Group 1 - The core viewpoint of the article highlights that the traditional milk tea brand Xiangpiaopiao is facing significant losses of nearly 100 million yuan amid the rapid rise of new tea beverage brands [1][2]. - Xiangpiaopiao's half-year performance report for 2025 indicates a projected revenue of approximately 1.035 billion yuan, a decrease of about 144 million yuan or 12.21% year-on-year [2]. - The decline in Xiangpiaopiao's performance is attributed to changes in external consumer environments, habits, and demands, which have pressured sales of traditional brewing products during peak seasons [2]. Group 2 - Since its listing in 2017, Xiangpiaopiao has experienced four years of year-on-year revenue and net profit declines out of eight years [2]. - The company's revenue growth rate has been declining since 2018, with a notable drop to -5.46% in 2020, marking a turning point in its performance [2]. - The traditional brewed milk tea market has seen a significant contraction, with its market size decreasing from 11.3 billion yuan in 2012 to 7.6 billion yuan in 2023, a decline of 32.7% [2]. Group 3 - Industry analysts indicate that the fast-moving consumer goods sector has entered a new phase where product strength is paramount, and reliance on marketing-driven growth is becoming less effective [3]. - Xiangpiaopiao is exploring new growth avenues by launching ready-to-drink products and conducting pop-up store events in various cities, although the impact on its core brewing business remains limited [3]. - The company is also increasing marketing efforts and resource support for its Meco juice tea and Lan Fang Yuan series to capture a share of the new tea beverage market [3].

Core Viewpoint - Xiangpiaopiao Food Co., Ltd. announced a 100 million yuan investment in Changsha Quanzhong Venture Capital Partnership, acquiring a 13.29% stake, amidst ongoing performance challenges, raising questions about its strategic direction and future [1][4]. Performance Decline - The company has experienced a significant decline in performance, with 2024 revenue at 3.287 billion yuan, down 9.32% year-on-year, and a net profit of 253 million yuan, down 9.67% [2]. - In Q1 2025, revenue further decreased to 580 million yuan, a sharp decline of 19.98%, resulting in a net loss of 18.775 million yuan compared to a profit of 25.213 million yuan in the same period last year [2]. - The core brewing business, which was once the foundation of the company, has become a major drag on performance, with revenue from brewing products in 2024 at 2.271 billion yuan, down 15.42%, and a staggering 37.18% decline in Q1 2025 [2]. Strategic Initiatives - To address these challenges, the company launched a "dual-drive" strategy in 2018, focusing on ready-to-drink products, which saw revenue growth to 973 million yuan in 2024, an increase of 8.00%, and a 13.89% increase in Q1 2025 [3]. - However, the ready-to-drink segment faces intense competition and has a lower gross margin of 24.88%, compared to 44.40% for brewing products, indicating a need for improved profitability [3]. Investment Strategy - The recent 100 million yuan investment in the venture capital fund is a strategic move to explore the large consumer sector, with over 80% of the fund's capital directed towards this area, including both growth and mature companies as well as promising early-stage projects [4]. - While short-term performance impact from this investment may be limited due to the lengthy investment cycle, it represents a significant step in diversifying beyond traditional milk tea business and aligning with market trends towards diversification and innovation [4]. Diversification Efforts - The company has previously made investments in 31 enterprises across various sectors, including marketing, supply chain, and dining, indicating a broad investment landscape [5]. - Investments in supply chain entities aim to enhance stability, reduce procurement costs, and improve delivery efficiency, while collaborations with dining businesses could create synergies for ready-to-drink products [5]. - The company's efforts to establish offline pop-up stores in cities like Hangzhou and Chengdu reflect its exploration of new consumer engagement strategies, which could further boost sales through partnerships with dining enterprises [5].

Core Viewpoint - Xiangpiaopiao is actively seeking to regain its consumer base by exploring various channels, including snack stores, Sam's Club, and convenience stores, while also launching pop-up stores to engage with consumers directly [1][2][3]. Group 1: Market Challenges and Internal Changes - Xiangpiaopiao, founded in 2005, was once a market leader in cup-based instant milk tea but now faces challenges due to market fragmentation and evolving consumer demands [2][4]. - The company is undergoing a gradual internal transformation, integrating product development with channel management to streamline operations and enhance product launch speed [3][5]. - The chairman, Jiang Jianqi, aims to position Xiangpiaopiao as the "Zara of the milk tea industry," focusing on rapid product development and market responsiveness [3][6]. Group 2: Product Development and Market Strategy - Xiangpiaopiao is exploring new product lines, transitioning from instant to ready-to-drink options, and experimenting with various flavors and formats to meet diverse consumer preferences [6][8]. - The company has established two main product lines: instant and ready-to-drink, with a focus on creating a rich product matrix within these categories [6][7]. - The ready-to-drink segment, particularly the Meco brand, has shown significant growth, with sales increasing from over 300 million to nearly 1 billion in five years [9]. Group 3: Channel Expansion and Consumer Engagement - In 2024, Xiangpiaopiao plans to embrace the rapid expansion of snack stores, aiming to customize products for these new channels to differentiate from traditional offerings [25][26]. - The company is also testing new products through pop-up stores, which serve as a platform for consumer interaction and product validation [20][21]. - Xiangpiaopiao's strategy includes launching over 20 new SKUs targeted at different channels, reflecting a commitment to adapt to market changes and consumer segmentation [11][14]. Group 4: Operational Adjustments and Future Outlook - The company is working on enhancing production flexibility to meet the diverse and evolving demands of consumers, moving from large-scale production to smaller, customized batches [26][27]. - Jiang Jianqi emphasizes the importance of maintaining strong relationships with distributors while navigating the challenges posed by new market dynamics [33][34]. - The company aims to leverage its established brand recognition while innovating to stay competitive in a rapidly changing beverage market [30][34].