Summary of Zhou Hei Ya Conference Call Company Overview - **Company**: Zhou Hei Ya - **Industry**: Food and Beverage (specifically, duck products) Key Points and Arguments Financial Performance - In the first half of 2025, Zhou Hei Ya achieved a profit exceeding 100 million yuan, marking a bottom reversal in performance due to store restructuring, employee incentives, and online traffic initiatives [2][3] - Same-store sales growth has returned to low single-digit growth, with expectations for a profit growth rate in the high double digits for the full year [2][7] Store Strategy - The company plans to close underperforming stores, reducing the total number to over 2,800 by mid-2025, with a target to maintain around 3,000 stores by the end of the year [2][3] - The ratio of direct-operated to franchised stores is 60:40, focusing on store quality rather than quantity, with annual store growth expected to be in single digits [2][3][9] Channel Development - Zhou Hei Ya is prioritizing its distribution channels as a key mid-term strategy, aiming to double channel business revenue from under 100 million yuan in 2024 to 200 million yuan in 2025, with a long-term goal of reaching 1 billion yuan in three years [2][5][10] - The company has successfully entered Sam's Club and plans to introduce more products [5] International Expansion - The company has initiated its overseas market strategy, entering Malaysia's Mix supermarket with over 20 SKUs and plans to open its first overseas store [6][10] - Future expansion plans include entering the North American market and establishing a localized supply chain, with a revenue target of 100 million yuan within three years [6][10] Cost Control Measures - Zhou Hei Ya is implementing flexible procurement strategies to manage raw material costs effectively, focusing on high-quality suppliers and diversifying product lines to mitigate cost pressures [2][14][15] - The company has maintained a stable cost level despite the current consumer market not showing significant recovery [15] Dividend Policy - The company adheres to a high dividend payout policy, with a target payout ratio of at least 60%, and has historically maintained a payout ratio of 80-90%, with plans to reach 100% in 2024 [2][17] Market Communication - Following the mid-year report, the management has actively communicated with the market, receiving positive feedback on the company's strategic direction and recovery from a low point [18] Future Outlook - For the second half of 2025, the company expects same-store sales to maintain mid-single-digit growth, with channel business making significant progress [7] - The company aims for double-digit growth in overall store business and a doubling of channel business revenue in 2026 [7][10] Membership and Cost Management - Zhou Hei Ya has upgraded its membership operations to enhance efficiency and control unnecessary expenses, ensuring a healthy business development trend [8] Store Performance Metrics - The average sales per store in the first half of 2025 were approximately 800,000 yuan, with a goal to restore sales to over 1 million yuan per store pre-pandemic levels [10] Rental Strategy - The company employs a dynamic evaluation and negotiation strategy for rental agreements, ensuring a healthy rent-to-sales ratio [12] New Store Location Preferences - New store openings will focus on high-potential commercial areas and transportation hubs to leverage core advantages [13] This summary encapsulates the key insights from Zhou Hei Ya's conference call, highlighting the company's strategic adjustments, financial performance, and future growth plans.

Core Insights - The article discusses the evolution of food consumption on trains in China, highlighting the shift from traditional snacks like instant noodles to more diverse and experiential food options that cater to modern consumer preferences [4][6][9]. Group 1: Historical Context - In 1999, the introduction of the "Golden Week" holiday led to a surge in domestic travel, with 28 million trips taken that year, generating 14.1 billion yuan in tourism revenue [5]. - By 2024, domestic travel during the National Day holiday reached 765 million trips, with total spending hitting 700.8 billion yuan [5][6]. - The transition from traditional green trains to high-speed trains has significantly reduced travel times, enhancing the travel experience [6]. Group 2: Changing Consumer Preferences - Consumers are increasingly seeking food and beverages that offer aesthetic appeal and emotional satisfaction during travel, moving beyond mere sustenance [6][9]. - New food items like specialty milk teas and creative snacks are becoming popular, reflecting a shift towards experiential consumption [7][9]. Group 3: Evolution of Train Food - Instant noodles, particularly brands like Kang Shifu, became iconic in train dining due to their convenience and affordability, with Kang Shifu's beef noodles launched in 1992 [12][14]. - The introduction of various snacks, including spicy chicken feet and ready-to-drink congee, has diversified the food options available on trains [18][20]. - The development of packaging technologies, such as modified atmosphere packaging, has improved the freshness and convenience of ready-to-eat foods like marinated meats [27][28]. Group 4: Regional and Cultural Influences - The rise of regional specialty foods on trains reflects a growing consumer desire for local experiences, with products like beef jerky and traditional snacks gaining popularity [42][47]. - The introduction of themed creative ice creams on trains showcases the blending of cultural elements with food offerings, enhancing the travel experience [38][39].

