Core Viewpoint - The company acknowledges the impact of low-priced tea beverage stores on its products and the overall pre-packaged beverage market, while also highlighting its strategy to enhance product quality and price ratio to remain competitive [1] Group 1 - The company differentiates its product pricing from high-end new tea beverages, indicating a strategic positioning in the market [1] - The low-priced tea beverage stores are creating a certain level of disruption for the company and nearly all pre-packaged beverage brands [1] - The company aims to complement offline tea beverage stores by leveraging its pre-packaged products to cover consumer scenarios that these stores cannot reach [1] Group 2 - The company is focused on improving the "quality-price ratio" of its products to better compete in the market [1]

Core Viewpoint - The company, Gu Ming, has established itself as a leading player in the ready-to-drink tea market, leveraging supply chain efficiency to drive store expansion and achieve significant revenue growth in a competitive environment [1][2]. Company Overview - Gu Ming was founded in 2010 in Zhejiang, China, and has focused on supply chain as a core driver of growth, implementing a self-distribution system in 2013 and cold chain logistics in 2017 [1]. - By 2023, the company has developed a cold storage capacity exceeding 60,000 cubic meters and operates over 300 cold chain transport vehicles, creating an industry-leading warehousing and distribution network [1]. - In 2024, Gu Ming achieved revenue of 8.791 billion yuan, a year-on-year increase of 14.54%, and an adjusted net profit of 1.493 billion yuan, up 5.69% year-on-year [1]. Industry Insights - The ready-to-drink tea market has surpassed a trillion yuan in scale, evolving into a new consumption arena where tea products serve as a medium for lifestyle expression among young consumers [2]. - Gu Ming holds a 9% market share in overall GMV and an 18% share in the mass market, ranking second overall and first in the mass market segment in 2023 [2]. - The company has demonstrated resilience amid industry slowdowns, with average daily GMV per store reaching 6,800 yuan in 2023 and projected to be 6,500 yuan in 2024 [2]. Competitive Advantages - Gu Ming's competitive edge lies in its comprehensive support for franchisees and deep optimization of its supply chain, allowing for store expansion without sacrificing profit margins or quality [2]. - The company boasts the largest cold chain storage and logistics infrastructure in the industry, utilizing temperature-controlled vehicles to deliver fresh ingredients to 97% of its stores every two days [2]. - With an average delivery cost of 0.9% of GMV, Gu Ming's logistics efficiency is significantly better than the industry average of 2% [2]. - The company achieved a quarterly repurchase rate of 53% in 2023, surpassing the industry average of 30%, and has launched over 100 new products in 2024, leading the industry in product innovation [2]. Future Growth Potential - Gu Ming employs a regional density strategy for store openings, targeting 500 stores per province as a key scale node, and currently holds a 25% market share in the ready-to-drink tea market across eight provinces [3]. - The company has achieved the highest market share in Zhejiang, Fujian, and Jiangxi provinces, with a 45% share in the mass ready-to-drink tea market [3]. - By June 2025, Gu Ming aims to have a total of 10,403 stores across 20 provinces, with significant potential for expansion into untapped regions [3]. - The company has identified a potential store opening space of approximately 9,866 stores under a neutral assumption, with a 5-year CAGR of 15%, and up to 19,314 stores if it expands into currently unentered cities, with a 5-year CAGR of 25% [3].