Investment Rating - The investment rating for the company is "Buy (Maintain)" [5] Core Views - The company is experiencing short-term pressure on revenue growth while benefiting from cost advantages [4][7] - The company reported a revenue of 1.124 billion yuan in H1 2025, a decrease of 0.50% year-on-year, and a net profit of 112 million yuan, down 21.86% year-on-year [7] - The company is focusing on health innovation and expanding its product matrix to drive growth [7] Financial Summary - Total shares outstanding: 450.89 million [2] - Market price: 13.32 yuan [2] - Market capitalization: 6,005.91 million yuan [2] - Revenue forecast for 2025: 2,649 million yuan, with a growth rate of 10% [5] - Net profit forecast for 2025: 278 million yuan, with a decrease of 5% year-on-year [5] - Earnings per share (EPS) forecast for 2025: 0.62 yuan [5] - Price-to-earnings (P/E) ratio for 2025: 21.6 [5] - Price-to-book (P/B) ratio for 2025: 3.7 [5] Revenue Breakdown - In H1 2025, revenue from fish products was 757 million yuan, showing a growth of 7.61% year-on-year [7] - Revenue from poultry products was 196 million yuan, down 24.00% year-on-year [7] - Revenue from bean products was 115 million yuan, up 3.61% year-on-year [7] - Revenue from vegetable products was 34 million yuan, down 10.69% year-on-year [7] - Online sales revenue was 185 million yuan, down 6.82% year-on-year, while offline sales revenue was 939 million yuan, up 0.85% year-on-year [7] Profitability Metrics - Gross margin in H1 2025 was 29.45%, a decrease of 0.95 percentage points year-on-year [7] - Net profit margin in H1 2025 was 9.96%, down 2.73 percentage points year-on-year [7] - The company is facing pressure on profitability due to increased costs associated with channel expansion and marketing [7]

Core Insights - The konjac snack products, known as "konjac strips" and "vegetarian tripe," are becoming a phenomenon in the snack food sector, significantly driving revenue growth for companies like Salted Fish and Wei Long [1][3] - The konjac snack market is expected to maintain high growth rates from 2025 to 2027, with over 30 brands entering the market to capture this segment [1][7] Company Performance - In 2024, konjac strips contributed to Wei Long's vegetable product revenue growth of 59.1%, reaching 3.37 billion yuan, accounting for 53.8% of total revenue [3] - Salted Fish's konjac snack revenue reached 838 million yuan in 2024, a year-on-year increase of 76.09%, making it a key driver of the company's growth [3] - In the first half of 2025, Wei Long's vegetable product revenue grew by 44.3% to 2.109 billion yuan, while Salted Fish's konjac snack revenue surged by 155.1% to 791 million yuan [3][4] Market Trends - The konjac industry is projected to exceed 30 billion yuan by 2025, with an annual compound growth rate (CAGR) of 11.8% expected until 2030 [7] - The increasing focus on health-conscious eating is driving consumer demand for low-calorie, high-fiber konjac products, leading to a shift in Wei Long's product strategy away from traditional spicy snacks [5][6] Cost Pressures - The explosive growth in downstream demand for konjac products is putting pressure on upstream raw material supply, leading to rising prices for konjac powder [8][9] - The average purchase price of konjac has doubled from 2 yuan per jin to 4 yuan per jin due to supply constraints and increased export demand [8] - Both Salted Fish and Wei Long reported declines in gross margins due to rising raw material costs, with Salted Fish's gross margin dropping from 32.53% to 29.66% and Wei Long's from 49.8% to 47.2% [9][10] Strategic Initiatives - Salted Fish plans to deepen its core product strategy for its "Big Demon King" konjac tripe and enhance sales through diversified marketing and brand collaborations [4] - Wei Long is focusing on expanding its konjac product line and has increased its production capacity for vegetable products by 59.43% [4][6]

