Wanchen Group’s latest annual report suggests its snack retail business is entering a new phase, one defined not just by store growth, but by improving margins and tighter execution.
On March 17, Wanchen Group, the parent company of Haoxianglai, released its 2025 annual report. Revenue rose 59.17% from a year earlier to RMB 51.459 billion (USD 7.5 billion). Net profit, excluding accrued share-based compensation, reached RMB 2.568 billion (USD 372.2 million), up 212.18%. Cash flow from operating activities totaled RMB 3.631 billion (USD 526.3 million).
Most of that growth came from its core business, bulk snack retail, a value-focused store format built on a wide assortment and low prices. Revenue from the segment rose 59.98% year on year to RMB 50.857 billion (USD 7.4 billion). Full-year gross margin reached 12.32%, up 1.46 percentage points from a year earlier. Adjusted net profit for the segment came in at RMB 2.533 billion (USD 367.1 million), with net margin at 4.98%.
From store growth to operating efficiency
The bulk snack segment began to change shape in 2023, as a fragmented regional market started consolidating into a national one.
That was also the year Wanchen combined its four brands, Haoxianglai, Laiyoupin, Yadiyadi, and Luxiaochan, under a single banner, rebranding them as Haoxianglai Brand Snacks. Haoxianglai later became the first snack chain to surpass 10,000 stores.
As of December 31, 2025, Wanchen operated 18,314 stores, with net additions of more than 4,000 during the year. According to China Insights Consultancy (CIC), Haoxianglai ranked first among snack chain brands in China by store count as of that date.
The rise of bulk snack retail reflects both consumer demand and changes in supply chain economics. By sourcing more directly from factories and cutting layers from the traditional distribution chain, the model has lowered prices and improved efficiency. It has also benefited from a more price-conscious consumer environment and stronger spending in lower-tier markets.
Wanchen has tried to pair that market opportunity with tighter internal execution. In the second half of 2025, that push became more visible.
The company said it built 48 ambient warehouses and nine cold chain warehouses across China. It also said automated sorting and transport systems helped shorten delivery times to as little as one day, and in some cases half a day.
Wanchen also expanded into quick commerce. Since June 2025, Haoxianglai has worked with platforms including Meituan Shangou (Meituan Instashopping), and Taobao Shangou (Taobao Instant Commerce), with nearly 10,000 stores connected to instant retail operations, according to the company.
Wanchen previously said that from June to September 2025, Haoxianglai’s orders on Taobao Shangou rose by more than 200% for three consecutive months. It also said new online customers accounted for more than 90% of those orders, helping it reach users within a three- to five-kilometer radius of its stores.
Private label becomes a margin lever
Like other retailers such as Sam’s Club, Pangdonglai, and Aldi, private labeling moved closer to the center of Wanchen’s strategy in 2025.
The company structured that push around two product lines. Haoxianglai Value targets basic, high-frequency categories with lower prices. Haoxianglai Select focuses on more differentiated products, with greater emphasis on novelty and product design.
Together, the two lines show how Wanchen is trying to use exclusive products to improve margins while making its stores feel less interchangeable.
Juice tea, part of Haoxianglai’s Value line, illustrates the company’s approach to product development.
Haoxianglai increased the proportion of real juice in its juice tea to deliver a fuller flavor and position the drink as a healthier option. For flavor selection, it engaged consumers directly and conducted multiple rounds of testing, ultimately prioritizing options that showed the strongest purchase intent.
In packaging, the product incorporates an interactive peel-off feature. Each label reveals a random “lucky note,” adding a small element of surprise and emotional engagement to the purchase.
According to the company, the product generated more than RMB 100 million (USD 14.5 million) in sales in the first four months after its August launch, with cumulative sales of 35 million bottles. Wanchen also said the product’s monthly repurchase rate exceeded that of comparable flagship products in the category.
Another example is green grape jasmine beer, part of the Haoxianglai Select line. Wanchen described it as a new flavor combination in beer, built on a craft-style base and a green grape note aimed at consumers looking for lighter, more novelty-driven drinks.
Across both lines, the company appears to be following the same logic: develop products in large, high-frequency categories, give them a clear point of difference, and use its supply chain and store network to keep prices accessible.
Its scale is also helping it work with established brands. In the fourth quarter of 2025, Haoxianglai launched a co-branded milk product with Mengniu and a flavored corn chip with Shiyanshi. Wanchen said the milk product sold out at one point after launch, while the corn chip resonated well with target customers, based on insights from social media.
Looking ahead, the company said it will continue expanding the range of its Value and Select lines. It also plans to bring more consumer feedback into its product development process.
Turning scale into repeat purchases
Store count alone does not create loyalty. For chain retailers, the harder task is turning foot traffic into repeat purchases and customer data into better retention.
As of the end of 2025, Wanchen said it had close to 190 million registered members. Those members accounted for about 80% of gross merchandise value, while annual transacting members exceeded 140 million.
That gives the company a large base for promotions and retention, provided those users remain active. Over the past year, Wanchen has made membership operations a larger part of its playbook:
- Users who register through its QR code system can access a 12% discount promotion on the eighth day of each month. Every Wednesday, they can also use membership points to join a raffle.
- In September 2025, Haoxianglai launched a member campaign tied to the Mid-Autumn Festival and China’s National Day holiday. The company said the campaign, which included purchase-based lucky draws and other interactive features, drew nearly four million participants over 13 days.
- During the 2026 Lunar New Year period, Haoxianglai also ran a campaign that allowed customers to collect “blessings” through purchases and exchange them for a chance to win a car. Actor Tan Jianci appeared in a Haoxianglai Douyin livestream as part of that campaign.
- Wanchen has also been building a self-operated membership system. Through community groups and its in-house customer relationship management platform, it said it can deliver more tailored messaging by region, time, and user profile, along with member-only coupons and early access to new products.
User demand remains the real test
China’s snack and beverage retail market is still growing, and the bulk snack format remains one of the faster-growing parts of offline retail. According to CIC, China’s broader beverage and snack retail market grew from RMB 3.2 trillion (USD 463.8 billion) in 2019 to RMB 4 trillion (USD 579.8 billion) in 2024, representing a compound annual growth rate (CAGR) of 5%. CIC expects that market to reach RMB 5.4 trillion (USD 782.7 billion) by 2029, implying a CAGR of 5.9%.
Within that market, the bulk snack format has grown much faster. CIC said the segment expanded at a CAGR of 77.9% from 2019–2024 and is projected to grow at a CAGR of 36.5% over the following five years, reaching about RMB 613.7 billion (USD 89 billion) by 2029.
Above all, Wanchen’s 2025 results suggest it has started shifting from growth at any cost toward a model built on better execution. Logistics, private-label development, and member operations all appear to be part of that shift.
But efficiency is not the end goal. In retail, it matters only if it helps a company understand demand better and respond faster. For Wanchen, that remains the central test.
KrASIA features translated and adapted content that was originally published by 36Kr. This article was written by 36Kr Caijing.
Note: RMB figures are converted to USD at rates of RMB 6.90 = USD 1 based on estimates as of March 25, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.