[2025 Interim Results Highlights](index=1&type=section&id=2025%E5%B9%B4%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E6%91%98%E8%A6%81) Weilong Delicious Global Holdings Ltd. reported interim results for H1 2025, with total revenue and profit for the period both growing by 18.5%, while gross profit margin slightly decreased to 47.2% Key Interim Financial Data for H1 2025 | Metric | Six Months Ended June 30, 2025 (RMB million) | YoY Change | | :--- | :--- | :--- | | Total Revenue | 3,482.9 | +18.5% | | Gross Profit | 1,642.4 | +12.3% | | Gross Profit Margin | 47.2% | -2.6 percentage points | | Profit for the Period | 736.2 | +18.5% | | Basic Earnings Per Share | 0.31 yuan | +14.8% | | Interim Dividend | 0.18 yuan per share | N/A | [Interim Condensed Consolidated Financial Statements](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) This section presents the interim condensed consolidated financial statements, including the statement of profit or loss, comprehensive income, and financial position [Interim Condensed Consolidated Statement of Profit or Loss](index=2&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E6%90%8D%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, the company's revenue grew by 18.5% to RMB 3,482,935 thousand, with profit for the period reaching RMB 736,204 thousand Key Data from Interim Condensed Consolidated Statement of Profit or Loss | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Revenue from contracts with customers | 3,482,935 | 2,938,649 | | Cost of sales | (1,840,519) | (1,476,364) | | Gross Profit | 1,642,416 | 1,462,285 | | Operating Profit | 948,518 | 784,880 | | Profit before income tax | 1,028,481 | 872,558 | | Profit for the Period | 736,204 | 621,200 | | Basic earnings per share (RMB yuan) | 0.31 | 0.27 | [Interim Condensed Consolidated Statement of Comprehensive Income](index=3&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E7%B6%9C%E5%90%88%E6%94%B6%E7%9B%8A%E8%A1%A8) For the six months ended June 30, 2025, profit for the period was RMB 736,204 thousand, with total comprehensive income reaching RMB 690,230 thousand Key Data from Interim Condensed Consolidated Statement of Comprehensive Income | Metric | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Profit for the Period | 736,204 | 621,200 | | Exchange differences on translation of foreign operations | 13,747 | (2,485) | | Exchange differences on translation of the Company | (59,721) | 11,171 | | Total comprehensive income for the period | 690,230 | 629,886 | [Interim Condensed Consolidated Statement of Financial Position](index=4&type=section&id=%E4%B8%AD%E6%9C%9F%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81%E8%A1%A8) As of June 30, 2025, total assets reached RMB 9,556,540 thousand, a 16.8% increase from year-end 2024, driven by a 49.9% rise in current assets Key Data from Interim Condensed Consolidated Statement of Financial Position | Metric | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | Change Rate | | :--- | :--- | :--- | :--- | | Total assets | 9,556,540 | 8,182,413 | +16.8% | | Total non-current assets | 4,248,720 | 4,662,715 | -8.9% | | Total current assets | 5,307,820 | 3,519,698 | +49.9% | | Total liabilities | 2,491,941 | 2,175,983 | +14.5% | | Total non-current liabilities | 269,558 | 475,972 | -43.4% | | Total current liabilities | 2,222,383 | 1,700,011 | +30.7% | | Net assets | 7,064,599 | 6,006,430 | +17.6% | [Notes to the Interim Condensed Consolidated Financial Statements](index=6&type=section&id=%E7%B0%A1%E6%98%8E%E5%90%88%E4%BD%B5%E5%A0%B1%E8%A1%A8%E9%99%84%E8%A8%BB) This section provides explanatory notes to the interim condensed consolidated financial statements [1. Basis of Preparation](index=6&type=section&id=1.%20%E7%B7%A8%E8%A3%BD%E5%9F%BA%E6%BA%96) The interim condensed consolidated financial information is prepared in RMB under IAS 34 and should be read with the annual consolidated financial statements - Financial information is prepared in accordance with **IAS 34**, presented in **RMB**, and serves as supplementary reading material to the annual financial statements[9](index=9&type=chunk) [2. Changes in Accounting Policies](index=6&type=section&id=2.%20%E6%9C%83%E8%A8%88%E6%94%BF%E7%AD%96%E7%9A%84%E8%AE%8A%E5%8B%95) The adoption of revised IFRS accounting standards, specifically IAS 21 (amended) on lack of exchangeability, had no impact on the interim financial information - The new accounting policy under **IAS 21 (amended)** regarding lack of exchangeability has **no impact** on the Group's financial information, as its transaction currencies are all convertible[10](index=10&type=chunk)[11](index=11&type=chunk) [3. Segment Information](index=7&type=section&id=3.