Xu Zhihua: China's second and third tier cities are the main positions of Peak.

On September 15th, Mr. Xu Zhihua, CEO of the Peak Group, appeared as a guest on the news program "Discovery Value." During the interview, he shared insights into the company's current strategy and future vision. According to Xu, the core profit centers and main markets of Peak Group remain focused on second- and third-tier cities in China, with third-tier cities being the primary growth area. The company has expanded its presence nationwide, operating over 6,700 stores, and is expected to surpass 7,000 by the end of the year. The following is an excerpt from the interview: Hexun: You mentioned your dream and entrepreneurial journey earlier. It seems that Peak Group has grown rapidly in recent years—whether it’s about listing on the stock exchange or opening stores in second- and third-tier cities. The overall business environment is also looking strong now. From my understanding, your father’s journey was a true entrepreneurial venture. Now, you're starting a business for the second time. Have you faced any challenges along the way? Xu Zhihua: In my view, this second venture isn’t just about me personally. It's a joint effort involving my father, my brother, and all of us working together. It's not just my own entrepreneurship—it's a shared journey for everyone at Peak Group. We believe in collective growth and success. In terms of development, Peak experienced rapid growth in the past, especially between 2005 and 2006. Through internationalization and brand expansion, we entered a phase of accelerated growth. Now, the biggest challenge is maintaining this momentum. How can we ensure our internal systems support this rapid expansion? There are definitely challenges, but we’re continuously working on talent recruitment, corporate culture building, and information system upgrades. These are ongoing efforts and also ongoing challenges, as we face new heights every day. I’ve never managed a company of this scale before, and neither have any of our employees. So we’re constantly learning and adapting. I believe that maintaining an open mindset and being receptive to different ideas will help us grow alongside our team. Hexun.com: What progress have you made in expanding into second- and third-tier cities? Xu Zhihua: Our main profit centers and key markets are still concentrated in second- and third-tier cities, particularly in third-tier cities. This is currently our main focus. We’ve established a nationwide presence with more than 6,700 stores, and we aim to exceed 7,000 by the end of the year. Hexun.com: Reaching 7,000 stores is close to your goal of one million stores. Xu Zhihua: Yes, we're getting closer to our target. However, Wandian (a reference to the store count) is not our ultimate goal. Our long-term vision is to make Peak a global brand. The outlets are just milestones along the way. Currently, we have a presence in almost all major regions. But the real challenge now is improving the efficiency of each individual store. We’re focusing on location selection, store image, and customer service. At the same time, we're working to better monitor and manage each outlet from the headquarters. This is an ongoing process, and we're committed to continuous improvement.