ST Juewei attributed the decline primarily to the impact of industry market conditions, leading to reduced sales of its main product (braised food).
Once thriving with its "10,000-store model," the braised food sector is now experiencing slowing growth and undergoing a painful adjustment period.
With the release of Q3 reports from ST Juewei and Jiangxi Huangshanghuang Group Food Co.,Ltd. (002695.SZ), both industry giants reported revenue declines. Experts note that amid shifting consumer preferences, the braised food industry faces significant challenges due to its relatively high prices and insufficient cost-performance appeal.
According to ST Juewei’s (603517.SH) Q3 2025 report, the company posted revenue of 1.441 billion yuan, down 13.98% year-on-year, and net profit attributable to shareholders of 105 million yuan, a 26.46% decline. For the first three quarters of 2025, ST Juewei reported total revenue of 4.26 billion yuan, down 15.04% YoY, and net profit of 280 million yuan, plunging 36.07%.
Huangshanghuang also saw revenue contraction, with Q3 figures showing a 5.08% YoY drop to 1.379 billion yuan, though net profit rose 28.59% to 101 million yuan.
Major players in the sector are feeling the pinch as core product sales weaken. ST Juewei attributed its profit decline to sluggish sales of braised food amid unfavorable market conditions.
Operational data revealed that ST Juewei’s Q1-Q3 revenue reached 4.26 billion yuan, with core business income accounting for 97.81% (4.167 billion yuan). Braised food sales contributed 3.527 billion yuan (84.63% of core revenue), down 16.49% YoY, while supply chain logistics brought in 423 million yuan (10.14%).
Though Huangshanghuang did not specify reasons for its revenue drop in the Q3 report, its half-year filing cited changing consumption patterns, declining same-store sales, and slower-than-expected store expansion—leading to a net reduction of 762 stores, bringing its total to 2,898 by mid-2025.
Despite falling revenue, Huangshanghuang’s net profit was buoyed by lower raw material costs. Prices for duck necks, wings, and other key ingredients remained low, reducing production costs and lifting gross margins by 2.23 percentage points.
Notably, on October 21, Huangshanghuang announced delays in two food processing projects, with one expansion plan postponed for the second time.
Hong Kong-listed Zhouheiya (1458.HK), which does not disclose quarterly reports, faced similar challenges in H1 2025. Revenue dipped 2.9% to 1.222 billion yuan, though net profit surged 228% to 108 million yuan. The company closed underperforming stores (totaling 2,864, down 167 from end-2024) but improved per-store efficiency to mitigate revenue losses.
China Food Industry analyst Zhu Danpeng noted that the sector’s growth hinges on demographic dividends, store expansion, brand power, and customer loyalty. However, high prices and weak cost-performance ratios—compounded by declining consumer confidence—pose major hurdles.
Strategic positioning expert Zhan Junhao added that this year’s slump for the top three braised food brands stems from multiple factors: intensified competition, rising health consciousness (reducing demand for high-salt, high-fat products), and premium pricing that clashes with subdued consumer spending.
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