JONJEE(SH:600872) Hua Er Jie Jian Wen·2025-10-24 12:45Core Insights - Zhongju Gaoxin, a leading condiment company in the A-share market, is facing significant challenges with a sharp decline in performance, particularly in its core condiment business, leading to a near halving of net profit in Q3 2025 [1][2] Financial Performance - Revenue for Q3 2025 was 1.025 billion yuan, a year-on-year decrease of 22.84%; total revenue for the first three quarters was 3.156 billion yuan, down 20.01% [1] - Net profit attributable to shareholders for Q3 was 123 million yuan, a decline of 45.66% year-on-year; net profit for the first three quarters was 380 million yuan, down 34.07% [1] - The cash flow from operating activities was 516 million yuan, a decrease of 43.52% year-on-year, primarily due to reduced sales collections following the decline in revenue [1] Core Business Challenges - The primary reason for the performance decline is attributed to the sales drop in the core subsidiary, Meiwai Xian, which reported revenue of 3.107 billion yuan for the first three quarters, a year-on-year decrease of 18.40% [2] - The company has stated that the revenue contraction is a result of actively optimizing distributor inventory and solidifying market foundations [2] - Despite the revenue decline, sales expenses have surged, reaching 436 million yuan for the first three quarters, up nearly 20% from 366 million yuan in the same period last year, severely compressing profit margins [2] Expense Trends - The sales expense ratio (sales expenses/revenue) was approximately 9.3% for the first three quarters of 2024, which increased to 13.8% in the same period of 2025 [2]