Zhou Hei Ya (Stock Code: 01458, HK), often referred to as the "Hermès of Duck Neck," achieved remarkable success in 2025, with net profit attributable to shareholders surging nearly 60% year-on-year. This outstanding performance has reassured founder Zhou Fuyu, who returned to lead the company.
The key drivers behind this success were a significant reduction in costs and a dual strategy focusing on both physical stores and sales channels.
A major drop in upstream duck prices significantly boosted performance. On April 20, Zhou Hei Ya released its 2025 annual report.
The report showed the company's 2025 revenue reached RMB 2.536 billion, a 3.5% increase from RMB 2.451 billion in 2024. Gross profit for 2025 was RMB 1.460 billion, up 4.9% from RMB 1.392 billion the previous year. More impressively, net profit attributable to shareholders soared to RMB 156.7 million in 2025, a sharp increase of 59.6% from RMB 98.2 million in 2024.
Regarding revenue growth, Zhou Hei Ya attributed it to vigorous efforts in channel expansion and operational efficiency improvements, which drove steady growth in channel business. The company also focused on optimizing its store portfolio, significantly enhancing single-store operational efficiency and quality, collectively boosting overall earnings.
While the annual report did not explicitly state the reason for the sharp rise in net profit, it is directly linked to decreased costs. The report indicated that the company's cost of sales in 2025 rose by only 1.7% compared to 2024. Given the increases in revenue and net profit, this figure is notably positive. Zhou Hei Ya stated that the slight rise in sales costs was offset by lower raw material costs and optimized supply chain efficiency, effectively reducing unit costs.
The primary raw material for Zhou Hei Ya is duck meat, highlighting the benefit from a substantial price drop for live ducks in 2025. It is understood that raw material costs constitute approximately 70-80% of the company's operating expenses. According to the "2025 Waterfowl Industry and Technology Development Report," the national average price for live ducks that year was RMB 7.60 per kilogram, down 13.31% year-on-year.
With selling prices remaining stable, the significant cost reduction played a decisive role in boosting Zhou Hei Ya's profits. Similarly, another duck-based braised food company, Huang Shang Huang (Stock Code: 002695.SZ), recently issued a performance forecast indicating its net profit for 2025 is expected to grow between 73.57% and 123.16%. Benefiting from the duck price drop, Huang Shang Huang's growth rate is even more dramatic than Zhou Hei Ya's.
Beyond cost reductions, store optimization and channel expansion were two other key factors enhancing net profit. The annual report noted that for stores, the company drove improvements in single-store operational quality through business model innovation, digital empowerment, and enhanced incentives for frontline staff. For channels, it established a dedicated channel business division, successfully entering key retail systems like Sam's Club, Pang Dong Lai, and Yonghui Superstores, and achieving deep integration and upgrades for both online and offline channels.
In addition to consolidating its core business, Zhou Hei Ya is actively expanding overseas. In 2025, it opened its first store in Malaysia, marking a breakthrough from zero to one. Furthermore, the company collaborated with Sichuan Shentang Industrial Group to launch the "Ga Ga Xiang" series of compound seasonings, entering the home cooking market.
These new initiatives are connected to founder Zhou Fuyu's return to leadership. Looking back to 2022, it was a challenging period for Zhou Hei Ya. Revenue fell 18% year-on-year, gross profit dropped 22%, and net profit plummeted 93% to just RMB 25 million. Public sentiment was also unfavorable; affected by consumption downgrading, Zhou Hei Ya's consistently higher prices and premium positioning led to it being labeled a "price刺客" (price gouger).
In this context, Zhou Fuyu began gradually moving away from the previous professional manager model and taking direct control of management starting in 2023. In June 2024, former CEO Zhang Yuchen resigned, and Zhou Fuyu assumed the roles of Chairman and CEO.
Zhou Fuyu's first major step was to "close stores to stem losses." At its peak, Zhou Hei Ya had over 3,800 stores nationwide. Nearly a thousand underperforming stores were subsequently closed, reducing the total to below 3,000. While this large-scale closure caused short-term pain—the company quickly recovered in 2023 but faced another year-on-year decline in 2024—the 2025 annual report shows the national store count has rebounded to 3,019. These are mainly concentrated in Central China (Hubei, Hunan, Henan, Jiangxi, Anhui, and Shanxi), accounting for over 52% of sales.
After continuous adjustments and optimization, the average monthly single-store sales for these 3,019 stores increased by 13.6% compared to 2024. The proportion of profitable stores now exceeds 80%.
Zhou Fuyu's second strategy was to strengthen channel sales. The company established a dedicated channel business division, successfully opening diverse pathways from membership stores and hypermarkets to convenience stores. In 2025, Zhou Hei Ya entered over 80 key system channels, including Sam's Club and Yonghui, covering nearly 40,000 terminal sales points and achieving scaled deployment.
Simultaneously, Zhou Fuyu drove innovation by focusing on product rejuvenation to attract new customers and personally appearing in promotions to build a founder IP.
Overseas expansion also became a new development direction. The 2025 report shows Zhou Hei Ya entered mainstream retail channels in 12 overseas countries, including Malaysia, Canada, and France, with its first directly-operated brand store successfully opening in Port Klang, Malaysia.
The history of Zhou Hei Ya is essentially the grassroots entrepreneurial story of Zhou Fuyu himself. In 1994, the 19-year-old from Chongqing dropped out of school and went to Wuhan, Hubei, to join his elder sister. Working at a market stall selling marinated foods, he accidentally created a "strange-taste marinated duck" by adding sugar, and the small shop gradually gained popularity.
In 2000, Zhou Fuyu formally named the product "Zhou Hei Ya" and set a mid-to-high-end positioning for the braised food. In 2004, the first Zhou Hei Ya store opened in Wuhan International Plaza, moving away from the traditional market stall image.
In 2006, Zhou Fuyu established Hubei Zhou Hei Ya Food Co., Ltd., built a standardized factory, and fully transitioned from a small workshop. In 2007, the first factory began production, the company moved away from a family-run model by establishing a modern team, and it adhered to a direct-operated store model.
A key moment for national expansion came in 2012 with the pioneering introduction of modified atmosphere packaging, which helped the brand become popular across the country. In November 2016, Zhou Hei Ya was listed on the Hong Kong Stock Exchange, becoming one of the "Three Giants of Braised Food" alongside Juewei and Huang Shang Huang.
As of the Hong Kong stock market close on April 21, Zhou Hei Ya's share price rose 2.61% to HKD 1.57 per share, with a total market capitalization of HKD 3.317 billion. Previously, on March 27, influenced by a positive earnings forecast, the stock surged 16.54% in a single day, followed by another 8% rise on April 8.
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