Core Viewpoint - The recent removal of "Low Sugar Orion Pie" from Sam's Club has sparked discussions among consumers regarding the selection strategy of the store, as many popular products have been replaced with items that are more commonly found in regular supermarkets [4][7][22]. Group 1: Product Removal and Consumer Reaction - Sam's Club has removed the "Low Sugar Orion Pie" from its app and shelves, despite it being recently introduced [1][8]. - Consumers expressed dissatisfaction on social media about the removal of high-repurchase-rate products and the introduction of more common items [4][22]. - The store's staff were unable to provide a clear reason for the product's removal or when it might return [8][12]. Group 2: Brand Strategy and Market Positioning - Several snack brands, including Orion, are leveraging Sam's Club to expand their market presence and target higher-end consumers, with some brands reporting significant sales through this channel [3][15]. - Snack brands are increasingly offering customized products for Sam's Club, which has led to substantial sales growth for some, such as Qiaqia Foods, which reported sales of approximately 200 million yuan through Sam's Club last year [15][19]. - The collaboration with Sam's Club is seen as a way for snack brands to enhance their market positioning, although there are concerns about the potential dilution of brand identity due to reliance on the retailer [22][23]. Group 3: Industry Trends and Insights - The snack food industry is undergoing a channel restructuring, with traditional supermarkets losing market share to membership-based retailers like Sam's Club, which are gaining traction among high-income consumers [21][22]. - Experts suggest that while partnerships with Sam's Club can provide growth opportunities, brands should avoid over-reliance on this channel to maintain their independent value [22][23]. - The legal perspective indicates that Sam's Club has the right to remove products based on market conditions and contractual agreements with suppliers, which does not necessarily harm consumer interests [27].

Core Viewpoint - Liu Liu Mei, the parent company of Liu Liu Guo Yuan, is attempting to enter the capital market by submitting an IPO application to the Hong Kong Stock Exchange, despite facing significant financial and operational challenges [2][12]. Group 1: Financial Performance - Liu Liu Guo Yuan sold 2 billion green plums in a year, generating annual revenue of 1.6 billion yuan [2]. - The company reported revenues of 1.174 billion yuan, 1.322 billion yuan, and 1.616 billion yuan for the years 2022, 2023, and 2024, respectively, with net profits of 68.43 million yuan, 99.23 million yuan, and 148 million yuan during the same period [7][8]. - The revenue breakdown for 2024 shows that dried plum snacks, plum jelly, and western plum products contributed 974 million yuan, 224 million yuan, and 410 million yuan, accounting for 60.3%, 13.8%, and 25.4% of total revenue, respectively [2]. Group 2: Market Position and Sales Channels - Liu Liu Guo Yuan ranks first in the Chinese plum product industry with a market share of 7% as of 2024, and it has maintained the top position in the sub-markets of green plum snacks and western plum snacks for four consecutive years [3]. - The company has shifted its sales strategy towards direct sales, with the proportion of revenue from direct sales increasing from 25.5% in 2022 to 59.2% in 2024, while revenue from distribution channels decreased correspondingly [3][4]. - The top three customers in 2024 contributed a combined revenue of 228 million yuan, 194 million yuan, and 44.3 million yuan, representing 28.2% of total revenue [4]. Group 3: Challenges and Risks - Liu Liu Mei faces significant challenges due to its heavy reliance on green plum products, which account for 60.3% of its revenue, exposing the company to market saturation risks [8]. - The average procurement price for green plums increased from 2,400 yuan/ton to 2,600 yuan/ton between 2020 and 2024, while imported western plum prices rose from 16,200 yuan/ton to 20,700 yuan/ton, leading to increased raw material costs [9]. - The company has seen a decline in the number of distributors for the first time, with a net loss of two distributors in 2024, indicating potential issues in its distribution strategy [4]. Group 4: Funding and Financial Health - Liu Liu Mei has completed four rounds of financing, with the latest round involving a buyout by Sequoia China at a significant discount, raising concerns about the company's valuation and market perception [11]. - As of the end of 2024, the company had cash reserves of only 78.05 million yuan against short-term borrowings of 312 million yuan, indicating a precarious financial situation [12]. - Government subsidies accounted for over 20% of net profit in 2024, highlighting a reliance on non-operational income that may undermine financial stability [10].

Core Viewpoint - Liuliu Mei, a leading brand in the plum snack industry, is preparing for an IPO on the Hong Kong Stock Exchange after previously failing to list in A-shares, raising concerns about declining profit margins and low R&D investment [2][5]. Company Overview - Liuliu Guoyuan, the parent company of Liuliu Mei, is a major player in the Chinese fruit snack market, with its main products categorized into three types: dried plums, western plums, and other plum-related products [3]. Market Position - According to Frost & Sullivan, Liuliu Guoyuan has ranked first in the green plum and western plum snack sectors by retail sales from 2021 to 2024. However, the market ceiling is evident, with the overall snack market in China projected to grow from 13,440 billion RMB in 2024 to 17,558 billion RMB by 2029 [5]. Financial Performance - The company reported total revenues of 1.174 billion RMB, 1.322 billion RMB, and 1.616 billion RMB for the years 2022, 2023, and 2024, respectively, with net profits of approximately 68 million RMB, 99 million RMB, and 148 million RMB during the same period [5][6]. Profit Margin Trends - Despite revenue growth, the gross profit margin has been declining, with figures of 38.6%, 40.1%, and 36.0% for the years 2022, 2023, and 2024, respectively. The margins for core products like dried plums and western plums have also decreased [6][7]. Marketing and R&D Expenditure - The company has invested heavily in marketing, with sales and distribution expenses exceeding 900 million RMB over the reporting period, accounting for 24.1%, 23.4%, and 19.2% of total revenue [8][10]. In contrast, R&D spending has been low, totaling less than 77 million RMB over three years, with a R&D expense ratio of only 1.2% in 2024 [11]. Ownership and Shareholder Actions - The company is primarily controlled by its founders, who hold 87.77% of the shares. Notably, major shareholder Beijing Sequoia chose to cash out before the IPO, selling its shares for 261 million RMB [11]. Food Safety Concerns - Food safety is critical for the company, which has faced multiple complaints and regulatory actions related to product quality. There have been nearly 300 complaints, with issues such as contamination and spoilage frequently reported [12][13][16].