XIANGPIAOPIAO(SH:603711) Shen Zhen Shang Bao·2025-10-30 15:56Core Viewpoint - The company, Xiangpiaopiao, once known as the "first stock of Chinese milk tea," is currently facing significant performance challenges, with a decline in revenue and profits in recent quarters [1][3]. Financial Performance - For the first three quarters of 2025, the company reported revenue of 1.684 billion CNY, a year-on-year decrease of 13.12%, and a net loss attributable to shareholders of 89.21 million CNY [1][3]. - In Q3, revenue fell by 14.53% year-on-year, and net profit decreased by 82.67% [1][3]. - Sales revenue from instant products dropped by 19.68%, while ready-to-drink products saw a decline of 4.93% [1][3]. Business Operations - The decline in performance is attributed to the company's strategic decision to adjust the shipment schedule of instant products, leading to delayed sales compared to previous years [3][4]. - The company has been actively working on inventory reduction in its distribution channels, with market activities and stock preparations starting in mid to late September [4]. Market Position and Strategy - Xiangpiaopiao's revenue has been on a downward trend from 2020 to 2022, dropping from 3.761 billion CNY to 3.128 billion CNY, primarily due to declining sales [5]. - In 2023, revenue increased to 3.625 billion CNY but has not yet returned to 2019 levels [5]. - The company is exploring new sales channels, including a trial in the restaurant sector for its ready-to-drink products, although new product sales still represent a small portion of total sales [5]. Future Developments - The company is planning to open its first offline tea shop in Hangzhou, aimed at enhancing brand experience and gathering market feedback, despite previously stating no plans for physical stores [6]. - As of October 30, 2023, the company's stock price was 13.11 CNY, with a total market capitalization of 5.413 billion CNY [7][8].