to lower costs.
- **Trade Contract Growth**: Dubai and Jerusalem projects highlight potential for high-margin trade contracts, with design shows driving partnerships.
- **Financial Restructuring**: $15M credit line supports short-term needs; targeting profitability through margin improvement and cost cuts.
- **CEO Search**: Actively seeking experienced luxury brand leader; restructuring progress may take time.

**【CEO Opening Remarks】**
- **Market Performance**: Revenue growth driven by recoveries in China and the U.S., despite challenges like tariffs and store closures. 77 stores closed in China, 30 new stores opened, and 12 globally.
- **Production Shifts**: Moved production from Shanghai to Italy to mitigate U.S.-China tariffs, impacting margins. A new factory in Quinzhou, China, was established post-tariff uncertainty.
- **Commercial Initiatives**: Expanded trade contracts (e.g., Dubai and Jerusalem projects) and attended 10 design shows globally to enhance brand visibility and partnerships.
- **Restructuring Focus**: Emphasized store optimization, new product launches, and cost efficiency through events like client congresses in Italy and China.

**【CFO Financial Commentary】**
- **Credit Line**: CEO provided a $15 million zero-interest credit line to support short-term needs and restructuring.
- **Asset Valuation**: Non-core assets, including a tannery valued at $5 million, are being evaluated for monetization. Total net assets are around $70 million, though specifics on core/non-core are pending.
- **Margin Improvement**: Aiming to increase gross margin (34% Q2) through higher-margin retail sales, operational efficiency, and price adjustments. Targeting profitability post-restructuring.
- **Cost Reduction**: Evaluating measures to reduce operating expenses and improve breakeven trajectory.

**【Q&A Highlights】**
- **Restructuring Goals**: CEO expects profitability post-restructuring, with trade contract revenue seen as a growth driver. Design contracts vary in spend per unit, depending on project type.
- **Asset Strategy**: Actively seeking buyers for non-core assets; tannery sale is challenging but under consideration.
- **CEO Search**: Engaged a search firm; candidates must have experience in luxury brands, retail, and operations. No timeline for hire, but search is ongoing.
- **Q3 Outlook**: Management declined to provide Q3 order details, directing investors to the press release for guidance.

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