Yanjin Shop delivered its slowest annual financial growth since its listing.

In 2025, the company achieved operating revenue of RMB 5.762 billion, a year-on-year increase of 8.64%; and net profit attributable to the parent company of RMB 748 million, a year-on-year increase of 16.95%.

Revenue growth slowed to single digits, while profits maintained double-digit growth, but overall performance did not reach the previously set incentive targets.

Looking at the quarterly pace, growth shows a clear decreasing trend.

The company's revenue of RMB 1.537 billion in the first quarter became the high point of the year, but then weakened quarter by quarter, falling to RMB 1.335 billion in the fourth quarter. It also experienced its first year-on-year negative revenue growth in a single quarter since its listing in 2017.

Due to failure 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, Yanjin Shop was a direct beneficiary of channel advantages. By entering the mass-market snack system and membership store channels early and establishing a first-mover advantage in the konjac snack market, the company achieved high growth rates of 42.2% and 28.9% in 2023 and 2024, respectively.

However, as the power of distribution channels continues to shift upwards, relying on low-margin, homogeneous products to drive scale will not only fail to contribute to profits, but may also dilute brand value.

Yanjin Shop's gross profit margin has been under pressure since 2021, declining from 35.71% to 30.69% in 2024. Although it rebounded slightly to 30.8% in 2025, the improvement was limited.

This forces companies to simultaneously "declutter" both their channels and products.

The first to change was the e-commerce channel.

In 2025, the company's online revenue decreased from RMB 1.159 billion to RMB 922 million, a year-on-year decline of 20.5%, and its share fell by nearly 5 percentage points to 16%.

Over the past year, the company has proactively eliminated a large number of non-self-produced OEM products that lack profit margins, while also significantly reducing inefficient marketing investments in channels such as short videos.

The e-commerce business has been repositioned as "supply chain e-commerce," with its core function shifting from scale expansion to new product incubation and brand amplification. Focusing on key products, the company aims to build momentum through content-driven e-commerce, which can then support traditional retail channels to achieve higher-quality conversion rates.

Yanjin Shop stated that this adjustment will drag down revenue in the short term, but will help optimize the cost structure and brand assets.

The changes on the product side are equally clear.

The company is scaling back its broad product category expansion and concentrating its resources on core products such as "Big Demon King" konjac juice and "Egg King" quail eggs. By combining different price points with sub-brands, it aims to meet the diverse needs of various channels, including hypermarkets, supermarkets, and membership stores, thereby finding a balance between price pressure and brand premium.

Supporting this structure is the company's continuous investment in the supply chain. In recent years, the company has been continuously expanding its presence in the upstream sector, establishing multiple bases covering quail egg farming, konjac flour processing, and potato flour production, gradually forming a self-sufficiency system for core raw materials.

However, the pressure of profit fluctuations has not been completely isolated.

Due to the influence of climate and planting cycle, the market price of konjac flour for the company rose sharply in 2025, with the average purchase price changing by more than 30% year-on-year. Due to the impact of cost accounting and inventory structure, the price shock showed a lagged transmission throughout the year, and began to be concentrated in the fourth quarter.

Konjac snacks are the company's fastest-growing and largest product category, with annual revenue surging 107.23% year-on-year, but gross profit margin only increased slightly by 1.21%. As previously low-priced inventory is gradually digested, if raw material prices remain high in 2026, cost pressures will be more directly reflected in profits.

Looking ahead to 2026, Yanjin Shop's strategic focus is shifting from the breadth of channel coverage to the efficiency of channel operations. The channel "breadth" accumulated through rapid expansion in the past few years needs to be further transformed into a more stable and resilient sales "depth".

The company plans to leverage its flagship konjac product to continuously expand into leading supermarkets and the northern regional market, while simultaneously extending its terminal network into deeper, more accessible markets.

As of the end of 2025, the company had 4,367 distributors, representing a year-on-year increase of 21.75%, with particularly significant growth in the Northeast and North China markets.

Whether this round of restructuring around channels and supply chains can translate into more stable profitability and a clearer brand positioning in the future will be crucial for Yanjin Shop.