Core Insights - The company reported a revenue of 2.514 billion yuan for the first three quarters, representing a year-on-year decline of 6.43% [1] - The net profit attributable to shareholders was 194 million yuan, down 44.37% year-on-year [1] - The net profit after deducting non-recurring items was 165 million yuan, a decrease of 45.22% year-on-year [1] Revenue Breakdown - In the third quarter, the company achieved a revenue of 1.041 billion yuan, showing a year-on-year growth of 1.75% [1] - The net profit attributable to shareholders in the third quarter was 89.54 million yuan, down 40.66% year-on-year [1] - For the first three quarters, the revenue from "夫妻肺片" (Couple's Lung Slices) was 676 million yuan, a decline of 15.91% year-on-year [1] - Revenue from whole poultry products was 541 million yuan, down 16.10% year-on-year [1] - Overall revenue from fresh products reached 2.003 billion yuan, a decrease of 11.33% year-on-year [1] Franchise and Management Fees - Revenue from franchise fees, store management fees, and information system usage fees amounted to 44.476 million yuan, reflecting a year-on-year decline of 12.59% [1]

Core Viewpoint - The competitive landscape in the marinated food sector is intensifying, leading to a decline in sales for Ziyan Food, with both revenue and net profit experiencing significant year-on-year decreases in the first three quarters of the year [1][2]. Financial Performance - In the first three quarters, the company achieved operating revenue of 2.514 billion yuan, a year-on-year decrease of 6.43%; net profit attributable to shareholders was 194 million yuan, down 44.37%; and net profit after deducting non-recurring gains and losses was 165 million yuan, a decline of 45.22% [1]. - In the third quarter alone, the company reported operating revenue of 1.041 billion yuan, a year-on-year increase of 1.75%; however, net profit attributable to shareholders was 89.54 million yuan, down 40.66% [1]. Product Performance - Key products such as "Husband and Wife Lung Slices" and whole poultry products saw revenue declines of 15.91% and 16.10%, respectively, in the first three quarters [2]. - Overall revenue from fresh products dropped by 11.33% to 2.003 billion yuan, while income from franchise fees, store management fees, and information system usage fees decreased by 12.59% to 44.476 million yuan [2]. - In contrast, pre-packaged and other products achieved revenue of 336 million yuan, marking a year-on-year growth of 26.78% [2]. Market Context - The marinated food sector is under pressure due to increased competition and cautious consumer spending, with market growth slowing down [2]. - The market size for marinated food in China is projected to be 157.3 billion yuan in 2024, with a slight increase to 162 billion yuan expected in 2025 [2]. Business Model Insights - The company's distribution model revenue fell by 12.79% to 1.951 billion yuan, with the number of distributors decreasing by three to 97 by the end of the third quarter [2]. - Conversely, the direct sales model showed strong performance, generating revenue of 73.792 million yuan, a year-on-year increase of 46.17% [3]. Strategic Initiatives - The company is focusing on expanding its brand presence among younger consumers by launching campus stores and penetrating overseas markets through a combination of Chinese supermarkets and direct sales [3]. - Profitability is being challenged by rising costs in labor and logistics, as well as increased promotional efforts to capture market share [3].