Core Insights - The article discusses the evolution of food and beverage consumption on trains in China, highlighting the shift from basic sustenance to experience-oriented products that enhance travel enjoyment [4][6][20]. Group 1: Historical Context - In 1999, the introduction of the "Golden Week" holiday led to a surge in domestic travel, with 28 million trips taken and a total tourism revenue of 14.1 billion yuan [1]. - By 2024, domestic travel during the National Day holiday reached 765 million trips, generating a total expenditure of 700.8 billion yuan [2]. Group 2: Changing Consumer Preferences - Consumers now prefer visually appealing and emotionally satisfying food and beverage options during travel, moving beyond mere hydration and sustenance [4][6]. - The demand for experience-oriented products is expected to surpass last year's levels during the National Day holiday [6]. Group 3: Food and Beverage Innovations - The introduction of instant noodles, particularly the iconic Kang Shifu beef noodles in 1992, revolutionized train food consumption, meeting the needs of travelers for convenience and affordability [8][11]. - The rise of various snack options, such as spicy chicken feet and eight-treasure porridge, reflects a diversification in train food offerings, catering to modern consumer tastes [12][16]. Group 4: Packaging and Preservation Advances - The introduction of "modified atmosphere packaging" by brands like Zhou Hei Ya has extended the shelf life of ready-to-eat products, making them more suitable for train travel [22][23]. - The growth of portable and fresh options, such as freeze-dried coffee and instant fruit teas, indicates a trend towards convenience and quality in travel snacks [25][26][28]. Group 5: Cultural and Regional Influences - The emergence of cultural-themed ice creams and regional snacks on trains highlights a growing emphasis on local experiences and culinary diversity during travel [34][36]. - Passengers are increasingly exposed to regional specialties, enhancing their travel experience and connecting them to local cultures [38][41].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年9月30日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 周黑鴨國際控股有限公司 呈交日期: 2025年10月2日 I. 法定/註冊股本變動 FF301 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 01458 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 50,000,000,000 | USD | | 0.000001 | USD | | 50,000 | | 增加 / 減少 (-) | | | | 0 | | | USD | | 0 | | 本月底結存 | | | 50,000,000,000 | USD | | 0.000001 | USD | | 50,00 ...

