Three Squirrels(SZ:300783) Zheng Quan Zhi Xing·2025-09-03 07:26Core Viewpoint - Three squirrels (300783.SZ) is undergoing a transformation towards a "high-end cost-performance" strategy, but faces significant pressure on profitability despite a revenue increase of 7.94% year-on-year to 5.478 billion yuan in the first half of 2025 [1] Revenue and Profitability - The company's net profit attributable to shareholders and net profit after deducting non-recurring gains and losses were 138 million yuan and 50.83 million yuan, respectively, down 52.22% and 77.75% year-on-year [1] - In Q2, the company reported a net loss of 101 million yuan and a net profit after deducting non-recurring gains and losses of 112 million yuan, with losses expanding year-on-year [1] - The core product, nuts, generated revenue of 2.731 billion yuan, accounting for nearly 50% of total revenue, but experienced a negative growth of 1.03% [2][3] Cost Pressures - The profit margin is under pressure due to rising raw material costs for nuts and increased online and offline investment costs [1] - The overall gross margin for nut products decreased by 2.64% compared to the same period last year [3] Strategic Adjustments - The company has adjusted its slogan to "Let good products be popular among the public," indicating a focus on building a "full-category" product matrix and continuing the "high-end cost-performance strategy" [2] - The company has added new high-frequency essential categories such as "freshly baked goods" and "daily chemicals" alongside its core nut products [2] OEM Dependency - The company reported an OEM product procurement amount of 2.020 billion yuan, significantly higher than the 455 million yuan for raw material procurement, indicating a growing reliance on OEM models [4][5] - The company is still dependent on OEM for certain nut categories not covered by its own factories, which poses risks related to quality control and brand reputation [4] E-commerce and Distribution Challenges - The traditional e-commerce platform's growth has slowed, with increased customer acquisition costs and market expenses impacting profitability [6][8] - Revenue from third-party e-commerce platforms grew by approximately 5.01%, with Douyin's revenue reaching 1.478 billion yuan, accounting for 26.98% of total revenue, but growth has slowed compared to previous years [7] - Sales expenses increased significantly by 50.92% and 25.11% year-on-year in 2024 and the first half of 2025, respectively, due to rising promotional costs [8][9] Distribution Business Growth - The distribution business achieved revenue of 938 million yuan, a year-on-year increase of 40.21%, but this growth is accompanied by increased market expenses [9]