Three Squirrels(SZ:300783) Guan Cha Zhe Wang·2025-10-14 12:13Core Viewpoint - Three Squirrels is seeking to expand its market presence through a Hong Kong IPO, aiming to revitalize its performance after a period of decline in the A-share market [1][2] Company Overview - Three Squirrels has received approval for its Hong Kong IPO, planning to issue up to 81.548 million shares within 12 months of the filing [1] - The company, originally focused on nut snacks, has attempted to pivot towards coffee and maternal and infant products to find new growth avenues [2][7] Financial Performance - In the first half of the year, Three Squirrels reported revenue of 5.478 billion yuan, a year-on-year increase of 7.94%, but net profit fell by 52.22% to 138 million yuan [3] - The company's cash flow from operating activities saw a drastic decline of 1075.08%, resulting in a negative cash flow of 377 million yuan [4] - Revenue has decreased from 9.794 billion yuan in 2020 to 7.115 billion yuan in 2023, a nearly one-third drop over three years [4] Market Challenges - The company faces challenges due to rising costs and increased competition, particularly as traditional snack brands adapt to online sales [5][6] - Sales expenses reached 1.119 billion yuan in the first half of the year, with a net profit margin of only 2.47%, indicating a struggle to maintain profitability [6] Strategic Initiatives - Three Squirrels has launched a coffee brand and expanded into the maternal and infant product sector, with the new brand "Little Deer Blue" generating 437 million yuan in revenue in the first half of the year [7] - The company is exploring international markets, particularly in Southeast Asia, as part of its growth strategy [7] Industry Context - The trend of A+H share listings is gaining momentum among consumer companies, driven by regulatory support and the need for improved liquidity and valuation [8][12] - The current market environment for consumer stocks is characterized by stricter primary market reviews and weaker secondary market performance, prompting companies to seek dual listings [12]