Financial Data and Key Metrics Changes - In Q1 2024, the company's revenue increased by 0.9% year-over-year, with a currency-neutral growth of 4% and same-store sales growth (SSSG) of 2.2% [2] - Gross profit margin (GPM) improved by 2.4 percentage points to 60.4%, and adjusted EBITDA margin increased by 0.4 percentage points to 18.8% [2] - Net profit attributable to shareholders rose by 18.8% year-over-year, and operating cash flow turned positive with a net inflow of $55 million [2] Business Line Data and Key Metrics Changes - Revenue growth for Samsonite brand, Tumi, and American Tourister was currency-neutral year-over-year at 7%, 2%, and 3% respectively [2] - Tumi's performance is expected to improve in H2 2024 as inventory levels normalize, despite facing high base effects in Q1 and Q2 2023 [2] Market Data and Key Metrics Changes - Revenue growth in different regions was as follows: Asia (+8%), North America (+0.3%), Europe (-0.5%), and Latin America (+18%) on a currency-neutral basis [2] - In mainland China, Q1 revenue grew by 23% year-over-year on a currency-neutral basis [2] Company Strategy and Development Direction - The company aims for revenue growth in Q2 2024 to be in the mid-to-high single digits year-over-year, with expectations for H2 to outperform H1 [2] - The company plans to maintain an advertising expense ratio of 7% and an adjusted EBITDA margin of 20% for the full year [2] Management's Comments on Operating Environment and Future Outlook - Management noted a strong growth trend in April 2024, particularly in Europe, and expects Q2 to show strong growth [2] - The company expressed satisfaction with performance in China, despite some weakness in Q2, and anticipates strong tourism demand to continue driving sales [2] Other Important Information - The company expects full-year revenue growth to be in the high single digits to low double digits [3] - The latest market capitalization is $42.2 billion, with Bloomberg consensus expecting an adjusted PE of 12x for 2024 [2] Q&A Session Summary Question: How does the company view future revenue growth? - Management sees strong growth in Q2 2024, with expectations for H2 to outperform H1, particularly in Europe [2] Question: What is the outlook for Asia and Tumi? - Tumi's performance is expected to improve in H2 2024, with strong growth anticipated across North America, Europe, and Asia [2] Question: How does the company view EBITDA margin performance and guidance? - The company expects overall EBITDA margin to improve in H2 2024, maintaining its guidance for the year [2] Question: Which regions are underperforming in the current consumer environment? - India is noted as a weak performer, while China is performing satisfactorily [2] Question: What is the company's approach to discount management and maintaining margins? - The company aims to balance sales growth with maintaining good profit margins and brand positioning [2] Question: What are the sales trends expected in different regions? - Europe is expected to see strong sales growth in Q2, while India faces significant promotional pressure [2]

Financial Data and Key Metrics - Revenue increased by 26% YoY to RMB 37.2 billion, driven by a 19% increase in average store count and a 9% YoY comparable same-store sales growth [9] - Adjusted net profit rose by 28% YoY to RMB 6.2 billion, with an adjusted net margin of 16.6%, up 0.2 percentage points YoY [16] - Gross margin reached a historical high of 43.4%, up 4.1 percentage points YoY, primarily due to increased overseas revenue contribution and TOP TOY's margin optimization [9][16] Business Line Performance - **MINISO Mainland China**: Revenue grew by 16% YoY to RMB 25.0 billion, with same-store sales recovering to 98% of 2023 levels [16][21] - **MINISO Overseas**: Revenue surged by 53% YoY to RMB 12.2 billion, with direct-operated markets contributing 58% of overseas revenue, up from 46% in 2023 [16][23] - **TOP TOY**: Revenue increased by 55% YoY to RMB 2.1 billion, with 160 stores operating across nearly 70 cities [12][18] Market Performance - **North America**: GMV grew by 108% YoY, contributing 13% to overseas GMV, up from 7% in 2021 [24] - **Latin America**: GMV increased by 40% YoY, remaining the largest contributor to overseas GMV at 38% [24] - **Asia (excluding China)**: GMV rose by 34% YoY, contributing 36% to overseas GMV [24] Company Strategy and Industry Competition - The company aims to achieve 50% IP product sales by 2028, leveraging its strong IP conversion capabilities and partnerships with brands like Disney and Chiikawa [9][12] - TOP TOY's profitability improved significantly, with gross margin increasing by 8 percentage points YoY, driven by optimized product mix and higher bargaining power with suppliers [8][12] - The company plans to open 900-1,100 new stores globally in 2024, with a focus on high-quality locations and direct-operated markets [9][12] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong growth potential in overseas markets, particularly in North America and Europe, where the company has seen rapid GMV growth [24] - The company remains confident in achieving its full-year growth targets, supported by its strategic focus on IP products and high-quality store expansion [6][9] Other Important Information - The company's IP product sales accounted for 26% of total sales, with overseas IP shipments growing by over 100% YoY [12] - TOP TOY's store count increased by 44 YoY to 160, with plans to expand to over 250 stores by the end of 2024 [12][18] Q&A Session Q: Domestic same-store performance by city tier and the impact of large stores on average transaction value? - The company is refining its large-store strategy, with successful openings in key locations like Guangzhou, Shanghai, and Beijing, aiming to optimize the store model [2] Q: Single-store performance and location selection in the US? - The US market continues to show strong growth, with same-store sales increasing by 30-40% YoY in Q1 2024 The company plans to add 80-100 new stores in the US in 2024 [3] Q: Domestic gross profit margin (GPM) decline and future trends? - Domestic GPM is lower than the group average, with tier-1 cities recovering to 98% of pre-pandemic levels, while lower-tier cities saw a low single-digit decline Future GPM improvement will be driven by product mix optimization, including increased sales of blind boxes and travel-related products [4] Q: Drivers behind the 21% YoY increase in overseas same-store sales? - The increase was primarily driven by higher brand awareness, new customer acquisition, and product mix optimization, with IP products now accounting for 40% of sales [5] Q: Plans for Chiikawa pop-up stores? - The company plans to open over 10 pop-up stores in cities with high youth populations, such as Wuhan, Chengdu, and Xi'an [6] Q: US market unit economics (UE) model? - The company did not provide detailed UE metrics but noted significant cost-saving opportunities in logistics and distribution [7] Q: Reasons for TOP TOY's target adjustment and same-store sales growth drivers? - TOP TOY's improved profitability is attributed to a healthier competitive landscape, increased bargaining power with suppliers, and optimized product mix, leading to an 8 percentage point increase in gross margin [8]

Financial Data and Key Metrics - The company expects a double-digit growth in overseas markets, potentially between 10% to 20% [2] - Domestic market revenue is expected to remain flat [2] - Free brand business is projected to grow by 10% to 20% [2] - Medical sector is expected to see a high single-digit to low double-digit growth, excluding additional R&D investments [2] - Capital expenditure for 2024 is estimated to be around 1 billion, similar to 2023 [2] - The company aims to maintain a dividend payout ratio of around 35% [2] Business Line Data and Key Metrics - Growth in 2024 is expected to be driven mainly by disposable products, while refillable products may see a slight decline [1][2] - Cannabis vaporizers are expected to maintain a growth rate of over 20% [2] - The company is investing in new product lines, particularly in medical and beauty sectors, with expected returns in 2025 and 2026 [2][3] Market Data and Key Metrics - The US market saw a decline in the second half of 2023 due to the impact of non-compliant disposable products [6] - The company is preparing for potential bans on disposable products in Europe and the US by developing new product lines [4][5] - The company's free brand, VAPORESSO, is expanding in Europe with new product offerings [5] Company Strategy and Industry Competition - The company is focusing on differentiated products and new technological routes to stay competitive [1] - It is preparing for potential regulatory changes in Europe and the US by diversifying its product portfolio [4][5] - The company is investing in R&D to develop new solutions and technologies, particularly in the medical and beauty sectors [2][3] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about future growth, particularly in 2025 and 2026, as new product lines mature [2][3] - Management is cautious about the regulatory environment in the US and Europe, particularly regarding disposable products [1][4] - The company is prepared to adapt to market changes and regulatory shifts by leveraging its R&D capabilities [4][5] Other Important Information - The company has a strong cash position, with cash and deposits totaling approximately 16 billion [5] - It is open to increasing share buybacks