Wanchen Group Revenue Exceeds 50 Billion, Profitability and Dividends Enter "Realization Period"

Bulk snack leader enters profit realization cycle.

On the evening of March 17, Wanchen Group disclosed its 2025 annual report: total revenue of 51.459 billion yuan, a year-on-year increase of 59.17%.

After deducting share-based payment expenses, the core net profit margin of the bulk snack business reached 4.98%, nearly doubling compared to 2024.

The significant improvement in profitability is mainly due to the ongoing cost compression from the procurement system of “direct purchasing from manufacturers + centralized bargaining.” In 2025, Wanchen’s gross profit margin for bulk snacks was 12.32%, up 1.46 percentage points year-over-year.

With the leading stores approaching a total of nearly 40,000, Wanchen’s expansion pace has slightly slowed compared to before but remains highly active.

By the end of 2025, the company operated a total of 18,314 stores, a net increase of 4,118 stores during the reporting period.

Regionally, the new stores mainly come from continued expansion in the core East China region, while penetration in Northwest, Southwest, and Northeast markets has significantly increased, with store counts surpassing 1,000 in each, an increase of over 50%.

Store expansion further enhances the company’s bargaining power along the supply chain.

As of the end of 2025, Wanchen Group’s accounts payable balance reached 3.075 billion yuan, a year-on-year increase of 52.85%.

The cash flow statement shows that an increase in “operational accounts payable” contributed 1.437 billion yuan in cash inflow, highlighting the supply chain leader’s advantage in capital occupation.

Although the nationwide store opening space remains considerable, competition in some regions has become intense.

Against this backdrop, Wanchen has begun pilot programs for new store formats such as “Hao Xiang Lai Save Money Supermarket” and “Quan Shi You Xuan,” introducing high-frequency essential categories like fresh fruits, freshly baked goods, frozen foods, and daily chemical and personal care products on top of traditional snacks. The goal is to replicate the traffic and supply chain capabilities of the snack sector across broader community retail scenarios.

The surge in R&D expenses reflects the company’s intention to improve digital efficiency.

In 2025, R&D investment increased by 788.28% year-over-year to 35 million yuan, mainly used for intelligent operation systems, AI-assisted decision-making, smart logistics, and warehousing management platforms to enhance precise scheduling and inventory turnover.

On the capital operation front, Wanchen Group spent 1.379 billion yuan in cash within the year to acquire a 49% stake in its core subsidiary, Nanjing Wanyou (the operator of Lai You Pin). After the transaction, the group’s shareholding increased to 75.01%.

In 2025, Nanjing Wanyou achieved a net profit of 522 million yuan after non-recurring gains and losses, exceeding the previous performance commitment of 320 million yuan.

Despite increased long-term borrowings driven by large-scale acquisitions and related loans, Wanchen Group’s asset-liability ratio decreased against the trend, dropping from 79.85% at the end of 2024 to 74.61%, thanks to efficient cash flow generation.

Market expectations for Wanchen Group’s dividend payout capability are quietly rising.

The annual report explicitly states that Wanchen Group plans to implement a mid-year dividend distribution in 2026, with the cash dividend ratio potentially reaching up to 50% of the net profit attributable to shareholders for the period.

After a period of intense capital expenditure, Wanchen appears to be transitioning into a high-quality development stage that balances scale expansion with shareholder returns, aiming to boost long-term investor confidence through increased cash dividends.

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