Core Viewpoint - The company faced backlash due to a misleading advertisement claiming that peanuts grow on trees, which is factually incorrect as peanuts grow underground [2][3][6]. Group 1: Company Background - Good Products Co., Ltd. (603719.SH) is known for its peanut products, particularly the "Four-Particle Red Peanuts" from Jilin Fuyu, which is a geographical indication product in China [2][5]. - Fuyu City has a long history of peanut cultivation, with over 1.1 million acres planted and an annual production of approximately 7 billion pounds, making it a leading peanut production area in Northeast China [5]. Group 2: Incident Details - The misleading advertisement was generated by artificial intelligence (AI) and was quickly removed from e-commerce platforms after the company was made aware of the issue [6]. - The company has initiated a comprehensive review of all product promotional materials to ensure scientific accuracy and has upgraded its content review mechanisms to prevent future errors [7][6]. Group 3: Financial Performance - In the first half of 2025, the company reported a significant decline in performance, with revenue of 2.829 billion yuan, a year-on-year decrease of 27.21%, and a net loss of 94 million yuan, a staggering decline of 491.59% [7]. - The decline in performance was attributed to product optimization, price adjustments, a reduction in store numbers, and decreased online revenue due to lower platform traffic [7]. Group 4: Market Reaction - Following the incident, the company's stock price fell over 10%, from 14.42 yuan per share to a low of 12.96 yuan on August 28 [7]. - As of August 29, the stock price was recorded at 13.27 yuan per share, with a total market capitalization of approximately 5.3 billion yuan [8].

Core Viewpoint - Recently, the company faced backlash due to a misleading advertisement claiming that peanuts grow on trees, which is factually incorrect as peanuts grow underground [3][5][7]. Group 1: Company Response and Actions - The company has removed all erroneous promotional materials related to the misleading peanut advertisement and has not yet issued a formal apology or clarification [4][6]. - The misleading image was generated by artificial intelligence, and the company has initiated a comprehensive review of all product promotional materials to ensure scientific accuracy [5][7]. - Following the incident, the company has committed to upgrading its content review mechanisms and optimizing internal management processes to prevent future errors [7]. Group 2: Financial Performance - In the first half of 2025, the company reported a significant decline in performance, with revenue of 2.829 billion yuan, a year-on-year decrease of 27.21%, and a net loss of 94 million yuan, a staggering decline of 491.59% [7]. - The company attributed the revenue drop to ongoing product optimization, price reductions, and a decrease in store numbers due to the closure of inefficient outlets, compounded by a decline in online traffic [7]. - Following the incident, the company's stock price fell from 14.42 yuan per share to a low of 12.96 yuan per share, representing a decline of over 10% [7][8].