### Overview The company in review specializes in canned fruits and coconut water, with notable products including peach and orange canned goods. This report covers the first quarter of 2025 earnings, presenting a comprehensive analysis of the company's performance and strategic direction.

### Key Financials The company demonstrated robust revenue growth, especially in its dedicated snack channel, which yielded revenues of approximately 46.45 million yuan in Q1 2025. In the previous year, total revenues from the snack channel reached 115 million yuan, reflecting a strong upward trend. Despite fluctuations in raw material costs, the overall procurement prices have remained manageable, with a significant decrease of over 30% in peach prices due to an abundant harvest in 2024.

### Management Commentary The management team exhibits a cautious yet positive stance moving forward. With the appointment of a new president and the introduction of innovative product lines, there is an underlying optimism about enhancing market share, albeit tempered by the necessary adjustment periods for new product acceptance and marketing strategies. The upcoming dividends and shareholder return strategy for 2025-2027 further illustrate their commitment to maintaining investor confidence.

### Trends and Drivers The company's diversification into snack-specific channels has proven advantageous, supporting significant revenue growth. Their focus on product innovation—such as introducing sugar-reduced options and convenient packaging—aligns with consumer trends favoring healthier snack alternatives. However, performance is somewhat hampered by the uncertainty surrounding new product acceptance (e.g., coconut water), which requires ongoing market cultivation.

### Risks and Outlook Potential risks include market acceptance challenges for newly launched products, particularly in the coconut water segment, which has yet to establish a strong consumer base. Additionally, volatility in raw material prices, influenced by the supply-demand dynamics specific to coconut products, poses a cost management challenge. Observers should watch how these factors play out in the coming quarters, particularly as the company refines its sales strategies.

### Conclusion In summary, the company is navigating a phase of strong growth facilitated by operational shifts and product innovation. With a solid revenue performance in the snack channel and a proactive approach to market challenges, it remains well-positioned for future growth. However, investors should remain vigilant regarding the execution of its strategic initiatives and the impact of market acceptance on new products.