卫龙 “失宠”

Core Viewpoint - The company Wei Long, known for its spicy strips, is facing a decline in its core business as revenue from seasoned flour products has dropped, leading to a shift in its market position and reliance on other product lines like vegetable products [1][7][11]. Group 1: Business Performance - In the first half of 2025, revenue from seasoned flour products (spicy strips) decreased by 3.25% to RMB 1.31 billion, accounting for 37.6% of total revenue, down from 46.1% in 2024 [2][7]. - The vegetable products segment, led by konjac products, saw a significant increase in revenue, reaching RMB 2.11 billion, a year-on-year growth of 44.31%, and now represents 60.5% of total revenue [2][11]. - Overall revenue for the first half of 2025 was RMB 3.48 billion, compared to RMB 2.94 billion in the same period of 2024, marking an 18.5% increase [2][11]. Group 2: Management Changes - The departure of key executives, including the CEO and CFO, has led to a family takeover of management positions, with all core roles now held by members of the Liu family [3][13]. - This shift towards a family-run governance structure raises concerns about transparency and market adaptability [18][20]. Group 3: Market Challenges - The spicy strip segment is experiencing intense competition, with many new entrants leading to market share erosion for Wei Long [10][11]. - Consumer preferences are shifting away from spicy strips, with healthier options like konjac products gaining popularity [9][10]. - The company's heavy reliance on offline sales channels, which accounted for 90.4% of revenue in the first half of 2025, limits its ability to adapt to the growing e-commerce market [23][24]. Group 4: Future Outlook - The company's growth is increasingly dependent on the vegetable products segment, which poses risks if this growth slows down due to rising raw material costs and intensified competition [11][12]. - Wei Long's product innovation has stagnated, with other product lines, such as bean-based products, showing a 48% decline in revenue [25]. - To regain its market position, Wei Long must overcome its family-centric governance and embrace market-driven management and innovation strategies [25][26].