Yanjin Shop "Declutter and Simplify": Shrinking E-commerce and Strengthening Key Products

Yanjin Puzi reported the slowest annual growth since its listing.

In 2025, the company achieved operating revenue of 5.76B yuan, an increase of 8.64% year-on-year; net profit attributable to the parent was 748 million yuan, up 16.95% year-on-year.

Revenue growth slowed to single digits, while profit still maintained double-digit growth, but overall performance did not reach the previously set incentive assessment targets.

From a quarterly perspective, growth showed a clear decreasing trend.

The first quarter’s revenue of 1.54B yuan was the annual high, then weakened each quarter, dropping to 1.34B yuan in the fourth quarter, marking the first time since 2017 that quarterly revenue experienced year-on-year negative growth since the company’s listing.

Due to failure to meet the performance conditions of the 2023 restricted stock incentive plan, the company plans to repurchase and cancel approximately 2.4032 million restricted shares involving 93 incentive recipients.

Looking back, Yanjin Puzi was once a direct beneficiary of channel dividends. By early entry into the wholesale snack system and membership store channels, and establishing a first-mover advantage in the konjac snack track, the company achieved high growth rates of 42.2% in 2023 and 28.9% in 2024.

However, as channel dominance continues to shift upward, relying on low-margin, homogeneous products to drive scale not only makes it difficult to contribute to profits but may also dilute brand value.

Yanjin Puzi’s gross profit margin has been under continuous pressure since 2021, declining from 35.71% to 30.69% in 2024. Although it slightly rebounded to 30.8% in 2025, the improvement was limited.

This forces the company to simultaneously perform a “cutting and letting go” on both the channel and product sides.

The first change occurred in e-commerce channels.

In 2025, the company’s online revenue dropped from 1.16B yuan to 922 million yuan, a 20.5% decrease year-on-year, with its proportion falling nearly 5 percentage points to 16%.

Over the past year, the company proactively eliminated many OEM and unprofitable private-label products, while significantly reducing inefficient marketing investments on short video and other channels.

E-commerce was repositioned as “supply chain e-commerce,” shifting its core function from scale expansion to new product incubation and brand amplification. Around flagship products, the company hopes to build momentum through content e-commerce, then feed back into traditional shelf channels to achieve higher-quality conversions.

Yanjin Puzi stated that this adjustment may temporarily drag down revenue but will help optimize cost structure and brand assets.

Changes on the product side are equally clear.

The company is shrinking from broad category expansion and focusing resources on core products like “Magic King” konjac snacks and “Egg Emperor” quail eggs, using different price tiers and sub-brands to meet the needs of wholesale, supermarkets, and membership stores, thus balancing price pressure and brand premium.

Supporting this structure is ongoing investment in the supply chain. In recent years, the company has continuously expanded upstream, establishing multiple bases covering quail egg breeding, konjac flour processing, and potato full flour production, gradually forming a self-supply system for key raw materials.

However, profit volatility pressures have not been fully isolated.

Affected by climate and planting cycles, the market price of konjac flour surged significantly in 2025, with procurement average prices increasing over 30% year-on-year. Due to cost accounting and inventory structure influences, the price impact showed a lag in transmission within the year, becoming concentrated in the fourth quarter.

As the fastest-growing category, konjac snacks achieved a 107.23% increase in annual revenue, but gross profit margin only increased slightly by 1.21%. As low-priced inventory from earlier periods is gradually depleted, if raw material prices remain high in 2026, cost pressures will more directly impact profits.

Looking ahead to 2026, Yanjin Puzi’s strategic focus is shifting from broad channel coverage to channel operation efficiency. The “width” of channels accumulated from rapid expansion in recent years needs to be further transformed into more stable and resilient “depth” of sales.

The company plans to leverage flagship konjac products to continue expanding top-tier supermarkets and northern regional markets, while also pushing terminal networks deeper into lower-tier markets.

By the end of 2025, the number of distributors reached 4,367, a 21.75% increase year-on-year, with particularly notable growth in Northeast and North China markets.

Whether this round of restructuring around channels and supply chains can translate into more stable profitability and clearer brand positioning in the future will be crucial for Yanjin Puzi.