Breaking Down Three Squirrels Inc. Financial Health: Key Insights for Investors

From a 2012 Tmall start-up that quickly became the platform's top snack retailer to a 2019 Shenzhen IPO and a March 2025 application to list in Hong Kong, Three Squirrels has grown into a multi-channel snack powerhouse: after opening over 70 offline stores in 2016 it reported a recovered revenue of 10.622 billion yuan in 2024 with net profit attributable to shareholders of 408 million yuan, a market capitalization of about 10.49 billion yuan as of July 1, 2025, and founder Zhang Liaoyuan retaining control with a 40.37% stake as of December 31, 2024; the company proposed a cash dividend of 1.25 yuan per 10 shares, launched over 600 new SPUs in 2024 while streamlining SKUs from more than 1,000 to roughly 400, built a supply chain with a 15‑day average turnaround (versus a 30‑day industry average), handles over 1 million monthly customer inquiries with a 95% satisfaction rate, sells nuts that contribute over 50% of revenue, generates 41.3% of sales via e‑commerce and 24.8% via short‑video platforms like Douyin, operates a light‑asset model with a fixed asset ratio of 12.45%, manages more than 300 products covering over 60% of popular snack categories, runs 33 self‑owned brands, and holds the position as China's fourth largest snack company with a 3.2% market share and a 2022-2024 retail sales CAGR of 18.86% while pursuing further channel expansion and supply‑chain optimization

Three Squirrels Inc. (300783.SZ): Intro

• Founded in 2012 by Zhang Liaoyuan as an online snack retailer on Tmall; quickly rose to become the platform's top snack retailer by sales revenue.
• In 2016 the company expanded offline, opening over 70 brick‑and‑mortar stores nationwide to complement online sales.
• By 2019 Three Squirrels went public on the Shenzhen Stock Exchange and became the first snack food company to report annual revenue exceeding RMB 10 billion.
• After several years of fluctuation and strategic adjustments, Three Squirrels reported RMB 10.622 billion in revenue for 2024, marking a significant recovery.
• In March 2025 the company submitted a listing application to the Hong Kong Stock Exchange to broaden its capital base and market reach.
• As of December 2025 the company continues diversifying product offerings and sales channels across online, offline and new retail formats.

• Founder and founder‑led team retain significant influence in strategy and brand stewardship (founder: Zhang Liaoyuan).
• Publicly listed entity (300783.SZ) with a mix of institutional investors, retail shareholders and management ownership following the 2019 IPO.
• Corporate governance aligns with Shenzhen Stock Exchange rules; capital-raising efforts extended with the March 2025 HKEX application.

• Mission: position the brand as a leading, joyful snack lifestyle company connecting consumers nationwide (see full statement: Mission Statement, Vision, & Core Values (2026) of Three Squirrels Inc.).
• Focus on brand storytelling, product innovation, quality control, and integrated online-offline distribution.

• Product development: in‑house and outsourced manufacturing of packaged snacks across multiple categories (nuts, dried fruit, confectionery, savory snacks).
• Sales channels: omni‑channel approach-e‑commerce marketplaces (Tmall, JD, proprietary platforms), physical retail stores, social commerce and third‑party grocers.
• Marketing & brand: heavy digital marketing, mascots and storytelling to drive customer loyalty and repeat purchases.
• Logistics & fulfillment: centralized warehousing, partnerships with third‑party logistics and investment in distribution tech to reduce lead times and costs.

• Product sales: core revenue from packaged snack sales across online and offline channels.
• Private‑label and co‑branded products: margin enhancement through proprietary SKUs and collaborations.
• Channel services: promotional and platform‑level support, occasional B2B sales to distributors and retailers.
• New formats & monetization: premium product lines, limited‑edition launches, subscription and membership programs, and cross‑category expansions.

Three Squirrels Inc. (300783.SZ): History

• Founder & CEO Zhang Liaoyuan retained control with a 40.37% stake as of December 31, 2024.
• Strategic institutional and foreign investors included IDG Capital's NICE GROWTH LIMITED (4.2%) and Today Capital's LT GROWTH INVESTMENTIX (HK) (2.0%).
• Executive leadership: Zhang Liaoyuan, Pan Daowei, Wei Benqiang, Guo Guangyu.
• Independent non-executive directors: Huang Zhongwei, Wu Sheng, Wu Xiaoliang, Bai Xianyue.

• The ownership concentration under Zhang enables decisive strategic direction while notable minority stakes from institutional and foreign investors signal external confidence in growth potential.
• Dividend policy (2024 proposal) and market-cap trajectory have drawn attention from domestic and international investors, reflecting confidence in the company's cash generation and governance.

Three Squirrels Inc. (300783.SZ): Ownership Structure

• Founders & management: Core strategic control, brand direction, product innovation and customer-experience design.
• Institutional investors: Provide capital, governance oversight and scalability support for supply-chain and channel expansion.
• Retail shareholders: Large base of individual investors reflecting strong consumer-to-investor affinity in the brand.
• Operational partners and suppliers: Strategic alliances that influence sourcing, quality control and sustainability initiatives.

