Summary of the Conference Call Transcript Industry Overview - **Industry**: China Consumer Sector - **Outlook**: The sector is believed to be in the early stage of a multi-year recovery cycle that began in Q3 2024, with expectations for gradual improvement in consumer sentiment and spending through 2026E [2][11][12] Key Insights - **Valuation**: MSCI China Consumer Discretionary and Staples are trading at 17x and 15x 12-month forward PE, approximately one standard deviation below the 10-year averages, indicating that current valuations do not reflect a potential consumption recovery [2][9] - **Consumer Confidence**: The China Consumer Confidence Index has been trending upwards since September 2024, suggesting a gradual restoration of consumer confidence despite ongoing challenges in the property market [12][19] - **K-shaped Recovery**: The recovery is characterized by a K-shaped trend, where mid- to high-income consumers in tier-1 cities are expected to lead spending, while lower-tier city consumers remain focused on value for money [3][48] Consumer Behavior Trends - **Shifting Preferences**: A UBS Evidence Lab survey indicates a divergence in consumer behavior, with over 50% of mid- to high-income consumers reporting investment gains and showing strong spending intentions, particularly in premium and experiential categories [3][37] - **Spending Intentions**: The strongest spending intentions are noted in beauty and skincare (41%) and tourism (37%), reflecting a shift towards experiential and premium spending [51] - **Investment Gains**: 64-74% of mid- to high-income consumers reported increased investment returns, with many planning to reinvest or spend on travel, health services, and consumer electronics [40][41] Stock Implications - **Company Ratings**: - Upgrades to Neutral for Fenjiu due to expected benefits from non-business baijiu consumption - Buy ratings maintained for companies like MIXUE, Guming, China Foods, CR Beer, and YUM China, among others [4] - **Dividend Payouts**: Premium baijiu companies are noted for their >75% dividend payout, which is expected to protect share prices from downside risks [4] Structural Growth Opportunities - **Emerging Themes**: Key investment themes for 2026E include changing consumer preferences, corporate restructuring, and industry consolidation, particularly in sectors like home appliances and mass-market consumption [14][50] - **Corporate Restructuring**: Companies are expected to adapt their business models to align with changing consumer behaviors, which may lead to sustainable long-term earnings growth [4][50] Risks and Challenges - **Property Market Downturn**: The ongoing downturn in the property market is anticipated to weigh on household balance sheets, potentially impacting consumer spending [13][48] - **Policy Support**: The pace of recovery is contingent on stabilizing the property market and effective policy implementation to boost consumption [13][48] Conclusion - The China consumer sector is poised for a recovery, driven by improving consumer confidence and shifting spending patterns. However, the recovery will be uneven across different income groups and city tiers, necessitating a nuanced investment approach to capture emerging opportunities while being mindful of potential risks associated with the property market downturn.

Core Viewpoint - The Hong Kong Consumption ETF (159735) has seen significant net inflows, indicating growing investor interest in the fund and the underlying consumer sector in Hong Kong [1][2]. Group 1: Fund Performance - As of January 14, the Hong Kong Consumption ETF (159735) recorded a net subscription of 4.8298 million yuan, ranking 27th out of 208 in cross-border ETF net inflows for the day [1]. - The fund's latest size is 814 million yuan, up from 802 million yuan the previous day, reflecting a 0.60% increase in net inflow relative to the previous day's size [1]. - Over the past five days, the fund has accumulated a net subscription of 69.8219 million yuan, ranking 28th out of 208 in cross-border ETF net inflows [1][2]. Group 2: Fund Details - The Hong Kong Consumption ETF (159735) was established on May 25, 2021, with an annual management fee of 0.50% and a custody fee of 0.10% [2]. - The fund's latest share count is 1.007 billion shares, with a year-to-date increase of 9.46% in shares and a 12.08% increase in size compared to December 31, 2025 [2]. - The fund has a total trading volume of 922 million yuan over the last 20 trading days, averaging 46.0913 million yuan per day [2]. Group 3: Holdings and Composition - Major holdings in the Hong Kong Consumption ETF include Alibaba (19.54%), Tencent (16.59%), and Pop Mart (7.99%), among others, with the total market value of these holdings detailed [3]. - The ETF tracks the Hong Kong Consumption CNY index (931455), and its performance is compared with another fund, Hong Kong Consumption (513590), which has a smaller size and negative net subscriptions [3].

