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1905 movie network news May 10, byQiu LitaoDirecting,francis ng、Chilam; Julian Cheung、Charmaine Sheh、Chrissie ChauA suspense movie about criminal action starring others.The first film conference was held in Beijing.

　

At the event site, director Qiu Litao was absent from work, and the film producer Tang Wenkang appeared with starring Wu Zhenyu, Chilam and Charmaine Sheh. At the press conference, everyone spit out Tang Wenkang’s "Hong Kong Pu", and Chilam spit out, "I stood next to him, and my Mandarin has become better."

　

The director missed the opportunity to vomit. Wu Zhenyu lamented that he would play without pay

　

As the most prolific director in Hong Kong today, Qiu Litao released four works in just one year last year, and at this year’s Hong Kong International Film and Television Exhibition, at least seven works were exposed, and the film The Leaker is one of them. After finishing the post-production of The Leaker, Qiu Litao has been involved in the filming of the next work, and was absent from the press conference that day for some reason.

　

At the scene, everyone took advantage of the director’s absence, and the director Tucao was "obsessive-compulsive", especially for time.

　

Chilam said that Qiu Dao is a workaholic. Tang Wenkang, a producer on the side, even broke the news. What the director said most on the set was, "What are you waiting for? Why don’t you shoot? "

　

"Goddess" Charmaine Sheh also praised the director’s "quickness and accuracy", saying, "The director works very fast every time and the boot time is also very punctual."

　

It can be seen that the director’s high yield every year is not just as simple as "opening".

　

When talking about the director, Wu Zhenyu changed the style of "Wu was three years old" in the past, feeling that if the director asked him to make a film, even if he didn’t get paid, he would rush to play. "Because when I made a movie for the first time, Qiu Dao took the camera and took pictures for him."

　

"Wu San-year-old" believes that the male god is not as good as Chilam’s fear of the other wife’s lion roar

　

In the movie, Charmaine Sheh plays a reporter and experiences a role that is opposite to his own.

　

At the scene, the organizer turned three actors into media reporters and set the cover title of gossip magazine for themselves. This link makes Wu Zhenyu incarnate as "Wu San-year-old" and all kinds of spoof gossip. Even more, Tucao Chilam didn’t buy the title of "Chilam Charmaine Sheh Re-cooperation Classic Return". "No one will buy this title tomorrow."

　

In the final reaction test, Wu Zhenyu thought he was a male god, but he was overshadowed as soon as he met Chilam.

　

In this test, Chilam tactfully responded that he was more difficult to get along with than Wu Zhenyu, and silently said that he was "afraid of being beaten". Of course, I immediately explained, "I’m a Virgo, and I’m actually very hairy."

　

However, this is Wu Zhenyu’s absence. "When Chilam can’t hold himself, he will call his wife (Anita Yuen). I am afraid that his wife’s lion will roar."

　

It is reported that the film "Leaker" will meet the audience during the year and be ready to be released at any time.

Recently, Baojun Automobile made a public response to the rumor on the Internet that Baojun Yue also had "brake failure" on the official Weibo. Baojun Automobile made it clear that the so-called "brake failure" is not accurate. In fact, some vehicles have software bugs, which leads to the degradation of the brake assist system. For this part of the affected vehicles, there will be an indicator light to remind them when starting, and they will automatically enter the speed limit protection state to ensure driving safety.

Baojun Automobile stressed in the statement that after receiving feedback from relevant users, the company quickly took action and solved the problems involving vehicles, and asked users to use them with confidence. Baojun Automobile also pointed out that some media used inaccurate descriptions such as "brake failure" without fully understanding the facts, and there were inaccurate information.

Baojun Automobile said that the company will sincerely and properly cooperate with the owner to handle the follow-up matters to ensure that the rights and interests of users are properly protected. The handling of this incident also reflects Baojun Automobile’s attention and commitment to product quality and user safety.

　　(Reporter Ding Ju correspondent Zhang He) Recently, Shenyang Taxation Bureau of State Taxation Administration of The People’s Republic of China vigorously promoted the self-service handling of vehicle purchase tax. The proportion of taxpayers’ self-service tax handling exceeded 1/3 of the total business volume, and the average tax handling time was only 3 minutes, which improved the tax handling efficiency by 50%.

　　It is understood that Shenyang Taxation Bureau has laid 46 self-service tax terminals in the centralized area of 4S shops and motor vehicle registration areas in the city. At present, there are 8 vehicle purchase tax service halls, 4 vehicle purchase tax collection service stations and 42 vehicle purchase tax self-service tax locations in Shenyang, forming a grid layout of vehicle purchase tax taxation. At the same time, the Shenyang Municipal Taxation Bureau has formulated an "eight-hour" delayed service system, and opened the vehicle purchase tax service hall and self-service tax payment equipment as usual during the rest time and weekends, realizing all-weather tax payment. The Shenyang Taxation Bureau has also realized the tax collection business and tax exemption business for new vehicles throughout the city, and taxpayers can choose the nearest tax location.

　　Zhang Lin is a staff member of an automobile 4s shop in Shenyang, and is responsible for handling relevant procedures for customers. According to him, according to the usual process, after buying a car, consumers should go to the tax service hall to declare and pay the vehicle purchase tax. After obtaining the vehicle tax payment certificate, they will go to the vehicle management office for a license, which will take a long time. After the operation of the self-service tax terminal, the through-train service of car purchase, tax payment, licensing and insurance has been realized, and there is no need to run long, which greatly reduces the burden on tax collectors.

　　The implementation of self-service tax service for vehicle purchase tax has also reduced the pressure on the tax service hall. It is understood that according to the past rules, the peak of vehicle purchase tax will be ushered in after weekends and holidays, and the maximum reception volume of the tax service hall has exceeded 5,000 person-times. Since the implementation of self-service taxation, taxpayers have been effectively diverted. After weekends and holidays, taxpayers basically don’t have to wait in line to pay taxes, which truly realizes the "peak without peak".

CCTV News:Regional Comprehensive Economic Partnership Agreement (RCEP) is a trade agreement signed by 15 member countries including China, Japan and New Zealand. Today (June 2nd), with the entry into force of RCEP for the Philippines, all 15 member countries have completed the entry-into-force procedures and mutually implemented tariff concessions, and the agreement has entered a new stage of full implementation.

In the early morning of June 2, at the Certificate of Origin Examination Center of RCEP Pioneer Innovation Experimental Base in Qingdao, Shandong Province, customs officers issued RCEP certificates of origin for a batch of 5.6-ton container liquid bags exported to the Philippines.

CCTV reporter lin li:This one in my hand is the certificate of origin of RCEP. From now on, the option of the Philippines has been added to the column of exporter’s declaration on the certificate, which means that all 15 member countries of RCEP have completed the entry into force procedures and implemented tariff concessions to each other. With this certificate in my hand, the enterprise can reduce the import tariff of more than 2000 yuan when importing this ticket of goods in the Philippines.

Li Qianqian, Assistant General Manager of a Technology Co., Ltd. in Qingdao, Shandong Province:(Products) can enjoy the tariff reduction from 3% to zero. Last year, the company exported about 4 million yuan to the Philippines, and our export of orders to the Philippines this year is expected to increase by 10%. (RCEP) can bring about 80,000 yuan in tariff concessions to enterprises.

The data shows that China has become the largest trading partner of the Philippines for six consecutive years. In 2022, the total value of import and export commodities between China and the Philippines reached 585.28 billion yuan, a year-on-year increase of 10.6%. After RCEP comes into effect for the Philippines, the Philippines will add zero-tariff treatment to Chinese automobiles and parts, some plastic products, textiles and garments.

Bi Haijun, Director of Customs Department of Qingdao Customs:After RCEP completes the tax reduction process, the goods imported from the Philippines can be sold in China — On the basis of the ASEAN Free Trade Agreement, the tariff cost will be reduced by more than 30 million yuan.

Editor’s Note: This article comes from WeChat WeChat official account FBIF Food and Beverage Innovation (ID: Food Innovation), and is reproduced by Entrepreneurial State with authorization.

Speaking of drinking tea, what comes to mind is the tea in a thermos cup for middle-aged people, the tea in grandpa’s teapot, or the tea in a teahouse?

None of the above three seems to have anything to do with young people at present.

