Toly Bread(SH:603866) Bei Jing Shang Bao·2025-09-08 13:50Core Viewpoint - The controversy surrounding the advertising campaign of Taoli Bread highlights the disconnect between the company's marketing approach and consumer sentiment, leading to public backlash and potential brand damage [2][5]. Company Performance - Taoli Bread's revenue and net profit growth have been declining for four consecutive years, with revenues of 63.35 billion, 66.86 billion, 67.59 billion, and 60.87 billion from 2021 to 2024, showing a year-on-year growth of 6.24%, 5.54%, 1.08%, and a decline of 9.93% respectively [7]. - The company's net profit for the same years was 7.63 billion, 6.4 billion, 5.74 billion, and 5.22 billion, reflecting year-on-year declines of 13.54%, 16.14%, 10.29%, and 9.05% [7]. - In the first half of 2025, Taoli Bread reported revenue of 26.11 billion, a year-on-year decrease of 13.55%, and a net profit of 2.04 billion, down 29.7% [7]. Product Innovation and Marketing - Taoli Bread launched its mooncake product line in 2020, with the mooncake business generating 126 million in revenue for 2024, accounting for only 2.07% of total revenue [5]. - The company has seen a significant decrease in R&D investment, with 2024 expenditures at 22.97 million, down 31.84%, and 2025's first half at 10.66 million, down 30.81% [8]. - In contrast, advertising and promotional expenses increased to 42.96 million, a rise of approximately 40% [8]. - The recent advertising campaign was criticized for its "preachy" tone, which may further harm the brand's image and lead to a loss of market share [5][8].