Shanghai Laiyifen Co.,Ltd. (SH603777, previous closing price: CNY 12.95, market cap: CNY 4.331 billion), known as the "first stock in the leisure snack industry," recently released its Q3 2025 financial report. The data showed that while revenue for the first three quarters rose 13.12% year-on-year to CNY 2.854 billion, net losses widened by 194.06% to CNY 125 million. In Q3 alone, revenue grew 25.15% YoY to CNY 914 million, but net losses increased by 29.73% YoY to CNY 74.656 million, further expanding from Q2's net loss of CNY 50.6839 million. This performance has reignited market concerns about Laiyifen's growth prospects.
Beyond financial pressure, the company is also facing store contraction. By the end of H1, its total store count stood at 2,979, down 14.2% YoY. Amid multiple challenges, Laiyifen is seeking breakthroughs. This year, the company announced several key initiatives to support franchisees, including a financial assistance plan of up to CNY 50 million to ease liquidity pressures in daily operations and strengthen collaboration. While the franchise model offers advantages, challenges remain—such as refining franchisee management systems and preventing operational risks or conflicts. The success of this strategy remains to be tested.
To overcome current difficulties, Laiyifen must take a multi-pronged approach. First, in product and channel development, it should increase R&D investment to launch innovative products aligned with consumer demand and market trends, enhancing value and competitiveness. Simultaneously, optimizing online and offline channel strategies and boosting e-commerce sales share are crucial. Second, cost control measures—such as improving supply chain efficiency, streamlining procurement, and reducing expenses—are essential for operational optimization. Additionally, strengthening brand building and marketing to elevate brand recognition and customer loyalty will be key to driving sales growth.
As competition intensifies in China's leisure snack sector, Laiyifen—a leading player with established brand equity—must leverage its strengths to navigate challenges. Through innovation and transformation, the company can aim for performance recovery and sustainable growth.
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