On the evening of August 16th, the home decoration company Love Space Group released an announcement on the business strategy adjustment of Love Space's Beijing subsidiary. The announcement is as follows:

Recently, due to market environment and business pressure, Love Space's Beijing subsidiary has encountered difficulties in cash flow, unpaid personnel, and delayed supply chain payments, resulting in some construction sites being unable to proceed normally, project delivery being stalled, and no longer having the ability to provide continuous performance services. In order to systematically solve the current problems, after careful consideration by the group, it has been decided to make significant strategic adjustments to the business of the Beijing subsidiary. The specific matters are announced as follows:

1、 Effective immediately, the Beijing subsidiary of Love Space has completely suspended its retail business and simultaneously launched internal rectification and business optimization work. For all existing complete retail projects in the Beijing region, the company will carry out special work such as contract termination, engineering loss assessment, and debt accounting in an orderly manner, and develop corresponding follow-up disposal plans.

2、 The offline stores in the Beijing area have undergone a comprehensive renovation and will no longer accept new retail orders during the renovation period.

3、 This adjustment is only applicable to the Beijing subsidiary of Love Space and is a partial regional business optimization measure of the group. The headquarters of Love Space Group is operating normally and stably. Its subsidiaries in various regions across the country, such as Shanghai, Tianjin, Taiyuan, Langfang, Zhengzhou, and Guangzhou, are operating in good condition and running their business normally. The overall business and delivery work are progressing in an orderly manner, and each regional subsidiary is independent of the Beijing subsidiary and responsible for its own operations.

4、 At present, the group is actively promoting multi-channel financing and fundraising work, making every effort to activate funds and raise resources. The progress of related financing and subsequent work will be made public and synchronized to the majority of owners as soon as possible.

We solemnly declare that this is a special rectification and strategic optimization work for our Beijing subsidiary, and it is not a bankruptcy, closure, or overall abnormal operation of the group. Please do not believe or spread rumors among property owners and all sectors of society. All relevant information shall be based on the official content released by our company. This business fluctuation has disrupted the home decoration plans of many homeowners, causing significant inconvenience and losses to their normal lives. We deeply regret and sincerely apologize for this. We face all problems squarely, do not evade or shirk responsibility, and are willing to take full responsibility. We will spare no effort to promote the follow-up work and make every effort to properly handle the actual problems of each homeowner. In the future, we will continue to organize communication meetings with property owners, arrange special staff to verify the construction site situation on a household by household basis, register and verify debt information, and communicate one-on-one follow-up disposal plans.

(Author Interface)