Guifaxiang(SZ:002820)2022-12-03 10:14Production and Expansion - The company has five production lines operational at the airport production base, which supports future capacity expansion [3] - The core product, Mahua, accounts for approximately 70% of the company's offerings, with a focus on regional market planning [3] - The company plans to open 10 new direct-operated stores in 2019, primarily in Tianjin, with a focus on the Beijing-Tianjin-Hebei market [6] Product Development and Market Strategy - The company is promoting leisure Mahua products, which have shown positive market feedback, particularly in convenience store collaborations [4] - The company aims to increase the revenue share of pastry products from 11.4% to 20%-30% by leveraging the combination of high-frequency, low-price products with low-frequency, high-price products [7] - The company has invested in Kuntin Technology, an e-commerce operation company, which generated over 22 million in net profit last year [4] Consumer Insights and Marketing - Direct-operated stores serve as a key channel for gathering consumer data, helping the company understand consumption patterns and preferences [8] - The company is actively engaging with younger consumers through social media and innovative product offerings, such as small packaged Mahua [9] - The company plans to increase advertising and promotional expenses in line with the launch of new leisure products [13] Financial Performance and Challenges - The company experienced a slight decline in net profit due to costs associated with new store openings, including renovation and training expenses [14] - Sales expenses, including wages and benefits, account for over 50% of total sales costs due to nearly 500 sales personnel across approximately 50 direct-operated stores [12] - The company anticipates challenges in national expansion, including consumer adaptation and pricing perceptions from distributors [12]