Core Viewpoint - The chairman of Baiguoyuan, Yu Huiyong, defended the company's high fruit prices, stating that the company prioritizes quality over catering to consumer expectations, which has sparked controversy online [1][3][6]. Group 1: Consumer Reactions - Many consumers expressed dissatisfaction with Yu's comments, suggesting that the company should be more responsive to consumer needs [3]. - Some consumers argued that higher prices could be justified if the fruits are of superior quality [5]. Group 2: Quality Control Issues - Baiguoyuan claims to focus on quality through strict operational standards and cold chain management to ensure freshness [7]. - Despite this, the company has faced multiple quality complaints, including incidents of selling spoiled fruits and mislabeling fruit grades [8][11]. Group 3: Financial Performance - Baiguoyuan reported a revenue of 10.273 billion RMB in 2024, a decrease of 9.8% year-on-year, with a shift from profit to loss, recording a net loss of 3.86 billion RMB [14][16]. - The revenue from fruit and other food sales accounted for over 97% of total income, which also saw a decline of 9.6% in 2024 [14][16]. - The number of franchise stores decreased from 4,818 in 2023 to 4,039 in 2024, attributed to high rental costs and profitability issues for franchisees [17]. Group 4: Profitability Challenges - The company's net profit margin has declined from around 3% in previous years to 1.49% in the first half of 2024 [21]. - Despite a large network of stores and a premium pricing strategy, Baiguoyuan has struggled to achieve significant growth in performance [21].