Group 1 - The core viewpoint of the articles highlights that Nanchao Food (605339.SH) reported a 3.31% year-on-year decline in consolidated revenue to 255 million yuan in May, continuing a trend of performance volatility [2][3] - The decline in revenue is attributed to rising raw material costs and challenges from market transformation, particularly the volatility in commodity prices like palm oil, which heavily impacts Nanchao's main products [2] - Despite attempts to pass on cost increases to downstream customers, competitive market conditions have hindered full absorption of price hikes, leading to sustained pressure on gross margins [2][3] Group 2 - The shift in consumer demand towards healthier options, such as low-sugar and low-fat baked goods, has negatively impacted traditional products like margarine and shortening, contributing to slower market growth [2] - Nanchao Food has begun to diversify into emerging businesses like frozen dough and cream, but these segments currently represent a small revenue share and are unlikely to offset the decline in baking oil revenue in the short term [2] - The company's distribution model faces challenges, with weaker risk resilience among small and medium-sized distributors and slow recovery in offline consumption in some regions, leading to stagnant distributor income growth [3] Group 3 - Nanchao Food is attempting to adjust its business structure by expanding frozen dough capacity and strengthening partnerships with large supermarkets to align with efficiency trends in the baking industry [3] - The competitive landscape is intensifying, with international giants like Cargill and AAK accelerating their market presence, making cost control and product innovation critical for Nanchao's future market position [3] - While short-term performance remains uncertain, Nanchao's technological accumulation and channel advantages in the baking ingredient sector provide a competitive edge for long-term prospects [3]