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Wufangzhai's H1 net profit up 2.85%, vows to deepen 'festive + daily sales' dual-drive strategy
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On September 21, 2026, Zhejiang Wufangzhai held a performance briefing for the first half of 2026, detailing its strategic shift from scale-oriented to quality-oriented growth. The company reported revenue of 1.474 billion yuan, a slight year-on-year decline, but net profit attributable to shareholders rose 2.85% to 200 million yuan. Management attributed the 'revenue down, profit up' result to proactive adjustments, including shrinking low-efficiency segments, stabilizing pricing, and optimizing inventory. Board Secretary Yu Yingxi stated that these moves, while pressuring short-term profits, have strengthened channel health for the second half. Core product zongzi (rice dumplings) remained the foundation, with fresh-lock, OEM, and export varieties growing. The company is expanding into daily-consumption categories like quick-frozen zongzi under its 'festive + daily sales' dual-drive strategy. Non-zongzi categories showed strong growth: meal series revenue rose 19.58% to 84.72 million yuan, and mooncake series surged 261.87% to 2.57 million yuan. Channel optimization included partnerships with Sam's Club, Hema, and Costco, and a price monitoring system. Gross margin improved to 44.64%, up 3.62 percentage points. Industry analysts noted that while the core zongzi business remains stable, the non-zongzi growth potential could become a second growth curve, positioning Wufangzhai to transition from a traditional festive food maker to a comprehensive snack food company.
Source report
On the afternoon of September 21, Zhejiang Wufangzhai (hereinafter referred to as "Wufangzhai") held its 2026 semi-annual performance briefing. The company's management provided a comprehensive overview of the business results for the first half of the year, detailed the company's strategic adjustment direction and future development plans, and responded to key investor concerns.
Financial Highlights: Strategic Shift from Scale to Quality
In the first half of 2026, the domestic consumer market showed clear divergence, with a contraction in demand for welfare and gift-giving. Against this backdrop, Wufangzhai proactively scaled back underperforming segments and focused on high-growth sectors. By maintaining price stability and optimizing inventory structure, the company shifted its operations from a "scale-oriented" to a "quality-oriented" approach, resulting in a "revenue decline with profit growth" performance.
- Operating revenue: RMB 1.474 billion, slightly down year-on-year
- Net profit attributable to shareholders: RMB 200 million, up 2.85% year-on-year
Yu Yingqian, Secretary of the Board of Directors of Wufangzhai, responded to a question from Securities Daily during the briefing, stating: "Although the strategic proactive adjustment has put some pressure on current profits, it has solidified the foundation of channel health and laid the groundwork for a recovery in operational quality in the second half of the year."
Product Strategy: Zongzi as the Core, Non-Zongzi Categories Show Growth
From a product perspective, zongzi (traditional Chinese rice dumplings) remains Wufangzhai's core business. In the first half of the year, sales of fresh-lock zongzi, OEM zongzi, and export zongzi all increased. Meanwhile, the company focused on health-oriented and premium consumption trends by upgrading its low-GI, light-nutrition, and "Chuanshizhen" series, with the sales share of these products continuing to rise.
General Manager Ma Jianzhong stated: "Going forward, the company will continue to push the product structure from a festival-concentrated model toward daily high-frequency consumption. By leveraging daily-sale categories such as fresh-lock and quick-frozen zongzi, we aim to smooth out seasonal fluctuations and deepen the 'festival + daily sales' dual-drive strategy."
In the first half of the year, Wufangzhai's non-zongzi categories showed differentiated growth:
- Meal series: Revenue of RMB 84.7179 million, up 19.58% year-on-year
- Mooncake series: Revenue of RMB 2.5653 million, up 261.87% year-on-year
- Egg products, pastries, and other categories: Revenue remained largely flat
Channel Optimization and Price Stability
In terms of channels, Wufangzhai proactively adjusted its dealer cooperation strategy in the first half of the year, focusing on high-quality partners and optimizing channel structure. Yu Yingqian noted: "In the first half of the year, the company continued to deepen cooperation with Sam's Club, Hema, Pangdonglai, and Costco."
As of June 30, 2026, Wufangzhai had 558 dealers. During the period, the company established a price monitoring system covering all categories. During the Dragon Boat Festival, it maintained price stability and refrained from low-price clearance sales, strengthening channel confidence and long-term cooperation expectations.
- Chain store channel revenue: RMB 211 million, up 9.37% year-on-year
- New directly-operated stores: 21 opened
- Supermarket channel revenue: Up 21.56% year-on-year
Supply Chain and Cost Optimization
Wufangzhai also deepened its supply chain optimization, ensuring peak-season delivery while advancing cost reduction and digitalization. In particular, through procurement strategy optimization, refined manufacturing operations, and logistics improvements, the company achieved:
- Gross margin: 44.64%, up 3.62 percentage points year-on-year
- Selling expenses: Down 0.87% year-on-year
Industry Outlook
An industry analyst commented: "In the short term, Wufangzhai's core zongzi business remains solid. The premiumization and gift-box product upgrades can effectively offset downward pressure from the gift market. In the medium to long term, as the 'festival + daily sales' dual-drive strategy continues to take effect, the growth potential of non-zongzi categories will be steadily released, potentially becoming the company's second growth curve. Leveraging omni-channel refined operations and a diversified product matrix, Wufangzhai is accelerating its transformation from a traditional festival food manufacturer to a comprehensive leisure food company."
Source: Securities Daily
Source
东方财富网-A股公司Eastern
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