Three Squirrels(SZ:300783) Chang Jiang Shang Bao·2025-08-31 22:21Core Viewpoint - The market summarizes the mid-term performance of Three Squirrels as "increased revenue but decreased profit," with a significant drop in net profit despite record-high revenue [1][5]. Revenue Performance - In the first half of 2025, Three Squirrels achieved a revenue of 5.478 billion yuan, marking a historical high for the same period, with a year-on-year growth of 7.94% [1][5]. - The revenue for the first and second quarters of 2025 was 3.723 billion yuan and 1.754 billion yuan, reflecting year-on-year growth rates of 2.13% and 22.77%, respectively [5][6]. Profitability Issues - The net profit attributable to shareholders was 138 million yuan, representing a year-on-year decline of over 52% [1][5]. - The company's non-recurring net profit for the first half of 2025 was 50.83 million yuan, down 77.75% year-on-year [5]. - The second quarter saw a net profit loss exceeding 100 million yuan, the worst quarterly performance since 2018 [2][6]. Cost and Expense Factors - The decline in net profit is attributed to rising costs, including increased raw material prices for nuts, changes in online platform traffic structures, higher market expenses for offline distribution, and increased property depreciation and amortization [2][7][8]. - Promotion and platform service fees reached 761 million yuan in the first half of 2025, up approximately 25.35% year-on-year [2][12]. - Sales expenses grew by 25.11%, while management expenses surged by 57.89% [8]. Cash Flow Concerns - The operating cash flow net amount for the first half of 2025 was -377 million yuan, marking the first negative mid-term cash flow since 2017 [3][10]. - The negative cash flow is primarily due to increased operational procurement, with inventory reaching 768 million yuan, a year-on-year increase of 42.22% [10]. Future Outlook - Three Squirrels is pursuing a listing in Hong Kong, but the current mid-term report and future performance expectations may pose challenges for its IPO [4][11]. - The company is facing new challenges, particularly with rising traffic costs, as it continues to rely heavily on e-commerce channels for revenue [12].