In the eyes of many young people, drinking tea is a "traditional" and "complicated" thing, not to mention developing the habit of drinking tea (excluding young people who love tea in Fujian and Guangdong).

Undoubtedly, young people are an important consumer group at present. The "New Consumption Trends in China" jointly published by Ali Research Institute and BCG Consulting mentioned that young customers have great consumption potential, which will drive 69% consumption growth in the next five years.

So it’s 2020. How far is it between China tea with thousands of years of history and young people?

Throughout the tea industry, compared with traditional retail tea, new tea drinks such as hi tea and Naixue tea are more concerned by young people. When young people pursue new tea, to some extent, the distance between young people and tea is closer.

But it also illustrates the pain point of China tea industry:New tea makes young people drink tea, but they don’t fall in love with tea and packaged tea.

Not long ago, we saw a packaged tea in the live broadcast room in Li Jiaqi, and sold 80,000 boxes in 3 minutes. So after a survey, this packaged tea brand named CHALI Chali has sold 300 million packs of tea for six years, with a daily sales volume of over 500,000 packs and tens of millions of fans.

CHALI tea products

Image source: CHALI Chali Tmall flagship store

This data is eye-catching in the packaging tea industry in China. This can’t help but make us think: do young people really don’t like tea? Or is China Tea not ready for young consumers? How does CHALI tea make young people drink China tea?

01 Who doesn’t love China tea or young people?

There is a question worth discussing: China tea and young people, who doesn’t love who?

The popularity of new tea can already be seen. The biggest difference between the so-called new tea and traditional milk tea is that the original leaf tea is used instead of tea powder as the tea base.

It is worth mentioning that Peng Xin, the founder of Naixue’s tea, once mentioned in a public speech that in 2019, the sales of Naixue’s sugar-free pure tea was higher than that of milk-covered tea [1].

This also answers the above questions from the side.In fact, it is not that young people don’t accept tea, but that tea doesn’t accept young people.

People have been drinking tea for thousands of years in China. In the eyes of many people,Drinking tea is a daily thing, and it is also a thing that needs attention.. For example, what temperature water is used, how to wash tea, what utensils are used to make tea, how to soak it, how many times to soak it, and so on.

From the classification of tea, China tea not only has six tea series, but also has a wide variety of categories from the origin. It must take time and energy to figure this out.

But for young people, if they are not really interested, it is generally difficult to take the initiative to learn these doorways of China tea.This sets a threshold for young consumers to drink tea: what kind of tea should I buy? What kind of tea suits me? How to soak?

So, "Instead of thinking about these doorways, just buy a cup of milk tea or coffee.. "-probably is the voice of many young people don’t drink tea.

There is still a problem in the current market of China tea, which sets a threshold for young consumers-the price issue.

In a survey of 2200 young people drinking tea conducted by Tea Life in WeChat official account, one question was "Do you think the better the tea, the more expensive it is?". The results show that both people under the age of 20 and people over the age of 35 believe that the better tea does not mean that it is more expensive, and there is also the possibility of business speculation. This shows thatYoung consumers think that there are some problems in the current tea market in China, such as chaotic and irregular prices.

Young people’s attitude towards tea prices.

Image source: Tea also lives

Now, after 90 or even 00, there is an obvious feature in consumption-paying attention to cost performance, not blindly pursuing high or cheap prices, but seeing whether the price and experience match..

For young people, there are many kinds of tea itself, but the same variety has a large price range, so it is difficult for them to accurately distinguish whether the product matches the price.

From the cost performance, we can talk about products. At present, the retail tea in China is mainly bulk tea. It’s not that young people don’t like to drink loose tea, butBulk tea often has uneven quality.And young people have always been particular about product quality. Secondly, to buy bulk tea, if you want to try a variety of tea, you have to buy multiple packages/cans, which is costly.

The product innovation of retail tea is also a problem, such asFew enterprises try to match tea according to young people’s preferences.There are also homogenization problems in the varieties of fruit tea and herb tea.

Packaging is also one of the reasons why young people don’t choose tea, orAt present, young people are rarely considered in the packaging design of tea industry.. In the era of Yan value, young people have a unique taste in product packaging design, and good-looking, tonal and fashionable are all complaints. However, at present, many tea packaging does not cater to the aesthetics of young people, and still maintains the traditional design style.

How can we let young people buy if they can’t even poke the packaging?

Product problems can be attributed to the basic status quo of the whole tea industry.

One isThe level of industrialization is not highIn many places, tea enterprises are still in the form of small-scale peasant economy, and the production mode is workshop-style. From picking to making tea, the degree of human participation is high, which brings problems such as high production cost, low resource utilization rate and low efficiency of production and processing.

The second isLow degree of standardization.Product standardization is not only reflected in the form of prefabricated packaging, but also in the standardization of planting and production, transportation and storage, as well as the standardization of taste and flavor. Without standardization, how to ensure the quality of each piece of tea is consistent?

The third isSupply chain problem. The common full supply chain mode is that growers provide tea raw materials to processors, and processors (including packaging) sell them to consumers in wholesale and retail modes. Few enterprises can cover the whole supply chain. If there is no full supply chain model, it is very likely that downstream demand will be strong, upstream production will not keep up, or upstream overcapacity and downstream inventory backlog will occur.

At present, many people still rely on friends’ recommendation to buy tea, or go to a tea shop to try it.Brand is not the primary factor for consumers to choose.

This is because the branding of tea in China is not enough. There are several reasons: first, some varieties are limited by the origin and production capacity, and the brand development is also limited; Second, because many brand employees, most of them used to be traditional tea gardens or teahouses, lack experience in making modern consumer goods.

There are fewer brands, and there are fewer brands for young people.

When young people can’t tell the difference between good and bad tea and the price of tea, brand means quality.. Therefore, the lack of brands is also one of the manifestations that the tea industry does not accept young people.

02

On average, 500,000 packs of tea are sold every day. How can "young people fall in love with drinking tea" in tea?

These four problems in the tea industry can easily shut young people out.

CHALI Tea, which sells 500,000 packs of tea per day and 6 packs of tea per second, hopes to try to solve these problems from the aspects of products, supply chain and brand, so as to make young people fall in love with China tea.

It is worth mentioning that slogan in CHALI tea is "BE A TEA FAN (this generation fell in love with this bag.）”。 This generation is young people, and this bag refers to teabags. CHALI Tea takes letting young people fall in love with China Tea as the core of the brand.

In the first step, CHALI tea chooses to use teabags to cut into the track where young people drink tea, and its core product is the original leaf triangle teabag.

Teabag originated in the west. Since Lipton entered China in 1992, teabag has opened the China market.

Nowadays, teabags have become an important part of tea consumption in the world. As far as the proportion of tea bag consumption in the total consumption of tea products is concerned, the world average level is 23.5%, and the consumption of tea bags in developed countries in Europe and America is obviously higher than the world average level, 80% in Europe and 90% in the United States and Britain [2].

CHALI tea triangle teabag

Image source: CHALI Chali Tmall flagship store

By contrast,The consumption level of teabags in China is only 4%.. According to the 2016 China Tea Bag Market Research Report released by Ai Media Consulting, the size of China’s tea bag market in 2016 was about 6 billion.It is estimated that by 2020, it will exceed 35 billion yuan., the market potential is huge [2].

Compared with the traditional bulk tea in China, teabags are more convenient and simple to drink, and only need to add water, which lowers the threshold for young consumers to drink tea and makes them feel that drinking tea itself is not complicated. At the same time, the convenience of teabags brings the diversity of consumption scenes.

Teabags in CHALI tea, for example, have different combinations of flavors, which reduces the cost for young consumers to try different kinds of tea.

Young consumers pay attention to the quality of tea, and the most intuitive expression is whether it is good or not.. In an interview with FBIF, CHALI Tea said that "delicious" is an important standard for the research and development of products in CHALI Tea.

In order to meet this standard, if the international evaluation standard of CTC red broken tea bags is far from meeting the needs of consumers, CHALI Tea has established a unique "CFDS four senses evaluation system", which controls the quality through smell, taste, feeling and vision, and each sense will be further divided into more than five evaluation standards. It can be said that each model will stand the 21-fold test.