Group 1: Market Performance and Growth - The konjac product category is experiencing rapid expansion, with a projected high growth rate over the next 3-5 years due to increasing consumer demand for healthy snacks [2] - In the first half of 2025, the company focused on its core strategic product, "Big King" sesame-flavored konjac, achieving significant sales growth with monthly sales hitting new highs [2] - Revenue from leisure konjac products reached 1 billion yuan, marking a year-on-year increase of 155.10% [2] Group 2: Channel Performance - The "Big King" sesame-flavored konjac performed strongly across various sales channels, including quantitative distribution, snack channels, high-potential member channels, and e-commerce [3] - Revenue growth in the quantitative distribution channel was robust due to focused market efforts, while the snack wholesale channel saw steady growth through increased store numbers and marketing [4] - E-commerce faced short-term performance pressure due to structural adjustments, but plans to replicate the success of "Big King" are in place to enhance efficiency [4] Group 3: Future Strategies - From 2025 to 2027, the company will deepen its core product strategy for "Big King" by leveraging multi-channel marketing and regional characteristics to boost sales [3] - The company plans to increase market expenditure in the second half of the year, focusing on promotional resources to enhance brand exposure and sales rates [5] - Expected revenue growth in high-potential member channels, overseas markets, and quantitative distribution channels is anticipated to exceed the company's average growth rate [4]

Core Insights - Konjac has emerged as a popular healthy snack, driven by its low-calorie, high-fiber properties, and strong satiety, addressing consumer health concerns while satisfying taste preferences [3][4][10] - The konjac snack market is experiencing significant growth, with the domestic market size projected to reach approximately 270 billion yuan in 2024, and the leisure konjac snack segment exceeding 180 billion yuan, reflecting a nearly 20% compound annual growth rate over the past decade [3][4] Group 1: Market Trends - The market share of konjac products, including konjac slices, has increased from 0.87% in Q1 2023 to 1.4% in Q1 2025, indicating a rising trend in consumer acceptance [4] - Over thirty brands, including well-known names like Wei Long and Liang Pin Pu Zi, are entering the konjac snack market, enhancing consumer choices and driving market development [4][5] Group 2: Product Innovation - Companies are innovating in flavor, texture, and form to meet diverse consumer preferences, with popular flavors including spicy and regional variations [5][8] - The introduction of unique ingredients, such as Biospringer yeast extract, enhances flavor profiles and extends the sensory experience of konjac snacks [7][11] - Various product forms, such as konjac chips and konjac noodles, are being developed to cater to different consumer needs and preferences, expanding market opportunities [8][10] Group 3: Health and Consumer Preferences - A significant portion of Gen Z consumers (60.2%) prefer low-fat, low-calorie, and additive-free healthy foods, which aligns with the attributes of konjac snacks [10][11] - The growing health consciousness among consumers is expected to drive further competition in the konjac snack market, focusing on flavor differentiation and health upgrades [10][11]

Core Insights - The rise of lightly processed snacks is driven by increasing consumer health awareness, leading to a growing market size and diverse product offerings [1][2] - The trend reflects a strong consumer demand for healthy snacks, with a shift towards nutritional components and health impacts [2] - Regulatory pressures in regions like Europe and the U.S. are pushing food companies to adopt cleaner labels and reduce additives, aligning with the lightly processed snack concept [3] Consumer Trends - In the U.S., 48.8% of consumers snack at least three times a day, with 64% preferring energy-boosting products and 61% opting for high-protein snacks [2] - The popularity of ready-to-eat, high-protein snacks, such as boiled eggs, indicates a growing acceptance of lightly processed options among fitness enthusiasts and busy professionals [2] - In China, the demand for lightly processed snacks is also rising, evidenced by the popularity of steamed vegetable snacks and freeze-dried fruits [2] Regulatory Environment - Stricter food safety regulations in the U.S. and Europe are promoting transparency in ingredient labeling and reducing the use of additives [3] - The concept of "clean labels" is becoming a key industry term, emphasizing short ingredient lists and recognizable raw materials [3] Technological Innovations - Innovations in processing technology, such as low-temperature baking and vacuum drying, are enhancing the nutritional value and taste of lightly processed snacks [4] - The use of natural preservatives from plant extracts is gaining traction, allowing brands to maintain product integrity while adhering to clean label principles [4] Market Dynamics - The emergence of lightly processed snacks is transforming the entire supply chain, from agriculture to retail [7] - Increased demand for high-quality raw materials is prompting agricultural adjustments, particularly for health-oriented crops like chickpeas and nuts [7] - The need for cold chain logistics is rising due to the shorter shelf life of lightly processed snacks, with a reported 15% increase in refrigerated healthy snack offerings in Europe [7] Challenges - Lightly processed snacks face challenges such as shorter shelf life, requiring frequent restocking and increased inventory management pressure [8] - The necessity for refrigeration adds to logistics and sales costs, particularly for e-commerce channels [8]

