Revenue of 51.5 billion, net profit increased 3 times, why did Haoxianglai's stock price fall

Why is AI · Wanchen’s market value far below Mingming Very Busy?

On March 18, Wanchen Group (Hao Xiang Lai) released its 2025 financial report, with revenue of 51.459 billion yuan (Mingming Very Busy is expected to be 61.42 billion yuan), a year-on-year increase of 59.17% (the growth rates for 2024 and 2023 are 247.86% and 1592.03%, respectively, showing a significant slowdown); net profit of 1.345 billion yuan (after adding back share-based payment expenses, net profit is 2.533 billion yuan, net profit margin 4.98%), up 358.09% year-on-year (the 2024 figure is 453.95%).

Overall, Wanchen Group’s revenue growth rate in 2025 has decreased from four digits before 2023 to three digits in 2024 and then to two digits in 2025; profit growth, however, is even higher. If Wanchen strengthens its supply chain and expands its own brands, profits will continue to improve (Yanjin Puzuo’s net profit margin in 2024 was 12%, and Wanchen has nearly three times that growth potential).

98.83% of Wanchen’s revenue comes from bulk sales (50.857 billion yuan), with traditional edible fungi business only 600 million yuan (accounting for 1.17% of total revenue). Wanchen’s performance surge is mainly due to the increase in the number of retail snack stores, opening 4,720 new stores in 2025 and closing 602 stores—net addition of 4,118 stores (less than the 9,776 in 2024, a decrease of 5,658, indicating a clear slowdown in expansion speed, which suggests Wanchen Group’s revenue growth in 2026 may further decline). The total number of stores is 18,314 (Mingming Very Busy already had 21,000 stores as of November 2025). East China remains Wanchen’s main battleground, accounting for 53.99% of stores.【

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Looking at a five-year horizon, since Wanchen Group entered the bulk snack business, its revenue has grown from 549 million yuan in 2022 to 51.459 billion yuan in 2025, a 93.7-fold increase; its stock price also rose from the lowest of 9.82 yuan per share in 2022 to 240.89 yuan per share on January 30 this year, a 24.5-fold increase.【

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Interestingly, despite such impressive performance, Wanchen Group’s stock price started to decline slowly on March 19. As of 11:23 on March 19, 2026, its market value was only 37 billion yuan (still much higher than snack companies like Yanjin Puzuo, Three Squirrels, and Laiyifen, but lagging behind its revenue), while Mingming Very Busy’s market value was 76.93 billion yuan. Wanchen’s store count and revenue are about 80% of Mingming Very Busy’s, but its market value is only 48% of Mingming Very Busy’s. The decline in Wanchen’s stock price likely reflects investor expectations that its high growth in revenue and profit has peaked, and future growth rates will continue to decline, requiring a correction.

Wanchen Group submitted its IPO prospectus to the Hong Kong Stock Exchange in September 2025. As of February 2026, five months later, with only one month remaining before the hearing’s validity expires, its Hong Kong listing may face uncertainties.