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Finance Association News on August 29th (Reporter Wu Weiling) "the number one snack" Shanghai Laiyifen (603777.SH) continues to be under pressure, with a double decline in revenue and net income in the first half of the year. Facing changes in the leisure snack market, Shanghai Laiyifen is also starting to expand its discount format, and the first warehouse membership store will be launched in Shanghai this month.

According to the financial report, in the first half of the year, Shanghai Laiyifen achieved revenue of 1.792 billion yuan, a year-on-year decrease of 15.05%; net income attributable to shareholders of the parent company was 14.9245 million yuan, a year-on-year decrease of 72.56%; non-GAAP net income attributable to shareholders of the parent company was -8.8888 million yuan, a year-on-year change from profit to loss.

Regarding the performance change, Shanghai Laiyifen explained that in the first half of the year, based on the current macroeconomic situation and the trend of the social consumer market, the company adjusted the structure of some regional stores, and the revenue of direct-operated stores was affected and decreased year-on-year, resulting in lower-than-expected profits for the period.

Specifically, in the first half of the year, revenue of direct-operated stores was 1.112 billion yuan, a year-on-year decrease of 20.31%; revenue of franchised stores was 0.404 billion yuan, a year-on-year increase of 13.31%; in addition, revenue from special channels and e-commerce decreased by 3.67% and 22.05% respectively.

As of the end of the reporting period, Shanghai Laiyifen had a total of 3,472 stores nationwide, a net decrease of 191 compared to the same period last year, including 1,775 direct-operated stores, a net decrease of 309, and 1,697 franchised stores, a net increase of 118.

Behind the pressure on Shanghai Laiyifen's revenue is the transformation of the leisure snack channel and the rise in cost-effectiveness preferences. The company stated that new sales formats such as quantity-discount snacks and content e-commerce will continue to seize market share from traditional supermarkets. At the same time, against the background of macroeconomic fluctuations, the consumer confidence index has declined slightly, and consumer spending power is generally under pressure, which short-term encourages the consumer industry to pursue extreme cost-effectiveness. However, from a long-term perspective, with the passage of time and the gradual rationalization of consumer preferences, the market will eventually shift towards a higher pursuit of cost-effectiveness.

In response to changes in consumer preferences, Shanghai Laiyifen is also embracing the discount format. Earlier this month, Shanghai Laiyifen opened its first warehouse-style paid membership experience store in Songjiang. Shanghai Laiyifen claims that compared to similar products of comparable quality, the store achieves the ultimate value for money, such as duck neck and other meat snacks, as well as cow milk pure milk and other daily necessities, with a price reduction of about 56% from the original price. At the same time, this store adopts a membership system, and consumers can enter the store for consumption after obtaining a black gold membership, with an annual fee of 99 yuan.