In 2024, despite a highly challenging market environment, the Company achieved simultaneous growth in both revenue and gross profit through its robust supply chain capabilities, innovative channel strategies, and efficient membership operations. For the year ended December 31, 2024, Guoquan reported annual revenue was RMB6,469.8 million, representing a year-on-year increase of 6.2%; gross profit was RMB1,416.8 million, representing a year-on-year increase of 4.9%; and core operating profit was RMB310.8 million, representing a year-on-year increase of 3.1%. Meanwhile, Guoquan places particular emphasis on shareholder returns. The Board of Directors has resolved to recommand a final dividend of RMB0.0746 per share for the year 2024, representing a return to shareholders of over RMB200 million.

Consolidate the infrastructure of its 10,000+ stores and strategically penetrate lower-tier markets

In 2024, Guoquan has proactively grasped changes in consumption trend, improved stores’ capabilities of operation and management by optimizing product portfolio, and embraced multi-faceted initiatives such online leads, which formed a holistic and instant retail store network. The number of stores increased from 9,660 as at 30 June 2024 to 10,150 as at 31 December 2024, with its retail store network covering 31 provinces, autonomous regions and municipalities. Meanwhile, based on in-depth understanding of markets in lower-tier cities, the Company also has achieved outstanding performance on expansion of stores in township-level market. There were 287 net new township-level stores for the year of 2024. The new township-level stores differs in product structure, store display and other aspects from the standard stores, and better meet the needs of consumers from township-level markets.

Online and offline dual-wheel drive, omni-channel sales network to pry the multi-scene consumer ecology

To empower franchisees and facilitate their sales growth as well as further expand consumer reach and offer more flexible shopping experience, the Company has also developed multiple online sales networks, including the Company’s Guoquan APP, WeChat mini-program, third-party food delivery platforms as well as on popular social commerce platforms such as Douyin to promote interplay between offline stores and online leads. In 2024, the Company continued to conduct consumer reach for Guoquan’s products on its multi-level Douyin accounts, gaining a total exposure of over 6.21 billion times throughout the year. In addition, Guoquan successively launched“RMB99 Beef Tripe Freedom Hotpot Set”,“RMB99 Sauerkraut Fish Freedom Hotpot Set”and other product portfolio with high quality-price ratio that is popular with consumers. Among them, the “RMB99 Beef Tripe Freedom Hotpot Set”and other beef tripe hotpot sets successively launched since late May were well received by consumers with accumulated sales exceeding RMB500 million in 2024.

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