Core Viewpoint - Three squirrels have experienced a situation of "increased revenue but decreased profit" in 2023, with a revenue growth of 8.22% but a net profit decline of 52.91% in the first three quarters [1][3]. Financial Performance - In the first three quarters of 2023, Three Squirrels reported a revenue of 7.759 billion yuan, up 8.22% year-on-year, while the net profit attributable to shareholders was 161 million yuan, down 52.91% year-on-year [3]. - Revenue growth rates for the three quarters were 2.13%, 22.77%, and 8.91%, while net profit decreased by 22.46%, 444.41%, and 56.79% respectively [3]. - Total operating costs for the first three quarters were 7.707 billion yuan, an increase of 12.6% year-on-year, with sales expenses rising by 24.06% to 1.605 billion yuan and management expenses increasing by 50.7% to 228 million yuan [3]. Cost Pressures - The decline in net profit is attributed to rising costs of raw materials, increased marketing expenses, and changes in online platform traffic structures [4][5]. - The gross profit margin slightly decreased by 0.18 percentage points to 25.27% [3]. Cash Flow Situation - The net cash flow from operating activities plummeted by 1690.52% to -506 million yuan, primarily due to increased procurement expenditures [5]. - This negative cash flow indicates potential challenges in the company's liquidity and operational flexibility [5]. Price Adjustments - Three Squirrels announced a price adjustment for its nut products, effective November 1, with price increases ranging from 1 to 3 yuan per product [6][7]. - The price increase is seen as a necessary strategy to transfer rising costs to consumers, reflecting the brand's pricing power [7]. Strategic Initiatives - The company is pursuing a "full category, full channel" strategy, expanding its product offerings to include baby snacks, beverages, and prepared foods [8]. - Three Squirrels has established a supply chain network with four major bases across different regions to enhance operational efficiency [8]. Funding and IPO Plans - To support its strategic initiatives and alleviate cash flow pressures, Three Squirrels submitted an IPO application to the Hong Kong Stock Exchange and received approval for its listing [9]. - The company plans to issue 81.5 million shares to raise funds for supply chain enhancement, sales network expansion, and brand development [9].

Core Viewpoint - Three squirrels have experienced a situation of "increased revenue but decreased profit" in 2023, with a revenue growth of 8.22% year-on-year but a net profit decline of 52.91% in the first three quarters [1][3]. Financial Performance - In the first three quarters, the company achieved a revenue of 7.759 billion yuan, up 8.22% year-on-year, while the net profit attributable to shareholders was 161 million yuan, down 52.91% [3]. - Revenue growth rates for the first three quarters were 2.13%, 22.77%, and 8.91%, while net profit decreased by 22.46%, 444.41%, and 56.79% respectively [3]. - Total operating costs for the first three quarters were 7.707 billion yuan, an increase of 12.6% year-on-year, with sales expenses rising by 24.06% to 1.605 billion yuan and management expenses increasing by 50.7% to 228 million yuan [3]. Cost Pressures - The decline in net profit is attributed to rising raw material costs, increased marketing expenses, and changes in online platform traffic structures [3][4]. - The company reported a staggering 1690.52% year-on-year drop in net cash flow from operating activities to -506 million yuan, primarily due to increased procurement expenditures [4]. Price Adjustments - The company confirmed plans to adjust supply prices for certain products starting November 1, with price increases in the range of 1 to 3 yuan for its entire nut product line [5][6]. - The price adjustments are seen as a necessary strategy to transfer rising costs and maintain profit margins, reflecting the brand's pricing power [6]. Strategic Initiatives - Three squirrels are expanding their product portfolio beyond nuts, including baby snacks, beverages, and ready-to-eat meals, with the baby snack brand "Xiao Lu Lan Lan" generating 437 million yuan in revenue in the first half of 2025 [8]. - The company is also enhancing its supply chain with new regional headquarters and bases to support its growth strategy [8]. Funding and IPO Plans - To address cash flow pressures and support its strategic initiatives, the company submitted an IPO application to the Hong Kong Stock Exchange in April and received approval for its listing on September 30 [9]. - The IPO aims to raise funds for strengthening the supply chain, expanding the sales network, and enhancing brand development, with plans to issue 81.5 million shares [9].