%20%E5%88%86%E9%83%A8%E8%B3%87%E6%96%99) The Group primarily operates in the spicy snack food sector in China, with three reportable segments assessed by gross profit, and vegetable products showing significant revenue growth - The Group primarily operates in **spicy snack foods** with business concentrated in **China**, divided into three operating segments, and uses **gross profit** as the performance evaluation standard[12](index=12&type=chunk)[13](index=13&type=chunk) Revenue and Gross Profit by Product Category | Product Category | 2025 Revenue (RMB thousand) | 2025 Gross Profit (RMB thousand) | 2024 Revenue (RMB thousand) | 2024 Gross Profit (RMB thousand) | | :--- | :--- | :--- | :--- | :--- | | Seasoned Flour Products | 1,309,964 | 633,449 | 1,353,826 | 647,804 | | Vegetable Products | 2,108,786 | 981,780 | 1,461,256 | 768,343 | | Other Products | 64,185 | 27,187 | 123,567 | 46,138 | | Total | 3,482,935 | 1,642,416 | 2,938,649 | 1,462,285 | External Customer Revenue by Customer Location | Region | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | China | 3,429,466 | 2,904,025 | | Overseas | 53,469 | 34,624 | | Total | 3,482,935 | 2,938,649 | - As of June 30, 2025, sales revenue to a major third-party customer was **RMB 389.6 million**, accounting for approximately **11% of total revenue**, while no single customer exceeded 10% in the prior period[18](index=18&type=chunk) [4. Cost of Sales, Distribution and Selling Expenses, and Administrative Expenses](index=9&type=section&id=4.%20%E9%8A%B7%E8%B2%A8%E6%88%90%E6%9C%AC%E3%80%81%E7%B6%93%E9%8A%B7%E5%8F%8A%E9%8A%B7%E5%94%AE%E8%B2%BB%E7%94%A8%E5%8F%8A%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8%E7%B8%BD%E9%A1%8D) For the six months ended June 30, 2025, total cost of sales, distribution, selling, and administrative expenses increased by 17.1% to RMB 2,568,890 thousand Major Expense Components | Expense Item | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Raw material consumption | 1,372,274 | 1,147,250 | | Employee benefit expenses | 532,388 | 540,127 | | Transportation expenses | 109,334 | 92,966 | | Promotion and advertising expenses | 161,255 | 120,263 | | Total | 2,568,890 | 2,194,122 | [5. Income Tax Expense](index=9&type=section&id=5.%20%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) For the six months ended June 30, 2025, income tax expense increased by 16.3% to RMB 292,277 thousand, primarily due to higher current tax on profit Composition of Income Tax Expense | Tax Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Current tax on profit for the period | 277,576 | 212,673 | | Total deferred tax expense | 14,701 | 38,685 | | Income tax expense | 292,277 | 251,358 | [6. Earnings Per Share](index=10&type=section&id=6.%20%E6%AF%8F%E8%82%A1%E7%9B%88%E5%88%A9) For the six months ended June 30, 2025, both basic and diluted earnings per share increased to RMB 0.31, with a weighted average of 2,338,730 thousand ordinary shares outstanding Earnings Per Share Data | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Profit attributable to owners of the Company (RMB thousand) | 733,019 | 621,200 | | Weighted average number of ordinary shares in issue (thousand shares) | 2,338,730 | 2,312,489 | | Basic earnings per share (RMB yuan) | 0.31 | 0.27 | | Diluted earnings per share (RMB yuan) | 0.31 | 0.27 | - As of June 30, 2025, a total of **10,805,243 restricted share units** were vested and included in the basic earnings per share calculation[25](index=25&type=chunk) [7. Dividends](index=11&type=section&id=7.%20%E8%82%A1%E6%81%AF) For the six months ended June 30, 2025, the Board resolved to declare an interim dividend of RMB 0.18 per share, totaling approximately RMB 437,606 thousand, representing about 60% of net profit Dividends Declared and Paid | Dividend Type | 2025 (RMB thousand) | 2024 (RMB thousand) | | :--- | :--- | :--- | | Final and special dividends declared | 705,032 | 493,741 | | 2025 Interim dividend (per share) | 0.18 yuan (Total approx. 437,606 thousand) | N/A | [8. Trade and Other Receivables and Prepayments](index=11&type=section&id=8.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade receivables increased to RMB 73,390 thousand, primarily from credit sales, while prepayments decreased by 8.8% due to reduced input VAT Trade and Other Receivables and Prepayments | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade receivables | 73,390 | 52,838 | | Other receivables | 7,201 | 8,695 | | Prepayments | 174,943 | 191,820 | | Total | 255,534 | 253,353 | Ageing Analysis of Trade Receivables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 69,808 | 47,392 | | 91 to 180 days | 3,587 | 5,451 | | Total | 73,395 | 52,843 | [9. Trade and Other Payables](index=12&type=section&id=9.%20%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) As of June 30, 2025, trade payables slightly decreased to RMB 205,243 thousand, while other payables, including salaries and deposits, totaled RMB 547,988 thousand Trade and Other Payables | Item | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Trade payables | 205,243 | 212,614 | | Other payables | 547,988 | 614,013 | | Total | 753,231 | 826,627 | Ageing Analysis of Trade Payables | Ageing | June 30, 2025 (RMB thousand) | December 31, 2024 (RMB thousand) | | :--- | :--- | :--- | | Within 90 days | 205,243 | 212,614 | [10. Events After the Reporting Period](index=13&type=section&id=10.