Three Squirrels(SZ:300783) Sou Hu Cai Jing·2025-04-22 08:38Core Viewpoint - The company has shown significant revenue recovery in 2024, achieving total revenue of approximately 10.62 billion, a substantial increase from 7.11 billion in 2023, but its stock performance remains weak despite this recovery [3][11]. Financial Performance - Total revenue for 2024 reached 10,622,053,469.43, representing a 49.5% increase from 7,114,575,915.74 in 2023 [3]. - The company reported a net profit of 4.08 billion in 2024, indicating a recovery after consecutive declines from 2020 to 2023 [8][11]. - The revenue breakdown shows that nuts contributed 5,366,197,230.70 (50.52% of total revenue), while baked goods and meat products contributed 1,501,191,421.01 (14.13%) and 960,785,217.07 (9.05%) respectively [3]. Market Strategy and Challenges - The company plans to use funds from its secondary listing to enhance its global supply chain, expand online and offline channels, and improve digital capabilities [4]. - Despite early international market entry in 2018, overseas revenue remains minimal at 69.68 million, accounting for only 0.01% of total revenue, highlighting challenges in its globalization strategy [4][12]. - The company has shifted its focus to a franchise model for its stores, with only 209 franchise stores remaining as of mid-2024, down from a target of 1,000 stores [6][11]. Brand and Product Development - The main brand, Three Squirrels, generated 98.25 billion in revenue, making up 92.49% of total revenue, while the sub-brand for children's snacks, Little Deer Blue, contributed 7.94 billion (7.48%) [9]. - The company has invested heavily in advertising, with nearly 60 billion spent from 2019 to 2024, and a significant increase in sales expenses by 79.37% in the first half of 2024 [8][11]. Shareholder Activity - Despite the revenue rebound, two major shareholders have reduced their stakes significantly, leading to a decline in stock price from 79.77 to 67 within two weeks [11][12].