In 2025, China's frozen food industry experienced an overall slowdown in growth, accompanied by intensified market competition. Anjoy Foods Group Co.,Ltd., a leader in the sector, reported financial results characterized by increased revenue without corresponding profit growth for the year. The company's total operating revenue reached 16.193 billion yuan, marking a year-on-year increase of 7.05%. However, net profit attributable to shareholders declined by 8.46% to 1.359 billion yuan, representing the first drop in recent years.
The decrease in net profit was influenced by multiple factors, including increased depreciation of fixed assets, fluctuations in raw material costs, foreign exchange losses, and goodwill impairment. In 2025, the gross profit margin for the company's main business was 21.53%, down by 1.7 percentage points from the previous year. Notably, the gross profit margin for frozen prepared dishes was only 9.49%, falling by an additional 2.27 percentage points compared to the prior year. The company attributed this primarily to rising costs of crayfish ingredients, increased depreciation from new production bases coming online, and higher promotional expenses amid heightened industry competition.
Asset impairment losses expanded significantly to 214 million yuan. This included goodwill impairment provisions of approximately 149 million yuan for Hubei Xin Liu Wu and 14.87 million yuan for Honghu Xin Hong Ye, acquisitions made during the company's earlier entry into the crayfish segment, which were adversely affected by changes in the industry environment. Furthermore, the continued depreciation of the US dollar against the Renminbi resulted in substantial exchange losses, turning a net financial income of 70 million yuan from the previous year into a net expense of 1.36 million yuan.
Despite pressure on profits, the company's cash flow remained robust. Net cash flow from operating activities in 2025 was 2.317 billion yuan, an increase of 10.12% year-on-year. Faced with profit challenges, Anjoy adjusted its channel and strategic focus. Fluctuating demand in the餐饮 sector pressured the traditional frozen food wholesale market, making newer, higher-margin channels a key breakthrough. In 2025, Anjoy's new retail and e-commerce channels generated revenue of 1.179 billion yuan, surging 31.76% year-on-year.
In its annual report, Anjoy made a crucial revision to its customization strategy, introducing a "managed large-B customization" approach. Compared to the previous strategy of "fully embracing customization," this new model places greater emphasis on controlling product complexity and costs. The essence is to strike a balance between scale expansion and operational efficiency, avoiding cost失控 caused by excessively fragmented demand. The company has already established collaborations with membership and hard-discount channels such as Sam's Club, Hema, Pang Dong Lai, METRO, and ALDI, continuously optimizing its large corporate client structure.
Simultaneously, category extension continues to support channel expansion. The company has positioned its sausage business as its third major segment, deploying over 30,000 terminal devices to achieve both sales and brand reach, with the goal of entering the industry's top tier within 2-3 years. External expansion also continued: in 2025, Anjoy completed the acquisition of Jiangsu Ding Wei Tai, entering the frozen bakery and premium cod sausage markets, and launched the "An Zhai" project to tap into the halal food market.
Under short-term profit pressure, channel upgrades and a more focused customization strategy have become critical variables. The boundaries and efficiency of this "managed large-B customization" approach will likely determine the quality of Anjoy's growth in the next phase.
Comments