%20%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E7%9A%84%E4%BA%8B%E4%BB%B6) On August 14, 2025, the Board resolved to declare an interim dividend of RMB 0.18 per share for H1 2025, totaling approximately RMB 437,606 thousand - The Board resolved on August 14, 2025, to declare an interim dividend of **RMB 0.18 per share**, totaling approximately **RMB 437.6 million**, representing about **60% of net profit**[33](index=33&type=chunk) [Management Discussion and Analysis](index=14&type=section&id=%E7%AE%A1%E7%90%86%E5%B1%A4%E8%A8%8E%E8%AB%96%E8%88%87%E5%88%86%E6%9E%90) This section provides an overview and analysis of the Group's business and financial performance [Macroeconomic and Industry Environment](index=14&type=section&id=%E5%AE%8F%E8%A7%80%E5%8F%8A%E8%A1%8C%E6%A5%AD%E7%92%B0%E5%A2%83) In H1 2025, China's economy grew steadily with GDP up 5.3%, while the snack food market saw robust growth, driven by evolving consumer preferences and channel restructuring - In H1 2025, China's GDP grew by **5.3% year-on-year**, demonstrating strong resilience in the real economy and sustained recovery momentum in the consumer market[34](index=34&type=chunk) - China's snack food market experienced **steady growth**, with Chinese spicy snack foods holding a significant position, as consumer demand shifts towards **diversification and personalization**, emphasizing nutrition, convenience, packaging, and brand[36](index=36&type=chunk)[37](index=37&type=chunk) - Retail channels are undergoing multiple changes, with the rise of snack bulk stores, warehouse membership supermarkets, and emerging channels like O2O and community group buying, driving the industry into an **omnichannel integration and restructuring cycle**[37](index=37&type=chunk) [Business Review](index=15&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) The Group continued its mission to transform traditional Chinese cuisine into accessible snack foods, focusing on innovation, consumer insights, and R&D, while enhancing brand image through collaborations and endorsements - The Group continues to uphold its mission of 'making the world fall in love with Chinese flavors,' dedicated to transforming traditional Chinese cuisine into snack foods[39](index=39&type=chunk) - The Group focuses on **innovation**, deeply understands consumer needs, strengthens R&D capabilities, and adheres to a **multi-category product strategy**, enriching its product portfolio across new products, flavors, processes, and packaging[40](index=40&type=chunk) - Through co-branding with partners like **KFC** and **Linli Lemon Tea**, and announcing **Wang Anyu** as the spokesperson for konjac products, the Group deepens its youthful and engaging brand image, effectively reaching younger demographics[41](index=41&type=chunk) [Our Products](index=16&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E7%94%A2%E5%93%81) As a leader in China's spicy snack food industry, the Group maintains a multi-category strategy, with vegetable products revenue growing by 44.3% to account for 60.5% of total revenue - The Group is a leader in China's **spicy snack food industry**, with products covering **seasoned flour products, vegetable products, bean products, and other products**[44](index=44&type=chunk) - During the reporting period, the Group launched **sesame paste flavored konjac snacks** and **spicy beef flavored Qinzhishao**, responding to consumer demand with innovative flavors[45](index=45&type=chunk)[46](index=46&type=chunk) Revenue Breakdown by Product Category | Product Category | 2025 (RMB thousand) | % of Total Revenue (2025) | 2024 (RMB thousand) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Seasoned Flour Products | 1,309,964 | 37.6% | 1,353,826 | 46.1% | | Vegetable Products | 2,108,786 | 60.5% | 1,461,256 | 49.7% | | Bean Products and Other Products | 64,185 | 1.9% | 123,567 | 4.2% | | Total | 3,482,935 | 100.0% | 2,938,649 | 100.0% | - Revenue from **vegetable products** increased by **44.3% year-on-year** to **RMB 2,108.8 million**, raising its share of total revenue from 49.7% to **60.5%**, driven by product innovation, expanded capacity, and omnichannel development[47](index=47&type=chunk) [Our Customers and Sales Channels](index=18&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E5%AE%A2%E6%88%B6%E5%8F%8A%E9%8A%B7%E5%94%AE%E6%B8%A0%E9%81%93) The Group's customers are primarily online and offline distributors and direct sales clients, with offline channel revenue growing by 21.5% to RMB 3,147.2 million, while online direct sales increased by 7.3% - As of June 30, 2025, the Group collaborated with **1,777 offline distributors**, serving national or regional supermarkets, snack bulk stores, and convenience stores[48](index=48&type=chunk) - The Group actively builds an **online omni-platform ecosystem**, cultivating traditional e-commerce platforms like Tmall, JD, and Pinduoduo, while expanding into content and social e-commerce