Toly Bread(SH:603866) Xin Lang Cai Jing·2025-09-08 00:09Core Viewpoint - The controversy surrounding the advertisement for "Peach and Li Egg Mooncake" has highlighted the marketing missteps of the company, leading to a public apology and the removal of the ad [2][6][7]. Financial Performance - In the first half of 2025, the company's revenue was approximately 2.6 billion yuan, a year-on-year decrease of 13.55%, while the net profit attributable to shareholders was around 200 million yuan, down nearly 30% [3][8]. - The company has faced declining profitability, with net profits decreasing for four consecutive years from 2021 to 2024 [2][8]. - Despite the financial pressures, the company has maintained a high cash dividend payout, distributing a total of 4.36 billion yuan in cash dividends since its IPO, with an average payout ratio of 70.24% [3][10]. Marketing and Brand Image - The controversial advertisement claimed that those who dislike five-nut mooncakes are simply "young and have not yet experienced the hardships of life," which sparked backlash from consumers [2][6][7]. - Following the backlash, the company issued an apology and stated that the advertisement was part of an internal creative process involving employees of various ages [7]. - The incident has been viewed by some analysts as a successful crisis management effort, as it increased awareness of the "Peach and Li Egg Mooncake" among consumers [7]. Product and Innovation Challenges - The company's product structure is considered narrow, primarily focusing on short-shelf-life bread, with seasonal products like mooncakes contributing to revenue fluctuations [8][9]. - There has been a noted decline in research and development investment, with R&D expenses dropping to 10.66 million yuan in the first half of 2025 from higher amounts in previous years [9].