Roadshow Record | China Green (02411): Store operations are steadily improving, with breakthroughs in multi-dimensional formats, and a clear path for long-term development.

On May 28th, GMTEight's summer roadshow conference landed in Shenzhen. The event brought together over 40 hot Hong Kong-listed companies covering various industries such as AI, hard technology, new energy, new consumption, and biomedicine. Among them, the benchmark company in new consumption, BGGY (02411), was invited to attend and delivered an exciting roadshow presentation. At the event, BGGY systematically reviewed the overall business situation, financial operations, and digital technology achievements from 2025 to 2026. They addressed investor concerns regarding new business expansion, revenue and profit trends, and detailed store management, clearly showcasing the company's current development and medium to long-term strategic plans. The following is a summary of the roadshow presentation: Business Rebuilding and Recovery: Store scale stabilizes, profitability turning point visible To combat the sluggish consumer environment, the company actively optimized its store network layout, resulting in some pressure on the number of stores in the short term. After a year of model optimization and operational adjustments, the store expansion returned to a positive trajectory in the second half of 2025, with a net increase of 82 stores. Currently, BGGY has over 4000 offline stores covering 22 provinces and more than 170 cities nationwide. Due to the impact of store size reduction, the company's overall revenue also declined in stages, recording a loss of 400 million yuan in 2024. With a series of operational optimization measures implemented, the company's operating conditions continued to improve, achieving a slight profit in the second half of 2025, marking a turnaround in profitability. Based on current operating trends, the company's gross profit scale and margin are expected to steadily increase in 2026, and the profitability recovery momentum will continue to improve. To reverse the business downturn, BGGY focused on three main areas: reconstructing the single-store model, implementing digital technology, and upgrading internal management, comprehensively strengthening store operations. In 2025, store visitor numbers and gross profit both achieved double-digit growth, combined with technology-enabled operational efficiency improvements, effectively reducing overall costs and gradually realizing cost reductions and efficiency improvements. Synergistic Development across Multiple Sectors: Upgrading stores and deepening product categories, driving growth through diverse channels At the daily operation level, the company continues to optimize its business structure. Although the average daily sales per store experienced a slight decline in low single digits in 2025, the average daily number of visitors and gross profit per store both saw mid-single-digit growth, improving the quality of store profitability. The company categorizes products into different segments, distinguishing between traffic-attracting and high-margin categories, matching with differentiated pricing strategies and marketing plans to balance traffic and revenue accurately. Additionally, enriching the product matrix, non-fresh fruit category sales per store increased by 13%, injecting new momentum into overall revenue growth. Offline stores accelerated image and service upgrades, with themed stores continuing to open, complemented by refined in-store services and an improved after-sales system to enhance the terminal consumer experience. Private domain community operations have become a key driver for increasing store revenue and inventory management. By 2025, BGGY had accumulated over 90 million registered members, with over 30,000 WeChat communities and nearly 17 million community followers, resulting in a 6% year-on-year increase in average sales per store by community users. Leveraging communities to implement pre-sale models, efficiently manage store inventory, and regularly conduct food safety knowledge publicity to strengthen quality control measures. The gift business underwent a comprehensive upgrade. In addition to deepening the traditional holiday gift market, BGGY actively targeted various emerging festivals such as "520" and International Women's Day, introducing customized small fruit gift boxes to tap into the potential of the gift consumption market. Through utilizing online mini programs for one-click ordering and direct-to-door delivery, alongside establishing a seamless after-sales channel. To address gift-related communication challenges, the brand introduced a one-click service acceptance feature for gift recipients to provide direct feedback. By 2025, the gift business's sales ratio had reached 14%, with a 9.7% year-on-year increase in average daily sales per store, becoming a new growth driver for revenue. In addition to focusing on the TO C-end market, BGGY continued to expand its TO B-end business, achieving revenue of approximately 1.2 billion yuan in 2025. Besides cooperating with traditional supermarkets, the company also focused on serving government and corporate units, providing afternoon tea, holiday gift boxes, and conference fruit supply services. Utilizing operational scenarios and supply chain capabilities to expand high-quality client bases, BGGY has partnered with local trade unions and various welfare procurement platforms to serve corporate employees and collaborated with financial institutions to launch promotional activities, significantly increasing store traffic. Although the overseas business faced some pressure in the short term, the company planned to continue optimizing its presence to adapt to market changes. Continuing to enhance category and brand construction, BGGY has established 53 characteristic category brands. From the source, the company has been building category brands, introducing new products, and sharing planting and preservation technologies to help partners improve production quality and steadily promote brand commercialization. The creation of