WANT WANT CHINA(HK:00151) 3 6 Ke·2026-02-05 04:35Core Viewpoint - The company is facing significant challenges as its revenue growth is stagnating and net profit has sharply declined, indicating a potential crisis for the once-popular brand [1][2]. Financial Performance - For the first half of the 2025 fiscal year, revenue reached RMB 11.11 billion, a modest increase of 2.1% compared to RMB 10.88 billion in the same period of 2024 [1]. - Net profit fell by 7.8% to RMB 1.72 billion from RMB 1.86 billion year-on-year [1]. - Gross profit margin decreased to 46.2% from 47.3%, and operating profit margin dropped to 20.4% from 23.4% [1]. Market Challenges - The company is struggling with rising costs and high expenses while its core products are losing market traction, leading to a mid-life crisis for the once-dominant snack brand [2]. - The nostalgic marketing strategy is failing to resonate with younger consumers who prefer new flavors and innovative products [1][2]. Strategic Shifts - The company is attempting a "second entrepreneurship" by focusing on two new areas: bulk snack channels and OEM (Original Equipment Manufacturer) business [3][7]. - The bulk snack channel has seen rapid growth, with the number of stores reaching 56,000 and the industry scale surpassing RMB 220 billion [3]. - The OEM business is being promoted as a new growth engine, with significant growth reported in the first half of 2025 [7][8]. Risks in New Strategies - The bulk snack channel, while appearing to grow, is highly competitive and may lead to reduced profit margins due to price wars [9][10]. - The OEM strategy risks diluting brand value, as consumers may perceive the brand as merely a processing factory rather than a premium product provider [12][13]. Core Issues - The company's core product categories, including rice snacks, dairy products, and beverages, continue to decline, with only minor growth in snack foods [10]. - Traditional sales channels still account for 65% of revenue but have been declining for two consecutive fiscal years [10]. - The reliance on low-price strategies in new channels conflicts with the company's historical high-margin business model [10]. Conclusion - The company is at a crossroads, facing a mid-life crisis with declining traditional products and uncertain new ventures. Without significant innovation and a shift in strategy, the brand risks losing its market position [14][17].