Yanjin Shop's "Decluttering": Scaling Back E-commerce and Consolidating Major Products

Salt Jinzipo has delivered its slowest annual financial report since its listing. In 2025, the company achieved operating revenue of 5.762 billion yuan, up 8.64% year-on-year; net profit attributable to shareholders was 748 million yuan, up 16.95% year-on-year. Revenue growth slowed to single digits, while profit still maintained double-digit growth; however, overall performance fell short of the previously set incentive assessment targets. From a quarterly perspective, growth showed a clear downward trend. First-quarter revenue of 1.537 billion yuan became the annual high point, then weakened quarter by quarter, falling to 1.335 billion yuan in the fourth quarter, marking the first single-quarter negative year-on-year growth in revenue since its listing in 2017. Due to failing 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, Salt Jinzipo was once a direct beneficiary of channel dividends. By early entry into bulk snack systems and membership store channels, and establishing a first-mover advantage on the konjac snack track, the company achieved high growth rates of 42.2% in 2023 and 28.9% in 2024. However, as channel discourse continually shifts upward, continued reliance on low-margin, homogeneous products to drive scale not only contributes little to profit, but may dilute brand value. Salt Jinzipo’s gross margin has been under continuous pressure since 2021, declining from 35.71% to 30.69% in 2024. In 2025, it rose slightly to 30.8%, but the improvement was limited. This forces the company to simultaneously undertake a “cut-off and reorganization” in both channels and products. The first changes appeared in e-commerce channels. In 2025, the company’s online revenue dropped from 1.159 billion yuan to 922 million yuan, down 20.5% year-on-year, and its proportion fell nearly 5 percentage points to 16%. Over the past year, the company proactively eliminated a large number of non-self-produced, low-margin OEM products and significantly reduced inefficient marketing investment on channels such as short video. E-commerce business has been repositioned as “supply chain e-commerce”, with its core function shifted from scale expansion to new product incubation and brand amplification. Around key products, the company hopes to build momentum through content e-commerce and subsequently feed back traditional shelf channels, achieving higher-quality conversion. Salt Jinzipo stated that this adjustment will drag income in the short term, but will help optimize cost structure and brand assets. Product-side changes are just as clear. The company is withdrawing from overly broad category expansion, focusing resources on core items like “Big Demon King” Konjac Snack and “Egg King” Quail Eggs. Through different price bands and sub-brand combinations, they cater to multi-channel demands including bulk, supermarkets, and membership stores, seeking balance between price pressure and brand premium. Supporting this structure is continuous investment in the supply chain. In recent years, the company has actively developed upstream, having built bases covering quail egg breeding, konjac powder processing, and full potato powder production in various locations, gradually forming a self-supplied system for core raw materials. However, volatility pressures remain on the profit end. Affected by climate and planting cycles, the market price of konjac powder surged in 2025, with average procurement price rising more than 30% year-on-year. Due to cost calculation and inventory structure, the price impact was transmitted with a lag within the year, becoming concentrated in the fourth quarter. As the company’s currently fastest-growing category, konjac snacks saw full-year revenue soar by 107.23% year-on-year, but gross margin only marginally increased by 1.21%. With earlier low-priced inventory gradually consumed, if raw material prices remain high in 2026, cost pressures will more directly reflect in profits. Looking ahead to 2026, Salt Jinzipo’s strategic focus is shifting from the breadth of channel coverage to operational efficiency. The channel “width” accumulated during rapid expansion in recent years needs to be further converted into more stable and resilient sales “depth”. The company plans to use konjac as the lead product to continue expanding top supermarkets and northern regional markets, while pushing terminal networks into deeper, lower-tier markets. By the end of 2025, the company had 4,367 distributors, up 21.75% year-on-year, with growth in the Northeast and North China markets particularly notable. Whether this round of restructuring around channels and supply chain can settle into more robust profitability and a clearer brand position in the future will be crucial for Salt Jinzipo. Risk Warning and Disclaimer The market has risks, investment needs caution. This article does not constitute individual investment advice, nor does it take into account the individual user's specific investment objectives, financial situation or needs. Users should consider whether any opinions, views or conclusions in this article are suitable for their specific situation. Investment based on this, responsibility rests with the user.