Core Insights - The health, functionality, personalization, and emotional aspects are the upgrade directions for the new consumption industry, with prunes successfully tapping into these demands, representing a dual advancement in both industry and consumer trends [1][34]. Industry Trends - The market for prune juice reached 4.5 billion yuan in 2023, showing a 15% year-on-year growth, and is expected to reach 6 billion yuan by 2025, with a compound annual growth rate of 12%, significantly outpacing the overall beverage industry's growth rate of 6% [11]. - The juice market had previously faced a decline, with retail sales dropping from 87.14 billion yuan in 2017 to 75.26 billion yuan in 2021, indicating a shift in consumer preferences towards healthier options [11][12]. - The trend towards health-oriented products has led to a rise in functional beverages, with 91.6% of consumers purchasing NFC juice for its functional benefits rather than taste [13]. Product Development - The "Prune Universe" has rapidly expanded with various products such as prune juice, dried prunes, and yogurt, reflecting a shift in consumer perception from prunes as a mere fruit to a functional ingredient [2][19]. - The introduction of new products has been significant, with a 454% increase in SKU numbers for prune-related beverages, indicating strong market interest and investment [16]. Consumer Behavior - Consumers are increasingly seeking products that prioritize health and functionality over traditional sugary drinks, with 73.5% of respondents in a survey indicating a preference for quality food and beverages [12]. - The narrative around prunes has shifted, with consumers sharing experiences of the product's effectiveness in addressing digestive issues, thus creating a community of potential customers [10][22]. Supply Chain and Production - The supply chain for prunes has improved significantly, with investments in modern agricultural practices and cold chain logistics enhancing the quality and availability of fresh prunes [29][30]. - The Xinjiang region is a major production area for prunes in China, with significant investments in processing facilities to support the growing demand for prune products [30][31]. Market Challenges - Despite the growth, the prune juice market faces challenges, including a recent trust crisis due to quality issues with certain products, highlighting the need for transparency and quality assurance in the industry [35][36].

Core Insights - In 2024, the company achieved total revenue of 6.266 billion yuan, a year-on-year increase of 28.6%, and a net profit of 1.068 billion yuan, up 21.3% [1] - The core driver of this growth is the vegetable product line, particularly "konjac snacks," which generated 3.371 billion yuan in revenue, a 59.1% increase, making it the largest revenue source for the company [1][2] - The transition from reliance on spicy strips to a diversified product matrix marks a significant structural change for the company [1] Revenue Breakdown - The vegetable product line accounted for 53.8% of total revenue, surpassing spicy strips for the first time [1] - The spicy strip segment generated 2.667 billion yuan, with a modest growth of 4.6%, and its revenue share decreased to 42.6% [4] - The company’s revenue from offline channels reached 5.562 billion yuan, a 27.5% increase, while online sales amounted to 705 million yuan, growing 38.1% and representing 11.3% of total revenue [2] Product Innovation and Marketing - The company launched over 20 new products in 2024, including "Little Witch" konjac tripe and "Crispy Fire" spicy chips, catering to diverse taste preferences [3] - The marketing strategy emphasizes a youthful image, utilizing social media narratives to resonate with Generation Z, which has helped increase the average transaction value from 14.3 yuan/kg in 2019 to 20.5 yuan/kg in 2024 [3] Strategic Challenges - Despite efforts to reduce dependence on spicy strips, the sales volume of spicy strips has declined significantly, from 193,600 tons in 2021 to 124,400 tons in 2023, a drop of 35.7% [4] - The company faces challenges in balancing health trends with the traditional image of spicy strips, as well as competition from lower-priced private label products in lower-tier markets [4] Management and Governance - In March 2024, the CEO resigned, and the founder took over, raising concerns about governance structure due to increased family control [5] - The company needs to find a balance between family control and professional management to ensure sustainable growth [6] Market Outlook - The stock price increased by over 128% in 2024, with a market capitalization of 38.6 billion HKD, indicating positive market sentiment [6] - Analysts predict that by 2027, e-commerce and bulk channels will account for 19.4% and 14.9% of revenue, respectively, highlighting future growth potential [3] Conclusion - The company's 2024 financial report illustrates a successful transformation through product innovation, channel diversification, and brand rejuvenation [6] - The case of the company serves as a testament to the necessity of "product innovation + channel refinement + capital empowerment" for sustainable growth in the competitive landscape of the snack food industry [7]