Core seasoning business drags down performance: Zhongju High-tech’s Q3 revenue drops 22.8% year-on-year, net profit plunges 45.7% | Earnings Report Snapshot

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The leading A-share condiment company Zhongju High-tech is facing a sharp decline in performance: due to the drop in core condiment business sales income and increased expenses, the company's net profit in the third quarter was almost halved, highlighting the severe challenges it faces in the current market environment.

On the evening of October 24, Zhongju High-tech released its third quarter report for 2025. Key points are as follows:

Revenue: Single-quarter revenue in Q3 was 1.025 billion yuan, a year-on-year decrease of 22.84%; total revenue for the first three quarters was 3.156 billion yuan, a year-on-year decrease of 20.01%.

Net Profit: Net profit attributable to shareholders of the listed company for the single quarter was 123 million yuan, a year-on-year decrease of 45.66%. Net profit for the first three quarters was 380 million yuan, a year-on-year decrease of 34.07%.

Core Business Progress: Meiweixian's revenue in the first three quarters was 3.107 billion yuan, a year-on-year decrease of 18.40%. The company explained this as being due to proactive optimization of distributor inventory and consolidation of market foundations.

Cash Flow: Net cash flow from operating activities was 516 million yuan, a year-on-year decrease of 43.52%, mainly affected by collection of sales payments declining with revenue.

Core Business Under Pressure

The financial report attributes the performance decline mainly to the sales decrease of the core subsidiary Meiweixian. Data shows that Meiweixian’s revenue in the first three quarters was 3.107 billion yuan, a year-on-year decrease of 18.40%.

The key “expectation gap” here lies in the company’s explanation—“adhering to promoting distributor inventory optimization and consolidating the market foundation system.”

However, while proactively shrinking the revenue side, the company's expenses have been rising rapidly. The report shows that sales expenses in the first three quarters reached 436 million yuan, compared with 366 million yuan in the same period last year, a year-on-year increase of nearly 20%, severely squeezing profit margins.

The report shows that in the first three quarters of 2024, the company's sales expense ratio (sales expenses/operating income) was about 9.3%, while by the same period in 2025, this ratio had soared to 13.8%.

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