Core Viewpoint - The condiment industry is experiencing a decline in the "zero additives" trend, impacting Qianhe Flavor Industry's performance, which reported its first dual decline in earnings since its listing in 2016, with a 4.16% drop in annual revenue to 3.073 billion yuan [1][4]. Revenue and Sales Performance - In 2024, Qianhe Flavor Industry's core product, soy sauce, saw a revenue decline of 3.75% year-on-year, contributing to an overall revenue decrease of 4.16% [1]. - The company's revenue for Q1 2024 fell by 7.15% to 830 million yuan, with a net reduction of 34 distributors due to negative publicity [1][8]. - From 2021 to 2023, the company experienced significant revenue growth, with sales rising from 1.925 billion yuan in 2021 to 3.207 billion yuan in 2023, and a net profit increase of over 50% annually from 2022 to 2023 [4]. Distributor Network and Sales Model - Qianhe Flavor Industry's distributor count peaked at 3,560 in H1 2024 but fell to 3,316 by year-end, indicating a significant slowdown in expansion compared to previous years [7]. - The company transitioned its sales model from a focus on distributors to a division between online and offline sales, with offline revenue declining by 4% to 2.433 billion yuan [8]. Competitive Landscape - Competitors like Haitian Flavor Industry are rapidly expanding their "zero additives" product lines, with Haitian reporting a 60% increase in sales of its "zero additives" series in 2024 [6]. - Qianhe's soy sauce sales growth of 1.27% in 2024 is significantly lower than the previous years' growth rates of 27.49% in 2022 and 33.19% in 2023, reflecting increased competition [5]. Cost Structure and Profitability - Qianhe's soy sauce has a gross margin of 38%, which is 6.7 percentage points lower than Haitian's, despite having a lower direct material cost of approximately 1,933.45 yuan per ton compared to Haitian's 2,422.99 yuan [8]. - The lower gross margin is attributed to a higher proportion of lower-end products in Qianhe's portfolio, which dilutes overall profitability [8]. Regulatory Environment - New regulations set to take effect in March 2025 will prohibit the use of "zero additives" in marketing, requiring Qianhe to adjust its branding and product strategy within a two-year transition period [9].

Summary of Li Ziyuan's Conference Call Company Overview - **Company**: Li Ziyuan - **Industry**: Beverage, specifically focusing on functional drinks and vitamin water Key Points and Arguments Growth Strategy - **Vitamin Water as Growth Driver**: Li Ziyuan aims to establish vitamin water as a second growth curve with a sales target of 100 million yuan, leveraging modern channels, snack wholesale, and e-commerce platforms for promotion [2][5] - **E-commerce Performance**: E-commerce sales are projected to reach 10 million yuan in June, with a growth rate of 40%-50% in Q1 [2][16] - **Snack Wholesale Channel**: The company is rapidly developing the snack wholesale channel, targeting over 100 million yuan in sales this year [2][14] Product Development - **New Product Launches**: The company is introducing vitamin water with a "zero" additive concept, including 500ml and upcoming 250ml options, focusing on a simplified formula [3][4] - **Health and Nutrition Focus**: New products emphasize health and nutrition, targeting young consumers through brand ambassadors and innovative marketing strategies [9][10] Organizational Changes - **Management Restructuring**: A new generation of leadership has taken over, with a focus on brand upgrading, e-commerce team building, and new product development [7][9] - **Young Management Team**: The management team has been rejuvenated, with younger members taking key roles to enhance company vitality [7] Cost Management - **Cost Control Measures**: The company is focusing on controlling raw material costs, particularly large package powder, which constitutes 35%-40% of total costs, leading to improved gross margins [8] - **Profitability Outlook**: Overall profitability is expected to exceed revenue growth due to effective cost management [8] Market Trends - **Increased Demand for Health Products**: There is a growing market interest in fitness and health products, providing new opportunities for companies in this sector [10] - **Competitive Landscape**: The functional beverage market is becoming increasingly competitive, with a focus on clean ingredient lists and health benefits [11][21] Sales and Marketing Strategies - **Brand Ambassador Strategy**: The company has signed actor Ding Yuxi as a brand ambassador, aiming to attract younger consumers while reducing traditional media spending [15] - **E-commerce Team Expansion**: Plans to expand the e-commerce team, particularly in live streaming and interest-based e-commerce, to support new product launches [17] Channel Development - **Diverse Sales Channels**: The company is expanding its presence in various sales channels, including breakfast and small dining sectors, which account for about 25% of total sales [19] - **Interest vs. Shelf E-commerce**: Interest-based e-commerce is driving significant growth compared to traditional shelf e-commerce platforms [18] Profitability and Market Position - **No Immediate Profit Expectations for New Products**: The company does not expect immediate profits from the vitamin water product this year, focusing instead on establishing market presence [23] - **Profit Margins for Distributors**: The pricing strategy ensures sufficient profit margins for distributors, maintaining competitive advantages in the market [22] Additional Important Insights - **Focus on Young Consumers**: The company is actively targeting young consumers through innovative product offerings and marketing strategies [9] - **Future Product Plans**: Continuous optimization of existing beverage products to meet diverse channel demands is a priority [12]

