LYFEN(SH:603777) Xin Lang Zheng Quan·2025-05-12 03:07Core Viewpoint - The incident involving a consumer finding a blood-stained band-aid in a zongzi product has raised significant concerns about food safety and quality control within the company, highlighting the risks associated with its reliance on an outsourcing production model [1][2][3]. Group 1: Incident Response - The company has announced a complete recall of the affected batch of honey date zongzi products and is offering consumers the option for refunds or exchanges, along with additional compensation [1]. - A special team has been established to investigate the issue, and the company has committed to sharing the results of the investigation with consumers [2]. Group 2: Quality Control Issues - The company's reliance on a light-asset operating model and outsourcing has led to numerous complaints regarding food quality, with reports indicating nearly a thousand complaints related to foreign objects and spoilage [3]. - Analysts have pointed out that the key issue lies in the inadequate auditing of outsourcing manufacturers, which has been exacerbated by the rapid expansion of product lines and the number of outsourcing partners [3]. Group 3: Financial Performance - The company's 2024 annual report indicates a revenue of 3.37 billion yuan, a year-on-year decrease of 15.25%, and a net loss of 75.27 million yuan, a shift from a profit of 57.05 million yuan in 2023 [4]. - The decline in revenue is attributed to reduced income from certain regional stores and adjustments to underperforming outlets, with the total number of stores decreasing by 16.28% to 3,085 by the end of 2024 [4]. - The increase in franchise store proportion to 52% raises concerns about potential further weakening of quality control at the retail level [4].