XIANGPIAOPIAO(SH:603711) Xin Lang Cai Jing·2025-09-09 00:24Core Viewpoint - The company "Xiangpiaopiao," known as "China's first milk tea stock," is facing significant challenges with declining revenue and profits, primarily due to the shrinking of its traditional instant tea business and the inability of its ready-to-drink segment to fully compensate for this decline [2][3][4]. Revenue and Profit Decline - In the first half of 2025, the company reported revenue of 1.035 billion yuan, a year-on-year decrease of 12.21%, and a net loss of 97.39 million yuan, a staggering drop of 230% compared to the previous year [2][3]. - The instant tea business has been in continuous decline, with revenues of 2.455 billion yuan, 2.686 billion yuan, and 2.271 billion yuan from 2022 to 2024, and 423 million yuan in the first half of 2025, representing a year-on-year decrease of 31.04% [3][4]. Ready-to-Drink Business Growth - The ready-to-drink segment, which includes products like Meco fruit tea and original leaf light milk tea, generated revenue of 591 million yuan in the first half of 2025, marking an 8.03% year-on-year increase and accounting for 58.27% of total revenue [4]. - Despite this growth, the ready-to-drink segment's performance has not been sufficient to offset the decline in the instant tea business, leading to overall financial pressure [4]. Marketing and Sales Strategy - The company's sales expense ratio increased to approximately 32% in the first half of 2025, up from 28.5% in mid-2024, despite a slight decrease in total sales expenses [5][6]. - The company has engaged in high-profile marketing strategies, including signing endorsements with popular figures and opening pop-up stores to attract younger consumers [5][6]. Family Ownership and Management Challenges - Over 70% of the company's shares are held by the founder's family, which has led to a strong family influence in management decisions [7][9]. - The company has struggled to retain professional managers, with previous attempts to bring in external talent resulting in high turnover rates [9]. Brand Positioning and Future Outlook - Analysts suggest that the company needs to diversify its product offerings and establish a product matrix to move away from its traditional instant tea image and accelerate new product development [10].