"Haoxiang Lai" Parent Company Wanchen Group's Net Profit Surged 358.09% Last Year, But Growth Rate is Beginning to Slow

On the evening of March 17, Wanchen Group (300972.SZ) released its 2025 financial report. During the reporting period, it achieved operating revenue of 51.459 billion yuan, a year-on-year increase of 59.17%; net profit attributable to shareholders of the listed company was 1.345 billion yuan, a significant increase of 358.09% year-on-year; realized non-recurring profit attributable to the parent was 1.277 billion yuan, up 395.03% compared to the same period last year; net cash flow from operating activities was 3.631 billion yuan, up 328.07%; basic earnings per share were 7.3028 yuan.

Buoyed by this news, in the capital market, Wanchen Group’s stock opened high and continued to rise after the market opened on March 18, but quickly pulled back due to overall market influence. As of the time of writing, the stock closed at 190.6 yuan per share, down 0.78%, with a total market value of about 36.5 billion yuan.

In the performance announcement, Wanchen Group stated that the company’s growth was mainly due to the sustained rapid expansion and steady improvement of its snack wholesale business, as well as the stabilization and recovery of its edible fungi business in the second half of the year.

In 2025, Wanchen Group’s snack wholesale business achieved revenue of 50.857 billion yuan, a year-on-year increase of 60%; after including the share-based payment expenses, net profit was 2.533 billion yuan, with a net profit margin of 4.98% for the snack wholesale business after including share-based payments. The company’s core business, edible fungi, generated about 600 million yuan in revenue, beginning to stabilize year-on-year.

Notably, Wanchen Group now mainly focuses on the wholesale snack business, which accounts for 98.83% of revenue, while its core business of edible fungi accounts for less than 1.17%. However, since the edible fungi business is related to agriculture, the company has received substantial government subsidies starting in 2024, reaching 140 million yuan in 2025, a record high.

In October 2023, Wanchen Group merged its four major brands—“Lu Xiaocan,” “Hao Xiang Lai,” “Lai You Pin,” and “A Di A Di”—into “Hao Xiang Lai,” and simultaneously incorporated the “Wife Big” brand, leading to explosive growth in store numbers.

According to the announcement, by the end of 2025, Wanchen Group’s Hao Xiang Lai stores reached 18,314, a 29.01% increase year-on-year, with a net addition of 4,118 stores compared to 2024. The company continued to lead in advantageous regions such as the Yangtze River Delta and North China, while rapidly expanding in Northeast, Northwest, and South China to promote nationwide deployment.

Meanwhile, Wanchen Group has been continuously improving store revenue by introducing low-temperature, short-shelf-life foods, beverages, frozen foods, and IP licensing to stores. In 2025, the average revenue per store was 2.777 million yuan, up 24% from 2.239 million yuan in 2024.

However, the financial report shows that over the past year, Wanchen Group’s overall store opening pace and performance growth have slowed: in 2024, the net increase in stores was 9,470, which is 5,352 fewer than in 2025. Its growth rate also slowed compared to 2024: in 2024, revenue increased by 247.86%; net profit attributable to the parent increased by 453.95%.

According to data from Zhuoshi Consulting, the domestic broad retail market for snacks and beverages has remained stable, growing from 3.2 trillion yuan in 2019 to 4.0 trillion yuan in 2024, with an average annual compound growth rate of 5.0%. It is expected to further grow to 5.4 trillion yuan by 2029, with an annual compound growth rate of 5.9%. The bulk snack retail format has shown strong growth potential: from 2019 to 2024, its market size grew at an average annual rate of 77.9%, and is projected to maintain a 36.5% annual growth rate over the next five years, reaching approximately 613.7 billion yuan by 2029.

Fangzheng Securities analyst Wang Zehua believes that the financial report shows Wanchen Group’s snack wholesale business continues to grow rapidly, with store numbers steadily increasing. The company is expanding its “snacks+” product matrix and is optimistic about sustained future profitability. It is estimated that the company’s operating revenue will be 63.107 billion yuan, 73.489 billion yuan, and 81.258 billion yuan in 2026, 2027, and 2028, respectively, representing year-on-year growth of 22.64%, 16.45%, and 10.57%. Net profit attributable to the parent is expected to be 1.975 billion yuan, 2.46 billion yuan, and 2.79 billion yuan in those years, with respective growth rates of 46.91%, 24.52%, and 13.44%.

According to the financial report, Wanchen Group began developing its wholesale snack chain business in Jiangsu Province and other regions in 2022. Unlike traditional offline retail channels, the wholesale model centers on “centralized procurement, streamlined circulation, and improved efficiency,” belonging to a hard-discount, vertical category format. On the supply chain side, wholesale snacks achieve the best supply prices through streamlined processes, direct connections with manufacturers, and large-scale purchasing. On the store side, they directly connect with consumers, upgrading from simple price strategies to experience-driven strategies through “standardized terminal presentation and immersive consumption scenarios.”