Summary of Conference Call Company and Industry - The conference call primarily discusses the performance and strategies of Meikailong, a leading player in the home furnishing and appliance retail industry in China. Key Points and Arguments Marketing and Promotions - The company invested heavily in marketing resources during major events, including significant advertising placements in airports, leveraging government policies and mainstream media to enhance brand visibility [1] - The company launched a subsidy program for merchants in Guangzhou, providing six supportive policies, including unified cash register systems and expedited refunds [1] Sales Performance - In Q1, the overall Gross Merchandise Value (GMV) increased by approximately 24% year-on-year, indicating a positive consumer sentiment in the home furnishing sector [2] - The "old-for-new" program generated a total of 4.3 billion yuan in orders, with government subsidies contributing 700 million yuan, accounting for about 16.2% of the total [2] Regional Insights - Shanghai remains a stronghold for Meikailong, with effective implementation of local subsidy policies [3] - Jiangsu and Chongqing have shown rapid responses to subsidy policies this year, with higher participation rates compared to last year [3] Challenges and Adjustments - Hubei's subsidy policies have tightened this year, leading to reduced consumer participation compared to last year [4] - The company anticipates a more subdued impact from stimulus measures compared to Q4 of the previous year but remains optimistic about overall consumer spending [4] Merchant Participation - The participation rate of merchants in the "old-for-new" program is expected to be around 20-30% without the inclusion of individual merchants, compared to nearly 50% if they were included [5] - The company aims to maintain a similar number of participating stores as last year, with around 240 stores involved [12] Future Expectations - The company is preparing for upcoming promotional events like 618 and Double 11, with early marketing strategies already in place [9] - The management expects to improve rental rates and occupancy, targeting a rental increase of over 5% [16] Financial Performance - The self-operated segment contributes 68.5% of total revenue, with a gross margin of 58.3%, showing slight improvement from the previous year [21] - The company anticipates a more optimistic financial outlook compared to the previous two years, with reduced financing costs and improved debt management [24] Strategic Initiatives - The company is focusing on expanding its high-end smart appliance offerings, with over 150 high-end appliance stores already established [17] - Future plans include diversifying product categories to reduce reliance on traditional building materials, aiming for a 60% share of new categories [19] Management and Governance - The new chairman is familiar with the company and its operations, having been involved in previous acquisition discussions, which is expected to positively influence strategic direction [28] Conclusion - The overall sentiment from the call indicates a cautious optimism about the company's performance in the coming quarters, driven by effective marketing strategies, government support, and a focus on expanding product offerings [24][27]