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After shipping food back to China from abroad for sale, Pinwo once again realized that business was not easy. The annual performance report on August 18 stated that the net profit attributable to shareholders of the listed company in the first half of 2024 was a loss for the second time since the semi-annual report. On the evening of the same day, Pinwo Food, the "first imported food stock", announced that its semi-annual operating income was about 406 million yuan, a year-on-year decrease of 29.39%; it realized a net profit of 16.47 million yuan, and its loss narrowed year-on-year. This is the first time that Pinwo Food has suffered a loss since its listing.

Pinwo Foods made its fortune mainly from dairy products and beer, but now these products have become the main reason for losses. During the reporting period, "Deya" dairy products achieved revenue of approximately 316 million yuan, accounting for 77.93% of the main business revenue, a year-on-year decrease of 1.79%; "Valentine" achieved revenue of approximately 53.8772 million yuan, accounting for 13.27% of the main business revenue, a year-on-year increase of 1.43%.

Regarding the reasons for the decline in revenue from imported dairy products, Pinwo Food stated, "In 2024, due to the uncertainty of the global economic situation, the imported dairy industry saw a decline in both volume and price. According to statistics on the Chinese Customs website, my country imported a total of 1.31 million tons of various dairy products from January to June 2024, a year-on-year decrease of 15.6%; the import value was US$5.435 billion, a year-on-year decrease of 22.4%. This trend is mainly affected by many factors, including fluctuations in international milk prices, changes in domestic demand, and adjustments to trade policies."

Pinwo Food further stated, "Specifically, the uncertainty of the global economic situation has led to a decline in consumer confidence, which in turn has affected consumer demand for dairy products; at the same time, fluctuations in international milk prices have also affected the cost and price of imported dairy products."

Pinwo Food was founded in 1995. Deya Dairy is the brand with the largest share of Pinwo Food's revenue. It currently has liquid milk and cheese categories. The liquid milk category includes imported pure milk series, imported organic milk series, imported yogurt series, imported children's milk, and imported A2 series. The cheeses on the market include Deya Hand-Torn Original Cheese Original Flavor, Deya Hand-Torn Original Cheese Cheddar Flavor, and Deya Spanish Imported Original & Pineapple Flavored Cream Cheese; "Valentine" imported beer is the second largest brand in terms of revenue of Pinwo Food and was launched in 2013; in addition, "Pinli" is also a key brand of the company's grain and oil category, but currently accounts for a small proportion of revenue and is not among the main businesses.

Affected by poor performance, the share price of Pinwo Food fluctuated and fell, with a 40.44% drop from June 30, 2023 to June 30, 2024. As of June 30, 2024, the number of Pinwo Food shareholders was 8,754, a decrease of 1,454 from the previous period (March 31, 2024), a decrease of 14.24%.

The average market value of Pinwo Foods held by each household is lower than the industry average. According to Choice data, as of June 30, 2024, the average market value of A-share listed companies in the food and beverage industry held by each household was 410,900 yuan. Among them, 26.4% of the companies held an average market value of 105,000 to 200,000 yuan.

It is worth noting that recently the second largest shareholder of Pinwo Foods is planning to reduce its holdings due to "lack of money". On August 16, Pinwo Foods disclosed an announcement that Wu Bogeng plans to reduce his holdings of the company's shares by no more than 2.9701 million shares, or no more than 3% of the company's total share capital, through centralized bidding and block trading within 3 months after 15 trading days. The reason for Wu Bogeng's reduction of holdings this time is "own funding needs".

Zhan Junhao, a well-known strategic positioning expert and founder of Fujian Huace Brand Positioning Consulting, said in an interview with a Beijing Business Daily reporter that Pinwo Food's first-half financial report revealed that its imported dairy business was facing significant difficulties. The sharp decline in revenue and the loss of net profit revealed the severity of the market environment. The gradual loss of the halo of imported dairy products may not only be due to the uncertainty of the global economy, but also closely related to the growing sense of identity of Chinese consumers for domestic products. In the face of this challenge, Pinwo needs to take positive measures, such as deepening market insights, understanding changes in consumer preferences, and optimizing product strategies, which may include adding local elements or innovations to re-attract consumers. In addition, strengthening the emotional connection between the brand and consumers is also the key to coping with the current predicament.

Zhan Junhao further stated that with the rise of health awareness today, the high-endization of dairy products has become an irreversible trend, and products such as A2 milk and high-calcium milk are very popular. The growth of this market demand has provided new development opportunities for Pinwo. To enter this market segment, Pinwo needs to clarify its core competitiveness, such as unique nutritional value, excellent quality control, etc., and highlight these advantages through precise market positioning. In order to create differentiation, Pinwo can continuously innovate products to meet the diverse needs of consumers and spread its brand value and philosophy through effective marketing strategies. Ultimately, to gain consumer recognition, Pinwo needs to always put consumers first, pay attention to their needs and feedback, and continuously optimize products and services.

Regarding issues such as continued losses and falling stock prices, a Beijing Business Daily reporter sent an interview letter to Pinwo Food via email, but no reply was received as of press time.

Beijing Business Daily reporter Kong Wenxie