Core Viewpoint - The company reported a significant increase in net loss despite revenue growth, indicating challenges in profitability and cost management [1][3]. Financial Performance - For the first three quarters of the year, the company's revenue increased by 13.12% to 2.854 billion yuan, while net loss rose by 194.06% to 125 million yuan [1]. - In Q3 alone, revenue grew by 25.15% to 914 million yuan, with net loss increasing by 29.73% to 74.65 million yuan, which is also higher than the previous quarter's loss of 50.68 million yuan [1]. Cost Structure - The increase in net loss is attributed to a decline in gross margin, which fell by 9.16% to 31.58% in the first three quarters [3]. - Sales expenses decreased by 7.27% to 679 million yuan, management expenses decreased by 4.73% to 322 million yuan, and R&D expenses dropped significantly by 75.32% to 1.9664 million yuan, while financial expenses rose by 24.33% to 16.6696 million yuan [3]. - The company's sales expenses accounted for 22.04% of revenue, which is higher than competitors such as Three Squirrels (20.69%), Good Products (24.28%), and Salted Fish (9.92%) [3]. Sales Channel Strategy - The company is shifting its sales strategy by reducing the proportion of direct stores and increasing the share of franchise stores, although franchise stores typically yield lower gross margins [5]. - The company announced financial support for franchisees in key cities, with a total amount not exceeding 50 million yuan, aimed at alleviating liquidity pressures [5]. - As of June 30, 2025, the total number of stores decreased to 2,979, with a net reduction of 106 stores, including a decrease of 90 direct stores [5]. Company Background - Founded in 1999 in Shanghai, the company primarily sells self-branded snacks through a commission-based production model and was listed on the Shanghai Stock Exchange in 2016 [6].

Core Viewpoint - The company, Laiyifen, has successfully transitioned from a traditional retail model to a chain management service and supply chain platform model, with a significant increase in franchise store proportion exceeding 50% for the first time in 2024 [1][2][3]. Financial Performance - In 2024, Laiyifen achieved a revenue of 3.37 billion, maintaining a leading position in the leisure food sector [1]. - The company reported a stable performance in Q1 2025 with a revenue of 1.048 billion [1]. Franchise Model and Cost Efficiency - The franchise store count reached 1,600, accounting for 52% of total stores, while direct stores numbered 1,485, making up 48% [2]. - Management expenses decreased by 11.9% year-on-year, and sales expenses fell by 14.17% in 2024, continuing a trend of cost reduction [2][3]. Supply Chain and Technology Integration - Laiyifen is enhancing its supply chain management through the integration of key technologies, including the introduction of the DeepSeek model for intelligent supply chain management [3]. - The company is focusing on optimizing its smart supply chain plan to achieve significant improvements in supply chain management [3]. Market Expansion and Distribution - In 2024, Laiyifen added 174 new distributors, expanding its market presence to all 31 provinces in China, with notable growth in the Shanghai market, which saw a 21.6% year-on-year increase [4]. - The company has made significant strides in overseas markets, successfully entering local supermarket channels in South Korea, Vietnam, and Thailand [4]. E-commerce and Membership Growth - Laiyifen's e-commerce segment has turned profitable by optimizing product structure and focusing on high-value categories [4]. - The total number of members across all channels reached 94.77 million by the end of 2024, providing a solid foundation for business growth [5][6]. Private Traffic and IP Economy - The company is leveraging private traffic through its app and community operations, enhancing user engagement and loyalty [5][6]. - The IP economy in China is experiencing rapid growth, with a market size of 168.9 billion in 2024, expected to exceed 330 billion by 2030, presenting new opportunities for Laiyifen [6]. Strategic Collaborations and Future Plans - Laiyifen is engaging in cross-industry collaborations, including partnerships with Tencent and cultural figures to enhance brand appeal and reach younger consumers [7]. - For 2025, the company plans to focus on its "Wan Jia Deng Huo" strategy, emphasizing a community lifestyle platform and further collaboration with diverse IPs to enhance brand competitiveness [7][8]. Industry Outlook - The government has prioritized boosting consumption in 2025, which is expected to create new growth opportunities for consumer companies like Laiyifen [8].