According to the CITIC Securities Research Report, China's mass snack industry is developing rapidly. We estimate that in 2024/2025, the number of stores will double/increase by more than 30% year-on-year to 42,000/56,000, and the sales scale of the industry is expected to reach 220+ billion yuan in 2025. Competition in the industry will intensify in 2024, and leading snack companies will accelerate store expansion by increasing store and price war subsidies. Competition in the industry eased in 2025, but due to rapid store encryption, the 2025H1 leading snack company's same-store sales declined a lot, and the 2025H2 same-store decline has improved month-on-month. By reviewing BIM, Turkey's leading hard discount retail company, we are optimistic that the domestic hard discount retail business can cross the economic cycle and maintain resilient growth. We believe that leading snack companies will still have more than 50% room to open stores in the future. Category expansion, private brand product operation, store type optimization, and refined operation are important future development tasks.

According to the CITIC Securities Research Report, China's mass snack industry is developing rapidly. We estimate that in 2024/2025, the number of stores will double/increase by more than 30% year-on-year to 42,000/56,000, and the sales scale of the industry is expected to reach 220+ billion yuan in 2025. Competition in the industry will intensify in 2024, and leading snack companies will accelerate store expansion by increasing store and price war subsidies. Competition in the industry eased in 2025, but due to rapid store encryption, the 2025H1 leading snack company's same-store sales declined a lot, and the 2025H2 same-store decline has improved month-on-month. By reviewing BIM, Turkey's leading hard discount retail company, we are optimistic that the domestic hard discount retail business can cross the economic cycle and maintain resilient growth. We believe that leading snack companies will still have more than 50% room to open stores in the future. Category expansion, private brand product operation, store type optimization, and refined operation are important future development tasks.