Illustration packaging in CHALI tea

Image source: CHALI Chali Tmall flagship store

In terms of products, the core product of CHALI tea is the original leaf triangle tea bag, which includes three kinds of fruit tea, scented tea and health tea. Peach Oolong in fruit tea is especially popular among young people, and it is the best-selling product in its Tmall flagship store, with a monthly sales of 70,000+. In the buyer’s evaluation, many consumers said that "you can smell the aroma of peaches when you open them", "the combination of peaches and oolong tastes just right", "you can see clear peach particles and complete tea", "high value" and "easy to brew".

CHALI tea peach oolong

Image source: CHALI Chali Tmall flagship store

As mentioned above, China tea faces the problem of standardization, and the solution in CHALI tea is to establish a grading system. The standardized grading system in CHALI tea includes tea garden grading, picking grading, making grading, finishing grading and tea grading.

Teabag is actually a way to solve the problem of low standardization and industrialization of tea industry.. The shape of teabags determines that they depend on machine processing, and the promotion of industrialization also means that standards need to be established. In CHALI Tea, six famous teas in China are used to complete a teabag in 33 processes, and the establishment of teabag industry standards is explored.

On the issue of supply chain, CHALI Tea hopesCreate a flexible supply chain with sufficient capacity and comprehensive channels..

The upstream of the supply chain is divided into tea planting, R&D and production. CHALI Tea has 7 tea garden bases in China, and the tea is directly supplied from the producing area. In research and development, we have jointly established a national food and beverage research institute with Otsuka Food in Shanghai and a CHALI tea laboratory with the Tea Research Institute of Guangdong Academy of Agricultural Sciences. The Nansha headquarters base in CHALI Tea House covers the trinity of production center, R&D center and International Tea College.

Base of CHALI tea garden

Image source: official website in CHALI Tea

In the middle and lower reaches of the channel, CHALI tea has formed a channel network combining B-end and C-end:Online whole network sales, B-end big customers, supermarkets+convenience stores, retail experience stores..

At present, CHALI Tea has settled in 10 B2C online platforms such as Tmall, JD.COM, Youzanwei Mall and Xiaohongshu. Last year’s Double Eleven, CHALI Tea was listed as the Tmall Food Million Club, ranking first in herb tea category for four consecutive years. In B2B, CHALI Tea has expanded to hotels, airlines, tourism and corporate office channels.

New retail is an important layout in CHALI tea in recent years. CHALI Tea Store has opened retail tea experience stores in Guangzhou, Changsha, Wuhan and Hong Kong to let more young people contact CHALI Tea Store. The day before yesterday, the tenth store in CHALI Tea was officially opened in Chongqing. In addition, CHALI Tea also has Tmall Smart Store and JD.COM Digital Store.

CHALI Cha Li Chongqing Store Opened

Image source: CHALI Tea Official Weibo

These channels are closer to the daily consumption habits of young people than the traditional sales channels of China tea, such as teahouses, tea shops or brand tea shops.

Young people are most interested in marketing for FMCG. CHALI Tea uses popular "tricks" that young people like in brand building and marketing. I hope.Gradually change the stereotype of many young people about the "tradition" of China tea.

For example, the figure in CHALI Tea appeared in the live broadcast of Li Jiaqi. CHALI tea told FBIF,Live broadcast development to seize virtual shelvesBoth traditional e-commerce companies such as Taobao and JD.COM, social e-commerce companies in Pinduoduo, and entertainment e-commerce companies in Tik Tok and Aauto Quicker are traffic portals for young people, covering people in first-and second-tier cities and people in third-and fourth-tier cities.

CHALI tea appeared in the live broadcast room of Li Jiaqi.

Image source: Taobao live screenshot

In addition, CHALI Tea has cooperated with many brands, such as Southern Weekend, Shuke, Marubi, Lamian Noodles Shuo and other cross-border brands. Last year, we also launched a joint customized Tea bag with Black Tea Bejian Toothpaste, and launched a challenge activity of "Tea takes a small mood" in Tik Tok, with a total of 130 million plays.

CHALI chali x black chabeijian custom-made tea bag

Image source: CHALI Tea Official Weibo

CHALI Tea also co-branded the popular movie IP, for example, it once launched a customized suit of the movie to the sky kingdom and Better Days.

From making teabags, retail system and brand marketing in CHALI tea, we can see that the style of CHALI tea is to make China tea into fast-moving consumer goods. CHALI Tea also said in an interview with FBIF that,I hope CHALI Tea will become the leader of China tea fast-moving products, which is equivalent to Nestle in coffee.Use FMCG to promote the development of tea industry and capture young people.

03

How many reasons does it take for young people to fall in love with China tea?

CHALI tea provides a reference for the rejuvenation of China tea from a practical point of view, and we hope to make a conclusion: How many reasons do young people need to fall in love with China tea?

1, more convenient, more choices

The product is the key. The success of teabag is obvious whether it is in CHALI tea made in China or Lipton from abroad. In the past, consumers had the impression that tea bags were cheap and of poor quality, but now we see that tea bags are just a form that allows people to drink tea more quickly, without affecting the quality of tea.

Besides teabags, what other convenient tea categories may appear in the future?Tea with quantitative packagingIt is a direction, and it is only necessary to add water, without considering the steps of washing tea and how to brew it.

The taste of tea can also be innovated, but it mainly refers to blending tea. The taste of pure tea comes from quality assurance.

Some young people may not like to drink original tea, and mixed tea with fruity or floral fragrance is more attractive to them. Although there are too many fruit teas and herb tea on the market, there is still room for innovation.What kind of fruit, what kind of flowers and plants, and the proportion of matching can be improved by combining consumer research.You can also learn from foreign products.

2, more scenes, let young people drink tea can also become a habit.

Nowadays, when making fast-moving consumer goods, we all pay attention to the combination of "people and goods yard", and the proportion of scene consumption is increasing, which is also the place where China tea needs to make great efforts to innovate.

In a survey of 2200 young people drinking tea conducted by Tea Life in WeChat official account, they were asked the reasons why they didn’t like drinking tea. "It is inconvenient to drink at work and study" is one of the important reasons. This shows that young people have a demand for drinking tea, but the China tea in the market is lacking in this respect.

Investigation on the reasons why young people don’t like drinking tea.

Image source: Tea also lives

Scene consumption is first related to the category of tea, which has been mentioned above. In addition to teabags, instant tea is also the development direction of convenient tea drinking in the future.

Scene consumption focuses on the matching of products and scenes.. For example, the student party wants to drink some tea with remarkable refreshing effect when studying in class, and the working party wants to have some health-preserving tea at home on weekends. It is worth mentioning that CHALI Tea launched "Daily Tea" last year, focusing on drinking different teas at different times and in different scenes every day.Refresh yourself in the morning, relieve boredom after meals, and refresh yourself in the afternoon.Three bags a day and 21 bags a week are all in one box.

CHALI cha Li mei ri cha

Image source: CHALI Tea Official Weibo

The more subdivided the scene, the better it can meet people’s needs. At the same time,Over time, it can also cultivate young people’s habit of drinking China tea.

3. Tea culture can also be young.

Young people don’t drink tea, which is related to tea culture?

Maybe it does have something to do with it. The tea culture in China is extensive and profound. Although most young people don’t know much about it, they are at least in awe. This awe may have developed into a "stay at a respectful distance from China tea".

Looking at the current China tea, some brands will add traditional and illusory explanations such as "Zen" and "Tea Ceremony" to their products.It seems to promote tea culture, but in fact it has established a gap with young people..

The spread of tea culture needs the way of young people. For example, based on tea products, combine the big V that young people like to popularize tea knowledge and interact with young people’s communication methods.

It is worth mentioning that the cultivation of tea aesthetics is the key to the popularization of tea knowledge.. Q&A in Zhihu: "Is the reason why young people don’t drink tea a problem of product experience or cultural identity?" User Chen Jie’s answer points out the internal problems of the tea industry.

"There is a major called Tea Studies in China University, which has established a very complicated knowledge and culture system. However, due to the complexity of the research, practitioners gradually forget the lowest level of tea, that is, the aesthetic education on the taste of tea.Ignoring the cultivation process of the most intuitive sensory experience makes us fall in love with tea in the dimension of spiritual understanding, but unable to perceive tea from the perspective of physical aesthetics.. "

04

tag

Tea does not only mean tea ceremony and tea culture, but also a drink.Middle-aged people drink it, young people drink it, Chinese drinks it, foreigners drink it, the so-called middle class drinks it, and ordinary people drink it.

