LYFEN(SH:603777) Hua Xia Shi Bao·2025-05-12 13:39Core Viewpoint - The company, Laiyifen, is facing significant challenges due to a food safety issue with its date paste rice dumplings, which emerged just before the peak sales season of the Dragon Boat Festival, potentially impacting its sales and reputation [2][3]. Group 1: Food Safety Incident - On May 10, consumers reported finding foreign objects in Laiyifen's rice dumplings, prompting the company to recall the affected products and offer compensation [2][3]. - The company has initiated a comprehensive investigation into the incident and plans to enhance food safety management across its supply chain [3]. Group 2: Financial Performance - Laiyifen's revenue declined for the first time since its listing, with a 9.25% drop to 3.977 billion yuan in 2023, and a projected revenue of 3.37 billion yuan in 2024, down 15.25% [5]. - The net profit for 2024 is expected to be a loss of approximately 75.27 million yuan, a significant decrease of 231.94% year-on-year [5]. Group 3: Store Expansion Challenges - The number of Laiyifen stores decreased for the first time since 2017, with a total of 3,085 stores at the end of 2024, down 600 stores or 16.28% from the previous year [6]. - The decline is primarily due to a reduction in direct-operated stores, which fell to 1,485, a decrease of 425 stores [6]. Group 4: Competitive Landscape - The snack food industry is experiencing intensified competition, particularly from discount stores and leading brands like Mingming Hen Mang Group and Wancheng Group, which are rapidly expanding [7]. - Laiyifen has entered a strategic partnership with the discount snack brand Yangchuanji to enhance its market presence, although the effectiveness of this collaboration remains uncertain [8].