HCLC(SZ:002344)2022-12-08 05:24Group 1: Market Conditions and Rental Strategies - The possibility of rental decline in external markets is low based on market conditions [2] - Chengdu market has improved compared to last year, with no rent increase for merchants this year; potential for rent increase next year if market conditions remain favorable [2] - The rental increase in Tong Er Bao market is relatively challenging, with overall operations in both markets remaining stable compared to last year [2] Group 2: Financial Performance and Cost Management - Marketing expenses decreased in the first half of the year due to a shift in marketing strategy towards new media advertising [2] - The company plans to invest heavily in marketing expenses in July and August, coinciding with the opening of new markets [2] - The company’s cash flow is stable, but project signing pace may slow down depending on negotiation progress [3] Group 3: Expansion Plans and Market Development - New markets expected to open include Harbin in the second half of the year, with part of the shops already sold [3] - The company is exploring international cooperation, including a Korean product exhibition by the end of the year [3] - The company aims to establish an online leather city with its own sales website, despite current low online sales volume [4] Group 4: Consumer Behavior and Market Dynamics - The purchasing power in the market remains unchanged, with small vehicles being the main source of consumer traffic [3] - External market increases are not expected to dilute local market traffic, as consumer groups primarily travel within a three-hour radius [3] - To attract small vehicle customers, various promotional activities have been launched, such as WeChat red envelopes [3] Group 5: Sales and Revenue Recovery - Generally, selling 10%-15% of shops can recover initial investments, along with one year of rent and leasing fees [3] - The Harbin market has a significant scale and cost, with local merchants accounting for approximately 50% of the market [4]