The problem of "making young people fall in love with China tea" that we are discussing today is not only that China tea industry wants to capture young consumers, but also in this process.Tea enterprises should make changes, solve the current problems and promote the development of tea in China.Let China tea go to the world.

This article (including pictures) is reproduced by the cooperative media and does not represent the position of the entrepreneurial state. Please contact the original author for reprinting. If you have any questions, please contact editor@cyzone.cn.

CCTV News:The China Federation of Logistics and Purchasing and the Service Industry Research Center of the National Bureau of Statistics released the purchasing managers’ index of China manufacturing industry in March today (March 31st). Affected by short-term factors, such as the spread of epidemic in many places in China and geopolitical conflicts, the pressure of supply shock, demand contraction and expected weakening in China’s economy has increased, and the overall economic growth rate has been adjusted back, but the basic raw materials industry has rebounded, which has a certain stabilizing effect on the economy.

In March, the purchasing managers’ index of China’s manufacturing industry was 49.5%, down 0.7 percentage points from the previous month, and fell back to the contraction range below 50%.

Affected by short-term factors such as the multi-point spread of domestic epidemic and the persistent international geopolitical conflicts, the operation of China’s manufacturing supply chain is blocked, which leads to an increase in supply shock pressure. From the perspective of industries, the production indexes of equipment manufacturing, high-tech manufacturing and consumer goods industries have dropped significantly compared with last month. From the demand point of view, the new manufacturing order index and the new export order index decreased by 1.9 and 1.8 percentage points from last month, which were 48.8% and 47.2% respectively. Among them, the market demand of equipment manufacturing, high-tech manufacturing and consumer goods industries has shrunk obviously.

In addition, geopolitical conflicts have led to fluctuations in the international commodity market, and the prices of raw materials related to China’s manufacturing industry have also risen rapidly. The purchase price index in March rose by 6.1 percentage points from the previous month to a high of 66.1%.

Cai Jin, Vice President of China Federation of Logistics and Purchasing:In March, the purchasing managers’ index did fall to a certain extent, and the short-term factors dominated the decline, mainly due to the epidemic situation distributed in many places across the country. At present, the purchasing managers’ index is at a level of 49.5%. Although it has dropped, it still reflects that China’s economy is relatively resistant to pressure.

Despite the pressure of high raw material prices, the production and operation activities of the basic raw material industry have remained steady and increased, which has supported the economy, indicating that the relevant policies for ensuring supply and stabilizing prices of important raw materials and primary products have achieved good results. In March, the production index of basic raw materials industry increased by 3.9 percentage points from the previous month to 50.1%. On the demand side, the demand for basic raw materials in the middle and lower reaches of domestic manufacturing industry is generally stable. At the same time, geopolitical conflicts have led to fluctuations in the production capacity of relevant countries, reduced exports, and some foreign demand has shifted to China. The new order index and new export order index of basic raw materials industry have rebounded from last month.

Experts said that on the whole, in March, due to short-term factors such as multiple outbreaks of epidemics and geopolitical conflicts, the economic growth rate has been adjusted back, but the economic operation still has a stable foundation.

Cai Jin, Vice President of China Federation of Logistics and Purchasing:It should be said that the whole macroeconomic policy is still in place. Of course, if we look at it now, we should also coordinate with the whole epidemic prevention and control policy, so that we can better play the macro-economic (policy) effect on the stable development of the whole economy.

() The business review of the Board of Directors in the first half of 2022 is as follows:

　　I. Main businesses of the Company during the reporting period

The company’s main business is to develop and sell professional and high-quality outdoor sporting goods, operate X-BIONIC black technology sports luxury brand, organize the group construction of outdoor sports events, design, construct and operate the comprehensive quality education project of "squirrel tribe parent-child outdoor paradise+eagle pole safety education and training+three-husband little warrior +SanfoHood wild luxury camp", and provide consumers with all-round products and services through the integration of various business sectors, encourage and help people to go outdoors, exercise healthily, and fully practice the life concept of harmonious coexistence between man and nature.

(a) the company’s industry

In the first half of 2022, the consumer market was greatly affected by factors such as frequent domestic epidemics. Statistics from the National Bureau of Statistics show that the total retail sales of consumer goods in the first half of the year was 21,043.2 billion yuan, down 0.7% year-on-year. Quarterly, it increased by 3.3% in the first quarter and decreased by 4.6% in the second quarter. According to the retail format, department stores and specialty stores in retail above designated size decreased by 8.4% and 4.1% respectively. The total retail sales of social consumer goods such as clothing, shoes, hats, and knitwear was 628.2 billion yuan, down 6.5% year-on-year. However, with the improvement of epidemic prevention and control situation and the effectiveness of promoting consumption policies, the consumer market has gradually picked up. In June, the growth rate of retail sales of most commodities rebounded, sales in some areas improved significantly, the operation of physical stores improved, and the consumer market showed an accelerated recovery trend.

In June, 2022, the 13th the NPC Standing Committee revised the Sports Law of the People’s Republic of China, which marked that the construction of China’s sports law entered a new stage, which was of great significance to standardize and lead the high-quality development of the sports industry in the new era and accelerate the construction of a sports power and a healthy China. In this revision of the new content, the contents of national fitness, strengthening teenagers’ awareness of physical fitness and promoting teenagers’ physical and mental health and physical fitness are highlighted; It is of great significance to adjust the economic structure of sports industry, increase employment, cultivate new economic growth points and meet the diversified sports needs of the people.

In July 2022, the General Office of the State Sports General Administration issued a work plan on sports to help stabilize the economy and promote the activation of consumption, aiming to promote the high-quality development of the sports industry, build a new development pattern, and contribute sports strength to stabilizing the economic market and ensuring the economic operation in a reasonable range. It is mentioned in the plan that offline sports events should be resumed in an all-round and orderly manner, and efforts should be made to ensure that domestic events should be done and broadcast, and more events should be presented to the people; Promote sports consumption, deepen the pilot work of sports consumption, and promote 40 national sports consumption pilot cities to better meet the sports consumption demand under the normalization of mass epidemic prevention and control by creating new sports consumption scenes, cultivating new sports consumption formats and models, issuing sports consumption vouchers, and organizing sports consumption festivals; Promote a green and healthy lifestyle, encourage people to go outdoors and participate in outdoor sports, and further tap the consumption potential in outdoor sports, green travel and other fields.

In May, 2022, the Sports Bank think tank released the "Report on the Development of Sports Industry in 2022", which holds that the outdoor sports industry is an integrated format with sports, tourism, culture and education functions. After the epidemic, it is expected to set off a new round of consumption boom, and it is expected to play a unique role in the strategy of "strengthening the country by sports in the 14th Five-Year Plan" and become a new growth point in the field of sports consumption.

In June, 2022, Taobao Tmall Sports Outdoor Industry and Taobao Education and Consulting Company Kearney jointly released the White Paper on Sports Outdoor Consumer Operation. The "White Paper" shows that after five years of development, product upgrading and usage scenario expansion, the number of outdoor sports users and the consumption of customers have maintained rapid growth. Looking at the scale of outdoor sports market in China, the compound growth rate will be around 13.7% in the next three years.

Under the background of epidemic situation, the related consumption promotion policies in the field of sports outdoor industry have been continuously introduced, and the concept of sports outdoor consumption has gradually risen to a part of the social cost of life. Under the multiple benefits of national policy support, public trend response and positive market feedback, the outdoor sports industry will show great market potential and strong development momentum.

(2) Main business of the company

In the first half of 2022, the domestic epidemic was frequently distributed, and the chain retail industry in which the company was located was greatly affected. The stores and other businesses under the multi-line were closed for some time, and the business segments of sports events, group building and parent-child youth were also subject to different degrees of business restrictions such as postponement, park closure and current restriction, which had a great impact on the company’s business activities in the first half of the year. Faced with the difficulties caused by the epidemic and the overall downward trend of the retail industry, all business segments of the company actively adjusted their business ideas, focusing on X-BIONIC product research and development, flagship store image design, brand marketing and CRM system construction, timely adjusting product structure and (or) product layout according to market demand, introducing interested e-commerce businesses such as Tik Tok and live broadcast, strengthening the IP of the event and the "Squirrel Tribe" parent-child outdoor park project, and concentrating on developing the life field and the construction of SanfoHood wild luxury camp in the parent-child interaction field.

