Can 30 Years of Market Leadership Hold Steady? Nankang Food's Overseas Market Growth Shines

What strategic supports are behind the growth of the overseas market for AI?

The breadth and depth of market layout further strengthen Nanjiao Food’s resilience to risks.

Produced by | China Visitor Network

Reviewed by | Li Xiaoyan

On March 9, Nanjiao Food released its 2025 annual report, achieving a total operating revenue of 3.065 billion yuan for the year, a slight decrease of 2.99% year-on-year; net profit attributable to the parent was 40.6683 million yuan, down 79.81% year-on-year, delivering a performance that reflects the phased pressure since listing. Behind these figures, it reflects the common challenges faced by traditional baking raw material companies, such as high raw material prices, slow downstream consumption recovery, and intensified industry competition. It also highlights the company’s resilience built over nearly 30 years of industry deep cultivation, its risk resistance through full industry chain layout, and strategic determination for proactive transformation. At a critical point of industry cycle adjustment, Nanjiao Food employs a combination of stabilizing revenue, strengthening R&D, expanding channels, and optimizing structure to maintain operational fundamentals and lay a solid foundation for long-term high-quality development.

In 2025, global commodity prices fluctuate upward, and the baking raw materials industry generally faces significant cost pressures. Nanjiao Food is no exception. During the reporting period, the prices of main raw materials such as palm oil, coconut oil, and imported natural cream rose sharply year-on-year, with coconut oil reaching a historic high. Coupled with euro exchange rate fluctuations, production costs were directly pushed higher. Meanwhile, downstream consumer price sensitivity increased significantly, with fierce competition among baking stores, chain brands, and other clients, leading to difficulties in passing on costs. Product price increases lag behind raw material price hikes and are delayed, ultimately dragging down overall gross profit margin and causing a phased decline in net profit. This performance objectively reflects industry-wide pressures and does not indicate fundamental issues with the company’s operations, nor does it affect its leading position and core competitiveness in baking fats and oils.

Despite short-term profit pressures, Nanjiao Food still demonstrates strong operational resilience, maintaining stable revenue scale without significant fluctuations, serving as a key support to navigate industry cycles. The company has been deeply engaged in baking application fats for nearly 30 years, gradually expanding into whipped cream, dairy products, fillings, pre-baked goods, and other diversified sectors, building a comprehensive baking raw material supply system. Facing profound changes in consumption scenarios, structures, and habits, the company actively embraces new industry trends by developing new products, expanding new channels, and exploring new customers to offset the slowdown in traditional growth. During the reporting period, the dealer network continued to optimize, ending with 539 dealers—adding 137 and removing 79 within the year. Newly added dealers contributed sales of 64.7894 million yuan, making the channel structure healthier and providing a solid guarantee for stable revenue.

Product structure upgrades and R&D innovation are core drivers for Nanjiao Food to navigate industry cycles. In 2025, the company continued to increase R&D investment, driving product upgrades toward high-end, functional, and health-oriented transformations through technological innovation to meet consumer upgrade demands precisely. In whipped cream, several new products suited for different markets were launched, with the first self-developed high-end light cream, Qiaobale, receiving positive market feedback. The pre-baked product segment continued to grow, expanding into high-value-added products such as Danish puff pastry and specialty filled pastries. Despite a 34.74% increase in operating costs due to sales growth and raw material price hikes, this segment’s growth momentum remains strong, becoming the company’s second growth curve. Meanwhile, the company has taken the lead in preparing for the new national standards for light cream, launching compliant products like E-Yi Pure Light Cream, accelerating domestic dairy product substitution, and breaking the monopoly of imported products through technological barriers to build a differentiated competitive advantage.

The extensive and deep market layout further enhances Nanjiao Food’s risk resistance. Domestically, the company focuses on South China, East China, and Central China, continuously expanding into North China, Southwest China, and Northeast China, sinking channels into third- and fourth-tier cities, covering baking stores, high-end hotels, coffee and tea shops, and hypermarkets across all formats, aligning with regional dietary habits and consumer needs. Overseas market development has achieved notable results, with overseas revenue growing 13.41% year-on-year during the reporting period, steadily increasing its sales proportion. Starting from Southeast Asia, the global layout is beginning to take shape, forming a dual market pattern of stable domestic fundamentals and expanding overseas. Although gross margins in various regions declined due to rising raw material costs, diversified market deployment effectively disperses regional operational risks, demonstrating strategic foresight in global operations.

Solid financial fundamentals provide the company with sufficient confidence to cope with short-term pressures and promote long-term transformation. As of the end of the reporting period, the company’s asset-liability ratio remained low, with healthy current and quick ratios, maintaining strong debt repayment capacity and manageable financial risks. Net cash flow from operating activities was 52.9265 million yuan, although down year-on-year, it still maintained positive inflow, reflecting good cash flow management and operational realization ability. Additionally, the company plans to distribute a cash dividend of 0.3 yuan per 10 shares (tax included) to all shareholders, maintaining dividends during industry pressure, demonstrating confidence in long-term development and responsibility to investors.

It is worth noting that one of the company’s actual controllers, Mr. Chen Feilong, unfortunately passed away. However, he was not involved in the company’s operations before his death. The company has stated that this event will not significantly impact production and operations. The board of directors and senior management are performing their duties normally, and all business operations are proceeding in an orderly manner. As an important founder of the company’s growth, Mr. Chen Feilong laid a solid foundation for Nanjiao Food’s development. The company’s mature governance structure and professional management team ensure strategic continuity and operational stability, safeguarding future development.

Looking ahead, the long-term growth logic of the baking raw materials industry remains unchanged. Trends such as consumption upgrading, health consciousness, and pre-made products will continue to drive market expansion. Nanjiao Food’s long-term growth space remains broad. In the short term, as the prices of core raw materials gradually decline, cost pressures will significantly ease. Coupled with the effects of product price adjustments and structural optimization, profitability is expected to recover. In Q4 2025, the company already showed signs of improvement, with gross profit margin increasing by 2.68 percentage points compared to Q3, and net profit attributable to the parent turning from loss to profit, signaling positive momentum.

In the long term, the company will adhere to a dual strategy of deepening market layout and product innovation, focusing on three key breakthroughs: first, consolidating core advantages in baking fats and oils, promoting product upgrades toward clean labels and functionalization; second, expanding and strengthening high-growth sectors like pre-baked goods and whipped cream to build new performance pillars; third, deepening domestic and international channel deployment, exploring emerging formats, and increasing market penetration. Meanwhile, the company will optimize production processes, enhance automation, and strengthen supply chain management to systematically reduce costs and improve efficiency, further releasing operational vitality.

Industry cycles are normal, and short-term profit fluctuations do not change the fundamental long-term value. Nanjiao Food’s 2025 performance reflects the real pain of traditional baking raw material companies in transformation, as well as the proactive efforts of industry leaders to adapt and stay true to their original aspirations. With nearly 30 years of brand accumulation, a full product matrix, nationwide channel networks, and leading R&D capabilities, the company has built irreplaceable core barriers. As industry cycles turn favorable and transformation results emerge, Nanjiao Food will emerge from short-term pressures, return to high-quality growth, and reward the market and investors with more stable operations and better products.