Juewei pays 340 million yuan in back taxes—how will the "King of Chinese Ducks" fill the gap?

Recently, the need for Yummy Food to pay over 300 million yuan in taxes has attracted attention. ST Yummy (603517.SH) announced that after self-inspection, the company needs to pay approximately 340 million yuan in taxes and late fees, and has now completed the payment of the aforementioned taxes and late fees. Yummy Food reminds that the taxes and late fees paid this time will be included in the company’s 2025 and 2026 current profits and losses, which will impact profit performance. Yummy Food did not disclose specific reasons for the tax payment or issues related to funding arrangements.

340M yuan is a significant figure for Yummy Food.

According to Yummy Food’s financial report, as of the end of the third quarter of 2025, the company’s cash on hand was 640 million yuan, and its net profit for the first three quarters of 2025 was about 270 million yuan. This means that the tax payment required this time exceeds the total net profit of the first three quarters of 2025 and is almost half of the company’s available cash.

Additionally, according to Yummy Food’s 2025 earnings forecast, the company expects a net profit attributable to the parent of -220 million to -160 million yuan in 2025, with non-recurring gains and losses excluded, the net profit attributable to the parent is between 70 million and 100 million yuan, indicating a large gap between the non-recurring net profit and the net profit attributable to the parent. Therefore, it is expected that the expenses caused by this tax payment will most likely come from the company’s fourth quarter.

On April 7, Caowen called Yummy Food’s securities department for details, but as of the time of publication, the call was not answered.

In a year and a half, the number of stores has decreased by over 4,000

In recent years, Yummy Food’s performance has been under severe pressure. The company’s revenue in 2024 declined for the first time, and net profit attributable to the parent has plummeted since 2022. From 2022 to 2024, the company’s net profit attributable to the parent reached a maximum of 320 million yuan, only 33% of the high level in 2021. In 2025, Yummy Food expects revenue of 5.3 to 5.5 billion yuan, a year-on-year decrease of 12.09% to 15.29%, and the net profit attributable to the parent has even recorded its first loss since listing.

Since the mid-2024 semi-annual report, Yummy Food has stopped announcing store counts in its financial reports, which is interpreted by the market as a sign of store contraction. According to Narrow Door Data, as of January 20, 2026, Yummy Food has about 10,713 stores nationwide, compared to 14,969 stores disclosed in the mid-2024 semi-annual report, meaning a net reduction of over 4,000 stores in a year and a half.

In September 2025, Yummy Food was subjected to risk warning by the Shanghai Stock Exchange for underreporting revenue from franchise store renovation services, with a cumulative understatement of about 722 million yuan in operating income. As a result, the company’s stock abbreviation was changed to “ST Yummy.”

In the industry’s winter, Yummy Food is betting on industry funds

For a long time, poor performance in the marinated food industry has been a common problem. The three giants of marinated food—Yummy Food, Huangshanghuang (002695.SZ), and Zhou Hei Ya (01458.HK)—are all facing performance pressures.

To address this, Zhou Hei Ya has actively expanded sales channels, such as the founder launching live-streaming sales, introducing bulk products, and entering supermarkets like Pang Dong Lai and Yonghui. Huangshanghuang has expanded its product line and last year spent 495 million yuan to acquire a 51% stake in frozen dried food company Lixing Food, attracted by its 37 frozen dried production lines and annual capacity of 6,000 tons.

In contrast, Yummy Food has adopted the strategy of establishing industry funds and investing in or incubating other fast-food brands through these funds, seeking new growth points for its performance.

According to the 2025 semi-annual report, Yummy Food’s long-term equity investments totaled 2.38 billion yuan, making it the largest asset on the balance sheet, accounting for 28.4% of total assets.

Industry funds are the main component of long-term equity investments, such as Xinjin Siyiwu Fund, Yueliao Fund, and Tomato Sihao Fund. These funds mainly invest in various fast-food or beverage brands, including some that have become popular in recent years. For example, Yueliao Fund mainly invests in Hefu Laomian and Xingfu Xibing, Tomato Sihao Fund mainly invests in Yao Yao Sauerkraut Fish, and Xinjin Siyiwu Fund mainly invests in Lujiangnan and Shuyi Burnt Grass Jelly.

In the first three quarters of 2025, the company’s investment income was 28.29 million yuan, whereas from 2022 to 2024, the investment income was negative each year.

Yummy Food explained its 2025 performance loss by citing multiple factors, including increased non-operating expenses and investment losses under the equity method, which significantly impacted the company’s current performance.