Core Viewpoint - Qiaqia Food Co., Ltd. reported a significant decline in revenue and profit for the first half of 2025, indicating challenges in the snack industry due to rising raw material costs and intensified competition [1][2]. Financial Performance - Revenue for the first half of 2025 was 2.752 billion yuan, a year-on-year decrease of 5.05% [1]. - Net profit attributable to shareholders was 88.64 million yuan, down 73.68% from 337 million yuan in the same period last year [1]. - Net cash flow from operating activities decreased by 76.12% year-on-year [1]. Cost Challenges - The increase in raw material costs, particularly sunflower seeds, has significantly impacted the company's procurement expenses [2]. - The gross profit margin for the first half of 2025 dropped to 20.31%, a decrease of approximately 8 percentage points compared to previous years [2]. - The company's reliance on low-profit, high-volume sales is being challenged by rising costs and price sensitivity among consumers [2]. Sales Channels - E-commerce revenue reached 451 million yuan, growing 24.79% year-on-year, but only accounted for 16.38% of total revenue [3]. - The company plans to enhance sales and improve gross margins through product optimization and increased marketing efforts [3]. Market Trends - In 2024, the market share of bulk stores in China's snack consumption channels reached 37%, surpassing supermarkets and e-commerce [4]. - New entrants in the snack market, such as Mingming Hen Mang and Wancheng Group, are gaining market share with lower prices and higher profit margins [5]. Future Directions - Qiaqia is attempting to transform from a single sunflower seed brand to a comprehensive snack brand by launching new products and enhancing digital platform capabilities [7]. - The company aims to expand its market presence in Southeast Asia and other potential markets, while adjusting its channel and product structure to mitigate the impact of declining traditional channels [7].