Key Takeaways:
Yanjinpuzi Food Co. reported its slowest annual revenue growth since going public, with an 8.64 percent increase to 57.62 billion yuan for the 2025 fiscal year.
The company said the strategic adjustment to shrink its e-commerce channel, while dragging on short-term revenue, is beneficial for optimizing its expense structure and brand equity.
Growth decelerated through the year, culminating in the company's first-ever quarterly revenue decline in the fourth quarter since its 2017 listing. The performance missed incentive targets, prompting the company to cancel approximately 2.4 million restricted shares. Online revenue for the year fell 20.5 percent.
The results reflect a deliberate "decluttering" as Yanjinpuzi pivots from aggressive, low-margin online expansion to focusing on core, profitable products and strengthening its supply chain to protect brand value.
The most significant change occurred in the e-commerce channel, where revenue dropped from 11.59 billion yuan to 9.22 billion yuan. Yanjinpuzi has repositioned the unit as a "supply chain e-commerce" business, focused on incubating new products and brand building rather than pure volume growth, cutting inefficient marketing on short-video platforms.
In tandem with the channel shift, the company is concentrating resources on key products like its "Da Mowang" konjac snacks and "Dan Huang" quail eggs. Revenue from konjac snacks, the fastest-growing category, surged 107.23 percent. The strategy aims to balance price pressure from discount channels with building brand premium in supermarkets and club stores.
However, the company faces significant cost pressures. The market price for konjac powder, a key ingredient, rose over 30 percent in 2025. While the impact was delayed due to existing inventory, these higher costs began to affect margins in the fourth quarter and could further squeeze profits in 2026 if prices remain elevated.
Yanjinpuzi's strategic reset from broad channel coverage to operational efficiency is critical for its future. The ability to translate its expanded distributor network, which grew 21.75 percent to 4,367 dealers, into deeper, more profitable sales will determine if the restructuring can build a more resilient business.
This article is for informational purposes only and does not constitute investment advice.
