Summary of Conference Call Company Overview - The conference call is for Nai Xue's Tea, discussing the performance for the fiscal year 2024 and future strategies [1] Industry Context - The overall consumer market in 2024 is described as weak, with changes in consumer habits affecting foot traffic in offline shopping centers, leading to a contraction in market demand [1] Key Financial Performance - As of the end of 2024, Nai Xue's total store count reached 1,798, with 1,453 direct-operated stores and 345 franchise stores, despite a challenging year [2] - The company recorded a net loss of 910 million yuan in 2024, with 160 million yuan attributed to store closures and 321 million yuan from past investments [4] - Operating cash flow decreased by 76% year-on-year to 200 million yuan due to pressure on store revenues [4] Membership and Customer Engagement - The registered membership surpassed 100 million by the end of the year, with an increase in active members and repurchase rates compared to 2022 [3] Marketing and Product Strategy - The company is focusing on health-oriented products and has implemented targeted marketing strategies to enhance brand visibility [2][3] - In 2024, the proportion of tea drinks was 69%, while baked goods accounted for 11% of total sales [5] Store Performance and Adjustments - Average daily revenue per store in major cities showed a significant decline, with Shenzhen maintaining an average of over 10,000 yuan [6] - The management plans to optimize existing stores and explore new store formats, such as the "Nai Xue Green" model, which offers healthier options [7][8] International Expansion - Nai Xue is expanding internationally, having entered markets in Thailand, Singapore, and Malaysia, with plans to open its first store in the United States soon [2][21] - The Thai market has shown strong acceptance, with stores performing well and gaining popularity [21][22] Future Outlook - For 2025, the company aims to focus on a green health strategy, offering high-quality, cost-effective health products [6][7] - Management expresses confidence in the adjustments made to cope with current challenges, anticipating positive outcomes from these strategies [8] Challenges and Strategic Adjustments - The company acknowledges the need to adapt its business model and product offerings in response to changing consumer preferences and market conditions [13][14] - There is a focus on reducing operational costs through improved efficiency and automation in stores [8] Conclusion - Nai Xue's Tea is navigating a challenging market environment by optimizing its store operations, expanding internationally, and focusing on health-oriented products to meet evolving consumer demands [1][6][21]
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