Juewei Food (SH:603517) Xin Lang Cai Jing·2025-09-24 06:24Core Viewpoint - ST Juewei has faced significant challenges due to regulatory issues and declining financial performance, leading to a sharp drop in stock price and market capitalization [3][5]. Regulatory Issues - ST Juewei was suspended from trading on September 22 and was subsequently placed under risk warning, with its stock name changed to "ST Juewei" [3]. - The China Securities Regulatory Commission (CSRC) initiated an investigation into Juewei for suspected violations of information disclosure laws, resulting in a warning and a fine of 4 million yuan [3]. - The CSRC's notice indicated that from 2017 to 2021, Juewei failed to recognize revenue from franchise store renovations, leading to understated annual revenue by 5.48%, 3.79%, 2.20%, 2.39%, and 1.64% for the respective years [3]. Financial Performance - In the first half of the year, ST Juewei reported approximately 2.82 billion yuan in revenue, a year-on-year decrease of 15.57%, and a net profit of about 175 million yuan, down 40.71% [5]. - The core marinated food segment, which accounts for 84.88% of revenue, saw a revenue decline of 16.67% to 2.34 billion yuan, reflecting weak consumer demand and declining store efficiency [5]. - Despite a 9.81% increase in supply chain logistics revenue to 263 million yuan, the overall contribution from non-core businesses was insufficient to offset the decline in the main business [5]. Industry Comparison - In contrast to ST Juewei's declining profits, competitors such as Huang Shang Huang and Zhou Hei Ya reported profit increases, with Huang Shang Huang's net profit rising by 26.90% to approximately 76.92 million yuan and Zhou Hei Ya's net profit soaring by 228% to 108 million yuan [6]. - The profit growth for these competitors was attributed to lower raw material prices and improvements in store operations, channel expansion, brand building, and supply chain optimization [6].