platforms such as Douyin, Kuaishou, and Xiaohongshu to reach younger demographics through short videos and live streaming[49](index=49&type=chunk) Revenue Breakdown by Sales Channel | Sales Channel | 2025 (RMB thousand) | % of Total Revenue (2025) | 2024 (RMB thousand) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | Offline Channels | 3,147,223 | 90.4% | 2,589,623 | 88.1% | | Online Channels | 335,712 | 9.6% | 349,026 | 11.9% | | - Online Distribution | 107,762 | 3.1% | 136,589 | 4.7% | | - Online Direct Sales | 227,950 | 6.5% | 212,437 | 7.2% | | Total | 3,482,935 | 100.0% | 2,938,649 | 100.0% | - Offline channel revenue increased by **21.5% year-on-year**, raising its share of total revenue to **90.4%**; online channel revenue decreased by **3.8%**, with online distribution revenue falling by **21.1%** and online direct sales revenue growing by **7.3%**[50](index=50&type=chunk)[51](index=51&type=chunk) Offline Channel Revenue Contribution by Region | Region | 2025 (RMB thousand) | % of Total Offline Revenue (2025) | 2024 (RMB thousand) | % of Total Offline Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | | East China | 746,130 | 23.7% | 607,284 | 23.5% | | Central China | 481,596 | 15.3% | 419,790 | 16.2% | | North China | 420,960 | 13.4% | 370,777 | 14.3% | | South China | 637,576 | 20.3% | 473,598 | 18.3% | | Southwest China | 406,419 | 12.9% | 346,359 | 13.4% | | Northwest China | 401,073 | 12.7% | 337,191 | 13.0% | | Overseas | 53,469 | 1.7% | 34,624 | 1.3% | | Total | 3,147,223 | 100% | 2,589,623 | 100.0% | [Our Production Facilities and Capacity](index=20&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E7%94%A2%E7%94%9F%E8%A8%AD%E6%96%BD%E5%8F%8A%E7%94%A2%E8%83%BD) The Group continues to advance automation and digitalization in its five Henan factories, with plans for a new factory in Nanning, Guangxi, and overall capacity utilization increased to 79.0% - The Group continuously advances the **automation, lean management, and digitalization** of its production facilities to enhance efficiency and product quality[54](index=54&type=chunk) - As of June 30, 2025, the Group operates **five factories in Henan Province** and signed an agreement on April 22, 2025, to plan a new factory in **Nanning, Guangxi**, to support business expansion[54](index=54&type=chunk) Capacity Utilization Rate by Product Category | Product Category | 2025 Designed Capacity (tons) | 2025 Actual Output (tons) | 2025 Capacity Utilization Rate | 2024 Designed Capacity (tons) | 2024 Actual Output (tons) | 2024 Capacity Utilization Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Seasoned Flour Products | 81,317.1 | 65,711.7 | 80.8% | 117,106.9 | 66,112.3 | 56.5% | | Vegetable Products | 94,734.0 | 73,433.1 | 77.5% | 59,406.0 | 50,445.0 | 84.9% | | Bean Products and Other Products | 2,619.1 | 1,982.9 | 75.7% | 2,777.6 | 2,639.3 | 95.0% | | Total | 178,670.2 | 141,127.7 | 79.0% | 179,290.5 | 119,196.6 | 66.5% | - Overall capacity utilization rate increased from **66.5%** in the prior period to **79.0%**, primarily due to sales growth; seasoned flour products saw a decrease in designed capacity, while vegetable products saw an increase, reflecting product line adjustments[56](index=56&type=chunk)[57](index=57&type=chunk) [Our Food Safety and Quality Control](index=22&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E9%A3%9F%E5%93%81%E5%AE%89%E5%85%A8%E5%92%8C%E5%93%81%E8%B3%AA%E6%8E%A7%E5%88%B6) The Group prioritizes food safety as its lifeline, continuously enhancing its management system from raw materials to production, and actively pursuing R&D for healthier snacks - The Group regards **food safety as its lifeline**, strictly controlling the entire process from raw materials to production to ensure product quality and safety[58](index=58&type=chunk) - Actively promotes **innovative R&D** to offer healthier and more delicious snack foods, aiming to win market trust and support[58](index=58&type=chunk) [Our R&D Capabilities](index=22&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E7%A0%94%E7%99%BC%E8%83%BD%E5%8A%9B) Adhering to an industrial R&D philosophy, the Group continuously invests in food texture, flavor, sterilization, and preservation technologies, while collaborating with top universities to strengthen its R&D advantages - The Group continuously increases **R&D investment**, focusing on key areas such as food texture, flavor, sterilization, and preservation technologies, and actively promotes new product reserve R&D[59](index=59&type=chunk) - Collaborates with top domestic universities to establish a **food engineering technology research center** and assemble multi-disciplinary professional research teams, solidifying its leading position in product and technology R&D[60](index=60&type=chunk) [Our Information Technology](index=22&type=section&id=%E6%88%91%E5%80%91%E7%9A%84%E4%BF%A1%E6%81%AF%E6%8A%80%E8%A1%93) During the reporting period, the Group advanced its digital transformation strategy, strengthening infrastructure to optimize