China: The "wild era" of volume-based snack retailing of Wanchen has come to an end
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China: The "wild era" of volume-based snack retailing of Wanchen has come to an end

Volume Snack Retail Chain Wanchen Group revenue surges past 50 billion RMB and management challenges Intensify for 10,000-store network in 2025.


On March 17, Wanchen Group, the first A-share listed "volume snack" company, released its 2025 annual report. The company achieved a total revenue of 51.459 billion RMB, a year-on-year (YoY) increase of 59.17%, breaking the 50 billion RMB mark for the first time. Net profit attributable to shareholders reached 1.345 billion RMB, skyrocketing 358.09% YoY.

While the data confirms the profitability of the "extreme value" retail model at scale, Wanchen still faces core challenges: valuation discounts due to equity structures, quality control risks in franchising, lower per-store efficiency compared to top rivals, and lagging progress on its Hong Kong IPO.


Core Drivers of Profitability: Scale Effects & Efficiency

Wanchen’s 2025 performance is the result of its 2023 brand integration strategy finally bearing fruit through supply chain efficiency and refined operations.

  • Profit Quality: Net profit growth (358.09%) outpaced revenue growth by more than six times. After adjusting for share-based compensation, the core snack business achieved a net profit margin of 4.98%.

  • Cash Flow & Debt: Operating cash flow reached 3.631 billion RMB (+328.07% YoY). The asset-liability ratio dropped from 79.85% in 2024 to 66% in 2025, significantly easing debt pressure.

  • Cost Control: Total expenses grew by only 29.12%, far below the revenue growth rate. Selling expenses rose just 7.94%, thanks to high store density which lowered per-store marketing and logistics costs.


Financial Metric (RMB/Yuan)

2025

2024

YoY Change (%)

2023

Operating Revenue

51,459,148,553.51

32,328,829,726.06

59.17%

9,293,739,531.63

Net Profit Attributable to Shareholders

1,344,598,814.55

293,522,037.23

358.09%

-82,926,513.32

Net Profit Attributable to Shareholders (Excluding Non-recurring Gains/Losses)

1,276,923,835.29

257,947,531.95

395.03%

-83,756,880.50

Net Cash Flow from Operating Activities

3,631,481,203.78

848,345,806.30

328.07%

1,023,080,270.46

Basic Earnings Per Share (EPS)

7.3028

1.7143

325.99%

-0.5395

Diluted Earnings Per Share (EPS)

6.7759

1.5681

332.11%

-0.5395

Weighted Average Return on Equity (ROE)

79.52%

30.94%

48.58%

-11.39%

Balance Sheet Metric (RMB/Yuan)

End of 2025

End of 2024

YoY Change (%)

End of 2023

Total Assets

10,047,400,521.75

7,253,406,343.70

38.52%

3,925,354,361.68

Net Assets Attributable to Shareholders

1,483,249,505.48

1,098,154,171.82

35.07%


Market Presence and Operations

By the end of 2025, Wanchen’s flagship brand "Haoxianglai" operated 18,314 stores across 30 provinces.

  • Regional Dominance: In East China, Wanchen holds nearly 54% of its total stores. In the "Shanhe" four-province region (Hebei, Henan, Shanxi, Shandong), its market share exceeds 60%.

  • User Base: Registered members reached nearly 190 million, with members contributing over 70% of total transaction value.

  • Supply Chain: With 48 ambient warehouses and 9 cold-chain facilities, most stores achieve T+1 delivery. Inventory turnover is maintained at an industry-leading 17–18 days.


Four Major Challenges Ahead

  1. Equity Structure & Valuation: A large portion of profits (nearly half in the first three quarters of 2025) belonged to minority shareholders, many of whom are family members of the actual controllers. While Wanchen is buying back shares in subsidiaries to optimize this, it remains a variable for capital market valuation.

  2. Franchise Management & Quality Control: With over 18,000 stores (mostly franchised), Wanchen has faced public outcries regarding service compliance and weight measurement accuracy. Maintaining food safety and brand reputation at this scale is a constant struggle.

  3. Expansion Pace vs. Efficiency: Wanchen's primary rival, "Mingming Henmang," has accelerated faster, surpassing 21,000 stores by late 2025. Furthermore, Wanchen’s average GMV per store (4.54 million RMB) lags behind its rival's (5.29 million RMB).

  4. Hong Kong Listing Delays: Wanchen applied for an "A+H" dual listing in September 2025. As of February 2026, progress has been slower than expected, potentially limiting the capital buffer needed for the industry's "final endgame" competition.


The New Logic of Snack Retailing: "Survival of the Fittest"

The industry has shifted from a "land grab" (opening stores as fast as possible) to a "back-end battle." Future competition will be decided by:

  • Full-link Supply Chain Control: From factory co-creation to terminal sales.

  • Franchisee Empowerment: Ensuring the long-term profitability of individual store owners.

  • Digitization: Using AI for stock selection and WMS for cost reduction.

  • Category Expansion: Moving beyond snacks into daily necessities, oils, and frozen foods to transform into "hard discount" community retailers.


The Bottom Line: Wanchen’s future depends on whether it can stabilize its brand reputation while successfully navigating the leap from a snack specialist to a multi-category retail giant.


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