Core Insights - The newly renovated Tianjin Eco-City Future Plaza will officially debut on October 25, integrating the "We-Life" concept, combining spiritual needs with consumer trends, and creating a comprehensive commercial space that includes shopping, cultural experiences, social interaction, leisure, and life services [1] Group 1: Project Overview - The Eco-City Future Plaza has a total area of approximately 100,000 square meters, featuring a 10,000 square meter outdoor sunny lawn, a panoramic multimedia scene, a 6,000 square meter boutique supermarket, a nearly 4,000 square meter giant cinema, a 1,500 square meter indoor children's play center, and several popular restaurants [3] - The project aims to create a one-stop consumption matrix that serves the new eco-city and surrounding areas within a 10-kilometer radius, providing consumers with more convenient and high-quality life services [3] Group 2: Business Model and Experience Enhancement - The renovated Eco-City Future Plaza has optimized and upgraded its commercial functions and business structure, significantly increasing the proportion of experiential formats, with plans to introduce over 30 unique brands, of which more than 60% will be trendy clothing and creative dining brands [5] - The new business model aims to shift from a "shopping as a purpose" approach to enhancing consumer stay duration to over 4.5 hours, incorporating three interactive family zones and two cutting-edge technology experience areas [5][6] Group 3: Brand and Operational Strategy - The rebranding not only refreshes the brand identity but also reconstructs commercial functions, increasing the proportion of optimized business formats from 5% to over 10%, with leisure and entertainment categories targeting a 30% share and expanding unique dining options to over 30 [6] - The strategy emphasizes a "one-stop life service" capability, integrating diverse scenarios to transform the space into a new destination for daily socializing, family leisure, and trend exploration, thus providing a new consumption experience from "shopping mall" to "enjoying life" [6] Group 4: Company Background - Ocean Commercial, a professional brand under Ocean Group, specializes in the development and operation of commercial projects, with over 20 years of rich experience in various stages including positioning, design, construction, opening, leasing, and operation of shopping centers and commercial complexes [7] - The brand has established mature commercial product lines such as "Li Series," "Port Series," and "Future Series," successfully creating benchmark projects across various cities including Tianjin, Chengdu, Wuhan, and Beijing [7]

Core Insights - "Ming Ming Hen Mang" has achieved a remarkable GMV of 55.5 billion RMB, establishing a strong presence in the lower-tier market with extensive coverage across 1,224 counties and 58% of its stores located in county and town areas [4][6] - Despite impressive growth, the company faces significant challenges, including a contradiction between growth and profit, intense competition, and limitations of its business model [2][16] - The company’s low profit margin, with an adjusted net profit margin of only 2.1%, highlights the risks associated with its low-price strategy aimed at expanding market share [7][10] Business Model and Market Position - The "rural encirclement of cities" strategy has proven successful for "Ming Ming Hen Mang," allowing it to build a solid scale barrier in the lower-tier market [4] - The company leverages centralized procurement to reduce costs, achieving a gross margin of 7.5% through high-volume purchasing, which enhances its bargaining power with suppliers [4][6] - The reliance on franchise sales for 99.5% of its revenue creates a vulnerability, as profit margins are squeezed by both upstream suppliers and downstream franchisees [7][11] Financial Performance - Revenue figures for 2022, 2023, and 2024 are projected at 4.29 billion RMB, 10.30 billion RMB, and 39.34 billion RMB respectively, with adjusted net profits of 0.81 billion RMB, 2.35 billion RMB, and 9.13 billion RMB [6] - The company’s financials indicate a significant increase in sales costs, which outpace revenue growth, leading to a challenging profit landscape [6][10] Competitive Landscape - The competition with "Hao Xiang Lai" has intensified, with both companies rapidly expanding their store counts, leading to a "store arms race" that increases operational costs and risks market saturation [7][11] - Marketing expenses have tripled over three years, contributing to a challenging environment where both companies struggle to maintain profitability [7][11] Strategic Initiatives - The potential IPO could provide "Ming Ming Hen Mang" with capital to strengthen its market position, particularly in cold chain logistics and digitalization, which are crucial for operational efficiency [5][16] - Developing private label products could enhance profit margins by allowing better control over costs and quality, drawing inspiration from successful models like Miniso [8][10] - The company is exploring a dual revenue model by adopting a membership system similar to Costco, which could diversify income sources and enhance customer loyalty [15] Challenges and Risks - The low acceptance of brand premiums among lower-tier market consumers poses a challenge for the company in balancing quality and price [10] - Significant investments in cold chain logistics for fresh produce could strain cash flow, necessitating careful financial planning to avoid operational disruptions [10][16] - The company must navigate the risks associated with its single revenue model and the potential for market saturation, which could jeopardize its business model [11][16]