procurement, sales, and production processes, enhancing operational efficiency and delivery - The Group continuously advances **digital transformation**, strengthening digital infrastructure to effectively monitor and optimize procurement, sales, and production processes[61](index=61&type=chunk) - Strengthens sales management systems and optimizes **AGV automated transport processes** to enhance business expansion, store coverage, operational efficiency, and delivery fulfillment[62](index=62&type=chunk) [Financial Review](index=23&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) This section reviews financial performance, including revenue, gross profit, expenses, net profit, and liquidity, noting 18.5% growth in revenue and net profit, with a slight gross margin decline [Revenue and Gross Profit](index=23&type=section&id=%E6%94%B6%E5%85%A5%E5%8F%8A%E6%AF%9B%E5%88%A9) Total revenue for the period increased by 18.5% to RMB 3,482.9 million, while gross profit grew by 12.3% to RMB 1,642.4 million, despite a 2.6 percentage point drop in gross profit margin Revenue and Gross Profit Performance | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | 3,482.9 | 2,938.6 | +18.5% | | Gross Profit | 1,642.4 | 1,462.3 | +12.3% | | Gross Profit Margin | 47.2% | 49.8% | -2.6 percentage points | [Distribution and Selling Expenses](index=23&type=section&id=%E7%B6%93%E9%8A%B7%E5%8F%8A%E9%8A%B7%E5%94%AE%E8%B2%BB%E7%94%A8) Distribution and selling expenses increased by 10.9% to RMB 527.2 million, decreasing as a percentage of total revenue from 16.2% to 15.1% Distribution and Selling Expenses | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Distribution and selling expenses | 527.2 | 475.5 | +10.9% | 15.1% | 16.2% | [Administrative Expenses](index=23&type=section&id=%E7%AE%A1%E7%90%86%E8%B2%BB%E7%94%A8) Administrative expenses decreased by 17.0% year-on-year to RMB 201.1 million, reducing their proportion of total revenue from 8.2% to 5.8% Administrative Expenses | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change | % of Total Revenue (2025) | % of Total Revenue (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Administrative expenses | 201.1 | 242.3 | -17.0% | 5.8% | 8.2% | [Other Net Income](index=24&type=section&id=%E5%85%B6%E4%BB%96%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Other net income for the reporting period was RMB 34.7 million, representing a year-on-year decrease of 21.8% Other Net Income | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Other net income | 34.7 | 44.4 | -21.8% | [Net Finance Income](index=24&type=section&id=%E8%9E%8D%E8%B3%87%E6%94%B6%E5%85%A5%E6%B7%A8%E9%A1%8D) Net finance income decreased by 8.8% year-on-year to RMB 80.0 million, primarily due to a reduction in bank interest Net Finance Income | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Net finance income | 80.0 | 87.7 | -8.8% | [Income Tax Expense](index=24&type=section&id=%E6%89%80%E5%BE%97%E7%A8%85%E8%B2%BB%E7%94%A8) Income tax expense increased by 16.3% year-on-year to RMB 292.3 million, primarily driven by an increase in taxable income Income Tax Expense | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change | | :--- | :--- | :--- | :--- | | Income tax expense | 292.3 | 251.4 | +16.3% | [Profit for the Period](index=24&type=section&id=%E6%9C%9F%E5%85%A7%E5%88%A9%E6%BD%A4) Net profit for the period increased by 18.5% year-on-year to RMB 736.2 million, with the net profit margin maintained at 21.1%, reflecting improved operating profit Profit for the Period | Metric | 2025 (RMB million) | 2024 (RMB million) | YoY Change | Net Profit Margin (2025) | Net Profit Margin (2024) | | :--- | :--- | :--- | :--- | :--- | :--- | | Net profit for the period | 736.2 | 621.2 | +18.5% | 21.1% | 21.1% | [Dividends](index=24&type=section&id=%E8%82%A1%E6%81%AF) The Board resolved to declare an interim dividend of RMB 0.18 per share for H1 2025, totaling approximately RMB 437.6 million, representing about 60% of net profit - The Board resolved to declare an interim dividend of **RMB 0.18 per share**, totaling approximately **RMB 437.6 million**, representing about **60% of net profit**[70](index=70&type=chunk) [Fixed Deposits with Initial Term Over Three Months, Cash and Cash Equivalents, and Borrowings](index=24&type=section&id=%E5%88%9D%E5%A7%8B%E6%9C%9F%E9%99%90%E7%82%BA%E4%B8%89%E5%80%8B%E6%9C%88%E4%BB%A5%E4%B8%8A%E7%9A%84%E5%AE%9A%E6%9C%9F%E5%AD%98%E6%AC%BE%E3%80%81%E7%8F%BE%E9%87%91%E5%8F%8A%E7%8F%BE%E9%87%91%E7%AD%89%E5%83%B9%E7%89%A9%E5%8F%8A%E5%80%9F%E6%AC%BE) As of June 30, 2025, total fixed deposits and cash equivalents increased by 24.0% to RMB 6,529.9 million, while total borrowings reached RMB 1,176.2 million Cash and Borrowings | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Total fixed deposits and cash equivalents | 6,529.9 | 5,267.5 | +24.0% | | Total borrowings | 1,176.2 | 389.0 | +202.4% | [Inventories](index=25&type=section&id=%E5%AD%98%E8%B2%A8) Inventories decreased by 3.1% to RMB 851.2 million from year-end, while