Group 1 - The core viewpoint emphasizes that food additives are not inherently harmful, and their safety depends on proper usage and dosage [1] - Food additives serve to improve food quality, flavor, and preservation, with 23 categories including sweeteners, preservatives, and thickeners [2] - An example of a food additive is coagulant used in making tofu, which has been consumed in China for over 2300 years [2] Group 2 - Misuse of food additives occurs when they are used beyond permitted categories or exceed maximum allowable amounts, potentially leading to health risks [3] - The term "zero additives" on food packaging does not necessarily correlate with food safety; understanding ingredient labels is crucial for consumers [4] - Experts encourage consumers to focus on reading ingredient lists and nutritional information to better understand the true nature of food products [4]

Core Viewpoint - The newly implemented national food safety standard (GB7718—2025) prohibits the use of terms like "no additives" or "zero additives" on pre-packaged food labels, leading to significant promotional activities for products previously marketed under these terms [1][4][5]. Group 1: Market Response - Many brands, especially in the soy sauce category, are currently offering substantial discounts, with some products being sold at up to 50% off their original prices [2][3]. - For example, a 1-liter bottle of Qianhe zero-additive soy sauce, originally priced at 39.9 yuan, is now being sold for 29.9 yuan, while other brands are also engaging in similar promotional strategies [2]. - The trend of increased discounts is not limited to physical stores; online platforms are also offering promotions, although the discounts are generally smaller compared to offline [3]. Group 2: Industry Dynamics - The competitive landscape for zero-additive soy sauce is intensifying, with market demand not meeting expectations, prompting businesses to resort to discount promotions to stimulate sales [4]. - The number of zero-additive products has surged from over 300 in Q2 2022 to more than 800 by Q4 2024, indicating a saturated market [4]. - Experts suggest that the new standard signals a need for companies to shift their focus from marketing gimmicks to product quality, emphasizing the importance of innovation and consumer education [5][6]. Group 3: Consumer Perception - The perception of zero-additive products is changing among consumers, with many indicating they will no longer prioritize purchasing these items [6]. - A survey revealed that while some consumers are concerned about the availability of natural products post-standard implementation, the majority support the regulation of the zero-additive label [6]. - The new standard is expected to lead to a transformation in the food market, encouraging consumers to focus more on the actual nutritional value and safety of food products rather than relying solely on marketing labels [7].

