Three Squirrels(SZ:300783) Guan Cha Zhe Wang·2025-10-29 01:48Core Viewpoint - The financial performance of the snack manufacturer Three Squirrels has deteriorated significantly, with cash flow issues and consecutive quarterly losses indicating failures in its cost-performance and diversification strategies [1][2]. Financial Performance - In the first three quarters of 2025, Three Squirrels reported revenue of 7.759 billion yuan, an increase of 8.2% year-on-year, but net profit attributable to shareholders fell by 52.9% to 161 million yuan [1]. - The net cash flow from operating activities plummeted by 1690.52% to -506 million yuan, indicating severe cash flow problems [1]. - The company's cash reserves decreased from 866 million yuan at the beginning of the year to 242 million yuan, a drop of 72.06% [1]. - Short-term borrowings increased by 59.87% compared to the end of the previous year due to funding gaps [1]. Historical Performance Trends - Since its peak in 2019, Three Squirrels has experienced four consecutive years of declining revenue, with 2020 revenue at 9.794 billion yuan (down 3.72%), 2021 at 9.770 billion yuan (down 0.24%), 2022 at 7.293 billion yuan (down 25.35%), and 2023 at 7.115 billion yuan (down 2.45%) [2]. - The company has historically focused on online sales, but changing consumer habits have led to the rise of new retail formats that offer better pricing and convenience [2]. Strategic Responses - Three Squirrels has adopted a "high-end cost-performance" strategy, aiming to lower prices while maintaining quality, with average price reductions across five core product categories in 2024 [3]. - In 2024, the company achieved revenue of 10.622 billion yuan, a 49.3% increase year-on-year, and net profit of 408 million yuan, up 85.51% [3]. - However, the first quarter of 2025 saw a significant decline in performance, with revenue of approximately 3.723 billion yuan (up 2.13%) and net profit down 22.46% [3]. Diversification Efforts - The company announced plans to transform into a full-category consumer brand, launching 33 sub-brands across various sectors, including pet food and beverages [4]. - Despite these efforts, the second quarter of 2025 saw a revenue increase of 22.77% to 1.754 billion yuan, but a net loss of 101 million yuan, indicating ongoing challenges [4]. Competitive Landscape - The rise of bulk snack retailers and community chains has intensified competition, forcing traditional brands to shift from high marketing expenditures to a focus on cost-performance [5]. - The competitive pressure is compounded by supply chain efficiency challenges, as new entrants leverage high turnover models to capture market share [5].