Shanghai Ziyan Foods (SH:603057) 凤凰网财经·2025-12-25 12:25Core Viewpoint - The article highlights ongoing issues with food safety and customer trust at Ziyan Food, particularly following a recent incident where an employee was caught stealing meat, raising questions about management practices and operational integrity [1][5][36]. Group 1: Incident and Response - A video surfaced showing an employee at Ziyan Food's store in Jiangsu secretly taking beef from a customer's order, leading to public outrage and suspicions about the store's practices [1][2][4]. - In response, Ziyan Food established a special task force to investigate the incident, confirmed the misconduct, and took immediate actions including closing the store, firing the employee, and offering compensation to affected customers [5]. Group 2: Food Safety Issues - Ziyan Food has a history of food safety problems, with previous incidents including microbial contamination in products, where five items failed safety tests, with one sample exceeding the safe limit by 290 times [8][10]. - The company has faced multiple complaints regarding food safety, including issues of underweight products and reports of foreign objects in food [20][22]. Group 3: Business Model and Management Challenges - Ziyan Food operates primarily through a distribution model, with 79.32% of revenue coming from distributors, which limits direct control over franchise operations and contributes to management challenges [24][28]. - The company has acknowledged risks associated with its sales channel management, noting that as the number of franchise stores increases, maintaining oversight becomes more difficult [28]. Group 4: Financial Performance - For the first three quarters of 2025, Ziyan Food reported a revenue of 2.514 billion yuan, a decline of 6.43% year-on-year, with net profit dropping by 44.37% to 194 million yuan [36]. - The company's cash flow from operating activities decreased by 39.23%, and its debt ratio rose to 49.31%, indicating financial strain and challenges in sustaining growth [38]. Group 5: Strategic Transition and Leadership - Ziyan Food is undergoing a strategic transformation focusing on youth engagement, globalization, and digitalization, but faces significant upfront costs and cash flow challenges [40]. - The company has recently transitioned to a new management team, which must balance immediate operational crises with long-term strategic goals, amidst increasing competition and market pressures [42].