Core Viewpoint - Qinqin Food Group is facing a decline in performance, with a 6.0% drop in revenue and a 10.2% decrease in gross profit in the first half of 2025, indicating ongoing challenges in its core business and product innovation [3][15]. Financial Performance - In 2023, Qinqin Food reported revenues of 981.57 million RMB, with a net loss of 2.06 million RMB, following losses of 1.77 million RMB in 2022 and 80.89 million RMB in 2021 [11][12]. - The company achieved a turnaround in 2024, with revenues of 996.50 million RMB and a profit of 21.13 million RMB, primarily due to the cessation of non-operational losses [12][14]. - In the first half of 2025, Qinqin Food's revenue was 529.75 million RMB, a 6.0% decline year-on-year, with a profit of 21.55 million RMB, down 34.31% from the previous year [17][15]. Product Segments - Qinqin Food's core product, jelly, generated 5.31 billion RMB in sales in 2024, accounting for 53.2% of total revenue, but saw a 6.5% decline compared to the previous year [15][18]. - The puffed food segment, including shrimp chips, reported sales of approximately 1.49 billion RMB in the first half of 2025, a 2.9% decrease [22]. - The company has diversified into other product categories, with candy and other products showing a slight revenue increase of 0.7% in the first half of 2025 [22][23]. Investment and Strategy - Since 2019, Qinqin Food has made several investments in various brands, but these have not significantly contributed to revenue growth, leading to financial strain [9][10]. - The company has been criticized for its low R&D spending, with only 6.05 million RMB allocated in 2024, compared to competitors who invest significantly more [23][24]. - Qinqin Food's strategy to transition from a traditional snack company to a health-focused snack solution provider remains a work in progress, with limited success in product differentiation [25].