Group 1 - The core viewpoint of the article highlights that Yuanzu Co., known as the "first stock in baking" in A-shares, reported a decline in both revenue and net profit for 2024, with revenue at 2.314 billion yuan, down 12.99% year-on-year, and net profit at 249 million yuan, down 9.98% year-on-year [2] - Yuanzu Co. announced a substantial dividend plan, proposing a cash distribution of 10 yuan per 10 shares (including tax) to all shareholders, reflecting a balance between shareholder returns and long-term development investments [2] - The company has been criticized for its marketing-heavy approach, with sales expenses reaching 974 million yuan, accounting for over 40% of total revenue, while R&D expenses were only 175 million yuan, more than five times less [2] Group 2 - In the past two years, Yuanzu Co. has obtained over 60 product-related patents and plans to eliminate the use of sodium dehydroacetate in pastries by the end of 2024, alongside upgrading 7 products and innovating 8 new ones [3] - The company aims to simplify ingredients for healthier products, reducing the number of ingredients in its Eight Treasure Rice Cake from 18 to 15 and in Pineapple Cake from 11 to 6 [3] - Yuanzu Co. is focusing on market trends and consumer demands, exploring innovative products and brand collaborations, while gradually penetrating daily consumption scenarios to enhance brand value and market scale [3]

Core Viewpoint - The company reported a decline in net profit for 2024, with a focus on maintaining quality and safety in its products while enhancing customer experience through personalized services and digital upgrades [1][2][3] Financial Performance - The net profit for 2024 was 248.75 million yuan, a decrease of 9.98% compared to the previous year, with net profit attributable to shareholders declining by 3.01% [1] Key Initiatives - The company emphasizes a "quality first, safety-based" philosophy, aiming for zero food safety incidents by implementing a comprehensive food safety control system across all operational stages [2] - Seven products were upgraded and eight new products were innovated during the reporting period, focusing on healthier ingredients and simplified recipes [2] Membership and Customer Engagement - As of December 31, 2024, the company had over 12.88 million members, providing personalized services and exclusive benefits to enhance customer loyalty and satisfaction [3] Production and Logistics Efficiency - The company adopted a modified Toyota Production System to optimize production efficiency, reduce inventory costs, and ensure high-quality standards throughout the production process [4][5] Board Operations - The board held six meetings during the reporting period, adhering to legal and regulatory requirements, and ensuring effective decision-making processes [6][9] Governance and Compliance - The company maintains a robust internal control system and actively engages independent directors to ensure compliance and protect shareholder interests [10] Future Plans - The company aims to strengthen brand recognition and market penetration through targeted marketing strategies and seasonal product offerings [12][13] - A commitment to food safety and quality will be prioritized, with plans to implement digital inspection systems and enhance supply chain transparency [14]