Core Viewpoint - Juewei Foods, once a leading brand in the snack industry, is facing significant challenges including declining performance, store closures, and legal repercussions, leading to its stock being labeled as ST (special treatment) due to undisclosed revenue issues [2][18][28]. Group 1: Financial and Legal Issues - Juewei Foods received a notice from the Hunan Securities Regulatory Commission regarding administrative penalties for failing to accurately disclose revenue from 2017 to 2021, resulting in a fine of 4 million yuan [2][12]. - The company's stock was suspended for one day and subsequently received a risk warning, changing its A-share abbreviation to "ST Juewei" [2][12]. - The company reported a significant drop in net profit by 40.71% in the first half of 2025, with revenue declining by 15.57% [18][19]. Group 2: Revenue Recognition Problems - The company has been accused of underreporting revenue related to franchise store renovation fees, which were not recognized according to regulations, leading to a significant understatement of reported income [8][11]. - The unreported revenue as a percentage of total disclosed revenue from 2017 to 2021 was 5.48%, 3.79%, 2.20%, 2.39%, and 1.64% respectively, indicating a systematic issue over several years [8][12]. Group 3: Market and Operational Challenges - Juewei Foods has seen a drastic reduction in store numbers, closing over 5,000 stores in a year and a half, representing a 32.3% decrease from its peak [23][24]. - The overall snack industry is experiencing stagnation, with major players reporting a collective revenue decline of over 10% in the first half of 2025 [22][27]. - The company's profitability is under pressure, with both gross and net profit margins declining significantly, particularly a net profit margin drop of over 31% [22][28].