Industry Overview - The health and nutrition food industry in China is experiencing significant growth, with retail sales increasing from 297.9 billion RMB in 2020 to an expected 405.7 billion RMB in 2024, representing a compound annual growth rate (CAGR) of 8.0%. By 2029, the market is projected to reach 645.2 billion RMB, with a CAGR of 9.7% [1]. Company Profile - Xizi Health, established in 2013, is a leading player in the sports nutrition food sector in China, focusing on the research, production, and sales of sports nutrition products. The company operates four major brands: FoYes, fiboo, Guben Diary, and HotRule, covering various product categories such as whey protein powder, creatine, functional gummies, and energy supplements [2][3]. Marketing Strategy - Xizi Health employs a data-driven marketing strategy, utilizing online traffic operations and customized strategies for different brands and sales channels. The company has built an efficient multi-channel sales network centered on direct-to-consumer (DTC) sales, which has allowed it to effectively reach consumers [3]. Financial Performance - The company's revenue has shown substantial growth, with figures of 1.447 billion RMB in 2023, 1.692 billion RMB in 2024 (up 16.9% year-on-year), and 1.609 billion RMB in the first nine months of 2025 (up 23.0% year-on-year). Net profit also increased, reaching 94 million RMB in 2023, 149 million RMB in 2024 (up 58.5% year-on-year), and 118 million RMB in the first nine months of 2025 (up 1.9% year-on-year) [4]. Cost Structure - The company's sales expenses have risen significantly, from 473 million RMB in 2023 to 756 million RMB in the first nine months of 2025, leading to an increase in the sales expense ratio from 32.7% in 2023 to 47% in 2025. This has impacted profit growth, with net profit growth lagging behind revenue growth due to rising sales expenses [5]. Cash Flow and Operational Efficiency - Xizi Health's operating cash flow has declined from 270 million RMB in 2023 to 66 million RMB in the first nine months of 2025, indicating that high growth has come at the cost of significant working capital usage [6]. Strategic Transition - The company has successfully transitioned from third-party brand operations to a self-owned brand model, with self-owned brand revenue increasing from 614 million RMB in 2023 to 1.498 billion RMB in 2024 (up 144.0% year-on-year) and further to 1.567 billion RMB in the first nine months of 2025 (up 38.7% year-on-year). The gross margin has also improved, rising from 44.4% in 2023 to 59.5% in the first nine months of 2025 [7]. Revenue Concentration - Xizi Health's revenue is highly concentrated in online channels, with online sales accounting for approximately 99.4% in 2023, 99.0% in 2024, and 98.9% in the first nine months of 2025. The company heavily relies on Douyin, which contributed 45.5% to 62.8% of total revenue during the same periods. The DTC sales model accounted for about 88.4% in 2024 and 89.8% in the first nine months of 2025 [8].