if necessary [5] - The company uses a mix of USD and RMB for customer settlements, with complex arrangements for large clients [6] Q&A Session Summary Question: Trends for refillable and disposable products in 2024 - Disposable products are expected to drive market growth, while refillable products may see a decline due to regulatory pressures [1] Question: CBD growth trends in 2024 - CBD growth is expected to recover in the second half of 2024, driven by new product launches and market recovery [2] Question: Cash flow, capital expenditure, and dividend guidance for 2024 - The company expects strong cash flow, with capital expenditure similar to 2023 and a dividend payout ratio of around 35% [2] Question: Revenue and profit guidance for 2024 - Revenue is expected to grow in overseas markets, while domestic revenue remains flat. Profit growth is expected to be in the high single-digit to low double-digit range, excluding medical R&D investments [2] Question: Impact of US flavor ban and FDA enforcement - The company is cautious about FDA enforcement and the potential impact of flavor bans, but remains optimistic about its product portfolio [4] Question: New product launches in Europe - The company is preparing to launch new products in Europe, including larger-capacity refillable products, to adapt to potential bans on disposable products [4] Question: Pricing pressure from large clients - Pricing pressure from large clients is decreasing as the focus shifts to differentiated products and innovation [5] Question: R&D investment in HMB market - The company is investing in R&D to develop new solutions and technologies, particularly in the HMB market, with expected returns in the future [5] Question: Free brand strategy in Europe - The company is expanding its free brand, VAPORESSO, in Europe with new product offerings, including bottled e-liquids [5] Question: Share buyback plans - The company is open to increasing share buybacks if necessary, given its strong cash position [5] Question: US market decline in H2 2023 - The decline in the US market in H2 2023 was due to the impact of non-compliant disposable products and changes in customer stocking patterns [6] Question: Currency settlement arrangements - The company uses a mix of USD and RMB for customer settlements, with complex arrangements for large clients [6]

Financial Data and Key Metrics Changes - The company's total revenue for Q1 2024 was RMB 160 billion, representing a year-on-year growth of 6% and a quarter-on-quarter growth of 3% [41] - Gross profit reached RMB 84 billion, showing a year-on-year increase of 23% and a quarter-on-quarter increase of 8% [41] - Non-IFRS operating profit was RMB 59 billion, up 30% year-on-year and 19% quarter-on-quarter [41] - Non-IFRS net profit attributable to shareholders was RMB 50 billion, reflecting a year-on-year growth of 54% and a quarter-on-quarter growth of 18% [41] Business Line Data and Key Metrics Changes - The gaming segment saw a mixed performance, with flagship games like "Honor of Kings" and "Peacekeeper Elite" experiencing revenue declines in Q1, but showing signs of recovery in March with year-on-year growth [44][45] - The advertising revenue from online ads was RMB 26.5 billion, a year-on-year increase of 26%, driven by increased engagement and AI ad targeting [26] - The revenue from financial technology and business services was RMB 52 billion, showing a year-on-year growth of 7% [27] Market Data and Key Metrics Changes - Domestic game revenue grew by 3% year-on-year, indicating a general recovery trend [42] - International game revenue also increased by 3% to RMB 14 billion, remaining stable in constant currency terms [42] - The video account user engagement time grew by 80% year-on-year, with video accounts now having double the engagement time compared to Moments [38] Company Strategy and Development Direction - The company is focusing on high-quality revenue sources, including video accounts, mini-games, and e-commerce technology service fees, to drive growth and operational profit [45] - There is an ongoing commitment to repurchase shares, with plans to buy back over RMB 100 billion worth of shares in 2024 while also increasing dividends [45] - The company is investing in AI, platform enhancements, and high-production-value content to support future growth [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of game revenues and the positive impact of structural changes on reducing business risks [31] - The company anticipates that the growth rate of advertising revenue will slow down in subsequent quarters, aligning more closely with market consensus expectations [5] - Management highlighted the importance of maintaining a focus on high-quality growth strategies and the potential