Summary of Conference Call Records Industry Overview - The records pertain to the discount snack retail industry, focusing on franchise operations and market dynamics in various cities, particularly in Guangdong province, China. Key Points and Arguments Investment and Return Period - Investment costs vary by city: in Shenzhen, the investment ranges from 800,000 to 1,000,000 CNY with a payback period of over two years; in lower-tier markets, the investment is around 500,000 to 600,000 CNY with a payback period of approximately 1.5 years [1][4] Revenue and Profitability - Store revenue is significantly influenced by city tier: in fourth and fifth-tier cities, average daily revenue is about 10,000 CNY, leading to annual revenue of 3.6 to 4 million CNY; in first-tier cities, daily revenue exceeds 20,000 CNY, resulting in annual revenue around 8 million CNY [1][5][6] - A 150 square meter store in Guangzhou can achieve a net profit of approximately 400,000 to 500,000 CNY, with a payback period of two years [6] Franchisee Selection Criteria - Franchisee selection emphasizes experience and financial strength, prioritizing candidates with backgrounds in beauty or convenience store operations to shorten training periods and ensure profitability [1][7] Store Expansion Plans - The company plans to open 2,000 new stores in 2025, a conservative estimate due to regional protection policies. As of April 2025, nearly 200 new stores have opened in Guangzhou, with expectations to open an additional 700-800 stores during the peak season, totaling 1,700-1,800 stores by year-end [1][9][11] Sales Performance and Strategies - The average daily sales per store are approximately 20,000 CNY, with monthly sales around 600,000 CNY and a gross margin of about 7%, resulting in a monthly gross profit of over 40,000 CNY after deducting rent and labor [1][13] - The company is enhancing competitiveness by increasing high-priced SKUs and developing proprietary products, expanding the SKU count from 3,000-4,000 to over 6,000 [1][14] Market Trends and Customer Insights - The average customer transaction value is currently 34 CNY, with a goal to increase this through promotional activities [33] - The customer base is segmented into community stores, commercial area stores, factory area stores, and school area stores, with plans to expand particularly in commercial areas [31][32] Competitive Advantages - The company has a strong standardized management system, conducting monthly evaluations of store image, service, display, storage, and food safety, which helps improve franchisee operations [35] Future Outlook - The company does not currently have plans for international expansion, focusing instead on domestic market growth and potential IPO [36] - The target for new store openings in 2025 is 26,000, with an expected actual achievement of around 20,000 stores, primarily in Guangdong province [37] Additional Important Information - The company is experimenting with a "savings supermarket" model, which has higher initial costs and longer payback periods but could increase daily sales by 30-40% [1][17] - Franchisees have autonomy in product selection, ordering based on sales performance, with an initial stock investment of around 200,000 CNY [24][22]