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Core Viewpoint - The company, Ziyan Food, is facing a significant trust crisis following a scandal involving improper behavior by staff at one of its franchise stores, leading to operational and reputational challenges [2][4]. Group 1: Incident and Response - Ziyan Food issued an apology acknowledging inappropriate actions by staff at a franchise location, which violated company management protocols [2]. - The management, led by CEO Ge Wuchao, has decided to close the affected store for rectification, terminate the involved employees, and issue a nationwide alert to all stores [2]. - The company has offered a tenfold cash compensation to the affected customer and a 1,000 yuan gift card as goodwill [2]. Group 2: Historical Context and Leadership - Ziyan Food, established in 1989, is a well-known player in the domestic marinated food industry, originally founded as "Zhongji Oil Scald Duck" [5]. - The company is family-controlled, with the Zhong family holding over 70% of the shares, and the founder's son-in-law, Ge Wuchao, took over as chairman in 2023 [5]. - Ge Wuchao faces significant challenges since taking over, including a decline in store numbers and financial performance [6]. Group 3: Business Performance and Challenges - The number of Ziyan stores has decreased from 6,308 to 5,144 within a year and a half, indicating a loss of over 1,100 stores [7][8]. - For the first nine months of the year, Ziyan reported revenue of approximately 2.514 billion yuan, with a net profit of about 194 million yuan, reflecting a 44.37% decrease [9]. - The company is attempting to rejuvenate its brand by targeting younger consumers and expanding internationally, although overseas revenue remains minimal, contributing only 0.45% to total income [9]. Group 4: Market Position and Stock Performance - As of December 26, Ziyan's stock price was 19.53 yuan per share, down 1.41%, with a market capitalization of approximately 8 billion yuan [9]. - The ongoing negative events are impacting the company's reputation and consumer trust, which is a more immediate concern than recovering financial performance [9].