In April 2022, the company increased its capital to hold Guizhou Yingji Sports Tourism Co., Ltd., which mainly focuses on comprehensive safety education for young people. Eagle Sports owns the brand of Eagle Sports Safety Education, and has been awarded many honorary titles such as "National Popular Science Education Base for Earthquake Prevention and Disaster Reduction", "Guizhou Popular Science Education Base for Disaster Prevention and Disaster Reduction", "Guizhou Youth Self-care and Self-help Training Base" by China Earthquake Administration, governments at all levels and superior units. It is an important part of the comprehensive quality education project built by the company in 2022, and the first demonstration base will be built in Nanjing.

During the reporting period, the company achieved an operating income of 236,941,400 yuan, down 4.84% year-on-year; The total profit was-12,224,400 yuan, a year-on-year decrease of 377.64%; Among them, the net profit attributable to shareholders of listed companies was-15,786,300 yuan, a year-on-year decrease of 1,165.12%. As of June 30, 2022, the company’s total assets were 1,069,700,700 yuan, and the net assets attributable to shareholders were 669,751,900 yuan.

1. Develop and sell professional and high-quality outdoor sporting goods.

(1) New retail operation

During the reporting period, the company has 47 direct chain stores in 18 cities across the country, representing and distributing more than 300 high-end professional outdoor sports brands at home and abroad. The products are divided into three categories: outdoor clothing, outdoor shoes and socks and outdoor equipment, covering skiing, camping, running, hiking, mountaineering, self-driving travel, urban commuting and many other outdoor scenes. Open comprehensive/brand flagship stores in Tmall, JD.COM, Mobile Micro Mall, Live Broadcast and other e-commerce platforms to provide consumers with professional and digital mobile shopping experience anytime and anywhere.

In the first half of 2022, the exquisite camping market exploded. Relying on the advantages of outdoor industry for many years, the company’s offline retail stores quickly organized and integrated the product structure, transformed and expanded the store camping area, enabled the experiential display mode, and transformed five large stores, including Beijing Huaxi Wukesong Store, Beijing Madian Zhongdian Store, Beijing Chaoyang Park Store, Shanghai Wanti Store and Shenyang Tianhui Plaza Store. The medium-sized stores also expanded the display of camping products, and the rich and diverse product structure allowed consumers to immerse themselves in many dimensions. The significant increase in the sales of camping equipment in offline retail stores partially offset the adverse impact of the epidemic on retail business during the reporting period.

The e-commerce team continued to focus on core brands such as X-BIONIC, dig deep into product selling points, improve product page quality, actively participate in promotional activities of Tmall and JD.COM platforms, and pay special attention to the improvement of users’ after-sales service experience, resulting in obvious business growth. Among them, the X-BIONIC online store adheres to the principle of "customer-oriented" and continues to maintain the high-speed growth momentum year-on-year. The X-BIONIC Tmall flagship store won the honor of "the new brand with the most powerful treasure", "the new brand with the most potential treasure" and "the annual dark horse award of global brand management mawards" from Tmall platform. In order to meet the needs of the rapid development of the company’s e-commerce business, combined with market changes and integration of resource advantages, the company established Sanfu Supply Chain Company, focusing on one-stop service of commodity warehousing, engaging in e-commerce cloud warehousing, warehousing custody, and promoting logistics solutions, and integrating "warehousing+order" processing into one professional warehousing logistics system, which laid a logistics foundation for the further development of e-commerce.

The new retail business continued to develop well. While maintaining the stability of Sanfu Outdoor Micro Mall, we made great efforts at the Tik Tok Live Track, opening Sanfu Outdoor Franchise Store and CRISPI official flagship store, achieving steady growth in the first half of the year. Among them, Sanfu Outdoor Micro Mall accumulated 8 million views in the first half of the year, with 170,000 visitors and a turnover of 8,542,600 yuan; Sanfu outdoor Tik Tok franchise store accumulated 350,000 visitors in the first half of the year, with a turnover of 6,087,200 yuan, achieving a breakthrough from zero to one million per month; CRISPI’s official flagship store officially opened in April 2022, and has achieved a turnover of 1.4 million yuan in the past three months, and it is growing rapidly. In the future, the company will continue to lay out interest e-commerce platforms such as Xiaohongshu and Aauto Quicker, build a traffic acquisition matrix, deeply promote the company’s brand, provide users with real value through high-quality scenes and experiences, and then realize efficient transformation.

(2) brand operation

1) own brand

During the reporting period, the company continued to increase its research and development efforts, improved the construction of various product lines according to different sports scenes, continuously enhanced the strength of its own brand products, and laid a solid product foundation for gaining greater market share.

Adhering to the concept of combining science and technology with advanced fashion, X-BIONIC continues to introduce high-quality products suitable for spring and summer, including various sun-proof windbreaker jackets, waterproof clothes and pants, many long and short-sleeved T-shirts with different functions, long and short-sleeved POLO shirts, running vests, jogging pants and other long and short pants, and women’s sports bra with different strengths. The categories cover various scenes such as running, fitness, outdoor, commuting, tactics and women’s yoga, which have won favorable comments from many users. The X-BIONIC R&D team has carried out in-depth development for the products planned for autumn and winter in 2022. Most of the products have been developed and finalized, are being processed and produced, and continue to be updated.

SANFOPLUS’s own brand, combined with outdoor camping craze, develops and produces camping-themed fashion products, including various printed T-shirts, pants, trench coats and other products, which have won favorable comments from consumers and industry attention.

2) Agency brand

During the reporting period, the international brands represented by the company continued to maintain an upward trend. Under the Glamping (exquisite camping), mountain system and Gorpcore style trends, the Swedish classic brand Klattermusen (Pan mountain rat) continued to maintain a high-speed growth momentum, and continued to make efforts to promote brands and single products in Xiaohongshu, bilibili and Tik Tok, and cooperated with Xiaohongshu’s official platform to "explore the store by bloggers", which achieved both brand exposure and store realization. The sales of mountain rat’s first direct brand store, Zhejiang Hangzhou Building Store, jumped to the top three floors. The online self-operated Tmall Klattermusen Travel Mouse Store continued to exert its strength, constantly optimizing the interface and enhancing the store image, achieving a growth rate of 1,300%+ during the period of 618; German professional sports glove brand Reusch shined brilliantly in the 2022 Beijing Winter Olympics. In the alpine skiing competition, 90% of the winning athletes (including two alpine skiers in China) wore Reusch gloves and finished the competition, and the glove sales increased by 40% year-on-year. Professional outdoor backpacks MYSTERYRANCH, out shoes Boots DANNER, LASPORTIVA, Lizard, sports glasses Julbo and other companies continue to exert their strength in the outdoor and running market, and develop steadily.

3) Distribution and consignment of brands

During the reporting period, outdoor exquisite camping and ice and snow sports experienced explosive growth, and the company quickly adjusted its product structure. On the basis of the original outdoor camping equipment and ski products, Increase outdoor camping equipment brands such as BURTON, NORDISK, Barbecue Family, Gelong, MIFA, Guanya, Hengguang, Hermit Mountain Road, FOZZILS, Dilefu, and outdoor sports products brands such as MOJOSPARK, HAVAIANAS Havena, BALEGA, THERAGUN, Junlok, EMERSONGEARS and CRABGRAB, and the market feedback effect is good. In the second half of the year, the company will continue to enrich skiing and camping products.

2. Operating X-BIONIC black technology sports luxury brand

X-BIONIC is a luxury brand of black technology sports, "X" stands for technology, creativity, future and infinite possibilities, "BIONIC" stands for bionic technology, and X-BIONIC embodies the spirit of exploration, technology and passionate sports.

During the reporting period, the company continued to maintain all-round cooperative relations with international suppliers of high-quality materials such as GORE-TEX, Schoeller, Polartec, Pertex, Primaloft, Allied, Toray, Cordura, Carvico, etc. The company’s R&D team and the Swiss R&D team continued to communicate and cooperate, and developed and designed a series of products in spring and summer of 2022, with products in autumn and winter of 2021 superimposed, forming a full range, from inner layer to outer layer. At present, after market research, user communication, user feedback, team discussion and design adjustment, most products have been developed and finalized, are being processed and produced, and continue to be updated.