for sustained profit margins across various business segments [32] Other Important Information - The company upgraded its advertising technology platform to help advertisers manage campaigns more effectively, resulting in a 100% year-on-year increase in video account ad revenue [2] - The company is seeing strong growth in wealth management services, with an increase in user numbers and average fund investments [14] Q&A Session Summary Question: How does the company view the future potential and growth plans for key games? - Management noted that they have been updating key games successfully and are confident in the ongoing process, learning from past experiences [6] Question: What are the expectations for profit growth and margin trends in the coming years? - Management clarified that they are pursuing a strategy of investing in platform development and user experience while gradually achieving profitability [6] Question: How does the company plan to leverage AI in its advertising business? - Management believes that AI will significantly enhance ad targeting and management, leading to improved click-through rates and overall ad revenue growth [29]

时间：2024年5月9日 嘉宾：陆总 纪要核心要点 1.经营情况：24年一季度订单量同比下降30%，客单价下降十几个点，去除23年一季度高基数影响依旧疲软，没有明 显向上或向下的迹象。 2.市场竞争：行业早就是充分竞争，不担心新上市竞对加剧竞争环境，预计头部品牌有集中机会，没有大规模降价的 紧迫性。 3.未来增长：增长点主要来自门槛降低后加盟店增长和海外扩张，期待国内需求修复。 纪要正文 一、经营情况： 从2021年8月开始，尽管疫情相对稳定，但收入下滑非常快。22 年当然都很差。23年一季度相对乐观，因为看到恢复 速度非常快，一直到 4 月份表现都是很好的，五一之后市场持续疲软，到现在24 年的 5 月份没有变得更烂，但也没 有好转迹象。2024年1-5月市场很疲软，也有去年高基数影响，抛去以后还是不行。未来走势不好说，向上向下都没 有明显痕迹。 二、未来展望： 公司过去节流已经做的很多了：自动化改造减少了全职员工，转而使用兼职员工；降低了培训需求和损耗，优化了供 应链管理等 接下来要做的是开源： ① 加盟商方面：下线城市的加盟是一个新增长点，目标是今年开设数百至1000家加盟店（实际可能无法达到），目 前 ...

Financial Data and Key Metrics Changes - The industry experienced a growth rate of approximately 10% in revenue, with national registration numbers increasing by about 13%-14% [1][2] - The company aims to maintain a pass rate of 10%, with profit margins expected to reach 18% this year, 20% next year, and a target of 25% [4][6] Business Line Data and Key Metrics Changes - The company has three main product lines: membership services, large classes, and small classes, with the small class segment showing the highest growth and revenue contribution [3][4] - The average revenue per teacher is projected to increase from 570,000 in the previous year to approximately 800,000 next year, driven by efficiency improvements through AI [4][5] Market Data and Key Metrics Changes - The number of teaching positions in the public sector is increasing by about 3%-4%, while the number of teaching positions in private institutions is declining [2][3] - The competitive landscape has shifted, with the market share of leading institutions like Huatu and Fenbi increasing, while Zhonggong's share and revenue are declining [3][6] Company Strategy and Development Direction - The company focuses on balancing pass rates, profits, and revenue growth, with a strategic emphasis on maintaining a pass rate of 10% and improving profit margins [4][6] - The use of AI technology is enhancing teaching efficiency and student satisfaction, which is expected to further improve profit margins [4][5] Management's Comments on Operating Environment and Future Outlook - Management noted that while the industry is experiencing growth, many registrations are driven by employment pressures, indicating that actual training participation may not be as high as reported [1][2] - The company anticipates a gradual increase in job positions over the next few years, with a projected annual growth rate of around 3% [2][6] Other Important Information - The company plans to implement share buybacks and dividends as part of its capital allocation strategy [6][9] - The company has seen a reduction in the number of teachers, from 3,900 at the end of 2022 to 3,200 by the end of 2023, while maintaining efficiency [4][9] Q&A Session Summary Question: What is the current market share of the company? - The company believes that the CR3 market share is around 30%, with expectations of continued growth in market concentration [6][9] Question: How does the company plan to achieve a profit margin of 25%? - The company aims to improve the gross profit margin of its small class segment, which is currently below 50%, by leveraging AI to enhance teaching efficiency [4][5] Question: What is the impact of the economic environment on registration numbers? - Management indicated that while registration numbers may slow down in a recovering economy, they do not expect a significant drop due to the consistent demand from various demographics [7][8] Question: How does the company differentiate itself from competitors? - The company emphasizes its online model and superior teacher quality, which allows it to maintain higher pass rates compared to competitors [6][9] Question: What are the company's plans regarding teacher recruitment? - The company does not plan to significantly increase its teaching staff this year, focusing instead on improving efficiency with the current team [9]

