On July 12, Xiang Piaopiao Food Co., Ltd. (Xiang Piaopiao) announced that it is expected to incur a net loss of 97.39 million yuan (RMB) in the first half of this year, more than doubling the loss of 29.50 million yuan during the same period in 2024.
In its “2025 Semi-Annual Performance Forecast Announcement,” Xiang Piaopiao stated that the company expects to achieve operating revenue of around 1.035 billion yuan in the first half of 2025. The company anticipates a net profit attributable to shareholders of listed companies of approximately -97.39 million yuan in the first half of 2025, compared to a loss of 29.50 million yuan during the same period in 2024, indicating an increase in loss of around 67.89 million yuan. The net profit excluding non-recurring gains and losses attributable to shareholders of listed companies is estimated to be approximately -111.24 million yuan, reflecting an increase in loss of about 68.09 million yuan compared to the same period last year.
The announcement explained that the loss was influenced by changes in external consumption environments, impacts from the new tea beverage market, shifts in consumer habits and demands, as well as pressure on the sales of traditional brewing products during peak seasons due to the shortened duration of the peak season in the first quarter caused by the advancement of the Chinese New Year festivities compared to the previous year.
According to Chinese food industry analyst Zhu Danpeng’s analysis in the Daily Economic News on July 11, “Xiang Piaopiao has been undergoing transformation, innovation upgrades, and iterations in recent years, but the overall effects are not very significant, with the company incurring high costs. Xiang Piaopiao lacks in product promotion reach. Additionally, the aging of Xiang Piaopiao’s brand, products, channels, customers, and team are challenges, although the company has made many innovations, the overall effects are currently not very prominent.”
Public records show that Xiang Piaopiao was established in 2005. On November 30, 2017, Xiang Piaopiao Food Co., Ltd. was listed on the Shanghai Stock Exchange, becoming the first listed company in China’s milk tea industry.
With the eruption of new tea beverages in first and second-tier cities in China, the milk tea industry led by Xiang Piaopiao, is facing challenges as the era shifts from “brewing” to “fresh fruits, fresh tea, fresh milk.”
According to the Daily Economic News on July 11, starting in 2018, Xiang Piaopiao’s performance has gradually declined, with 2020 being a turning point. In 2018 and 2019, Xiang Piaopiao’s revenue growth rates were 23.13% and 22.36% respectively, while the revenue growth rate in 2020 was -5.46%, with the company’s non-recurring net profit dropping by nearly 60% year-on-year in 2021.
As the revenue and profits decline, Xiang Piaopiao’s stock price has also been falling. Data from financial terminal provider Wind Financial Terminal shows that since reaching a historical high of 35.09 yuan per share in intraday trading in August 2019, Xiang Piaopiao’s stock price has been steadily declining. As of the close on July 11, Xiang Piaopiao’s stock price fell to 13.84 yuan per share, representing a cumulative decline of over 60% from the peak of 35.09 yuan per share.