category brands is a long-term and ongoing process. This is also an essential part of BGGY's medium to long-term strategy, as the company always adheres to the philosophy of "Good fruits are grown," focusing on in-depth cultivation of category brands at the source. Dual-Driven by Technology and Responsibility: Deepening intelligent operations, maintaining quality standards, and building an open ecosystem Digital and intelligent transformation has become the core focus for BGGY at its current stage, actively embracing cutting-edge technologies such as AI to create an overall intelligent operational system. Next-generation cash register systems, AI intelligent ordering systems, and AI store operational diagnosis systems have been implemented, accompanied by the launch of an exclusive large-scale fruit knowledge model. These intelligent tools cover ordering, cashiering, store diagnosis, and product services throughout the entire chain, greatly simplifying operational processes, enhancing overall operational efficiency, further reducing operating costs, and enabling the retail business with technological capabilities. Meanwhile, food safety, as the company's foundation in the fruit retail industry, has always been a top priority for BGGY. To address non-compliance issues in franchise store operations, the company has established a comprehensive control mechanism, with a tiered approach to specialized training, problem review, and penalty for violations. Franchisees that seriously violate food safety and operational norms have their franchise qualifications revoked to strictly safeguard the red line of food safety and uphold the brand reputation. Furthermore, in response to the diversification of retail formats and the trend of discount snacks expanding into fresh food categories, BGGY is poised for significant collaboration opportunities. With over 20 years of dedication to the supply chain and 26 distribution centers nationwide, the company can meet daily delivery needs. For businesses new to the industry and looking for high-quality fruit but have limited demand, BGGY is the ideal choice. Thus, the company is fully opening up its supply chain to make products more accessible. Despite fierce industry competition, with fruit being one of the healthiest snacks, there is unlimited market potential. Looking towards 2026 and beyond, BGGY has clearly defined three core strategic directions. Firstly, continuously optimizing the single-store business model to shorten the return on investment for franchisees, enhance the attractiveness of terminal stores, and steadily expand the offline store network. Secondly, deepening the application of AI technology across all scenarios continuously unleashing the potential of technology to reduce costs and improve efficiency. And lastly, fully opening up the supply chain system, collaborating with industry partners to build a healthy ecosystem for fruit retail, leveraging the advantages of the entire chain to achieve mutual benefits and propel the company into a new stage of high-quality development. Q&A Session: Q: The company invested 250 million yuan in its subsidiary to develop the fruit snack business. Does this mean the company plans to officially enter the discount retail industry? A: Yes, the company has indeed made arrangements in this field. At the beginning of 2026, the company cooperated with some regional brands and established a holding subsidiary. The company hopes to jointly promote the development of snack and fruit formats with local partners. This also signifies an expansion of BGGY's future development curve, not limited to the fruit industry but also aiming to empower snack stores through fruits. Q: There is a new business form called "Fresh Food Snacks" that has recently appeared in the market. What is the company's view on this new business format, and does it have corresponding layout plans? A: Actually, I briefly mentioned the "Fresh Food Snacks" format earlier, which is currently very popular. Major retailers are experimenting with this direction, usually relying on larger store models supported by innovation funds, with areas typically ranging from 200 to 300 square meters and relatively higher consumer spending. Nevertheless, BGGY views this as a great market opportunity that can meet the needs of some young people. The company may try a strategy focused on fruits and short-shelf-life snack foods at certain stores, such as CBD or street-side stores, with products like baked goods and marinated snacks. In the Jiangsu region, the company will also attempt this strategy at specific stores, closely related to the characteristics of each business district. This trend validates the widespread application of fruits as an emerging format. For the company, this provides an opportunity to leverage the supply chain advantages of BGGY, making it more efficient and extreme. Q: When does the company expect to become profitable? A: Based on the situation in the first half of this year, especially from January to April, the company achieved a slight profit without any losses in settlement. Therefore, it is expected that the full-year performance this year might remain stable, starting to turn from loss to profit. However, it is still difficult to predict the specific level of profit for this year. At the beginning of this year, the company mentioned at the performance release conference that creating a new profitable model was more crucial this year. Therefore, the company is still adjusting its franchise model this year, and the scale of store expansion is relatively limited. The company is expected to add over two hundred stores this year, previously supporting stores and increasing customer flow with substantial incentives and subsidies, which resulted in a temporary pressure on the profit end in 2024 and 2025. Currently, with the effectiveness of previous investments showing, same-store indicators have stabilized and improved, and the company has actively reduced subsidy intensity this year. With store expansion and same-store operations recovering, it is expected that revenue and profit will enter an uptrend.