Yasui Foods fights "increased revenue without increased profit": shifts to "regulated large B customization"

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In 2025, the overall growth rate of China’s frozen food industry slowed, and market competition intensified. As the industry leader, Anjoy Foods delivered a "revenue increase without profit growth" report card this year.

Annual operating income was 16.193 billion yuan, a year-on-year increase of 7.05%; but net profit attributable to shareholders was 1.359 billion yuan, a year-on-year decrease of 8.46%, marking the first decline in recent years.

The decline in net profit was due to a combination of factors including increased fixed asset depreciation, raw material cost fluctuations, exchange losses, and goodwill impairment.

In 2025, the company’s gross profit margin for main business was 21.53%, down 1.7 percentage points from last year, among which the gross margin of frozen prepared dishes was only 9.49%, a further decrease of 2.27 percentage points year-on-year.

The company explained that this was mainly affected by rising raw material costs of crayfish, increased depreciation from new bases coming into operation, as well as higher promotional expenses due to intensified industry competition.

Asset impairment losses significantly expanded to 214 million yuan, including about 149 million yuan and 14.87 million yuan of goodwill impairment for Hubei Xinliuwu and Honghu Xin Hongye, respectively, which were due to the acquired targets for the crayfish sector being affected by changes in the industry environment.

In addition, the continued depreciation of the US dollar against the RMB resulted in significant foreign exchange losses, as financial expenses changed from a net gain of 70 million yuan last year to a net expenditure of 1.36 million yuan.

However, despite the pressure on the profit side, the company’s cash flow remained strong, with net cash flow from operating activities reaching 2.317 billion yuan in 2025, a year-on-year increase of 10.12%.

With profit under pressure, Anjoy made some adjustments in channels and strategy.

Affected by fluctuations in catering demand, traditional frozen food wholesale market demand was under pressure, while more profitable new channels are becoming Anjoy's breakthrough. In 2025, Anjoy’s new retail and e-commerce channels achieved revenue of 1.179 billion yuan, an increase of 31.76% year-on-year.

In its annual report, Anjoy made a key revision to its customization strategy, proposing "large B2B customization under control."

Compared with the previous "full embrace of customization," this strategy emphasizes more on controlling product complexity and costs. Essentially, it seeks a balance between scale expansion and operational efficiency, avoiding cost overruns caused by overly fragmented demand.

Currently, the company has established cooperation with membership-based and hard discount channels such as Sam’s Club, Freshippo, Pangdonglai, Metro, and Aldi, continuously optimizing the structure of large B2B customers.

Meanwhile, category expansion continues to support channel development. The company positions the sausage business as its third major sector, achieving sales and brand reach through the deployment of over 30,000 terminal devices, aiming to enter the industry's first tier within 2-3 years.

External expansion also continues: In 2025, acquisition of Jiangsu Dingweitai was completed, entering the fields of frozen baked goods and premium codfish sausages; and the "Anzhai" project was launched, targeting the halal food market.

With short-term profits under pressure, channel upgrades and more focused customization strategies have become key variables. The boundaries and efficiency of "controlled large B2B customization" may determine the quality of Anjoy’s next stage of growth.

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