Summary of Zhou Hei Ya Conference Call Company Overview - **Company**: Zhou Hei Ya - **Industry**: Food and Beverage (specifically, duck products) Key Points and Arguments Financial Performance - In the first half of 2025, Zhou Hei Ya achieved a profit exceeding 100 million yuan, marking a bottom reversal in performance due to store restructuring, employee incentives, and online traffic initiatives [2][3] - Same-store sales growth has returned to low single-digit growth, with expectations for a profit growth rate in the high double digits for the full year [2][7] Store Strategy - The company plans to close underperforming stores, reducing the total number to over 2,800 by mid-2025, with a target to maintain around 3,000 stores by the end of the year [2][3] - The ratio of direct-operated to franchised stores is 60:40, focusing on store quality rather than quantity, with annual store growth expected to be in single digits [2][3][9] Channel Development - Zhou Hei Ya is prioritizing its distribution channels as a key mid-term strategy, aiming to double channel business revenue from under 100 million yuan in 2024 to 200 million yuan in 2025, with a long-term goal of reaching 1 billion yuan in three years [2][5][10] - The company has successfully entered Sam's Club and plans to introduce more products [5] International Expansion - The company has initiated its overseas market strategy, entering Malaysia's Mix supermarket with over 20 SKUs and plans to open its first overseas store [6][10] - Future expansion plans include entering the North American market and establishing a localized supply chain, with a revenue target of 100 million yuan within three years [6][10] Cost Control Measures - Zhou Hei Ya is implementing flexible procurement strategies to manage raw material costs effectively, focusing on high-quality suppliers and diversifying product lines to mitigate cost pressures [2][14][15] - The company has maintained a stable cost level despite the current consumer market not showing significant recovery [15] Dividend Policy - The company adheres to a high dividend payout policy, with a target payout ratio of at least 60%, and has historically maintained a payout ratio of 80-90%, with plans to reach 100% in 2024 [2][17] Market Communication - Following the mid-year report, the management has actively communicated with the market, receiving positive feedback on the company's strategic direction and recovery from a low point [18] Future Outlook - For the second half of 2025, the company expects same-store sales to maintain mid-single-digit growth, with channel business making significant progress [7] - The company aims for double-digit growth in overall store business and a doubling of channel business revenue in 2026 [7][10] Membership and Cost Management - Zhou Hei Ya has upgraded its membership operations to enhance efficiency and control unnecessary expenses, ensuring a healthy business development trend [8] Store Performance Metrics - The average sales per store in the first half of 2025 were approximately 800,000 yuan, with a goal to restore sales to over 1 million yuan per store pre-pandemic levels [10] Rental Strategy - The company employs a dynamic evaluation and negotiation strategy for rental agreements, ensuring a healthy rent-to-sales ratio [12] New Store Location Preferences - New store openings will focus on high-potential commercial areas and transportation hubs to leverage core advantages [13] This summary encapsulates the key insights from Zhou Hei Ya's conference call, highlighting the company's strategic adjustments, financial performance, and future growth plans.

Core Insights - The article highlights the 30-year journey of Zhou Hei Ya, emphasizing its transformation from a workshop-style operation to a standardized brand-driven model in the marinated food industry [1][4] - Zhou Hei Ya's founder, Zhou Fuyou, is credited with leading the company through economic fluctuations and consumer preference changes, driving innovation and adapting business models to meet market demands [1][5] Company Achievements - Zhou Hei Ya has established itself as a national culinary symbol, with its brand becoming widely recognized and respected in the industry [1][5] - The company has implemented a standardized model across various dimensions, including procurement, production, logistics, and consumer engagement, which has significantly contributed to the industry's upgrade [6][12] Industry Leadership - Zhou Hei Ya has been awarded the title of "China's Consumer Quality Trusted Marinated Food Leader" by a third-party authority, reflecting its excellence in product quality and brand building [7] - The company has pioneered several industry standards, including the introduction of modified atmosphere packaging in 2012, which has transformed the market from bulk and vacuum packaging to a more standardized approach [6][12] Product Innovation - Zhou Hei Ya focuses on catering to younger consumers by launching diverse products and refreshing its brand image, ensuring it remains relevant in a competitive market [8][10] - The company has developed a dual-driven product strategy of "classic + innovation," enhancing its product matrix with unique flavors and offerings that resonate with consumer preferences [10][12] Channel Expansion - Zhou Hei Ya has strategically expanded its offline and online channels, establishing over 3,000 stores and leveraging e-commerce platforms like Douyin to enhance brand recognition and market penetration [11][13] - The company is set to embark on an international expansion journey, starting with Southeast Asia in 2024, aiming to become a global leader in the marinated food sector [11][14] Future Vision - Zhou Hei Ya aims to become a global representative of Chinese marinated food, with a focus on continuous innovation in product development and supply chain management [14] - The company is committed to building a strong team and establishing a strategic ecosystem with international partners, positioning itself as a pioneer in global marinated food culture [14]