In 2023, the Chinese economy showed a sustained recovery and steady improvement. Despite the challenges, which posed threats to consumer-oriented enterprises, Guoquan responded by effectively managing the supply chain and enhancing operational efficiency, thereby bolstering the profitability. During the Reporting Period, Guoquan recorded the revenue of
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Expansion of offline stores and acceleration of online channels
In terms of channels, Guoquan has established a nationwide store network to occupy market share. During the Reporting Period, Guoquan's store network expanded despite the sluggish consumption trend. As of the end of 2023, Guoquan had 10,307 retail stores, covering 31 provinces, autonomous regions, and municipalities, a net increase of 1,086 in the number of stores compared to the end of 2022, further expanding the market influence.
Meanwhile, to empower franchisees and facilitate the sales growth as well as further our consumer reach and offer more flexible shopping experience, we have established multiple online channels, including Guoquan APP, WeChat mini-program, third-party food delivery platforms, Douyin and other popular social commerce platforms. In 2023, through multi-level Douyin accounts for live streaming of Guoquan products or posting related short videos, the total views exceeded 6 billion times.
By establishing close online and offline connections and interactions with consumers, Guoquan achieved a record high number of members, with the top-up amount increasing by 18% annually to approximately
Continuous Enrichment of product matrix and digital intelligence driving product innovation
Guoquan has provided offered diversified, tasty, convenient and affordable home meal products in a one-stop shop manner for consumers across a wide range of dining scenarios. With deep consumer insights and R&D efforts, Guoquan has collaborated closely with suppliers and R&D centers to consistently improve its range of products to align with evolving consumer demands and preferences.
In regards to product development, Guoquan leveraged digital tools to analyze consumer behavior, gained in-depth insights into consumers, accurately assessed market trends, and launched new products and upgraded existing ones accordingly. Guoquan also regularly introduced products tailored to local markets to cater to different consumer preferences across regions. In 2023, Guoquan successfully launched a total of 339 new SKUs.
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In 2023, the gross profit margin of Guoquan was approximately 22.2%, representing an increase of 4.8 percentage points as compared to 17.4% in the corresponding period in 2022. This improvement was mainly attributable to better cost control resulting from Guoquan's advantageous scale, along with the development of new products, upgrading of existing products, and the increased proportion of self-production following the acquisition of factories.
Steadily advancing the "three-sphere integrated" development strategy to solidify market leadership
Looking ahead, Guoquan will maintain its commitment to the three-sphere integrated development strategy encompassing brand, product, and channel. This includes expanding product categories, strengthening omni-channel sales network, increasing investments in brand building and marketing, and exploring consumer scenarios to improve consumer value and further solidify the market leadership. Furthermore, Guoquan aims to leverage digital tools to empower both upstream supply chain and downstream franchisees, with the goal of tasty, convenient and affordable home meal products to a diverse consumer base across various channels and scenarios.
Specifically, in terms of channel construction, Guoquan will continue to expand and deepen our omni-channel sales network to further our direct reach to consumers. Strengthen the depth and breadth of the offline store network by deepening offline market penetration in regions already covered, expanding the store network to new regions and by various store types. Further develop our online sales platforms to realize mutual empowerment of offline and online, driving the increase of sales revenue. Moreover, Guoquan will continue to cultivate more entrepreneurial franchisees by encouraging our existing franchisees to open more franchised stores, and propel their sales growth and cultivate entrepreneurial franchisees by continuously expanding to more product categories, upgrading our product portfolio, and developing more online leads.
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