Core Viewpoint - The control of the high-end snack brand "Liangpin Shop" is in dispute, with a lawsuit involving its major shareholder, Ningbo Hanyi, and Guangzhou Light Industry Group, leading to uncertainties regarding ownership transfer and company operations [1][2][3]. Group 1: Control and Ownership Changes - Ningbo Hanyi, the former controlling shareholder of Liangpin Shop, holds 29.84% of the shares as of Q1 2025 and has been seeking a buyer to alleviate operational challenges [2][3]. - On July 17, 2023, Liangpin Shop announced the introduction of Wuhan Yangtze International Trade Group as a strategic investor, which would reduce Ningbo Hanyi's shareholding from 38.22% to 17.22% and grant Wuhan Yangtze a 21% stake [2][3]. - Following the announcement, Guangzhou Light Industry filed a lawsuit against Ningbo Hanyi on July 21, claiming breach of contract regarding share transfer agreements, leading to the freezing of 79.76 million shares held by Ningbo Hanyi [2][3]. Group 2: Financial Performance and Market Challenges - Liangpin Shop projected a net loss of between 75 million to 105 million yuan for the first half of 2025, with a significant decline in net profit compared to the previous year [6]. - The company attributes its financial struggles to ongoing adjustments in product and store structures, rising online channel costs, and decreased income from interest and government subsidies [6][8]. - The snack industry is undergoing structural changes, with shrinking consumption and evolving consumer preferences, particularly among the Z generation, who prioritize health and value for money [6][7]. Group 3: Competitive Landscape and Strategic Positioning - Liangpin Shop's health transformation efforts have not been systematic, leading to confusion in market positioning, especially compared to competitors like Baicaowei, which has successfully focused on health-oriented products [7]. - The company is facing challenges in both offline and online channels, with traditional retail traffic declining and high online customer acquisition costs squeezing profit margins [8]. - The need for stable control is emphasized as a prerequisite for business recovery, highlighting the importance of resolving the ongoing ownership dispute [9].

Core Viewpoint - Qiaqia Food Co., Ltd. is undergoing a significant transformation from a traditional snack brand to a diversified health snack leader, as demonstrated by the launch of five innovative products at their recent event [1][3]. Product Innovation - The five new product series launched include Qiaqia Mountain Wild Series Sunflower Seeds, Qiaqia All-Nut Series, Qiaqia Magic Yam Princess—Magic Yam Layered Stomach, Qiaqia Crispy Bear Fresh Cut Potato Strips, and Qiaqia Sunflower Seed Kernel Ice Cream [3]. - The company emphasizes that it produces not just products but also quality and brand, allowing for innovation failures but not for a lack of innovation [3]. Industry Trends - The launch reflects the company's deep insights into future industry trends and a precise response to these trends, marking a significant upgrade in product offerings [3]. - The company has achieved three breakthrough transitions: from a single category to a matrix product ecosystem, from flavor innovation to deep nutritional functionality, and from snack foods to lifestyle scene upgrades [3].

Core Viewpoint - PepsiCo reported strong financial results for Q2 2025, with net sales of $22.726 billion and organic sales growth of 2.1%, indicating resilience in a challenging environment [1] Financial Performance - Net sales reached $22.726 billion (approximately ¥164.887 billion) [1] - Operating profit was $1.789 billion (approximately ¥12.98 billion) [1] - Organic sales grew by 2.1% year-over-year [1] Market Expansion and Strategy - PepsiCo's market share in China's food and beverage sector continues to expand, demonstrating robust performance [1] - The company is adapting to the rapidly changing Chinese consumer market by focusing on health, taste, emotional resonance, and emerging channels [1] - PepsiCo is enhancing its local supply chain advantages to improve product competitiveness [2] Product Innovation - The introduction of new products like the "Milk Bare Rice Cake" and the dragon fruit dried product has been successful, with the latter quickly entering the top 10 dried fruit list at Sam's Club [2] - PepsiCo's commitment to innovation is evident in its quick-to-market strategy, exemplified by the "farm-to-shelf" potato chips [2] Investment and Future Outlook - PepsiCo is investing in local production capabilities, with a new food factory in Xi'an expected to be operational by Q3 2025 [2] - The company views investment in China as essential for high-quality growth, with plans to share its "China experience" across the Asia-Pacific region [3][4] Technological and Sustainable Practices - PepsiCo is leveraging its experience in China to enhance global operations, including the introduction of sustainable practices like biogas projects [3] - The company's agricultural system in China is becoming a vital part of its global supply chain [3]

