On the evening of August 27th, Xiangpiaopiao, the leading brand in the milk tea industry (603711.SH), released its mid-term performance report for 2024. The data showed that in the first half of the year, Xiangpiaopiao achieved a cumulative revenue of 1.179 billion yuan, a slight increase of 0.75% year-on-year. During the reporting period, the company adhered to the dual-drive strategy and implemented refined management. R&D expenses increased by 21.40% year-on-year, while sales expenses decreased by 8.08%, resulting in significant improvements in quality and efficiency.

As a core business, the instant tea sector achieved a revenue of 0.614 billion yuan, showing a stable development trend. In the first half of the year, the company further recognized the potential and value of the instant tea sector and formulated the "Four Transformation" strategy, which includes promoting the healthiness of the product category, rejuvenating the brand, integrating the product into various scenarios, and making it a part of consumers' daily lives. The company will continue to innovate and upgrade its instant tea products, aiming to further unleash the brand potential of Xiangpiaopiao. With the launch of new products that align with the "Four Transformation" strategy, as well as the continuous development of the untapped market and the effective implementation of innovative brand marketing actions, the instant tea sector is expected to experience new growth opportunities.

As the second growth curve created under the company's dual-drive strategy, the ready-to-drink beverages business has two major leading products that have contributed to steady revenue growth. In the first half of the year, the revenue reached 0.547 billion yuan, an increase of 3.83% year-on-year. Meco Fruit Tea is positioned as the "second choice outside of traditional tea shops," with a taste comparable to freshly made tea and a unique cup packaging that is highly favored by young consumers, resulting in steady sales growth.

It is worth mentioning that in the first half of the year, the market for Meco Fruit Tea gift samples showed promising results and received positive sales feedback. In the second half of the year, with further improvements in the sales model for gift-packaged products and the expansion of promotion in multiple regions, the Meco Fruit Tea gift market is expected to bring surprises. In addition, Lanfangyuan Frozen Lemon Tea, positioned as a "healthy and refreshing beverage", focuses on the original market of Guangdong and continues to cultivate channels, achieving further growth in revenue compared to the same period last year.

In the first half of this year, Xiangpiaopiao optimized its procurement channels, improved production efficiency, and strengthened internal management, among other measures, to reduce management costs and sales expenses. The results were significant in terms of improving quality and efficiency, laying a solid foundation for the company's long-term development. Industry insiders believe that under the driving force of the dual-drive strategy, Xiangpiaopiao's instant tea business is flourishing with the combined power of three elements: leveraging brand potential, upgrading products for healthier options, and tapping into untapped markets. The ready-to-drink beverage business, through the creation and replication of gift sample markets, is expected to contribute to the overall stable growth of the company's operations.