inventory turnover days increased from 73 to 85, mainly due to increased raw material reserves Inventories and Turnover Days | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Inventories | 851.2 | 878.3 | -3.1% | | Inventory turnover days | 85 days | 73 days | +12 days | [Trade and Other Receivables and Prepayments](index=25&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E6%94%B6%E6%AC%BE%E9%A0%85%E5%8F%8A%E9%A0%90%E4%BB%98%E6%AC%BE%E9%A0%85) Trade receivables increased by 39.0% to RMB 73.4 million, with turnover days rising to 3.3; other receivables and prepayments decreased by 17.2% and 8.8% respectively Receivables and Prepayments | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Trade receivables | 73.4 | 52.8 | +39.0% | | Trade receivables turnover days | 3.3 days | 3.0 days | +0.3 days | | Other receivables | 7.2 | 8.7 | -17.2% | | Prepayments | 174.9 | 191.8 | -8.8% | [Trade and Other Payables](index=25&type=section&id=%E8%B2%BF%E6%98%93%E5%8F%8A%E5%85%B6%E4%BB%96%E6%87%89%E4%BB%98%E6%AC%BE%E9%A0%85) Trade payables decreased by 3.5% to RMB 205.2 million, with turnover days reducing to 20.5, while other payables decreased by 10.7% to RMB 548.0 million Payables | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Trade payables | 205.2 | 212.6 | -3.5% | | Trade payables turnover days | 20.5 days | 21.2 days | -0.7 days | | Other payables | 548.0 | 614.0 | -10.7% | [Contract Liabilities and Refund Liabilities](index=25&type=section&id=%E5%90%88%E5%90%8C%E8%B2%A0%E5%82%B5%E5%8F%8A%E9%80%80%E6%AC%BE%E8%B2%A0%E5%82%B5) Contract liabilities and refund liabilities decreased by 59.1% to RMB 244.3 million, primarily due to a high base from increased Chinese New Year orders in the prior year-end Contract Liabilities and Refund Liabilities | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Contract liabilities and refund liabilities | 244.3 | 597.3 | -59.1% | [Capital Gearing Ratio](index=25&type=section&id=%E8%B3%87%E6%9C%AC%E8%B2%A0%E5%82%B5%E6%AF%94%E7%8E%87) As of June 30, 2025, the capital gearing ratio significantly increased to 16.6% from 6.5% at year-end, primarily reflecting higher total borrowings Capital Gearing Ratio | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capital gearing ratio | 16.6% | 6.5% | [Treasury Policy](index=25&type=section&id=%E5%BA%AB%E5%8B%99%E6%94%BF%E7%AD%96) The Group adopts a conservative treasury policy, ensuring sufficient liquidity for operations and capital commitments, while regularly reviewing fund management to mitigate investment risks - The Group adopts a **conservative treasury policy**, ensuring **ample liquidity** and regularly reviewing fund management policies to mitigate investment risks[77](index=77&type=chunk) [Foreign Exchange Risk](index=26&type=section&id=%E5%A4%96%E5%8C%AF%E9%A2%A8%E9%9A%AA) Operating primarily in China with RMB-denominated transactions, the Group closely monitors and manages foreign exchange risks from overseas assets and liabilities denominated in HKD, USD, or IDR - The Group primarily operates in **China**, with most transactions settled in **RMB**, and closely monitors and manages foreign exchange risks associated with overseas assets and liabilities denominated in **HKD, USD, or IDR**[78](index=78&type=chunk) [Contingent Liabilities](index=26&type=section&id=%E6%88%96%E6%9C%89%E8%B2%A0%E5%82%B5) As of June 30, 2025, the Group had no significant contingent liabilities - As of June 30, 2025, the Group had **no significant contingent liabilities**[79](index=79&type=chunk) [Capital Commitments](index=26&type=section&id=%E8%B3%87%E6%9C%AC%E6%89%BF%E8%AB%BE) As of June 30, 2025, the Group's capital commitments totaled approximately RMB 183.0 million, primarily for property, plant, and equipment construction Capital Commitments | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Capital commitments | 183.0 | 169.4 | [Pledge of Assets](index=26&type=section&id=%E8%B3%87%E7%94%A2%E6%8A%B5%E6%8A%BC) As of June 30, 2025, the Group had pledged certain land use rights valued at RMB 88.9 million Pledge of Assets | Metric | June 30, 2025 (RMB million) | December 31, 2024 (RMB million) | | :--- | :--- | :--- | | Pledged land use rights | 88.9 | 89.8 | [Material Investments, Acquisitions, and Disposals](index=26&type=section&id=%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E3%80%81%E9%87%8D%E5%A4%A7%E6%94%B6%E8%B3%BC%E5%8F%8A%E5%87%BA%E5%94%AE%E4%BA%8B%E9%A0%85) During the reporting period, the Group held no material investments and undertook no significant acquisitions or disposals of subsidiaries, associates, or joint ventures - During the reporting period, the Group did not undertake any **material investments, acquisitions, or disposals**[82](index=82&type=chunk) [Future Material Investments or Capital Asset Plans](index=26&type=section&id=%E6%9C%AA%E4%BE%86%E9%87%8D%E5%A4%A7%E6%8A%95%E8%B3%87%E6%88%96%E8%B3%87%E6%9C%AC%E8%B3%87%E7%94%A2%E8%A8%88%E5%8A%83) Beyond the prospectus-disclosed uses and a new snack food production base in Nanning, Guangxi, the