In May 2022, the company opened a ski shop in Chengdu Rongchuang Snow World, which mainly sells X-BIONIC brand products. With its technological advantages and cool decoration style, it gained a good reputation. In the second half of the year, the company will also open ski shops mainly selling X-BIONIC products in snow resorts such as Chongli, (), Tonghua Wanfeng and Xinjiang Jiangjun Mountain. As for the flagship store, the company hired an internationally renowned retail design company to complete the store image design, and has signed a contract with Beijing International Trade Mall, and plans to open the first brand flagship store of X-BIONIC in China from the end of September to the beginning of October.

In the 2022 Beijing Winter Olympics, China won a total of 15 medals, including 9 gold, 4 silver and 2 bronze, ranking third in the medal list. As a supplier of functional sportswear for the Winter Sports Management Center of the State General Administration of Sport, X-BIONIC has provided good equipment support for the athletes of 11 national teams in the Winter Olympics and Snow Sports. After the Winter Olympics, many sports and fashion media, such as X-bioni () Champion Sports Illustrated, filmed fashion blockbusters and short videos of many winter Olympic champions and outstanding athletes, such as Ren Ziwei, Xu Mengtao, Qi Guangpu, Gao Tingyu, Fan Kexin, Qu Chunyu and Ahenar, showing the highlights of the champions and the sports technology performance of X-BIONIC. The Winter Olympics ignited the ice and snow craze. X-BIONIC and Lamborghini Automobile held the "X-BIONIC Lamborghini Beijing Ice and Snow Tour" at the Yuyang International Ski Resort in Beijing. Many Lamborghini car owners and fashion celebrities participated in it to jointly create a high-end sports lifestyle. In the field of outdoor exploration, X-BIONIC sponsored many excellent climbers and expedition teams, including the second national Qinghai-Tibet expedition team, to provide them with equipment support. On June 6th, 2022, X-BIONIC sponsored climbers Gao Li, Ren Yong and Lu Ping successfully reached the summit of Yinfeng in Langemann at an altitude of 6,294 meters, becoming the first "China Team" to climb Yinfeng in Langemann.

In order to strengthen the middle and back-office management ability of X-BIONIC brand operation, the company cooperated strategically with Xiamen Nanxun Co., Ltd. to develop and deploy the online Nanxun ECRP system (omni-channel customer management system), open up the membership level, points and welfare system, launch the X-BIONIC member center, build a integral mall, maintain the after-sales platform, and integrate the recruitment entrance of member activities, so as to provide consumers with more professional outdoor extension services and meet the diversified needs of consumers.

X-BIONIC brand operation is the core business of the company in the next few years. The company will focus on the main resources and strive to build the X-BIONIC brand successfully as soon as possible.

3. Organize the group construction of outdoor activities.

(1) Sanfu event

During the reporting period, the Sanfu event prepared for the event in a positive state, and adjusted the work strategy in time according to the epidemic situation and industry trends, maximizing the use of online power to mobilize user activity and expand the influence of the event. At the beginning of the year, affected by the epidemic situation, Sanfu Games actively carried out the promotion and training of employees’ special skills, and organized related trainings such as first aid and volunteer management, aiming at improving employees’ professional abilities. At the same time, we actively carried out external liaison. Chongli 168 Super Cross-country Race reached a strategic partnership with Thailand’s Intanong Super Cross-country Race ByUTMB, which took an important step towards the internationalization of Chongli 168.

In the first half of 2022, in order to maximize the brand concept of the event, the official accounts of "Chongli 168 Super Cross-country Race" were newly set up, so as to better serve the contestants with more targeted push content. At the same time, the investment in the member service was increased, and the richness and convenience of small programs were fully utilized to provide various support services for the contestants. The Chongli 168 Super Cross-country Race held from July 22nd to 24th, with more than 7,000 participants, involved 9 tracks, 13 groups, 6 starting points and 2 finishing points. The total race lasted for 3 days, posing unprecedented challenges to the track, rescue, replenishment, operation, epidemic prevention and member service. At the same time, it continued to spread the advantages of the past channels such as live broadcast, online interaction and race record sharing. Affected by the epidemic in the first half of the year, the 23rd Sanshou Triathlon was postponed, and its preparations were suspended in the first half of the year. In the preparatory process, Sanfu event signed an agreement with China Triathlon Association, and this year’s event was upgraded to A+ level competition of China Railway Association, and the event was recognized as a specific theme competition of China Railway Association. The competition will become one of the main tasks of the Sanfu event in the second half of the year.

(2) Sanfu League Construction

Sanfu Youth League continued to expand the national territory of light luxury camping, deeply cultivated the enterprise team to expand the training field, delved into the physical fitness training of young people, and explored a new outdoor lifestyle.

During the reporting period, Sanfu Tuanjian actively organized the offline enterprise group building business, seized the outdoor fashion trend in the first half of the year, vigorously developed the inherent enterprise group building business, and at the same time, fully explored the outdoor C-end market, and made remarkable achievements in the continuous expansion of SanfoHood camping factory brand, and effectively linked with the parent-child outdoor park to create the "Sanfu Little Warrior" competition for children’s outdoor activities.

In the first half of 2022, the group construction business maintained sustained and healthy development. In March, the Goddess Festival theme group building products were built, and 13 group building activities were held in a single week. At the same time, seize the inter-provincial tourism window, quickly carry out high-end customized group building activities, and complete three outdoor group building activities such as "Hiking on Black Horse Camp Moganshan", "Yunqi Capital Sailing for hegemony" and "() Chongli Meadow Challenge", which have been widely praised by enterprises. Through the continuous upgrading and breakthrough of industrial resources, Sanfu Youth League has realized the leap-forward expansion of light luxury camping and small warrior project, and will also carry out new fields of large outdoor industry and explore a new outdoor lifestyle in the second half of the year.

4. Parent-child and adolescent comprehensive quality education project

(1) squirrel tribe parent-child outdoor amusement park

During the reporting period, the "Squirrel Tribe" overcame all kinds of difficulties brought by the external environment, adhered to its purpose, and strived to build an ecological family entertainment center integrating parent-child sports, popular science education, leisure and amusement, and ecological environment protection, and build a third space for children’s growth.

On the basis of the first outdoor amusement project, the "Squirrel Tribe" in Nanjing has completed the construction of the second water park and put it into operation. The operation effect is good and it is deeply loved by parents and children. Faced with people’s demand for short trips and their love for camping, the "Squirrel Tribe" followed the changes of market and consumption, and made use of its advantages of "field", "study" and "research" to launch "SanfoHood Squirrel Tribe Camp" and camping activities in Nanjing and Chengdu respectively. Unique activities have brought diversity and rich experience to the products of "Squirrel Tribe". In the first half of the year, the "squirrel tribe" received a total of 262,900 tourists under the haze of the epidemic.

"Squirrel Tribe" spreads and promotes on "two micro-shakes" in a popular way. The projects in Chengdu, Wuhan, Zhengzhou and Nanjing have registered their own official accounts on Tik Tok, WeChat and Weibo respectively, and regularly and irregularly launched project videos and tweets, making full use of online traffic, and making the "Squirrel Tribe" squeeze into the local hot-selling list through live broadcast and delivery.

With the effective implementation of the national epidemic prevention policy, tourism relief policies have been introduced one after another, and the company has full confidence in the market recovery in the second half of the year.

(2) Eagle Safety Education and Training

During the reporting period, Eagle Sports made full use of the epidemic intermission to complete the Guizhou provincial-level 1,000-person walking race, which was also the only large-scale outdoor event in Guizhou Province in the first half of the year. Completed the May Day camping tent festival, and began to build light luxury tent camps, and expanded the activities of light luxury tent group building and the government light luxury tent festival business; Relying on the main business of the safety sector, two large-scale government-sponsored drills were completed to ensure that the camp still maintained some just-needed businesses such as safety education and training under the epidemic situation. In the first half of the year, a total of 68 safety training activities were carried out, with 26,577 trainees.

Eagle Sports has reached a framework agreement with relevant departments in Nanjing to invest in Nanjing Eagle Sports, and completed the writing of the feasibility report of the project and the construction of the architectural renderings of the barracks area, laying the foundation for the next Nanjing project construction.