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $1,715 million, up 4.3% sequentially [5] - Gross margin decreased to 13.7%, down 2.7 percentage points sequentially [5] - Profit attributable to the company was RMB 72 million [5] - Total assets at the end of Q1 were RMB 48.2 billion, with total cash on hand of RMB 15.4 billion [6] - Total liabilities were RMB 17.3 billion, with total debt at RMB 10.3 billion [6] - EBITDA was RMB 887 million, with an EBITDA margin of 50.7% [5] Business Line Data and Key Metrics Changes - 8-inch equivalent wafer shipments increased by 7% sequentially to 17.95 thousand pieces [12] - Wafer revenue accounted for 93% of total revenue, while other revenue accounted for 7% [13] - Wafer revenue by application: smartphones (31%), computers and tablets (18%), consumer electronics (31%), connectivity and IoT (13%), industrial and automotive (7%) [14] Market Data and Key Metrics Changes - Revenue from China accounted for 82%, while revenue from America and Eurasia accounted for 15% and 3%, respectively [13] - Utilization rate increased by 4 percentage points sequentially to 80.8% [12] Company Strategy and Development Direction - The company is focusing on capacity construction and R&D to enhance core competitiveness and corporate value [8] - Plans not to pay dividends for 2023 to align with long-term development needs [9] - The company is accelerating the development of technology platforms for mainstream applications, including automotive and IoT [15] - The company aims to maintain its leading position in the market through strategic partnerships and technology leadership [19] Management's Comments on Operating Environment and Future Outlook - The company observed improved IC inventory levels and increased willingness from global customers to build inventory [11] - Revenue and gross margin both exceeded guidance in Q1 [12] - For Q2 2024, revenue is expected to grow by 5% to 7%, with gross margin projected to be between 9% and 11% [7][16] - The company is cautiously optimistic about the second half of the year, with a revenue growth target exceeding the industry average [18][20] Other Important Information - The company is in a continuous high investment phase to expand 12-inch high-quality capacity [20] - The company has achieved laboratory accreditation for its Automotive Reliability Testing Center, supporting its automotive process platform development [15] Q&A Session Summary Question: Inventory levels and customer demand - Management noted that global customers are more willing to build inventory due to market uncertainties [11] Question: Revenue guidance and market conditions - Management provided guidance for Q2, expecting revenue growth and a cautious outlook for the second half of the year [18][20] Question: Dividend policy and long-term strategy - Management explained the decision not to pay dividends for 2023 aligns with long-term development needs [9]

Financial Data and Key Metrics Changes - In Q1 2024, the company's overall revenue increased by a low single-digit percentage year-on-year, with offline sales declining slightly while online sales grew by 20%-30% [1][2] - The same-store sales (SSSG) decreased in Q1, with direct sales and wholesale down by low single digits and mid-double digits respectively, while e-commerce saw a growth of 20%-30% [1][2] - The inventory turnover ratio improved to around 4.0, with nearly 90% of inventory being new products within six months [1] Business Line Data and Key Metrics Changes - Direct sales performance was better than wholesale, driven by outlet stores, with same-store sales for direct and wholesale both experiencing double-digit declines [1][2] - The total number of stores decreased by 26 compared to the end of last year, with direct stores increasing by 1 and wholesale stores decreasing by 27 [2] Market Data and Key Metrics Changes - The company is focusing on Southeast Asia for overseas expansion, with plans to open stores in markets like Singapore, Malaysia, Thailand, Indonesia, and the Philippines [6][7] - The company aims to maintain a steady growth in the domestic market while exploring overseas opportunities as a supplementary strategy [6][7] Company Strategy and Development Direction - The company plans to enhance its product offerings and marketing strategies, particularly in professional categories like basketball and running, while also focusing on low-tier cities [6][13] - The marketing budget will be directed towards professional