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Core Viewpoint - Recent food safety incident involving a consumer finding a suspected blood-stained band-aid in a product from Laiyifen has raised significant public concern about food safety and quality control within the company [1][2] Group 1: Incident and Response - Laiyifen has initiated a full investigation and has removed the affected batch of products from the market following the incident [1] - The company has stated that the involved products have been sealed and that they reached a settlement with the consumer, with no non-compliant products found by market supervision authorities [1] Group 2: Business Model and Challenges - Laiyifen's business model heavily relies on OEM (Original Equipment Manufacturer) production, with over 1,500 OEM products across 13 core categories, which can lead to challenges in food safety and quality control [1] - The company has faced over 400 consumer complaints related to food safety issues, indicating a significant erosion of consumer trust [2] - The rise of new retail formats and brands has intensified competition, leading to a 15.25% decline in revenue to 3.37 billion yuan and a net loss of 75.27 million yuan, a 231.94% increase in losses year-on-year [2] Group 3: Recommendations for Improvement - The company must prioritize strengthening food safety and quality control risk management to ensure product safety and quality [3] - There is a need for Laiyifen to reassess its quality control processes under the OEM model, enhancing the selection, supervision, and assessment of OEM factories [3] - The company should accelerate innovation and explore new business paths, focusing on diversification, product service innovation, and channel development [3]

Core Viewpoint - The company, Laiyifen, is facing significant challenges due to a food safety issue with its date paste rice dumplings, which emerged just before the peak sales season of the Dragon Boat Festival, potentially impacting its sales and reputation [2][3]. Group 1: Food Safety Incident - On May 10, consumers reported finding foreign objects in Laiyifen's rice dumplings, prompting the company to recall the affected products and offer compensation [2][3]. - The company has initiated a comprehensive investigation into the incident and plans to enhance food safety management across its supply chain [3]. Group 2: Financial Performance - Laiyifen's revenue declined for the first time since its listing, with a 9.25% drop to 3.977 billion yuan in 2023, and a projected revenue of 3.37 billion yuan in 2024, down 15.25% [5]. - The net profit for 2024 is expected to be a loss of approximately 75.27 million yuan, a significant decrease of 231.94% year-on-year [5]. Group 3: Store Expansion Challenges - The number of Laiyifen stores decreased for the first time since 2017, with a total of 3,085 stores at the end of 2024, down 600 stores or 16.28% from the previous year [6]. - The decline is primarily due to a reduction in direct-operated stores, which fell to 1,485, a decrease of 425 stores [6]. Group 4: Competitive Landscape - The snack food industry is experiencing intensified competition, particularly from discount stores and leading brands like Mingming Hen Mang Group and Wancheng Group, which are rapidly expanding [7]. - Laiyifen has entered a strategic partnership with the discount snack brand Yangchuanji to enhance its market presence, although the effectiveness of this collaboration remains uncertain [8].