Group currently has no plans for other material investments or capital assets - The Group plans to invest in building a **snack food production base in Nanning, Guangxi**, with no other material investment or capital asset plans beyond this[83](index=83&type=chunk) [Future Outlook](index=27&type=section&id=%E6%9C%AA%E4%BE%86%E5%B1%95%E6%9C%9B) The Group will deepen its multi-category strategy, enhance R&D, build a youthful brand image, advance omnichannel development, improve supply chain efficiency, and strengthen talent cultivation for sustainable growth - Regarding products, the Group will continue to deepen its **multi-category strategy**, strengthen R&D advantages, launch innovative products, and create more consumption scenarios through category synergy[84](index=84&type=chunk) - For branding, the Group will continue to build a **young, engaging, and creative brand image**, enhancing emotional connections with young consumers through cross-industry collaborations and integrated marketing activities[85](index=85&type=chunk) - In terms of channels, the Group will continue to advance **omnichannel development**, strengthen online-offline synergy, improve store-level execution, accelerate expansion into emerging channels, and reinforce operational strategies for traditional, content, and social e-commerce[86](index=86&type=chunk) - Continuously enhances **supply chain efficiency**, deepens automation and digitalization upgrades across key nodes like procurement, production, and logistics, comprehensively promotes digital transformation, and strengthens talent selection and development mechanisms[87](index=87&type=chunk) [Use of Proceeds from Listing](index=28&type=section&id=%E4%B8%8A%E5%B8%82%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) This section details the utilization of proceeds obtained from the company's listing activities [Use of Net Proceeds from Initial Public Offering](index=28&type=section&id=%E9%A6%96%E6%AC%A1%E5%85%AC%E9%96%8B%E7%99%BC%E5%94%AE%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85%E7%94%A8%E9%80%94) As of June 30, 2025, the company's net IPO proceeds of approximately HKD 903.3 million were fully utilized for production facilities, sales network expansion, brand building, R&D, and digitalization, with the Yunnan Qujing factory plan cancelled Use of Net Proceeds from Initial Public Offering | Intended Use | Net Proceeds Available (HKD million) | Net Amount Actually Used as of June 30, 2025 (HKD million) | | :--- | :--- | :--- | | Production facilities and supply chain system | 514.9 | 514.9 | | Expansion of sales and distribution network | 135.5 | 135.5 | | Brand building | 90.3 | 90.3 | | Product R&D activities and R&D capability enhancement | 90.3 | 90.3 | | Advancement of digitalization | 72.3 | 72.3 | | Total | 903.3 | 903.3 | - The **net proceeds from the IPO have been fully utilized**, with the expected usage timeline advanced, and the plan for a new factory in **Qujing, Yunnan, has been cancelled**[90](index=90&type=chunk) [Proceeds from Placing of Existing Shares and Top-up Subscription of New Shares under General Mandate](index=29&type=section&id=%E6%A0%B9%E6%93%9A%E4%B8%80%E8%88%AC%E6%8E%88%E6%AC%8A%E9%85%8D%E5%94%AE%E7%8F%BE%E6%9C%89%E8%82%A1%E4%BB%BD%E5%8F%8A%E8%A3%9C%E8%B6%B3%E8%AA%8D%E8%B3%BC%E6%96%B0%E8%82%A1%E4%BB%BD%E7%9A%84%E6%89%80%E5%BE%97%E6%AC%BE%E9%A0%85) In May 2025, the company completed a placing and subscription of 80,000,000 shares, generating net proceeds of approximately HKD 1,167.04 million, to be used over two years for production facilities, sales network, brand building, and general corporate purposes - In May 2025, the Company completed the placing and subscription of **80,000,000 shares**, generating net proceeds of approximately **HKD 1,167.04 million**, aimed at enhancing financial strength, market competitiveness, and overall capabilities[92](index=92&type=chunk)[93](index=93&type=chunk) Use of Net Proceeds from Placing and Subscription | Intended Use | Percentage of Proceeds | Net Proceeds Available (HKD million) | Net Amount Actually Used During Reporting Period (HKD million) | Net Amount Unutilized as of June 30, 2025 (HKD million) | Expected Timeline for Full Utilization of Net Proceeds | | :--- | :--- | :--- | :--- | :--- | :--- | | Expansion and upgrade of production facilities and supply chain system | 50% | 583.5 | 113.4 | 470.1 | 1-2 years | | Expansion of sales and distribution network | 20% | 233.4 | 56.2 | 177.2 | 1-2 years | | Brand building | 20% | 233.4 | 95.7 | 137.7 | 1-2 years | | Other general corporate purposes | 10% | 116.7 | 33.8 | 82.9 | 1-2 years | | Total | 100% | 1,167.0 | 299.1 | 867.9 | 1-2 years | - The intended use of net proceeds from the placing and subscription remains unchanged, with gradual utilization planned over the **next 2 years** based on actual business conditions[94](index=94&type=chunk) [Significant Events After Reporting Period](index=30&type=section&id=%E5%A0%B1%E5%91%8A%E6%9C%9F%E5%BE%8C%E9%87%8D%E5%A4%A7%E4%BA%8B%E9%A0%85) No