• High-end cost performance: Targeting affordable, premium-feeling snacks across mass-market channels.
• Emotional branding & personalization: Emphasis on creating a memorable consumer experience and loyalty through design and service touchpoints.
• Transparency & quality: Packaging frequently includes utility items (wet tissues, shell disposal bags, nut crackers) to enhance trust and convenience.
• Continuous innovation: Aggressive SKU expansion to capture trends and diversify offerings.
• Sustainability & social responsibility: Supply-chain improvements aimed at reducing cost and environmental impact while maintaining product standards.
• Adaptability: Fast response to shifting consumer preferences and market dynamics to preserve competitive advantage.

• Product assortment: Broad SKU portfolio sold through DTC e-commerce, marketplaces and retail partners to reach varied consumer segments.
• Margin engineering: Mix of private-label sourcing, scale purchasing and packaging value-adds to protect gross margins while offering perceived premium value.
• Omnichannel distribution: Online-first model supplemented by offline channels to boost reach and repeat purchases.
• Customer engagement: Branded experiences and post-sale service that increase retention and lifetime value.
• New-product cadence: Frequent launches to stimulate repeat purchases and respond to micro-trends.

Three Squirrels Inc. (300783.SZ): Mission and Values

• Sales channels: direct-to-consumer e-commerce platforms (own app and Tmall/JD), social commerce, and offline stores/partners.
• Product portfolio: streamlined from over 1,000 SKUs to ~400 SKUs, focusing on top-selling items to improve capital utilization and brand premium capability.
• Supply chain responsiveness: average turnaround time of 15 days versus an industry average of 30 days, enabling rapid adaptation to demand shifts.
• Customer engagement: personalized service via social media and dedicated apps handling >1,000,000 inquiries monthly with a satisfaction rate of 95%.
• Product breadth: expanded portfolio of 300+ distinct products covering >60% of popular snack categories in China.
• Asset model: light-asset operation with a fixed asset ratio of 12.45%, supporting flexible supply chain management and rapid expansion.

• Direct product sales (online owned stores and marketplaces).
• Offline retail partnerships and self-operated stores.
• Brand collaborations, seasonal and limited-edition SKUs to drive premium margins.
• Channel-specific promotions and subscription/loyalty programs to increase repeat purchase rates.

• Faster market response due to a 15-day supply chain cycle versus 30-day industry norm.
• Capital efficiency from SKU rationalization (from >1,000 to ~400) improving inventory turns and gross margin stability.
• High customer engagement scale: >1M monthly inquiries with 95% satisfaction, supporting strong brand loyalty and repeat purchase behavior.
• Broad category coverage (300+ products, >60% category coverage) enabling cross-selling and basket-size uplift.
• Light-asset base (12.45% fixed assets) that facilitates rapid geographic and channel expansion without heavy CapEx.

Three Squirrels Inc. (300783.SZ): How It Works

• Primary revenue drivers: core snack products (nuts, baked goods, snack combinations, meat products, dried fruits) with nuts contributing over 50% of total revenue.
• Channel mix: strong e-commerce foundation supplemented by short-video commerce, omnichannel retail and distributor networks.
• Brand strategy: 33 self-owned brands expanding addressable markets (pet food, tonics, instant food, coffee, female products).
• Customer acquisition & retention: promotions (including trade-in campaigns), KOL/short-video partnerships, live streaming and loyalty programs.

• Nuts: >50% of total revenue - core margin driver and brand halo product.
• Baked goods & snack combos: large SKU set targeting variety and gift occasions.
• Meat products & dried fruits: category extensions improving basket size and frequency.
• New verticals (pet food, tonics, instant food, coffee, female products): provide incremental revenue and reduce category concentration risk.

• Content-led commerce: short-video and live-streaming funnels direct-to-consumer purchases, leveraging Douyin and other platforms.
• E-commerce storefronts: presence on major marketplaces plus proprietary channels; accounts for 41.3% of revenue.
• Offline presence: franchised and company stores plus distributor networks for reach in lower-penetration regions.
• Promotions & trade-in campaigns: tactical price and bundling moves to increase basket size and move slow SKUs.
• Cross-brand bundling: using 33 self-owned brands to create multi-category packs and subscription offers.

• 2024 total revenue: 10.622 billion yuan; net profit attributable: 408 million yuan.
• Channel mix: e-commerce 41.3%; short-video platforms 24.8%; offline and distributors ~33.9%.
• Brand portfolio: 33 self-owned brands across snacks and adjacent categories.
• Shareholder return: proposed cash dividend of 1.25 yuan per 10 shares.

Three Squirrels Inc. (300783.SZ): How It Makes Money

• Core product lines: nuts & seeds, dried fruits, baked snacks, confectionery and savory snacks.
• Primary channels: e-commerce (self-operated stores and marketplaces), third-party retail distribution, and growing self-owned offline stores.
• Additional streams: private-label manufacturing/packaging services, seasonal/limited-edition products, and value-added services such as cold-chain logistics for premium SKUs.

• Online-first sales model: deep penetration on major Chinese platforms (self-operated stores plus Tmall/JD) drives high-margin direct-to-consumer revenue and customer-data-driven SKU optimization.
• Offline expansion: franchised and company-owned convenience/lifestyle stores increase distribution breadth, drive impulse purchases, and provide omnichannel touchpoints.
• Supply-chain & product innovation: investments in manufacturing automation, SKU rationalization, and new product development aim to improve margins and respond to premiumization trends.
• Pricing & channel mix management: balancing volume-driven low-price competition with premium SKUs and limited editions to protect average selling prices.