Core Viewpoint - Xiangpiaopiao Food Co., Ltd. announced a 100 million yuan investment in Changsha Quanzhong Venture Capital Partnership, acquiring a 13.29% stake, amidst ongoing performance challenges, raising questions about its strategic direction and future [1][4]. Performance Decline - The company has experienced a significant decline in performance, with 2024 revenue at 3.287 billion yuan, down 9.32% year-on-year, and a net profit of 253 million yuan, down 9.67% [2]. - In Q1 2025, revenue further decreased to 580 million yuan, a sharp decline of 19.98%, resulting in a net loss of 18.775 million yuan compared to a profit of 25.213 million yuan in the same period last year [2]. - The core brewing business, which was once the foundation of the company, has become a major drag on performance, with revenue from brewing products in 2024 at 2.271 billion yuan, down 15.42%, and a staggering 37.18% decline in Q1 2025 [2]. Strategic Initiatives - To address these challenges, the company launched a "dual-drive" strategy in 2018, focusing on ready-to-drink products, which saw revenue growth to 973 million yuan in 2024, an increase of 8.00%, and a 13.89% increase in Q1 2025 [3]. - However, the ready-to-drink segment faces intense competition and has a lower gross margin of 24.88%, compared to 44.40% for brewing products, indicating a need for improved profitability [3]. Investment Strategy - The recent 100 million yuan investment in the venture capital fund is a strategic move to explore the large consumer sector, with over 80% of the fund's capital directed towards this area, including both growth and mature companies as well as promising early-stage projects [4]. - While short-term performance impact from this investment may be limited due to the lengthy investment cycle, it represents a significant step in diversifying beyond traditional milk tea business and aligning with market trends towards diversification and innovation [4]. Diversification Efforts - The company has previously made investments in 31 enterprises across various sectors, including marketing, supply chain, and dining, indicating a broad investment landscape [5]. - Investments in supply chain entities aim to enhance stability, reduce procurement costs, and improve delivery efficiency, while collaborations with dining businesses could create synergies for ready-to-drink products [5]. - The company's efforts to establish offline pop-up stores in cities like Hangzhou and Chengdu reflect its exploration of new consumer engagement strategies, which could further boost sales through partnerships with dining enterprises [5].

Group 1 - The well-known private equity firm Tongben Investment recently conducted research on three listed companies [1][2][3] - The first company, Haixiangni, aims to promote its brand culture through the IP image of "Feini and Xiangzai," targeting younger demographics [1] - The second company, Xingsen Technology, specializes in PCB products for industrial control and robotics, with target clients including chip design companies and packaging factories [2] - The third company, Ruilite, has launched an AI health toilet featuring the Deepseek model, introducing AI technology into the bathroom industry [3] Group 2 - Tongben Investment was established in January 2014 with a registered capital of 10 million, and it is recognized for its unique approach as a sunshine private equity firm [3] - The firm is notable for being founded by award-winning analysts, with its general manager and investment director, Mr. Tong Xun, having a strong background in the food and beverage sector [3]