Core Viewpoint - The leisure snack industry is facing significant challenges, including declining gross margins and increasing pressure on net profit due to rising raw material costs and market competition [1][5]. Group 1: Financial Performance - Salted Fish's half-year report shows revenue of 2.941 billion yuan, a year-on-year increase of 19.58%, and a net profit of 373 million yuan, up 16.7%, but growth momentum is weakening compared to previous years [3]. - The gross margin for Salted Fish has decreased from 32.53% to 29.66%, marking a continuous decline over five years with a cumulative drop of over 12 percentage points [3]. - Other brands like Yummy and Three Squirrels also reported declines in gross margins, with Yummy's margin down 9.16% to 31.58% and Three Squirrels down 0.70 percentage points to 25.27% [4]. Group 2: Industry Challenges - The overall consumption capacity and willingness are declining, making the leisure snack industry, a non-essential category, face more severe challenges [5]. - The industry is expected to grow, with the market size projected to exceed 1.6 trillion yuan by 2025, maintaining an annual growth rate of about 6%-8% [5]. - Brands are advised to focus on upgrading supply chains and product innovation rather than relying on marketing for short-term performance [5]. Group 3: Raw Material Costs - Rising raw material costs are a direct pressure source, with some brands reporting cost increases of over 30% for key ingredients [6]. - For example, a brand's operating costs rose by 24.67% to 2.068 billion yuan due to increased prices of core raw materials [6]. - Many brands are struggling with the inability to control raw material procurement effectively, leading to increased costs and reduced profit margins [7]. Group 4: Channel Transformation - New emerging channels like snack wholesale stores and Douyin interest e-commerce are rapidly changing the growth path of traditional snack brands [8]. - Traditional channels are expected to shrink to 50% of market share by 2025, down from 80% in 2015, leading to significant revenue declines for brands reliant on these channels [8]. - Brands that adapt to new channels have seen success, with some reporting significant revenue growth through strategic partnerships [8]. Group 5: Scale vs. Profitability - Brands are expanding market scale through various strategies, but this often leads to increased costs without corresponding profit growth [10]. - Sales expenses are rising faster than revenue, with brands spending heavily on marketing to maintain competitive positions in new channels [11]. - The contradiction between scale and profitability is becoming more pronounced, necessitating a reevaluation of growth strategies and cost structures [11]. Group 6: Product Differentiation - Many brands rely on OEM models, leading to high product similarity and increased competition, which compresses profit margins [13]. - Some brands recognize the need for differentiation but face challenges in investing in R&D and production capabilities [14]. - Successful brands are investing in supply chain integration and product innovation to enhance competitiveness and profitability [15][16]. Group 7: Multi-Dimensional Strategies - Brands need to explore multiple dimensions for breakthroughs, including increasing R&D investment and innovating product offerings to meet consumer demands [17]. - There is a growing need for brands to adopt a user-centric approach, building emotional connections with consumers through storytelling and sustainable practices [18]. - The industry must achieve systematic breakthroughs in product strength, channel efficiency, and brand value to overcome current challenges [18].

Core Viewpoint - Jinzai Food, known as the "first stock of fish snacks," reported a decline in revenue and profit for the first half of 2025, reflecting broader industry challenges faced by snack companies in the A-share market [1][7]. Company Performance - Jinzai Food's revenue for the first half of 2025 was 1.124 billion yuan, a year-on-year decrease of 0.5%, while net profit attributable to shareholders was 112 million yuan, down 21.86% [1]. - Despite growth in sales of fish and bean products, the company faced declines in quail egg and konjac products, with online sales also contributing to the performance drop [1][7]. - The company maintained a robust "basic plate," with fish product revenue at 757 million yuan (up 7.61%) and bean product revenue at 115 million yuan (up 3.61%) [5]. Product Category Insights - The poultry product category, which had been a growth driver, saw a revenue decline of 24% in the first half of 2025, totaling 196 million yuan [2]. - The vegetable product category also experienced a decline of 10.69%, with revenue at 34.05 million yuan [4]. - Jinzai's poultry products, including shredded meat and quail eggs, had previously shown significant growth, but increased competition and price pressures have led to a slowdown [3][4]. Industry Context - The A-share snack industry is facing collective challenges, with major companies like Good Products and Laiyifen reporting significant losses in the first half of 2025 [7][8]. - The competitive landscape has intensified, with rising customer acquisition costs and a shift in consumer behavior impacting both online and offline sales channels [9]. Strategic Adjustments - In response to current challenges, Jinzai Food has made personnel adjustments, appointing Tong Jingming as the new deputy general manager to bring fresh operational insights [6]. - The company plans to focus on channel construction as a key strategy moving forward, addressing the decline in online sales due to community group buying distributors exiting the market [7].

Core Insights - Jinzai Food, known as the "first stock of fish snacks," reported a decline in both revenue and net profit for the first half of 2025, with revenue at 1.124 billion yuan, down 0.5% year-on-year, and net profit at 112 million yuan, down 21.86% [2] - The fish products segment, represented by "Jinzai Small Fish," remains the primary revenue source, generating 757 million yuan, a year-on-year increase of 7.61%, while poultry products saw a significant decline of 24% to 196 million yuan [2] Business Performance - Jinzai Food's revenue growth slowed significantly in 2024, with revenue growth dropping from 41.26% in the previous year to 16.79%, and net profit growth decreasing from 68.17% to 39.01% [3] - In Q1 2025, the company achieved revenue of 595 million yuan, a year-on-year increase of 10.27%, but net profit decreased by 8.21% to 68 million yuan [3] Strategic Initiatives - The company is enhancing cooperation with snack specialty channels and expanding its product SKU offerings while actively exploring overseas markets, with products sold in over 40 countries and regions [4] - While expanding into overseas markets presents new growth opportunities, it also poses challenges such as cultural differences and complex regulations, requiring significant resources for research and promotion [4]