对"零添加"食品乱象要零容忍。此前因为没有统一的行业标准或国家标准，标准与监管缺失给了相关乱 象野蛮生长的空间。日前国家卫生健康委会同国家市场监督管理总局发布了50项食品安全国家标准和9 项标准修改单，明确禁用"零添加"，具有强制约束力，有助于遏制"零添加"乱象。在市场监管总局的指 导下，200余家大型食品企业公开倡议不使用"零添加"等用语，是对新国标的积极回应。 当然，仅有行业倡议与企业承诺还不够。要让禁用"零添加"的新国标落到实处，需要完善相关法律法 规，加强监管，加强行业自律，提升消费者健康素养等，进而形成各方合力。只有供需两端齐发力，才 能让无良商家无机可乘，让"零添加"的套路无路可走。 （文章来源：广州日报） 近日，中国食品工业协会组织200余家大型食品企业，举办优化食品标签标识公开倡议活动，旨在共同 响应新规要求，主动优化食品标签标识，为消费者提供更加安全、放心、优质的食品，推动食品行业高 质量发展。（4月29日中新网） 现在不少生产商家热衷于标注食品"零添加"，这主要是为了迎合消费者的需求"偏好"。然而，"零添 加"实际上是"有添加"的食品，通过"伪零添加"混淆视听，这涉嫌侵犯消费者的知情权和自 ...

Core Viewpoint - The new food labeling regulations aim to eliminate misleading terms like "zero added" from packaging, impacting consumer choices and industry practices [1][2][4]. Group 1: Regulatory Changes - The newly released "National Standard for Food Safety Prepackaged Food Labeling General Principles" (GB 7718-2025) prohibits the use of terms such as "no additives" and "zero additives" on food labels, with a two-year transition period before enforcement begins on March 16, 2027 [2][4]. - The transition period allows companies to clear existing inventory and adapt to the new standards, indicating a significant shift in labeling practices within the food industry [4][5]. Group 2: Consumer Impact - Consumers are experiencing confusion due to the prevalence of "zero added" labels, leading to difficulties in product selection, as many are unaware of the upcoming regulatory changes [2][3]. - A significant portion of consumers expressed uncertainty regarding the meaning of "zero added" products, which complicates their purchasing decisions [3]. Group 3: Industry Response - Companies are expected to engage in aggressive promotions to clear out existing stock of "zero added" products during the transition period, with strategies such as discounts and buy-one-get-one-free offers becoming common [4]. - Experts predict that "zero added" products may continue to be available for an additional 3-4 years due to existing inventory and product shelf life, despite the new regulations [4][5]. Group 4: Strategic Implications - The introduction of the new standards aligns with national goals for high-quality development and addresses the need to regulate the "zero added" labeling phenomenon in the food industry [5]. - The new regulations are seen as beneficial for consumers, ensuring clearer product information and promoting better industry practices [5].

Core Viewpoint - The recent trademark disputes involving "Zhenling" yogurt from Youchun Dairy have raised concerns, particularly regarding the use of terms like "zero" and "no added sugar" in product marketing, especially in light of new national standards prohibiting such claims starting March 16, 2027 [1][12]. Trademark Registration and Company Background - Youchun Dairy's "Zhenling" yogurt has applied for multiple trademarks, including "Zhenling," "zero," and "no sugar added," with one "Zhenling" trademark successfully registered among 65 food category trademarks [2][6]. - The brand is associated with Shanghai Mingguan Dairy Marketing Consulting Co., which was founded in 2003, and co-founder Luo Xing holds a 30% stake in the company [2][6]. Regulatory Changes and Industry Impact - A new national standard (GB 7718-2025) prohibits the use of terms like "zero added" and "no added" for prepackaged foods, set to take effect in 2027, allowing companies a two-year adjustment period [12][13]. - Industry experts argue that the overemphasis on "no additives" can mislead consumers and disrupt market order, as most foods cannot be completely free of additives [12]. Company Position and Marketing Strategy - The founder of "Zhenling" yogurt has stated that "zero" signifies the company's zero tolerance for sugar and additives, promoting a clean ingredient list [8][12]. - Despite the new regulations, Youchun Dairy has indicated that it will not change the brand name "Zhenling," and customer service has stated that the product contains only milk and probiotics [1][12]. Legal Considerations - Legal experts suggest that if "Zhenling" yogurt does not prominently advertise "zero added" claims, it may not violate the new regulations, provided that the product does not contain the corresponding ingredients [13].