Core Insights - The article highlights the transition of the braised food industry from a focus on rapid expansion to a phase of contraction and optimization, indicating a shift away from prioritizing scale [1][23]. Industry Overview - The once-thriving "three giants" of the braised food industry—Juewei Foods, Zhou Hei Ya, and Huang Shang Huang—are now facing declining revenues and are closing stores as a unified strategy for self-rescue [2][9]. - The industry is experiencing a significant slowdown, with the market size projected to grow only 3.7% in 2024, a stark contrast to the previous average growth rate of over 15% before 2021 [18]. Company Performance - Juewei Foods reported a revenue of 28.2 billion yuan in the first half of the year, but this represented a decline of 15.57% [7]. - Zhou Hei Ya's revenue decreased by 2.93% to 12.23 billion yuan, while Huang Shang Huang's revenue fell by 7.19% to 9.84 billion yuan [7]. - Juewei Foods' net profit dropped by 40.71% to 1.75 billion yuan, while Zhou Hei Ya's net profit surged by 228% to 1.08 billion yuan [10]. Business Model Challenges - The franchise model that propelled Juewei Foods' rapid growth is now a source of crisis, as aggressive store closures have led to a significant drop in revenue [8][9]. - The average monthly sales per store for Juewei Foods have decreased from approximately 37,000 yuan in 2023 to about 21,000 yuan currently [21]. Competitive Landscape - New entrants like "Quzhou Duck Head" are gaining market share by offering lower prices and better value, highlighting a shift in consumer preferences towards cost-effective options [19][20]. - The traditional giants are struggling with high pricing strategies, which have alienated consumers and allowed competitors to thrive [13][15]. Strategic Shifts - Companies are exploring diversification and innovation to find new growth avenues, with Juewei Foods launching new product lines and Huang Shang Huang acquiring stakes in frozen food businesses [24][25]. - Zhou Hei Ya is adapting by introducing a mix of fresh and packaged products to cater to changing consumer demands [25]. Consumer Trends - The underlying demand for braised food remains focused on taste, affordability, and convenience, but the methods to meet these demands are evolving [26].

Group 1 - The 2025 China Food Exhibition (Guangzhou) opened on September 26, attracting nearly 1,000 food and beverage companies from over 40 countries and regions, showcasing the latest products in the global food industry [1] - The Wuhan Trade Promotion Exhibition Group, consisting of over 20 local enterprises, participated in the event to connect with global food industry opportunities and secure orders [2] - Popular products from Wuhan, such as hot dry noodles and various specialty foods, drew significant attention, with long queues at booths like Fang's Food and Jin Hui Quan [2][4] Group 2 - The president of the Wuhan Food Industry Association highlighted the strong market potential and cross-regional appeal of Wuhan's specialty foods, indicating a successful reception at the exhibition [4] - The Wuhan Trade Promotion Association has organized participation in the China Food Exhibition for three consecutive years, aiming to promote local flavors internationally and establish trade channels [4]

Core Viewpoint - The article discusses the challenges faced by the braised food industry, highlighting a significant decline in sales and store numbers, leading to a competitive and cost-pressured environment for both small shop owners and major brands [5][11]. Group 1: Challenges Faced by Small Shop Owners - Small shop owners like Wang Lei are experiencing increased operational costs, with rent rising from 5,500 yuan to 8,000 yuan and monthly profits dropping to around 3,000 yuan [6][9]. - Consumer sensitivity to prices has heightened, leading to reduced foot traffic and sales, with daily revenues dropping to 800 yuan [7][9]. - The market is saturated with over 20 competing braised food shops within a 500-meter radius, intensifying competition and forcing some shops to offer discounts that franchise owners cannot match [9][10]. Group 2: Performance of Major Brands - Major brands like Juewei, Zhou Hei Ya, and Huang Shang Huang reported significant revenue declines in 2024, with Juewei's revenue down 13.84% to 6.257 billion yuan and net profit down 34.04% to 227 million yuan [7][8][13]. - Despite revenue drops, some brands managed to maintain or even increase profit margins through cost-cutting measures, with Huang Shang Huang's net profit increasing by 26.9% despite a revenue decline [14][15]. - The number of stores for these major brands has decreased significantly, with Juewei closing 5,112 stores (32% reduction) and Huang Shang Huang reducing its store count by nearly 30% [15][16]. Group 3: Pricing and Consumer Sentiment - The pricing strategy of major brands has led to consumer backlash, with products priced significantly higher than traditional food items, causing many to perceive them as overpriced [17][19]. - A survey indicated that 47.2% of consumers would reduce purchases if prices increased by over 10%, reflecting a shift in consumer behavior towards seeking better value [18][24]. - The perception of braised food as a luxury item rather than an affordable snack has emerged, with social media discussions highlighting the disconnect between price and consumer expectations [17][20]. Group 4: Industry Trends and Future Outlook - The braised food industry is undergoing structural adjustments, with rising costs, intense competition, and changing consumer preferences posing significant challenges [26][25]. - The article suggests that brands need to focus on improving cost-effectiveness and product diversity to meet evolving consumer demands, particularly in the context of online shopping trends [27][28]. - The future of the industry may depend on the ability of brands to redefine their relationship with consumers and adapt to a market that increasingly values affordability and quality [29].

