Core Viewpoint - The stock price of Laiyifen has experienced a decline of 17.90% year-to-date, with a recent drop of 2.01% on October 29, 2023, indicating potential challenges in the company's market performance [1]. Company Overview - Laiyifen, established on July 2, 2002, and listed on October 12, 2016, is headquartered in Xuhui District, Shanghai, and specializes in the chain operation of snack foods [1]. - The company's revenue composition includes: meat and aquatic products (24.21%), candies and preserved fruits (21.10%), nuts and beans (18.35%), pastries and puffed foods (14.16%), other food categories (14.15%), non-food items (1.66%), and rental business (0.21%) [1]. Financial Performance - For the first half of 2025, Laiyifen reported a revenue of 1.94 billion yuan, reflecting a year-on-year growth of 8.21%, while the net profit attributable to shareholders was -50.68 million yuan, a decrease of 439.60% compared to the previous period [2]. - Since its A-share listing, Laiyifen has distributed a total of 314 million yuan in dividends, with 47.79 million yuan distributed over the past three years [3]. Shareholder Information - As of June 30, 2025, Laiyifen had 41,800 shareholders, a decrease of 3.06% from the previous period, with an average of 8,005 circulating shares per person, an increase of 2.51% [2]. - The top ten circulating shareholders include Tianhong Zhongzheng Food and Beverage ETF, which holds 462,600 shares as a new shareholder [3]. Market Activity - Laiyifen's stock has been on the "龙虎榜" (a list of stocks with significant trading activity) 12 times this year, with the most recent appearance on March 3 [1]. - The stock's trading volume on October 29 was 56.89 million yuan, with a turnover rate of 1.34% [1].

Core Insights - The company "Laiyifen," known as the "first snack stock," has experienced its largest decline in performance since its listing, with a 15.25% drop in revenue for 2024, totaling 3.37 billion yuan, and a net loss of 75.26 million yuan, marking a shift from profit to loss [1][4][14] - In the first quarter of 2025, Laiyifen reported a revenue of 1.048 billion yuan, down 1.23% year-on-year, and a net profit of 12.44 million yuan, a significant decline of 79.72% [1][4] - Compared to peers like Wancheng Group and Three Squirrels, Laiyifen's revenue and profit growth rates are significantly lagging, despite maintaining a high gross margin of 40% [1][4][14] Revenue and Profit Decline - Laiyifen's main business revenue fell by 16.52% to 3.21 billion yuan in 2024, with a gross margin of 38.81%, down 1.94 percentage points from the previous year [4][6] - The company has seen a continuous decline in revenue since its listing, with 2023 marking the first revenue drop post-IPO, recording 3.977 billion yuan, a 9.25% decrease [4][14] Regional Performance - In East China, Laiyifen's revenue was 2.93 billion yuan, down 14.96%, with a gross margin of 40.76%, a decrease of 2.03 percentage points [5][6] - North China saw a slight revenue increase of 3.63%, while South China experienced a significant decline of 22.46% [6] Product Performance - All product categories, including nuts, meat products, and candies, reported revenue declines, with the largest drop in meat products and aquatic products [6][7] - The revenue from nuts and beans was 756.86 million yuan, down 8.11%, while meat products generated 985.54 million yuan, down 17.82% [7] Sales Model Analysis - Retail revenue from stores decreased by 21.39% to 2.02 billion yuan, while e-commerce revenue saw the largest decline of 35.54% [8][9] - The company closed 600 stores in 2024, including 425 direct-operated and 175 franchised stores, indicating a strategic shift in its retail approach [10][11] Market Position and Competition - Laiyifen's market position has weakened compared to competitors, with significant revenue growth reported by Wancheng Group (323.29 billion yuan, up 247.86%) and Three Squirrels (106.22 billion yuan, up 49.3%) [13][14] - The company has opted not to engage in price wars, maintaining a high gross margin compared to competitors, which has led to criticism regarding its pricing strategy [16] Employee and Shareholder Dynamics - The company has reduced its workforce by 39.23% since 2021, with 4,590 employees reported in 2024 [17] - Shareholder issues persist, with the controlling shareholder facing penalties for illegal share reductions, raising concerns about governance [18][19]