Toly Bread(SH:603866) Mei Ri Jing Ji Xin Wen·2025-09-05 11:36Core Viewpoint - The recent advertising controversy surrounding the "Peach and Li Egg Mooncake" has led to public backlash, prompting the company to apologize and withdraw the ad shortly after its release [3][5]. Group 1: Advertising Controversy - The controversial advertisement suggested that those who dislike five-nut mooncakes are simply too young and have not experienced life's hardships, which was criticized as "dad marketing" and "PUA-style promotion" [5]. - The company acknowledged the backlash and stated that the ad was part of an internal co-creation initiative involving employees of various ages, resulting in 20 different versions of the ad [5]. Group 2: Financial Performance - The company is facing significant financial pressure, with a reported revenue of 2.07% from mooncake sales, amounting to 126 million yuan in 2024, which is a two-digit decline compared to the previous year [10]. - For the first half of 2024, the company reported a revenue of 2.611 billion yuan, a year-on-year decline of 13.55%, and a net profit of 204 million yuan, down 29.7% [10]. - The decline in net profit is attributed to increased depreciation costs from new projects and rising advertising expenses, which grew over 40% year-on-year to 42.96 million yuan in the first half of 2025 [10]. Group 3: Stock Performance - The company's stock has seen a dramatic decline, dropping nearly 80% from its peak, with a current price of 5.68 yuan compared to a high of 27.31 yuan in 2020 [11]. - The stock has consistently fallen over the past few years, with declines of over 33% in 2021, 23% in 2022, and 40% in 2023 [11].