In the second half of the year, Eagle Sports will continue to enrich the safety product courses, expand more safety research travel business, and continue to undertake and implement the Yuntai Mountain Climbing Race (completed on July 30), Longli Rock Climbing Challenge, Light and Luxury Parent-child Tent Festival and other projects to maximize the target benefits.

(3)SanfoHood Wild Luxury Camp+Sanfu Little Warrior

During the reporting period, the brand of SanfoHood camping factory continued to expand and achieved impressive results. In the first half of the year, a total of 8 camps were landed and operated nationwide. With the mature systematic operation structure and previous camp operation experience, we successfully seized the holiday travel bonus period and handed over the perfect answer sheet that the average daily flow of a single camp exceeded 200 people. At the same time, it has reached a strategic cooperation agreement with two high-end homestays in Beijing, namely, Tile Factory Hotel and Mountain Lodge, to jointly build a wild luxury holiday tent camp, enrich the product formats around camping, and work together to promote the development of camping industry in China. Actively expand B-end customers with camp operation needs, and provide camp design and customized camping products such as tents and awnings. At present, it has provided related services to camp operation customers in many provinces and cities in China.

In the first half of 2022, Sanfu Little Warrior completed six events in Nanjing, Chengdu and Zhengzhou, and more than 1,000 families participated in a single event. It has won wide acclaim and certain influence in the local parent-child market. In the future, we will actively expand the creation of Little Warrior IP, further promote the diversification of children’s outdoor products and enrich the ecology of the whole industry.

Through the above business segments, the company provides consumers with all-round products and services, builds an outdoor ecological platform with business users as the core, links people with outdoor brands, people with outdoor products, people with outdoor sports, and people with outdoor education, so as to realize customer group transformation among different segments, thus building a complete outdoor industrial cycle.

(III) The position of the company

Since its establishment, the company has been deeply involved in the outdoor industry and committed to the upgrading of the outdoor sports industry. R&D and production of high-functional professional outdoor sporting goods, continuous expansion of the influence of competition activities, and creation of comprehensive quality education IP for parents and teenagers with social significance have formed a good reputation and brand reputation in the industry in line with the business philosophy of operating in good faith and ensuring after-sales. It is a leader in the development of outdoor industry in China and has been rated as "National Sports Industry Demonstration Unit" by the State Sports General Administration.

(A) retail business information analysis

1. Store operation

By the end of the reporting period, the company had opened 47 professional outdoor products chain stores in 18 cities, including Beijing, Shanghai, Nanjing, Hangzhou, Chengdu, Shenzhen, Shenyang, Changchun, Qingdao, Shijiazhuang, Suzhou, Wuxi, Wuhan, Chongqing, Dalian, Zhengzhou, Zhangjiakou and Jilin, with a total area of about 20,600 square meters.

(1) Distribution of stores at the end of the reporting period

(2) The situation of the top ten stores with sales revenue during the reporting period.

(3) Store business income

In the first half of 2022, the company’s store business income was 116,042,500 yuan, accounting for 48.98% of the company’s operating income.

2. Changes of stores during the reporting period

(1) Newly opened stores

(2) Close the store

3. Store efficiency information of comparable stores during the reporting period

Note:

(1) Comparable stores refer to stores with comparable sales data in 2021 and the first half of 2022.

(2) The above does not include the closing of stores in the first half of 2022.

(3) Floor efficiency refers to the sales per square meter of business area during the reporting period.

(II) Sales on the inside during the reporting period

During the reporting period, the transaction volume of the company’s third-party sales platform was 137,684,800 yuan. With the continuous development and increase of the third-party e-commerce platform, the company’s sales in official website have gradually been linked to the third-party sales platform.

(III) Procurement during the reporting period

1. Supply situation of the top five suppliers in each commodity category

2. Inventory management policy

In terms of inventory management, the company has applied ERP invoicing management and WMS warehousing management system, which can know the inventory situation in real time, and the data of goods warehousing, warehousing and distribution, sales outbound and end-of-season inventory can be reflected in real time, and the sales and inventory data of various stores in the country and the inventory structure of various categories can be obtained at any time from the system; The product department and the commercial control department of the company will formulate the safety inventory of each category, and arrange the replenishment quantity in time when the goods are out of stock, so as to ensure the continuous sales demand and avoid the stagnation of the goods.

3. Handling policies and impairment provision policies for unsalable and expired goods.

For unsalable goods, the company will take the form of returning to brand suppliers, big promotion in spring, summer or late autumn and winter, opening outlet stores and temporary special sales, e-commerce platform channels, micro-shopping malls and so on. For expired goods, the shelf life management regulations shall be strictly followed, and the principle of first-in-first-out shall be guaranteed. For temporary goods, measures such as returning to manufacturers and bundling promotion shall be taken, and expired goods shall be destroyed and included in the loss.

As for the impairment provision policy, it shall be measured at the lower of cost and net realizable value on the balance sheet date. If the inventory cost is higher than its net realizable value, provision for inventory depreciation shall be made and included in the current profit and loss. On the balance sheet date, if the factors influencing the previous write-down of inventory value have disappeared, the write-down amount will be restored, and it will be reversed within the amount of the original provision for inventory depreciation, and the reversed amount will be included in the current profit and loss.

(4) Warehousing and logistics during the reporting period.

The company’s central warehouse is located in Changping District, Beijing, close to Shahe Higher Education Park in the Sixth Ring Road, with convenient transportation. The warehouse covers an area of 5,000 square meters, and is used for rapid turnover and storage of a full range of goods sold by the company, including out shoes, clothes, bags and equipment. During the reporting period, the warehousing expenditure was 659,500 yuan, and the logistics expenditure was 2,984,400 yuan, of which the self-owned logistics expenditure accounted for 1.96% and the outsourcing logistics expenditure accounted for 98.04%.

(5) Own brand

During the reporting period, the company’s own brand operating income was 63,814,200 yuan, accounting for 29.11% of the company’s main business income. Among them, the operating income of X-BIONIC products was 52.2584 million yuan, and the sales increased by 118.32% year-on-year.

Note: The decimal difference of total operating income in the table is due to rounding.

