Group 1 - Gree has launched a new appliance brand "Zhixiangjia" exclusively on Tmall, targeting the air conditioning market priced between 2000 to 5000 yuan, aiming to capture the young consumer segment and leverage the significant growth opportunity during Tmall's "Double 11" event [1] - During the first day of "Double 11," Gree's new air conditioner model YunJia Pro sold over 10,000 units within an hour, ranking first in Tmall's home air conditioning sales [1] - Gree's sales of new heating products exceeded 1 million yuan, leading the PTC heater category on Tmall, while a new pet air purifier topped the Tmall new air purifier category within a month of launch [1] Group 2 - Gree's air conditioning sales on Tmall have seen over 50% growth this year, with nearly 1 million units sold of exclusive models, indicating strong momentum for new products [2] - Tmall provides a robust platform for brands to reach consumers directly and efficiently, utilizing digital technology to understand consumer needs and optimize products [2] - Tmall has a successful new brand incubation mechanism, helping brands achieve significant growth, as seen with brands like AUFIT and Haier's "Xiao Chaoren" [2] Group 3 - Tmall has upgraded its logistics services for large items, offering a one-stop delivery service for air conditioners that includes immediate delivery, unpacking, and installation, even in remote areas [3] - Consumers can schedule installation appointments with precision, choosing specific time slots, which enhances the overall shopping experience [3]

Group 1: Financial Performance - The company disclosed its mid-term forecast, indicating that the overall performance meets expectations with a net profit attributable to shareholders ranging from 0.63 to 0.78 billion, representing a year-on-year increase of 61.8% to 100.3%, with a median of 0.71 billion, up 81.1% [1] - For Q2, the net profit attributable to shareholders is projected to be between 0.36 and 0.51 billion, reflecting a year-on-year growth of 36.2% to 93.7%, with a median of 0.43 billion, an increase of 65% [1] - The company expects that excluding the impact of exchange rate fluctuations, net profit will fall within the upper range, driven by sustained high growth of its proprietary brands [1] Group 2: New Brand Launch - The company launched a new health supplement brand, VitaOcean, which features differentiated ingredients and a mature operational model, indicating strong certainty for success [2] - The core ingredient of VitaOcean is deep-sea ruby oil from the Arctic, targeting women with its main product priced at ¥498 for 60 capsules, claiming benefits such as antioxidant, anti-inflammatory, and enhanced metabolism with double the absorption rate of concentrated fish oil [2] - The company aims to leverage the operational model accumulated from its existing brand, Fichui, combined with the differentiated cost positioning of ruby oil to create a high-certainty success path for VitaOcean [2] Group 3: Growth Strategy - The company focuses on differentiated positioning in high-end fragrance home cleaning and oral beauty products, exploring new consumer scenarios and driving growth through dual channels and multiple explosive products [2] - VitaOcean is expected to become a significant growth driver in the second half of 2025, with a clear focus on core female demographics and in-depth exploration of niche demand scenarios [2] - The company is anticipated to continue expanding its brand matrix in the health sector, showcasing its forward-looking vision and clear growth trajectory [2]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative return of over 20% within the next six months [8][16]. Core Insights - The company reported a revenue of 42.8 billion yuan for 2024, representing a year-on-year growth of 3.1%. Core operating profit reached 6.23 billion yuan, up 18.7% year-on-year, and net profit attributable to shareholders was 4.71 billion yuan, an increase of 4.6% [1]. - The company has initiated a franchise business, successfully launching 13 franchise restaurants in 2024, contributing 16.71 million yuan in revenue. Over 70% of franchise applications are from third-tier cities and below [4]. - The company has also launched the "Pomegranate Plan" to encourage the incubation and development of new restaurant brands, resulting in 11 new brands with a total of 74 stores, generating 480 million yuan in revenue, a year-on-year increase of 39.6% [4]. Financial Performance - In 2024, the company's restaurant system sales increased by 3% year-on-year, with same-store sales growing by 3.6% [2]. - The average table turnover rate for self-operated restaurants was 4.1 times per day, an increase of 0.3 times year-on-year [2]. - The overall average customer spending was 97.5 yuan, a decrease of 1.6% year-on-year, attributed to changes in the consumption structure [2]. Cost and Efficiency - The cost of raw materials accounted for 37.9% of revenue, down 3.0 percentage points year-on-year due to lower procurement prices. Employee costs increased to 33.0%, up 1.5 percentage points, reflecting higher wages and benefits [3]. - The company plans to distribute a final dividend of 0.507 HKD per share, alongside an interim dividend of 0.391 HKD, resulting in an overall dividend payout ratio of approximately 95% for 2024 [5]. Future Outlook - The company is expected to continue optimizing store operating efficiency and expanding its franchise business, with projected net profits for 2025-2027 at 5.3 billion, 5.86 billion, and 6.53 billion yuan respectively, corresponding to PE ratios of 18, 16, and 15 times [6].