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

Yanjin Puzhi has released its annual financial report with the slowest year-on-year growth rate since its IPO.

In 2025, the company achieved operating revenue of 5.76B yuan, up 8.64% year over year; attributable net profit was 748 million yuan, up 16.95% year over year.

On the revenue side, growth has fallen back to single digits, while profits still maintained double-digit growth, but the overall performance has not reached the incentive and assessment targets set earlier.

Judging from the quarterly rhythm, growth shows a clearly diminishing trend.

In Q1, revenue of 1.54B yuan became the full-year high point; afterward it weakened quarter by quarter, falling to 1.34B yuan in Q4, and posting the first year-on-year decline in single-quarter revenue since it went public in 2017.

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

Looking back, Yanjin Puzhi was once a direct beneficiary of channel dividends. With an early entry into the volume-discount snack system and member-store channels, and by establishing a first-mover advantage in the konjac snack segment, the company achieved high growth rates of 42.2% and 28.9% in 2023 and 2024, respectively.

But as channel discourse power continues to shift upward, if it keeps driving scale with low-margin, homogeneous products, it will not only be unable to generate profits, but may also dilute brand value.

Since 2021, Yanjin Puzhi’s gross margin has been under continuous pressure, declining from 35.71% to 30.69% in 2024. In 2025, it rebounded slightly to 30.8%, but the improvement is limited.

This forces the company to carry out a simultaneous “cutting off the unnecessary” exercise on both the channel and product ends.

The first area to change is the e-commerce channel.

In 2025, the company’s online revenue fell from 1.16B yuan to 922 million yuan, down 20.5% year over year, and the proportion dropped nearly 5 percentage points to 16%.

Over the past year, the company proactively eliminated large quantities of OEM products it did not produce in-house and that lacked profit potential, while significantly reducing low-efficiency marketing spending on channels such as short-form video.

The e-commerce business has been redefined as “supply-chain e-commerce.” Its core functions have shifted from scale expansion to new product incubation and brand amplification. Centering on big single products, the company aims to build momentum through content e-commerce, then feed it back into traditional shelf channels to achieve higher-quality conversions.

Yanjin Puzhi said that this adjustment will drag on revenue in the short term, but it will help optimize the expense structure and build brand assets.

The product-side changes are equally clear.

The company is shrinking from a broad-category expansion and concentrating resources on core single products such as “Big Boss” konjac snack (“魔芋爽”) and “Egg King” quail eggs (“蛋皇”鹌鹑蛋). By combining different price bands and sub-brands, it aims to meet demand from a variety of channels such as volume-discount stores, supermarkets, and member stores, thereby finding a balance between pricing pressure and brand premiums.

Supporting this structure is continued intensified investment in the supply chain. In recent years, the company has kept laying out upstream stages. It has already built multi-site bases covering quail egg breeding, konjac superfine-powder processing, and potato whole-powder production, gradually forming a self-supply system for core raw materials.

However, volatility pressure on the profit side has not been fully isolated.

Affected by climate and planting cycles, in 2025 the market price of konjac superfine powder rose sharply. The change in the average procurement price was more than 30% year over year. Due to cost accounting and inventory structure, the price shock was transmitted with a lag during the year, and it began to be reflected mainly in the fourth quarter.

Konjac snacks are currently the company’s largest category with the fastest growth rate. Full-year revenue surged 107.23% year over year, but gross margin increased by only 1.21%. As the earlier low-price inventory is gradually digested, if raw material prices remain at a high level in 2026, cost pressure will be reflected more directly in the profit side.

Looking ahead to 2026, Yanjin Puzhi’s strategic focus is shifting from the breadth of channel coverage to the efficiency of channel operations. The “channel width” accumulated from rapid expansion over the past few years needs to be further converted into more stable and more resilient “sales depth.”

The company plans to use its konjac big single products as the driver to continue expanding in leading supermarkets and northern regional markets, while also pushing its terminal network further into deeper-tier, lower-level markets.

By the end of 2025, the number of its distributors had reached 4,367, up 21.75% year over year, with especially notable growth in the Northeast and North China markets.

Whether this round of reconstruction of channels and the supply chain can crystallize into more robust profitability and a clearer brand positioning will be crucial for Yanjin Puzhi.

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