CHACHA FOOD CO.,LTD(SZ:002557) 3 6 Ke·2025-10-24 12:04Core Viewpoint - The financial performance of Qiaqia Food has significantly declined, with a notable drop in revenue and net profit for the first three quarters of 2025 compared to the previous year, indicating ongoing challenges in the business [1][3]. Financial Performance - For the first nine months of 2025, Qiaqia achieved revenue of 4.501 billion yuan, a decrease of 5.38% year-on-year [2]. - The net profit attributable to shareholders was 168 million yuan, down 73.17% compared to the same period last year [2]. - In Q3 2025, revenue was 1.749 billion yuan, a decline of 5.91%, with net profit at 79.36 million yuan, a drop of 72.58% [2]. Business Challenges - The core sunflower seed business has shown weak growth, with revenue for this segment only increasing by 2.6% in 2024, while facing a 4.45% decline in H1 2025 due to rising raw material costs [3]. - The surge in raw material prices, particularly due to adverse weather conditions and global commodity price increases, has severely impacted profit margins, leading to a drop in gross margin from 31.88% in 2022 to 19.93% in H1 2025 [3][4]. Strategic Responses - Qiaqia is attempting to manage high raw material costs by reducing inventory, with a 58.42% decrease in inventory from the beginning of the year [4]. - The company is also exploring new business avenues, including expanding its product line to include konjac products and enhancing its marketing strategies to attract younger consumers [5][6]. Investment Initiatives - Qiaqia announced a joint investment with Huatai Group to establish a new investment company focused on the snack food industry, aiming to improve financial returns and share risks [6]. - Despite these efforts, the company faces skepticism regarding whether these financial maneuvers can address the fundamental issues affecting its core product lines [6]. Market Position - Qiaqia still holds over 50% market share in China's 35 billion yuan sunflower seed market, indicating a strong competitive position despite recent performance challenges [7]. - The company's long-term goal of achieving 10 billion yuan in revenue appears increasingly difficult, with significant revenue targets remaining unmet [6][7].