categories, leveraging resources from CBA and other events to strengthen brand presence [6][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the annual performance guidance, with expectations of low double-digit net profit margin and mid-single-digit revenue growth [4][5] - The company anticipates a gradual improvement in sales performance in the second half of the year, especially in Q4, due to lower base effects [5] Other Important Information - The company is not planning significant channel expansions this year, with a focus on product upgrades and maintaining healthy inventory levels [9][11] - The new CMO has been instrumental in integrating marketing resources and enhancing brand strategy, with plans for significant promotional activities around the upcoming Olympics [10] Q&A Session Summary Question: What is the status of wholesale revenue and inventory? - Management indicated that both wholesale and direct sales have healthy inventory levels, with a turnover ratio of 4-4.5, and no adjustments to Q2 shipments are planned [3] Question: How are the new product lines performing? - New products like the "Ultra Light 21" and "Red Rabbit 7" have shown good growth, with the "Red Rabbit" series particularly popular among students, achieving nearly 50% growth year-on-year [3] Question: What are the expectations for the semi-annual report? - Management maintained the annual performance guidance, expecting revenue growth to be lower in the first half due to high base effects [4] Question: What is the outlook for the e-commerce channel? - E-commerce performance exceeded expectations in Q1, driven by a return of online traffic and effective price control, with hopes for profit margins to recover to over 20% [12] Question: How is the company addressing competition in lower-tier cities? - The company has a foundation in lower-tier markets and plans to expand product offerings to meet local demand, focusing on running and basketball shoes [6][13]

Financial Data and Key Metrics Changes - In 2023, the company's revenue reached 4.4 billion RMB, representing a 26% increase from the previous year [4] - Profit attributable to equity holders was approximately 197 million RMB, a decrease of 33% due to a one-time bond repurchase gain in 2022 [4] - Excluding that gain, net profit attributable to equity holders was 195 million RMB, up 18% [5] - Free cash flow was about 500 million RMB, up 70% from last year [5] Business Line Data and Key Metrics Changes - Revenue from international business surpassed 60%, with a growth rate of over 33% [5][8] - Innovative business grew by more than 37.4%, with its revenue share reaching 51.8% [9] - Revenue in the Chinese market increased by 16.9%, driven by rapid growth in asset-light and hybrid precision engineering services [9] Market Data and Key Metrics Changes - In the Iraq market, major oil fields maintained full workload, contributing to steady business growth [8] - The Chinese market saw a quick recovery, with traditional business undergoing optimization and upgrades [9] - The company successfully applied completion tools in Algeria, further opening the market [8] Company Strategy and Development Direction - The company aims to transform into a global entity, focusing on green transformation and sustainable development [7][16] - Strategic plans for 2024 include deploying comprehensive solutions for the oil and gas industry and enhancing international business growth [17][19] - The company is also focusing on digitalization and platform-based development to improve operational efficiency [17][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the macroeconomic environment and competition, emphasizing the need for cost control and risk management [26][29] - The company is optimistic about future growth, aiming to achieve a revenue target of 1 billion USD soon [45] - Management highlighted the importance of global leadership and talent recruitment to support international business expansion [47][48] Other Important Information - The company announced a dividend payment of 339 million RMB, resuming its tradition of distributing 30% of profits to equity holders [15][35] - The asset leasing model is designed to help customers expand without significant capital investment, aligning with the industry's shift towards asset-light models [36][39] Q&A Session Summary Question: What are the strategic plans for overseas market deployment in 2024? - The company has identified three key regions: Iraq, West Africa, and emerging markets, with specific strategies for each [24][25] Question: What is the trend for the net profit margin? - The profit growth rate is lower than revenue growth due to macroeconomic pressures, but efforts are being made to improve margins through cost