Wanchen Group’s Bulk Snack Expansion Surges as H1 Net Profit Soars 156% — BigGo Finance

The bulk snack sector continues to heat up, with the industry leader posting record results once again. China’s Wanchen Group (300972.SZ) released its 2026 interim results on the evening of the 28th, reporting first-half revenue of CNY 34.84 billion (approximately $5.2 billion), up 54.26% from the same period last year. Net profit attributable to shareholders of the parent company reached CNY 1.21 billion (approximately $180.0 million), a year-on-year surge of 156.58%, delivering impressive results on both the top and bottom lines.

After excluding non-recurring gains and losses, net profit attributable to shareholders was CNY 1.14 billion (approximately $169.8 million), up 153.17% year-on-year, demonstrating equally strong core operating profitability. The company’s overall gross margin stood at 12.85%, an improvement of 1.44 percentage points from the prior-year period.

Bulk Snack Stores See Net Increase of 5,488

Wanchen Group’s core bulk snack segment contributed first-half operating revenue of CNY 34.52 billion (approximately $5.1 billion), up 54.49% year-on-year. As of the end of June 2026, total store count reached 23,802, with 5,814 new openings and 326 closures during the first half, representing a net increase of 5,488 stores.

The company said it actively advanced its store network expansion plan during the first half, deepening its presence in advantageous regions such as North China and East China while simultaneously expanding into Central China, Northwest China, and Northeast China to drive nationwide coverage. As store scale expands, the economies of scale and brand momentum of the bulk snack business are gradually being unleashed.

The segment’s gross margin reached 12.74%, up 1.25 percentage points year-on-year. Through refined operations, the company improved efficiency across store recruitment and expansion, daily operations, warehousing and logistics, lifting the bulk snack segment’s net margin to 5.59%. After adding back share-based payment expenses incurred for incentivizing core employees, the segment’s net profit was CNY 1.93 billion (approximately $287.3 million). Company-wide net profit after adding back share-based payment expenses was CNY 1.94 billion (approximately $288.3 million), up 108.58% year-on-year.

Private-Label Products Become Key Differentiator

Facing a consumer market that is trending toward pragmatism, with shoppers placing greater emphasis on value for money, Wanchen Group believes the advantages of bulk snacks—rich product variety and affordable pricing—are being further amplified. The company noted that, backed by a store network deeply embedded in communities and a supply of affordable, high-quality products, an increasing number of stores are taking on the role of essential community infrastructure, becoming high-frequency destinations for everyday consumer spending.

On the product front, customized and private-label products have become key to the company’s differentiated competition. Its bulk snack brand “Haoxianglai” significantly accelerated private-label new product launches in the first half, broadening category coverage and successfully creating multiple SKUs with strong traffic-driving and repeat-purchase effects. New products including Haoxianglai Select Water Buffalo Milk Cloud Soufflé, Haoxianglai Select Rich Sesame Flavor Original-Cut Potato Chips, and Haoxianglai Value Green Grape Longjing Iced Tea all received positive market feedback following their launch.

Edible Mushroom Business Also Improves

Beyond its core bulk snack operations, Wanchen Group’s edible mushroom business also benefited from higher enoki mushroom selling prices compared to the same period last year, achieving first-half revenue of CNY 315 million (approximately $46.9 million), up 32.61% year-on-year, with operating performance showing marked improvement from the prior-year period.

Wanchen Group’s key first-half financial metrics:

Note: Revenue of CNY 34.84 billion is approximately $5.2 billion; net profit attributable to shareholders of CNY 1.21 billion is approximately $180.0 million.

Judging by the pace of store expansion, the net addition of 5,488 stores in the first half indicates that Wanchen Group remains in a phase of rapid expansion. Market analysts note that competition in the bulk snack industry has gradually shifted from a simple race for store count to a comprehensive contest of supply chain efficiency, private-label strength, and per-store profitability. Wanchen Group’s ability to simultaneously improve gross margin and net margin while maintaining its expansion pace suggests that the benefits of scaled operations are now being realized.