Core Insights - PepsiCo reported Q2 2025 net sales of $22.726 billion and operating profit of $1.789 billion, with stable growth in market share for its food and beverage business in China [1] - The company is focusing on innovation driven by consumer demand for healthier snack options, emphasizing low sugar, low calorie, and high-quality ingredients [1] - PepsiCo is enhancing its local supply chain, with a new food factory in Xi'an, Shaanxi, expected to be operational by Q3 2025 [1] International Expansion - PepsiCo is exporting its "China experience" to other markets, including the implementation of green technology practices from its Wuhan factory to its operations in Thailand [2] - The company aims to continue expanding its international business and improve performance in the North American market, projecting low single-digit organic revenue growth for FY 2025 [2] - The outlook for core dollar earnings per share has improved due to a weaker dollar, reducing foreign exchange headwinds [2]

Financial Data and Key Metrics Changes - The company expects to deliver about 70% more productivity in the second half of the year compared to the first half, indicating a significant improvement in operational efficiency [12] - The North America market integration is anticipated to create both efficiency and cost reduction opportunities, enhancing overall performance [10] Business Line Data and Key Metrics Changes - The food business is focusing on stabilizing the category and improving competitiveness within subsegments, with notable performance in brands like Cheetos and Doritos [21][22] - The away-from-home business is highlighted as a growth area, with high single-digit growth reported in the PBNA segment [28] Market Data and Key Metrics Changes - International markets are performing well, with mid-single-digit growth expected to continue, particularly in LATAM and parts of Europe, while China shows some weakness [50][51] - The beverage segment is gaining share globally, driven by successful platforms such as no sugar colas and energy drinks [76] Company Strategy and Development Direction - The company is investing in technology and productivity initiatives to optimize cost structures and drive growth, with a focus on integrating operations in North America [9][10] - There is a strong emphasis on permissible snacks and healthier options, with plans for innovation in protein and fiber offerings [46][47] Management's Comments on Operating Environment and Future Outlook - Management expresses confidence in returning to the low end of the long-term growth algorithm, supported by sustained international growth and improvements in North America [55] - The company is committed to following consumer trends towards healthier ingredients and eliminating artificial components from products [86] Other Important Information - The company is actively working on portfolio transformation, particularly in the permissible snacks category, which has grown to over $2 billion [43] - Investments in away-from-home capabilities are expected to enhance growth opportunities and profitability [29] Q&A Session Summary Question: Insights on productivity initiatives and asset footprint - Management discussed multi-year productivity strategies, emphasizing technology investments and cost structure optimization across various business lines [9][10] Question: Key initiatives for North America top line improvement - Management highlighted stabilizing the food category and improving competitiveness as critical initiatives for the second half of the year [21][25] Question: Growth in the away-from-home segment - The away-from-home business is seen as a significant growth opportunity, with margin accretion noted for both beverages and snacks [28][29] Question: Visibility on full-year earnings and productivity acceleration - Management expressed high confidence in productivity initiatives, with identified actions expected to drive results in the second half of the year [35][36] Question: Portfolio transformation and consumer engagement - The company is focusing on increasing availability and affordability of permissible snacks to drive consumer trial and engagement [44][45] Question: International business performance and growth drivers - International markets are performing well, with a focus on developing and emerging markets driving growth [50][51] Question: Energy drink strategy and future outlook - Management remains optimistic about the energy drink category, with plans to leverage partnerships and distribution capabilities [92]