Core Viewpoint - The chairman of Zhongbai Group, Wang Meifang, stated that the company will focus on closing loss-making stores as a key strategy over the next 2-3 years to reduce burdens and achieve profitability by 2027 [1] Group 1 - The company plans to emphasize the expansion of small business formats and promote the "thousand stores, thousand faces" transformation [1] - Digital empowerment will be a significant part of the company's strategy to enhance operations and customer engagement [1] - The company aims to deepen community convenience services, positioning itself as a neighborhood life service provider [1]

Core Viewpoint - The company aims to close unprofitable stores as a key strategy over the next 2-3 years, focusing on small format expansion, "thousand stores, thousand faces" transformation, and digital empowerment to achieve profitability by 2027 while enhancing community services [1][2][3] Group 1: Store Optimization and Performance - The company has closed 13 large format and 42 small format stores, with over 60 small format stores undergoing adjustments while operating [2] - Adjusted stores have shown a sales increase of over 10%, while unadjusted stores experienced an 18% decline in sales [2] - The company plans to reduce large format stores from 147 to around 100, focusing on closing long-term unprofitable locations [3] Group 2: Small Format Development - The company aims to expand small formats, particularly focusing on Zhongbai Rosen and Zhongbai Supermarket, targeting a total of 1,600 small format stores in three years [3][4] - Zhongbai Rosen has nearly 900 stores and leads in profitability within its system, while Zhongbai Supermarket has faced over 100 million yuan in losses [3][4] - The expansion of small formats will primarily be through franchising, reducing customer entry costs [3][4] Group 3: Digital Transformation - The company established a digital cloud company to integrate over 40 systems and 100 applications, focusing on cost reduction, efficiency, quality improvement, and risk control [4] - Future digital initiatives will include developing a franchise system for small formats and enhancing online-to-offline services through self-operated platforms [4] Group 4: Supply Chain and Operational Efficiency - The company is implementing a decentralized ordering system, allowing stores to make decisions based on local demand, supported by digital management for automatic replenishment [5] - The central warehouse's second phase will enhance storage and delivery efficiency, allowing for multi-format deliveries on the same route [5] Group 5: Management and Incentives - The company has eliminated regional management layers, allowing direct headquarters-store connections and granting stores more autonomy [6] - An incentive model based on target completion, profit sharing, and special rewards will be introduced to motivate store performance [6] Group 6: Long-term Vision - The company is committed to addressing losses and aims to achieve profitability by 2027 while focusing on community services and becoming a comprehensive neighborhood service provider [6]