近日，#千禾0商标被指误导消费者零添加#冲上热搜，千禾味业被推上风口浪尖。 今年3月，《消费者报道》杂志对13款宣称"零添加"的酱油进行了检测，结果发现12款检出镉，7款检出总砷。其中，千禾御藏本酿380天酱油中检 测出0.0110mg/kg的镉，这款酱油瓶身上印有"千禾0"字样，但并未明确标注为"零添加"产品。 因此，不少消费者表示，看到千禾酱油瓶身上的"千禾0"字样，自然而然地认为这是"零添加"产品，结果却发现"千禾0"只是一个商标，而非真正 的"零添加"。 而为了平息消费者的"怒火"，3月20日，千禾味业曾发布声明称，"千禾0"商标是其零添加产品的重要标识，不存在误导消费者的行为，但承认让消 费者产生了误会，并对此深表歉意。类似"XX0"的商标还有海天味业、简爱酸奶、壹号土猪肉。据了解，海天味业已成功注册了10个与"海天0"相关 的商标，其中包括6个"海天0"商标和4个"海天0+"商标；"简爱酸奶"将"其他没了"注册为商标，暗示无添加剂；"壹号土猪肉"等均通过拆分商标名 称，让消费者误以为是"土特产"。 有消费者吐槽道，这类操作本质是利用消费者对商标法的认知盲区，通过模糊商品描述与商标的界限，制造信息 ...

Core Viewpoint - The new regulations issued by the National Health Commission and the State Administration for Market Regulation prohibit the use of terms like "no additives" and "zero additives" in food labeling, aiming to enhance transparency and consumer rights in the food industry [1][2][3]. Group 1: Impact of New Regulations - The new regulations are expected to have a deterrent, purifying, and guiding effect on the food industry, addressing the need for industry standards and curbing misleading marketing practices [2][3]. - The regulations will force companies to clearly label specific additives, promoting transparency and aligning with international standards, which may drive improvements in production processes [2][3]. Group 2: Case Study of Qianhe Flavor Industry - The "Qianhe 0" trademark controversy highlights the potential risks of misleading branding, as the company faced scrutiny over its claims of "zero additives" after a product was found to contain trace amounts of cadmium [3][4]. - Qianhe Flavor Industry's chairman emphasized that the "Qianhe 0" trademark is intended to distinguish zero-additive products, but there are compliance risks if the branding does not accurately reflect the product's contents [4][5]. Group 3: Industry Response and Compliance - Food companies are urged to balance brand promotion with regulatory compliance, ensuring that marketing claims do not mislead consumers [5][6]. - The industry is under increasing regulatory scrutiny, with a focus on adhering to strict standards and avoiding exaggerated claims that could lead to consumer misunderstanding [5][6].

Market Overview - A-shares experienced a slight rebound with the Shanghai Composite Index up 0.15% and trading volume around 1.19 trillion yuan[17] - U.S. stocks fell due to concerns over escalating trade tensions, with the Dow Jones down 0.37% and the S&P 500 down 0.33%[10] - European stocks closed weakly, with the Stoxx 600 index down 0.68% amid fears of increased tariffs on imported cars[10] Commodity and Currency Trends - U.S. crude oil inventories decreased by 3.3 million barrels, pushing oil prices to a one-month high, with WTI at $69.92 per barrel[28] - Gold prices reached a new high, closing at $3,061 per ounce, as investors sought safe-haven assets amid economic uncertainty[28] - The U.S. dollar index fell slightly by 0.2% to 104.34, while the euro rebounded 0.44% to 1.08 against the dollar[27] Industrial Profit Data - China's industrial enterprises reported total profits of 9,109.9 billion yuan in January-February, a year-on-year decline of 0.3%, while revenue grew by 2.8% to 20.09 trillion yuan[7] - The profit margin decline was primarily due to lower profitability in upstream mining sectors, influenced by falling coal prices[7] Sector Performance - In the Hong Kong market, the Hang Seng Index rose by 0.41%, driven by strong performances in the biopharmaceutical sector, with stocks like Innovent Biologics up 17.4%[12] - The energy sector in the A-share market showed strength, with chemical stocks benefiting from improved downstream demand[17] Economic Indicators - The U.S. GDP growth for Q4 2024 was revised up to 2.4%, indicating a slight improvement in economic performance[7] - The IMF warned of a slowdown in global economic growth for 2025 but did not foresee an imminent recession[7]