Group 1 - The "one-person meal" model is gaining popularity in the restaurant industry, with the launch of Pizza Hut's new brand, "Pizza Burger," marking a significant entry into this market [1][3] - The "one-person meal" economy is projected to grow significantly, with an expected market size exceeding 1.8 trillion yuan by 2025, reflecting a compound annual growth rate of 15.3% [1] - Shenzhen, known for its vibrant innovation and entrepreneurial spirit, has seen a rising demand for "one-person meals," particularly among the younger demographic seeking efficient dining experiences [3] Group 2 - The introduction of Pizza Burger is a strategic move by Yum China to capitalize on the growing trend of "one-person meals," representing an important innovation and upgrade in their hamburger offerings [3] - The new Pizza Burger restaurant integrates into existing Pizza Hut locations, creating a comfortable dining space suitable for various consumer scenarios, including lunch for office workers and casual dining for students [3] - Industry experts suggest that restaurant companies entering the "one-person meal" segment can enhance efficiency and reduce costs through self-service and lightweight operations, leading to a consumption upgrade from basic to more refined dining experiences [3]

于同日，斥资300万美元回购6.21万股股份，每股回购价格为48.09-49美元;因公司采纳的长期激励计划 项下的授予而发行的股票8510股;及注销6.13万股已回购股份。 百胜中国(09987)发布公告，该公司于2026年1月13日斥资769.42万港元回购2.02万股股份，每股回购价 格为378.2-384.4港元。 来源：智通财经网 ...

Group 1 - The company Yum China (09987) announced a share buyback on January 13, 2026, spending HKD 7.6942 million to repurchase 20,200 shares at a price range of HKD 378.2 to 384.4 per share [1] - On the same day, the company also repurchased 62,100 shares for USD 3 million at a price range of USD 48.09 to 49 per share [1] - Additionally, the company issued 8,510 shares under its long-term incentive plan and canceled 61,300 shares that had been repurchased [1]

格隆汇1月14日丨百胜中国(09987.HK)发布公告，2026年1月13日耗资769.42万港元回购2.02万股，回购 价格每股378.2-384.4港元。 ...

FF305 翌日披露報表 (股份發行人 ── 已發行股份或庫存股份變動、股份購回及/或在場内出售庫存股份) 表格類別： 股票 狀態： 新提交 公司名稱： 百勝中國控股有限公司("本公司") 呈交日期： 2026年1月14日 如上市發行人的已發行股份或庫存股份出現變動而須根據《香港聯合交易所有限公司（「香港聯交所」）證券上市規則》(「《主板上市規則》」)第13.25A條 / 《香港聯合交易所有限公司GEM證券 上市規則》(「《GEM上市規則》」)第17.27A條作出披露，必須填妥第一章節 。 | 第一章節 | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 1. 股份分類 | | 普通股 | 股份類別 不適用 | | | 於香港聯交所上市 | 是 | | | | 證券代號 (如上市) | | 09987 | 說明 | | | | | | | | A. 已發行股份或庫存股份變動 | | | | | | | | | | | | 事件 | | 已發行股份（不包括庫存股份）變動 | | | 庫存股份變動 ...

百胜中国(09987)公布，2026年1月12日于纽约证券交易所耗资约300万美元回购约6.13万股股份，于港交 所耗资约771.93万港元回购2.055万股股份。 ...

格隆汇1月13日丨百胜中国(09987.HK)发布公告，2026年1月12日耗资771.9万港元回购2万股，回购价格 每股371.6-378.2港元。 ...

智通财经APP讯，百胜中国(09987)公布，2026年1月12日于纽约证券交易所耗资约300万美元回购约6.13 万股股份，于港交所耗资约771.93万港元回购2.055万股股份。 ...