Core Viewpoint - Quanjude, known as the "first stock in A-share catering," is facing unprecedented operational challenges, with a significant decline in net profit in the first half of 2025, raising concerns about its future [2][4]. Financial Performance - In the first half of 2025, Quanjude expects a net profit of 11 million to 14 million yuan, a year-on-year decline of 62.51% to 52.28%, with a non-recurring net profit of 3.3 million to 4.3 million yuan, down 87% to 83.06% [2]. - For 2024, Quanjude reported revenue of 1.402 billion yuan, a decrease of 2.09%, and a net profit of 34.13 million yuan, down 43.15% [3]. - The first quarter of 2025 showed revenue of 332 million yuan, down 7.26%, and a net profit of 4.21 million yuan, down 72.47% [4]. Market Challenges - The company attributes its profit decline to increased competition in the roast duck industry and a shift in market dynamics, which has led to a decrease in customer traffic [6]. - Quanjude's cash flow situation is deteriorating, with a net cash flow from operating activities of 17.67 million yuan in the first quarter of 2025, down 25% year-on-year, and a current ratio of only 0.74, indicating significant short-term debt pressure [6]. Brand and Consumer Perception - Quanjude's brand positioning has led to a low customer repurchase rate, and its expansion has diluted its original exclusivity [9]. - Consumer reviews indicate a decline in quality and service, with complaints about cold dishes and poor service [9]. Franchise and Store Operations - As of the end of 2024, Quanjude had 101 restaurants, with 50 being franchises, down from 75 in 2018, indicating a contraction in its franchise operations [9]. - The closure of franchise stores is often due to poor operational quality or contract expiration, reflecting broader operational challenges [9]. Strategic Initiatives - Quanjude has attempted various strategic initiatives, including entering the "Internet + catering" space and launching a sub-brand for snack foods, but these efforts have not yielded significant results [10][12]. - The sales revenue from its product sales segment was 296 million yuan in 2024, a decline of 1.46%, indicating slowing growth in this area [12]. Future Outlook - Analysts suggest that Quanjude must fundamentally transform its business model from relying on tourist traffic to focusing on local market development [12]. - The company is reportedly working on local initiatives, including store upgrades and product innovation, to regain consumer trust and improve performance [12].