II. Analysis of Core Competitiveness (I) The huge development space brought by the acquisition and operation of X-BIONIC, a luxury brand of black technology sports, has been widely recognized by many professional athletes in the world for its strong black technology attributes. "X" stands for technology, creativity, future and infinite possibilities, "BIONIC" stands for bionic technology, and X-BIONIC embodies the spirit of exploration, technology and passionate sports. After acquiring the ownership of "X-BIONIC" and "X-SOCKS" brands in China, the company absorbed and integrated its advanced technology, accepted the popularity and reputation of its international brands, combined with international and domestic R&D and production capacity adapted to the market, and closely cooperated with major international suppliers of high-quality raw materials, relying on the company’s accumulation in the outdoor sporting goods industry for many years, achieving brand development, which brought huge development space for the company’s production and operation. (II) Complete Outdoor Industry Operation Platform The company builds an outdoor ecological platform with operating users as the core, linking people with outdoor brands, outdoor products, outdoor sports and outdoor education by developing and selling professional high-quality outdoor sporting goods, operating X-BIONIC black technology sports luxury brands, organizing outdoor sports league construction, and designing, constructing and operating parent-child and adolescent comprehensive quality education projects. (III) Outdoor Multi-brand, All-category Product Structure Company, as one of the earlier enterprises engaged in outdoor industry, has been deeply involved in the industry since its establishment in 1997, and established a lasting and stable cooperative relationship with hundreds of outdoor brands at home and abroad, knowing the core advantages and applicable situations of different brands, different categories and different products, and forming in-depth insight and understanding of product characteristics, so as to provide professional and personalized product selection suggestions for different consumers in different scenarios and provide in-depth service to user groups. At present, the company has its own brands such as X-BIONIC, X-SOCKS, SANFOPLUS, ANEMAQEN, SANFO, KIDSANFO, etc., acting as an agent and distributing 300+ outdoor famous brands, with more than 8,000 SKUs. The product categories cover outdoor sports, daily business and leisure and other scenes. Some of the core brands are as follows: (4) Companies with strong R&D capabilities of their own brands have established many own brands such as ANEMAQEN, SANFO, KIDSANFO, SANFOPLUS, etc. by using more than 20 years of experience and in-depth understanding of products and customer groups, and have the ownership of IP in China, such as "X-BIONIC" and "X-SOCKS". The design R&D team consists of more than 40 professionals, including designers, typographers and material developers, focusing on the control of key links such as typography design, process optimization and production quality control.Focus on target market segmentation and diversified product design direction, constantly reform and innovate in fabric selection and functionality, and combine high-quality materials with advanced technology to empower sports and achieve a more comfortable, reassuring and cool brand experience. At present, the company has established in-depth cooperative business relations with international high-quality functional fabric companies including GORE-TEX, Schoeller, Polartec, Pertex, Primaloft, Allied, Toray, Cordura, Carvico, etc., which has laid a solid foundation for new product R&D, production and supply chain. Since the private brand products have been put into the market, they have gained a good market reputation, and the company’s core competitiveness and gross profit margin will be strongly guaranteed. (V) All-round distribution of sales channels The company has an independent team for expanding stores and a comprehensive evaluation system for opening stores. Combined with historical successful experience and business data, it evaluates and considers from various aspects such as region, consumption power, passenger flow, location, cost and return on investment, scientifically calculates and deduces the profit model, and selects excellent solutions to ensure the profitability of physical stores. Through offline channel coverage, online business development, group procurement promotion, event linkage and other means, we will comprehensively broaden sales channels and achieve online and offline coordinated development, which has strong industry influence in the professional outdoor field. (VI) Experience in organizing professional competitions and group building activities. The Sports Management Subsidiary has been focusing on the promotion and popularization of professional outdoor sports for many years.It has won the title of chinese mountaineering association Model Club and AAA outdoor sports club qualification for many years, and is a member of China Triathlon Association, Marathon Committee of China Athletics Association and International Cross-country Running Association. With the competition as the engine, the company is committed to leading Chinese people to develop a good outdoor sports lifestyle. At present, it has become a professional competition operation organization with large scale and strong technical strength in China, and its business ability is at the leading level in China from organization planning, route survey to guarantee implementation. The types of events cover daily training, entry-level events and long-distance super events, and there are many events with international brand influence such as Sanfu Triathlon and Chongli 168. The company has been fully recognized by members, contestants and outdoor sports enthusiasts in the event, and the members of the company have the characteristics of strong stability and high loyalty. The skill training subsidiary focuses on the in-depth development of enterprise group building business and occupies a leading position in the field of outdoor training for enterprises. After more than ten years of industry accumulation, a high-quality coach team composed of hundreds of professional senior coaches has been deposited, including many star coaches with national professional qualification certificates, more than ten years of experience and tens of thousands of training experiences. Established a deep cooperative relationship with many high-quality camp resources with unique outdoor entertainment attributes. After more than ten years of deep cultivation and business expansion, the company’s customer resources have covered more than 20 industries, including the Internet, technology and finance, including dozens of Fortune 500 companies, listed companies and emerging Internet technology companies. Quality customer resources,Long-term strategic cooperation, strong faculty and all-round enterprise services have enabled the company to win a stable market share and continue to drive business growth. (VII) Mature Operation and Management System of Quality Education Project for Parents and Teenagers Shanghai Xile Subsidiary is the main operator of "Squirrel Tribe". After years of exploration and practice in outdoor sports, entertainment and education, it has taken the lead in establishing standardized operation and management processes and curriculum research and development systems in the industry, and has a strong first-Mover advantage in product design, management concept, safety awareness and daily protection. "Squirrel Tribe" has its own brand IP image, and radiates clothing, picture books, courses and other related fields. By optimizing iterations, it enhances IP influence, systematically exports management service capabilities to the industry through joining, and enhances the radiation radius of IP regions. At present, the "Squirrel Tribe" has formed a good driving effect throughout the country. With the landing of projects with first-tier cities as the core, the brand awareness will be further enhanced. Eagle Sports Subsidiary owns the brand of "Eagle Safety Education", focusing on youth safety education, integrating diversified contents such as earthquake prevention and disaster reduction, self-care and self-rescue, popular science safety, youth safety education and training, etc. It can simulate various disaster sites to carry out various forms of skills training such as disaster prevention and mitigation, emergency rescue and emergency rescue, and enhance the self-help and self-care ability of young people in emergencies through experiential training. It has profound experience and mature operation mode in the youth safety quality education industry. Eagle sports investment and constructionGuizhou Yingji Outdoor Safety Base for Disaster Prevention and Mitigation has been awarded many honorary titles by Seismological Bureau of China, governments at all levels and superior units, such as National Popular Science Education Base for Earthquake Prevention and Mitigation, Publicity and Education Base for Disaster Prevention and Mitigation Safety in Guizhou Province, Publicity Base for Popular Science Education in Guizhou Province, and Training Base for Youth Self-care and Self-help in Guizhou Province. By continuously expanding the quality education program for teenagers, the company has become one of the representative enterprises in the field of outdoor unpowered sports, natural history exploration and safety education. (VIII) High-quality and stable membership group The company always adheres to the service tenet of "customer first", pays attention to the construction of customer information system, and uses CRM customer relationship management system to integrate online and offline multi-channel resources to carry out unified membership service and management. Actively cultivate new members, firmly maintain old members, increase value and optimize members’ rights and interests, and improve viscosity and repurchase rate; Establish accurate expansion of user portrait analysis needs; Provide timely and high-quality pre-sale, in-sale and after-sale services, pay attention to satisfaction feedback and follow up to enhance interaction; A loyal and stable membership base will help drive channel traffic and performance growth. (IX) The company with high industry popularity and reputation takes "encouraging and helping people to go outdoors, exercise healthily, and fully practicing the life concept of harmonious coexistence between man and nature" as its mission, and always adheres to the business philosophy of "honest management-ensuring after-sales" to provide consumers with multi-brand and full-range products. At the same time, to ensure the quality of service,The company has always adhered to the strategy of opening a store directly, and has established standardized management processes in product selection, storefront display, customer reception, professional explanation, inventory management, after-sales service, etc., which fundamentally ensures the unity and quality of foreign services. The company pays attention to establishing close cooperative relations with upstream and downstream enterprises and competent departments in the industrial chain, strictly fulfills commercial contracts, abides by business rules and business ethics, and has formed a good reputation and influence in the industry. In recent years, the company has won many awards, including National Sports Industry Demonstration Unit, Typical Enterprise of Ministry of Commerce, Zhongguancun High-tech Enterprise, Beijing AAA Credit Enterprise, Beijing Chengxin Creation Enterprise, Beijing Sports Industry Demonstration Unit, member units of Beijing Zhongguancun Enterprise Credit Promotion Association, Beijing Top 100 Private Enterprises with Social Responsibility, Beijing Top 100 Small and Medium Private Enterprises, Xicheng District Civilized Unit and Worker Pioneer, Zhongguancun Credit Cultivation Double Hundred Project "100 Most Influential Credit Enterprises" and so on. And ISO9001 quality management system certification, ISO14001 environmental management system certification, GB/T28001 occupational health and safety management system certification, etc.

Iii. Risks faced by the company and countermeasures (I) Risks that the X-BIONIC brand fails to meet expectations. Although the X-BIONIC brand has strong scientific and technological functional advantages, it takes a long time to establish brand awareness in the market as a new brand. Brand awareness also affects channel construction and sales performance. To fully operate the brand and test the company’s comprehensive ability, there is a risk that it will fail to meet expectations within a certain period of time. Countermeasures: Make clear the positioning of X-BIONIC black technology sports luxury brand, form a strong team from product research and development, brand marketing, channel construction and customer service, form operational capabilities, and ensure the stable and successful operation of X-BIONIC brand. (II) Risk of Force Majeure, such as repeated local epidemics and short-term stagnation of consumption. At present, domestic epidemics may face repeated situations. Repeated local epidemics may affect the sales of offline physical stores, the passenger flow of squirrel tribe parent-child outdoor paradise and Eagle safety education base, and the construction of outdoor games, and will also have an impact on the supply chain. Countermeasures: vigorously develop online business, seize new business opportunities such as camping, maintain close communication with international suppliers, send orders in advance to purchase and prepare emergency plans, control costs at the same time, adopt a more cautious attitude towards new project investment, and buffer the challenges brought by force majeure such as repeated epidemics to the greatest extent.