Core Insights - The article highlights the significant challenges faced by the snack food industry, particularly the braised food segment, as consumer preferences shift and competition intensifies [1][3][20] Group 1: Industry Performance - The revenue of major braised food companies has declined, with companies like Juewei reporting a 13.84% drop in revenue to 6.257 billion yuan and a 34.04% decrease in net profit to 227 million yuan in 2024 [3][7] - The overall market is experiencing a downturn, with consumer traffic visibly decreasing and price sensitivity increasing among customers [3][4] - The number of stores for major brands has significantly reduced, with Juewei closing over 5,000 stores from 2024, marking a 32% decrease [9][11] Group 2: Cost and Competition - Rising operational costs, including rent and labor, have pressured profit margins, with average monthly profits for small store owners dropping to around 3,000 yuan [4][22] - Intense competition has led to price wars, with some stores offering discounts that smaller franchisees cannot match [6][22] - The industry is facing severe homogenization, with over 70% similarity in product offerings, leading to a decline in profit margins [22] Group 3: Consumer Behavior - Consumer preferences are shifting towards more affordable options, with nearly 60% of consumers indicating they would reduce their purchase frequency due to high prices [20][24] - The perception of braised food as overpriced has become prevalent, with social media discussions highlighting the lack of value for money [12][14] - The trend of DIY cooking at home is gaining traction, as consumers seek to save money and control flavors, further impacting traditional sales [22][24] Group 4: Strategic Adjustments - Industry experts suggest that companies need to refocus on value for money to regain consumer trust and market share [24] - There is a call for innovation in product offerings to meet the evolving tastes of younger consumers while maintaining classic product advantages [24] - The future of the industry may depend on how well companies can redefine their relationship with consumers in a changing market landscape [24]

Core Insights - The industry is facing significant challenges, with rising costs and decreasing consumer demand leading to reduced profits for operators and major brands alike [1][4][10] Group 1: Industry Performance - The revenue of major brands like Juewei, Zhou Hei Ya, and Huang Shang Huang has declined, with Juewei's revenue dropping by 13.84% to 6.257 billion yuan in 2024, and net profit down 34.04% to 227 million yuan [4][12] - The overall market is experiencing a downturn, with many small operators like Wang Lei reporting a significant drop in daily sales and profit margins [5][7] - The number of stores for major brands is decreasing sharply, with Juewei closing 5,112 stores, a 32% reduction from its peak [16][19] Group 2: Consumer Behavior - Consumers are increasingly sensitive to prices, with 47.2% indicating they would reduce purchases if prices rise by over 10% [25] - There is a shift in consumer preference towards purchasing ready-to-eat products from supermarkets, which offer lower prices and guaranteed quality [8][9] - The perception of high prices has led to a decline in consumer interest, with many referring to the brands as "expensive" and "not worth it" [23][24][29] Group 3: Competitive Landscape - The industry is experiencing severe homogenization, with over 70% similarity in product offerings among competitors, leading to price wars and reduced profit margins [42] - Major brands are opting for high pricing strategies to maintain profit margins rather than competing on volume, which is causing a loss of consumer loyalty [21][30] - The competitive environment is intensifying, with many new entrants and local shops contributing to market saturation [5][6][39] Group 4: Cost Pressures - Rising operational costs, including rent and labor, are putting additional pressure on profit margins, with costs increasing by 8% to 10% annually [41] - The cost structure of these businesses is heavily influenced by raw material prices, which account for 70% to 80% of total costs [28][29] Group 5: Future Outlook - The industry is at a critical juncture, with a need for brands to adapt to changing consumer preferences and market conditions [46][47] - There is a call for brands to return to a value-driven approach, focusing on quality and affordability to regain consumer trust [45][47] - The potential for innovation and new product development is highlighted as essential for survival in a rapidly changing market [45][46]

