SHANGHAI CHALLENGE(SZ:002486)2022-12-08 02:58Group 1: Company Performance - The company's sales have significantly declined, with a nearly 30% decrease in revenue compared to the same period last year [3] - Increased labor costs and rapid investment in environmental facilities have contributed to rising expenses [3] - The net profit decline is also attributed to ongoing investments in new projects and self-owned brand initiatives [3] Group 2: Strategic Adjustments - The company plans to reduce related expenses significantly as new production bases begin operations [3] - Management is confident in improving order quantity and sales through customer structure adjustments and new product development [3] - The company is adopting a strategy of "temporary contraction and specialization" for its self-owned brands [3] Group 3: Brand Development - The self-owned brands KR and SN are still in the development phase, with significant operational costs [4] - The number of KR brand stores has decreased from 54 to over 20, yet sales performance per store has improved [4] - The KR brand has been rebranded to "Earth Scientist" to clarify its mission and enhance its market presence [4] Group 4: Future Initiatives - The KR team is focusing on building a lifestyle exchange center that integrates culture, tourism, geography, science, and art [5] - The aim is to provide personalized services to specific groups and enhance the brand's cultural connotation [5]