Shenzhen Baiguo Yuan Industry (Group) Co., Ltd. (Baiguo Yuan) is expected to incur a loss of 350 million to 400 million yuan in 2024 compared to a net profit of 362 million yuan in the 2023 fiscal year, leading to an 83% decrease in market value over the past two years.
In a profit warning issued on February 3rd, Baiguo Yuan stated that while anticipating the losses, the revenue for the fiscal year 2024 is expected to decrease by no more than 15% from the 2023 fiscal year revenue of 1.13906 billion yuan.
The company attributed the losses to weak consumer demand in China, a decrease in the number of franchise stores from 6,081 as of December 31, 2023, to 5,116 as of December 31, 2024, and increased expenses due to the implementation of the new strategy of becoming a “high-quality fruit expert and leader” to enhance the brand recognition among customers.
The recent downward trend in Baiguo Yuan’s stock price led to a low of 1 Hong Kong dollar per share after the market opened on February 5th.
According to a report by Time Finance on February 5th, Baiguo Yuan was listed on the Hong Kong Stock Exchange with an offering price of 5.6 Hong Kong dollars per share in 2023. However, as of February 5, 2025, the stock price had fallen to around 1.06 Hong Kong dollars per share, resulting in an 83.23% market value evaporation over two years.
As the stock price declined, some senior executives and shareholders of Baiguo Yuan began reducing their holdings. Executive Vice President Jiao Yue reduced 3.178 million shares in November 2024 and another 3.3 million shares in January 2025, cashing out nearly 10 million Hong Kong dollars in total.
Major shareholder and Chairman of Tian Tu Investment, Wang Yonghua, and independent non-executive director Wu Zhanchi also conducted sell-offs, resulting in substantial cash outs. These sell-off actions have raised concerns and worries in the market about the future development of Baiguo Yuan.
Baiguo Yuan, as one of China’s largest fruit retailers, has maintained a leading position in the market in recent years. However, amid intensifying market competition, its sales of high-end fruits have faced significant pressure, leading to continuous declining performance.
Based on the financial data from the past few years, Baiguo Yuan’s profit growth has shown a downward trend year by year. From 2021 to 2023, the company’s net profit attributable to shareholders increased by 369.49%, 40.35%, and 11.88%, respectively. This trend worsened in 2024, with revenue in the first half of the year decreasing by 11.1% year-on-year and net profit attributable to shareholders dropping by 66.06% year-on-year.
As of 2:00 PM Beijing time on February 6th, the stock price of Baiguo Yuan stood at 1.120 Hong Kong dollars per share, with a total market value of 1.724 billion Hong Kong dollars.