Core Viewpoint - Xiamen Yan's Nest Industry Co., Ltd. (referred to as "Yan's Nest") has entered the capital market after multiple IPO attempts, but its performance post-listing has been weak, with revenue growth accompanied by a significant decline in net profit in 2024 [1] Financial Performance - In 2024, Yan's Nest reported a revenue increase of 4.37% year-on-year to 2.05 billion yuan, while net profit plummeted by 24.18% to 160 million yuan, marking the first time net profit margin fell below 10% [1] - The sales revenue from pure bird's nest products was 1.795 billion yuan, accounting for 87.6% of total revenue, with a mere 0.06% growth year-on-year [2] Marketing and Cost Structure - Sales and distribution expenses surged by 19% year-on-year to 670 million yuan, representing 32.7% of total revenue, primarily due to high-profile endorsements and increased promotional costs [2] - The strategy of relying on celebrity endorsements and e-commerce channels has led to a significant increase in promotional expenses, with over 60% of revenue coming from e-commerce [2] Competitive Landscape - Yan's Nest faces intensified competition, with brands like Xiaoxian Stewed and pharmaceutical-backed companies entering the health market, while prices for ready-to-eat bird's nest products have dropped significantly [3] - The company's attempt to diversify with "bird's nest+" products has seen limited success, with these products only accounting for 11.3% of revenue and lacking technological barriers [3] Consumer Trust and Market Dynamics - The industry continues to grapple with trust issues, particularly following past incidents related to product safety, which have led to consumer skepticism about quality [3] - The core customer base is shifting, with younger consumers gravitating towards more affordable health products, while high-end customers are increasingly attracted to competing brands [3] Strategic Challenges - Yan's Nest's strategies, such as cost reduction through smart factories and expanding into county markets, are unlikely to reverse the profit decline in the short term [3] - Without significant breakthroughs in research and development or product innovation by 2025, the company's leading position in the market may be at risk [3]