control and efficiency [26][27] Question: How long will the company maintain the integrated oil field management project in Iraq? - The project has a contract term of two years with potential extensions, and the company is actively pursuing further opportunities in Iraq and other regions [30][31] Question: What is the reason for the increase in other payables and receivables? - The increase is attributed to the expansion of the company's platform businesses, which facilitate transactions without occupying cash flow [33] Question: Can investors expect a stable dividend policy in the future? - The company aims to maintain its tradition of distributing 30% of profits as dividends, contingent on cash flow and business growth [35] Question: Will asset leasing conflict with the company's asset-light strategy? - The asset leasing model is designed to support customers' capital expenditure needs while promoting an asset-light approach [36][39]

Financial Data and Key Metrics Changes - In Q1 2024, the overall revenue growth for Li Ning's multi-channel was low single digits, with offline sales declining slightly and online sales increasing by 20%-30% [2][4] - Same-store sales (SSSG) decreased in low single digits, with direct sales and wholesale both showing declines, while e-commerce experienced growth [2][4] - The inventory turnover ratio improved to 4-4.5, indicating healthy inventory levels [2][5] Business Line Data and Key Metrics Changes - Direct sales showed better performance than wholesale, driven by outlet stores, while same-store sales for both channels declined [2][4] - The number of stores decreased slightly, with a net reduction of 26 stores compared to the end of last year [3][4] - The children's clothing segment aims for double-digit growth, with Q1 showing low single-digit growth [22] Market Data and Key Metrics Changes - E-commerce performance exceeded expectations in Q1, driven by the return of online traffic and effective price control [18][20] - The company is focusing on Southeast Asia for overseas expansion, with plans to open stores in markets like Singapore and Indonesia [9] Company Strategy and Development Direction - The company aims for steady growth with a revenue target of mid-single-digit growth for the year, maintaining a cautious approach due to market uncertainties [10][24] - Marketing efforts will focus on professional categories such as basketball and running, leveraging partnerships and events to enhance brand visibility [12][19] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the overall business performance, with expectations for gradual improvement in same-store sales as the high base effect diminishes [2][8] - The company anticipates challenges in Q2 due to high base comparisons but expects better performance in the second half of the year [8][10] Other Important Information - The new CMO has initiated significant changes in brand planning and marketing strategies, aiming to enhance brand recognition and consumer engagement [15] - The company plans to maintain a healthy inventory structure and manage costs effectively, especially with increased marketing expenses related to the upcoming Olympics [24] Q&A Session Summary Question: What is the status of wholesale revenue and inventory in Q1? - Management indicated that both wholesale and direct sales have healthy inventory levels, with a turnover ratio of 4-4.5, and no adjustments to Q2 shipments are planned [5] Question: How are the new product lines performing? - New products like the "超轻 21" and "赤兔 7" have shown good growth, with the latter experiencing nearly 50% year-on-year growth [6] Question: What are the expectations for the half-year report? - The company maintains its full-year guidance, expecting low double-digit net profit margin and mid-single-digit revenue growth [7] Question: What is the outlook for the e-commerce channel? - E-commerce is expected to outperform offline sales this year, with hopes to restore profit margins above 20% [18] Question: How is the company addressing competition in lower-tier cities? - The company has a foundation in lower-tier markets and plans to expand product offerings to meet local demand [11] Question: What are the plans for marketing expenditures? - Marketing expenditures will focus on professional categories, with a significant push for the upcoming Olympics [12][24] Question: What is the outlook for children's clothing? - The target for children's clothing is double-digit growth, with Q1 showing low single-digit growth [22] Question: How is the company managing its inventory and costs? - The company is focused on maintaining a healthy inventory structure and controlling costs, with marketing expenses expected to increase due to Olympic-related activities [24]