Core Viewpoint - The prepared food industry, particularly the marinated products sector, is facing significant structural challenges, leading to declining revenues and profits for several listed companies since 2024. The traditional growth model has failed, and mere promotional efforts or new product launches are insufficient to address these issues [1]. Structural Challenges - The four listed companies in the marinated products sector—Juewei, Zhou Hei Ya, Huang Shang Huang, and Ziyan Food—have all experienced a collective decline in performance in the first half of the year. Their combined revenue was 6.507 billion, down 11.25% from 7.332 billion in the same period last year, while net profit fell by 20.78% to 465 million from 587 million [2]. - Juewei, the largest player, saw the most significant decline, with revenue dropping 15.57% to 2.82 billion and net profit plummeting 40.71% to 175 million. Ziyan Food's net profit nearly halved to 105 million, with revenue shrinking to 1.146 billion [3]. Performance Data | Rank | Company Name | Revenue (Billion) | Change (%) | Net Profit (Billion) | Change (%) | | --- | --- | --- | --- | --- | --- | | 1 | Juewei | 2.82 | -15.57% | 0.175 | -40.71% | | 2 | Ziyan Food | 1.473 | -11.46% | 0.105 | -47.20% | | 3 | Zhou Hei Ya | 1.223 | -2.93% | 0.108 | 228.00% | | 4 | Huang Shang Huang | 0.984 | -7.19% | 0.077 | 26.90% | - Zhou Hei Ya and Huang Shang Huang performed relatively better, with Zhou Hei Ya's net profit increasing by 228% to 108 million, although it remains at half the level of 230 million from mid-2021 [3]. Historical Context - Juewei's peak profit was in 2021 at 981 million, but profits fell to 233 million and 344 million in 2022 and 2023, respectively, despite revenue reaching a high of 7.261 billion in 2023. In 2024, Juewei's revenue dropped 13.84% to 6.257 billion, with net profit declining over 30% [4]. - The overall trend shows that from 2021 to 2024, these companies have experienced a significant decline in performance after reaching their highs around 2021 [6]. Market Dynamics - The decline in performance is attributed to intensified competition, consumer perception of value, and the inability to meet consumer expectations regarding price and quality. Consumers have expressed dissatisfaction with high prices, leading to reduced purchasing behavior [8]. - Companies have resorted to frequent discounts and promotions, which have not effectively changed consumer perceptions of high prices and have negatively impacted net profits [8]. Old Growth Model Failure - The previous growth model, which relied heavily on store expansion, is no longer effective. Juewei's franchise model was once a significant growth driver, but recent trends indicate that the closure of stores is directly linked to declining revenues [9]. - Juewei's revenue from franchise stores accounted for 73.5% of total revenue in 2024, down from 54.17 billion in 2023, indicating a 15% decline [9]. Store Closure Trends - The total number of operating stores for the four listed companies has decreased by over 8,700 since 2023, with significant closures also occurring among regional brands [13]. - Juewei's store count dropped from 15,950 at the end of 2023 to 10,725 by September 2024, while Zhou Hei Ya's stores decreased from 3,816 to 2,864 [10][12]. Future Outlook - The marinated products sector is at a crossroads, needing to identify new growth models or second growth curves. Current efforts, such as Juewei's new store format and Zhou Hei Ya's brand upgrades, have yet to show significant results [14]. - The industry requires a deep restructuring around channels, products, and organization to adapt to the changing market dynamics and consumer preferences [14].