Jiahe Foods(SH:605300) Xin Lang Zheng Quan·2025-07-22 08:35Core Viewpoint - Jiahe Foods is facing significant challenges due to a decline in its core business of powdered oil, particularly in the context of the "0 powdered oil" movement among beverage brands, leading to a substantial drop in revenue and profit margins [2][3][6]. Investment Activities - Jiahe Foods announced that its wholly-owned subsidiary, Koge Foods, will invest 7 million yuan in the Gongqingcheng Jincheng Fund, accounting for 12.94% of the total subscription amount [1]. Financial Performance - In the first half of 2025, Jiahe Foods expects a net profit attributable to shareholders of between 10.55 million yuan and 15.83 million yuan, representing a year-on-year decline of 77.21% to 84.80% [1]. - For 2024, Jiahe Foods reported a revenue decline of 18.68% to 2.311 billion yuan and a net profit drop of 67.43% [2]. - The company's gross margin fell from 24.46% to 16.09% and net margin from 11.52% to 3.72% from 2020 to 2024, primarily due to rising raw material costs [6]. Market Trends - The "0 powdered oil" movement reflects consumer concerns about the health risks associated with powdered oil, leading to a significant revenue drop from chain channels by 42.35% [2][3]. - The saturation of beverage stores and the shift in the tea beverage industry towards product quality over price have further reduced demand for powdered oil [3]. Business Diversification - Jiahe Foods is attempting to diversify its revenue streams by expanding into the coffee market, with plans to produce various coffee products, including roasted coffee beans and ready-to-drink coffee [4][5]. - The coffee production capacity is projected to reach 16,000 tons of roasted coffee beans and 10,000 tons of ready-to-drink coffee, but the current coffee business revenue remains relatively small at 278 million yuan for 2024 [5]. Operational Challenges - The company has experienced a continuous decline in net profit since 2020, with a significant drop in 2024, raising concerns about financial sustainability [6][7]. - The increase in operational costs due to the expansion into coffee and rising raw material prices has further pressured net profit margins [6][7].