Core Insights - The core viewpoint of the articles highlights the financial struggles of Three Squirrels Co., Ltd., particularly in the context of rising costs and declining profits despite revenue growth [2][3][4]. Financial Performance - In the first three quarters of the year, Three Squirrels reported revenue of 7.759 billion yuan, an increase of 8.22% year-on-year, but net profit fell by 52.91% to 161 million yuan [2]. - The company's cash flow from operating activities was negative 506 million yuan, a significant decline compared to a positive 31.8 million yuan in the same period last year, attributed to increased procurement expenses [2]. - In 2024, Three Squirrels achieved revenue of 10.622 billion yuan, a 49.30% increase, and net profit rose by 85.51% to 408 million yuan, marking a recovery from previous declines [3]. Channel Performance - The Douyin platform significantly contributed to Three Squirrels' revenue, generating 2.188 billion yuan in 2024, a year-on-year increase of 81.73%, making it the largest sales channel [3]. - However, in 2025, growth from the Douyin channel slowed, with a year-on-year increase of only 20.75% in the first half of the year, indicating a broader trend of decelerating growth in social media e-commerce [4]. Strategic Initiatives - In response to online growth challenges, Three Squirrels is expanding its offline presence by launching its own brand stores, "Three Squirrels Life Hall," with plans to open 20 locations this year [5]. - The company is also focusing on convenience store formats, adopting a franchise model with plans to sign over 500 stores by the end of the year [5]. Industry Challenges - The overall snack industry is facing challenges as traditional brands like Three Squirrels engage in price wars due to aggressive expansion by low-cost competitors [5]. - Product innovation is emphasized as a critical area for traditional snack brands to differentiate themselves and drive growth, alongside channel expansion [6].