XIANGPIAOPIAO(SH:603711) Xin Lang Cai Jing·2025-09-09 01:38Core Viewpoint - The company "Xiangpiaopiao," known as "China's first milk tea stock," is facing significant challenges in its performance, with declining revenue and profits in the first half of 2025, indicating a struggle to adapt to market changes and consumer preferences [1][2]. 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 profit loss of 97.39 million yuan, a staggering decline of 230% [2][3]. - The traditional brewing 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, down 31.04% year-on-year [3]. Shift to Ready-to-Drink Segment - The ready-to-drink segment has emerged as a new pillar for the company, generating revenue of 591 million yuan in the first half of 2025, a year-on-year increase of 8.03%, surpassing the brewing segment for the first time with a revenue share of 58% [3][4]. - Despite the growth in the ready-to-drink segment, it has not compensated for the decline in the brewing business, leading to overall performance pressure [3]. Marketing Strategies and Sales Expenses - The company has adopted aggressive marketing strategies, including signing endorsements with popular figures and opening pop-up stores to engage younger consumers, resulting in a sales expense ratio of 32% in the first half of 2025, up from 28.5% in mid-2024 [2][4]. - Sales expenses were reported at 331 million yuan, a slight decrease of 1.41% year-on-year, but the rising sales expense ratio indicates challenges in translating marketing efforts into revenue growth [4]. Family Ownership and Management Challenges - Over 70% of the company's shares are held by the founder's family, with the founder's daughter, Jiang Xiaoying, holding 4.36% of the shares and actively involved in the company's operations [5][6]. - The company has struggled to retain professional managers, with previous attempts to bring in external talent resulting in high turnover, indicating potential issues with integrating different management styles within the family-owned structure [5][6]. Industry Competition and Product Development - The rise of fresh and diverse ready-to-drink tea options, coupled with aggressive pricing strategies from competitors, has significantly impacted the market space for traditional brewing tea products [2][3]. - Analysts suggest that the company needs to innovate and diversify its product offerings to escape its reliance on brewing tea and rejuvenate its brand image [6].