Wancheng Group's revenue surpasses 50 billion, with both profits and dividends entering the "realization phase."

Leading bulk snack retailers are entering a cycle of realized profitability.

On the evening of March 17, Wancheng Group released its 2025 annual report: total revenue for the year reached 51.459 billion yuan, up 59.17% year-on-year.

Excluding share-based payment expenses, the core net profit margin of the bulk snack business reached 4.98%, nearly double that of 2024.

The significant improvement in profitability mainly stems from the "direct manufacturer sourcing + centralized bargaining" procurement system that continues to compress costs. In 2025, Wancheng's gross margin for bulk snacks was 12.32%, up 1.46 percentage points year-on-year.

As the combined scale of leading players approaches 40,000 stores, the pace of Wancheng's expansion has slowed slightly compared to before, but remains strong.

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

In terms of regional distribution, new stores were mainly concentrated in the core East China region, while market penetration in the Northwest, Southwest, and Northeast regions increased markedly, with store numbers in each region surpassing 1,000 and growth rates exceeding 50%.

Store expansion further strengthened the company's bargaining power within the supply chain.

By the end of 2025, Wancheng Group's accounts payable balance reached 3.075 billion yuan, up 52.85% year-on-year.

The cash flow statement shows that the "increase in operating payables" contributed 1.437 billion yuan in cash inflow, highlighting the capital advantage of the leading supply chain.

Although the theoretical nationwide space for new stores remains substantial, competition in some regions has reached a fever pitch.

Against this backdrop, Wancheng began piloting new store formats such as “Haoxianglai Discount Supermarket” and “Quanshi Select,” introducing high-frequency essential categories like fresh fruit, freshly baked goods, frozen foods, and personal care products in addition to snacks, aiming to leverage snack channel traffic and supply chain capabilities for broader community retail scenarios.

The surge in R&D expenses reflects the company's intent to enhance digital efficiency.

R&D investment in 2025 surged 788.28% year-on-year to 35 million yuan, primarily for smart operating systems, AI-assisted decision-making, intelligent logistics, and warehouse management platforms to improve precision scheduling and inventory turnover.

On the capital side, Wancheng Group acquired 49% of its core subsidiary Nanjing Wanyou (the main operator of Laiyoupin) for 1.379 billion yuan in cash this year. After the transaction, the group’s stake increased to 75.01%.

In 2025, Nanjing Wanyou achieved an adjusted net profit of 522 million yuan, exceeding the 320 million yuan performance commitment set during the previous agreement.

Despite large-scale acquisitions and related loans causing a rise in long-term borrowings, Wancheng Group’s asset-liability ratio has fallen, from 79.85% at the end of 2024 to 74.61%, thanks to efficient release of operating cash flow.

Market expectations for Wancheng Group’s dividend-paying ability are quietly rising.

In its annual report, Wancheng Group clearly laid out its mid-term dividend plan for 2026, stating that the cash dividend ratio may be up to 50% of the current period's net profit attributable to the parent company.

After undergoing an intensive capital expenditure cycle, Wancheng may be gradually shifting towards a phase of high-quality development that balances expansion with shareholder returns, aiming to boost long-term confidence by increasing the cash dividend ratio.

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