Juewei Food (SH:603517) Sou Hu Cai Jing·2025-11-09 01:41Core Insights - The company "Juewei" is facing significant challenges, including a revenue drop of 700 million and a net profit decline of over 30% in the first three quarters of the year [3] - The number of stores has decreased by over 5,000 since the end of 2023, averaging nearly 10 store closures per day [3] - The company is under scrutiny for compliance issues, specifically for failing to report over 700 million in franchise store renovation income for five consecutive years, which is a serious regulatory violation [3][4] Company Issues - Juewei's expansion strategy, which relied heavily on franchising, has backfired as franchisees face squeezed profits due to mandatory purchases from designated suppliers [3] - The company has invested over 2 billion in loss-making enterprises while the controlling shareholder cashed out 3.7 billion at high stock prices, raising concerns among long-term investors [3] - The company has not adapted to changing consumer preferences, with traditional high-fat and high-salt products losing appeal among younger consumers [4] Industry Context - The snack food industry is experiencing intense competition, with convenience stores and supermarkets offering homemade alternatives, further impacting Juewei's market share [4] - Competitors like "Huang Shang Huang" and "Zhou Hei Ya" have managed to stabilize their businesses by closing inefficient stores and focusing on cost control, unlike Juewei [4] - The overall industry downturn has exacerbated Juewei's struggles, highlighting the importance of compliance, trust with franchisees, and the ability to innovate in response to market trends [4][5]