Financial Services Association, September 11 (Reporter Luo Yichen) There is frequent news about the Mid-Autumn Festival consumption crisis. The Q4 consumption situation is unspeakably optimistic. The market expects brands to adjust their strategies in a timely manner. Regarding the upcoming “Double Eleven Promotion”, the management of Shouxiangu (603896.SH) said at the performance briefing held today that they have formulated a promotion plan for the fourth quarter, signed cooperation agreements with some anchors, and are working hard to cooperate with leading anchors.

In the first half of this year, the overall Chinese medicine health products industry weakened. At the meeting, when asked, “Demand for tobacco and alcohol has generally declined this year during the Mid-Autumn Festival. What is the demand for traditional Chinese medicine health products?” At the time, Li Mingyan, chairman of the company, responded to the current market environment from the side. He said that judging from the sales and profit performance of listed traditional Chinese medicine companies and health products companies in the first half of the year, some companies achieved an increase in sales and profit performance, but there was an overall downward trend. In particular, high-value traditional Chinese medicine and health products may have a greater impact.

As reflected in the company's performance, Shouxianggu's revenue declined slightly year-on-year in the first half of the year, and net profit to mother still increased by 11.79%. On a quarterly basis, Q2 results showed a clear year-on-year decline, and the pressure on full-year results should not be underestimated. Financial data for the first half of the year also showed that during the downturn in the industry, the company preferred to maintain the latter between revenue and profit. The gross margin of the core product Ganoderma lucidum spore powder remained high at 86.49%, a year-on-year decline of only 1.28 percentage points. This is also consistent with the company's management's previous public statement.

At a time when consumption is generally being downgraded, whether the company can maintain a stable price of Ganoderma lucidum spore powder has always been the focus of market attention. In response to investors' concerns, Li Mingyan replied that the company has set up a price control team to maintain the stability of product prices. According to reports, some investors have previously reported that online merchants are selling Shouxianggu products at low prices. In response to this phenomenon, Shouxiangu claims that it is already sorting out the price system for all of the company's products, and by formulating a product price classification system, it has stipulated the price requirements to be implemented by dealers and terminals at all levels.

It is worth noting that while maintaining the current price system, Shouxianggu's online business development is also inevitably constrained. Since the main consumers are middle-aged and elderly people, the company's sales focus cannot be taken offline. In this context, in order to avoid the impact of price competition on offline channels, the solution adopted by the company is to use different products to cover different channels, but the actual performance is still difficult to be optimistic.

In the first half of the year, the company's e-commerce channel revenue fell 26.60% year on year. The management admits that the e-commerce channel layout is still lagging behind. Sales are concentrated on traditional e-commerce Tmall and JD, and there is an urgent need to develop more new channels.