The star of securities
In 2025, a “reducing gains” report card was handed over: business income was realized at 1,684 million yuan for the year, a decrease of 3. 19 per cent over the year; however, net returns to mothers amounted to 82 million yuan, a significant increase of 102. 32 per cent over the year. Although the level of profitability is still far from returning to historical highs, it has been the best achievement of the company since 2022。
The securities stars looked at the financial paper and found that, in the context of revenue-bearing pressures, the increase in corporate profits came mainly from two paths: from the company's initiative to control costs, optimize management, and from the rapid introduction of new profit-growth points through outward m&as. It should be noted that cost-side compression is not entirely due to increased operational efficiency. The company's stock options incentive scheme, introduced in 2023, has failed to meet performance appraisal targets for two consecutive periods, and the incentive costs charged in the prior period have been reversed, resulting in an objective “higher” current profits。
In addition, the brilliant traditional halo industry is still in a state of adjustment, sales have fallen by five years, and new acquisitions of frozen drying are still being integrated. In 2026, the company set a higher target of 2. 3 billion yuan, with a net profit of 165 million yuan to the mother。
Incentives to fail
The most visible change in the brilliant profit line in 2025 was a significant contraction in costs。
During the reporting period, the cost of company sales was $204 million, a decrease of 30. 19 per cent over the same period, and the cost of sales decreased by 4. 69 percentage points, from 16. 8 per cent in the same period last year to 12. 11 per cent. The company explained that operating costs, such as labour costs, offline promotion costs, were significantly lower than in the same period last year. The management cost was $151 million, representing a decrease of 15. 94 per cent over the same period, an important factor being the reversal of equity incentive costs。
In particular, the stock options incentive scheme introduced by the company in 2023 has put in place market rights conditions centred on the growth of operating income and the number of new businesses. The corresponding examination years are 2023 to 2025。
The above-mentioned incentive scheme's third-term corporate performance appraisal was not achieved due to a 13. 81 per cent decline in operating revenue in 2025 compared to 2022 and the actual number of new openings that did not meet the test requirements in that year. As a result, the company eliminated the related charges raised in the prior period and the cost of the equity incentive decreased by $1. 6286 million over the same period。
It is worth mentioning that this is the second year in a row that the company has been unable to meet the conditions of access. The securities star has learned that, as a result of the rapid expansion of the previous period, the halogen industry is entering a deep adjustment phase, consumer interest in quality ratio is growing, and competition in the industry has gradually shifted to precision operations. As a result, not only does the spectacular harvest continue, but the expansion of the “ten million shops” that it has promoted has not advanced as planned, and the size of the store has been significantly reduced. In the first half of 2025, there was a net decrease of 762 company stores, while in the 2025 annual newspaper, for the first time in recent years, the company did not disclose specific door stores。
Another significant increase in profit repair came from extended m&as. In august 2025, a brilliant purchase of 51 per cent of the country's frozen dry food lead company's share of the food was acquired with $495 million and incorporated into the consolidated statement in september of that year. The new board of business, which is dominated by vacuum, frozen and dry foods, and after four months (september to december), contributed $176 million in operating income and a combined net profit of $2829. 64 million, effectively filling the profit gap from the decline in traditional sauce products。
Following the completion of the purchase of competing foods, the outstanding goodwill rose from $40 million at the beginning of the period to $350 million at the end. Between 2025 and 2027, a cumulative net profit of $264 million will be required for the revival of food products, and in the future, failure to meet performance commitments may expose the future to the risk of a reputational impairment, which in turn slows corporate profits as a whole。
The soy halogen sales are declining
Despite the brightness of the profit side, the brilliant traditional core business, the soybean halogen product, is still in the adjustment phase。
In 2025, the revenues from the soybean halogens were 1,039 million yuan, a decrease of 17. 40 per cent over the same period, of which income from fresh products fell by 16. 77 per cent to 1,006 million yuan and income from packaging products decreased by 32. 81 per cent. In terms of production and distribution data, sales of halophate products decreased by 16. 59 per cent and production by 17. 43 per cent each year, while stocks decreased significantly by 61. 46 per cent, explaining that the company was responsible for the decline in sales of high-temperature packaging products and the voluntary removal of stocks。
Since 2021, the sales of the company's halo-processing industry (the original meat-processing industry) have declined for five consecutive years: by 8. 44 per cent, 19. 05 per cent, 14. 80 per cent, 9. 91 per cent and 16. 59 per cent, respectively, and cumulatively by more than 17,000 tons over five years。
The reasons for the continued coldness of company sales of halo sauce are both the decline in the frequency of consumer purchases in the context of stock competition, and the effects of the continuing contraction of corporate stores and the ageing of product structures, which have not kept pace with new consumption trends such as heat halo。
However, thanks to the fact that the prices of the main raw materials by-products of duck are still historically low and that the cost of procurement for core materials, such as duck necks and duck limbs, fell 45 per cent and 38 per cent, respectively, the cost of operations for the soybean products decreased by 17. 1 per cent and the net profit of the primary processing of the soybean products increased by 24. 01 per cent。
The growth of rice production is equally weak. Holding subsidiaries are truly old-fashioned, home-run rice products, with revenues of $349 million in 2025, a slight decrease of 0. 73 per cent, which is almost the same. However, the net profit to the parent increased by 38. 97 per cent over the same period, mainly as a result of cost control and cost optimization rather than expansion。
During the reporting period, high-end merchants such as sam, open-marketers and large-scale conglomerates, such as gleaner and shunners, were cut into rice products, and the spread of channels also allowed the sales of rice products to increase from a negative growth of 4. 54 per cent in the previous year. In addition, the company plans to develop “second-curve” daily sales such as the youth league, quantico and quantico in the future, with a view to balancing differences in the light season。
Despite the warmth of business, real-age net profits continued to lose $17. 701 million in 2025, a brilliant enterprise that has lost four consecutive years since 2022, and the dilemma of when it will climb out of its losses remains a dilemma in the face of the glory。
The securities star notes that the outstanding performance targets for 2026 continue to be set in the annual newspaper, with a plan to achieve 2. 3 billion yuan in business income and 165 million yuan in net profit to the mother. Of these, 1,23 million are halo products, 400 million are rice products and 670 million are frozen dry foods. Compared to actual data for 2025, the increase in the soybean halogens is about 18. 4 per cent, the increase in the rice products is about 14. 6 per cent, and the additional annual caliber of frozen dry foods is about 2025. This goal is achieved not only by sustained cost-side optimization, but also by the substantial warming of the main soybean industry, as well as by the deep integration of frozen drying operations with existing channels and door-shop systems。
From the performance of the first quarter of this year, there was a 15. 66 per cent and 2. 79 per cent increase, respectively, in the outstanding net profits earned and returned to the mother, but the ability to achieve the company's stated goals throughout the year will still need to be tested by a sustained effort over the next three quarters. (star of first deals, by wufan)