other significant events occurred from June 30, 2025, up to the date of this announcement, apart from those already disclosed herein - No other **significant events** occurred after the reporting period[97](index=97&type=chunk) [Human Resources and Remuneration Policy](index=30&type=section&id=%E4%BA%BA%E5%8A%9B%E8%B3%87%E6%BA%90%E8%88%87%E9%85%AC%E9%87%91%E6%94%BF%E7%AD%96) As of June 30, 2025, the Group had 6,720 employees with total benefits of RMB 532.4 million, emphasizing talent development, competitive remuneration, and a restricted share unit plan for incentives Human Resources Overview | Metric | June 30, 2025 | | :--- | :--- | | Total number of employees | 6,720 | | Total employee benefits (RMB million) | 532.4 | - The Group's remuneration policy is determined based on regional salary levels, employee rank, performance, and market conditions, providing comprehensive benefits including **social insurance, housing provident fund, annual health checks, and holiday benefits**[99](index=99&type=chunk) - Introduces a **human resource management system** for systematic talent selection and assessment, emphasizes internal talent development, and establishes an online knowledge and information sharing platform, 'Sharing Hall,' to enhance organizational efficiency and employee capabilities[100](index=100&type=chunk)[101](index=101&type=chunk) - To incentivize employees, the Company has adopted a **restricted share unit scheme** with a ten-year validity period[102](index=102&type=chunk) [Interim Dividend](index=32&type=section&id=%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) On August 14, 2025, the Board resolved to declare an interim dividend of RMB 0.18 per share (tax inclusive), totaling approximately RMB 437.6 million, payable in HKD around October 20, 2025 - The Board resolved to declare an interim dividend of **RMB 0.18 per share (tax inclusive)**, totaling approximately **RMB 437.6 million**, with an expected payment date around **October 20, 2025**[104](index=104&type=chunk) - The dividend will be paid in **HKD**, amounting to **HKD 0.1980 per share (tax inclusive)**, with the exchange rate based on the PBOC's RMB to HKD central parity rate on the announcement date[104](index=104&type=chunk) [Closure of Register of Members](index=32&type=section&id=%E6%9A%AB%E5%81%9C%E8%BE%A6%E7%90%86%E8%82%A1%E4%BB%BD%E9%81%8E%E6%88%B6%E7%99%BB%E8%A8%98%E6%89%8B%E7%BA%8C) The company's share register will be closed from September 24 to September 26, 2025, to determine shareholders entitled to the interim dividend, with all transfer documents due by September 23 - The share transfer registration will be suspended from **September 24 to September 26, 2025**, with the record date set for **September 26, 2025**, to determine interim dividend entitlements[105](index=105&type=chunk) - All share transfer documents must be submitted to **Tricor Investor Services Limited** by **4:30 p.m. on September 23, 2025**[105](index=105&type=chunk) [Environmental, Social and Governance (ESG)](index=33&type=section&id=%E7%92%B0%E5%A2%83%E3%80%81%E7%A4%BE%E6%9C%83%E8%88%87%E7%AE%A1%E6%B2%BB) The Group integrates ESG principles into its strategy and operations, focusing on environmental protection, employee welfare, community engagement, robust corporate governance, and sustainable product quality and supply chain management - The Group integrates **sustainable development** into its strategy and operations, improving corporate governance and **ESG management systems**, and encouraging stakeholder participation[106](index=106&type=chunk) - Environmentally, the Group is committed to **carbon reduction, waste reduction, improving energy and water resource efficiency**, and addressing climate change risks[107](index=107&type=chunk) - Regarding employees, the Group adheres to **compliant employment, ensures occupational health and safety**, and builds a talent development system; for the community, it actively engages in **charitable and public welfare activities**[107](index=107&type=chunk) - In corporate governance, the Group refines its governance structure, strengthens risk control, and upholds business ethics; for products and services, it prioritizes **quality**, implements full-chain quality management, and builds a **sustainable supply chain**[108](index=108&type=chunk) [Purchase, Sale, and Redemption of the Company's Listed Securities](index=34&type=section&id=%E8%B3%BC%E8%B2%B7%E3%80%81%E5%87%BA%E5%94%AE%E5%8F%8A%E8%B4%96%E5%9B%9E%E6%9C%AC%E5%85%AC%E5%8F%B8%E4%B8%8A%E5%B8%82%E8%AD%89%E5%88%B8) During the reporting period, neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities, except for disclosed placings and subscriptions of new shares, and no treasury shares were held - During the reporting period, neither the Company nor its subsidiaries purchased, sold, or redeemed any listed securities, apart from the placing and subscription of new shares, and **no treasury shares were held**[109](index=109&type=chunk) [Audit Committee](index=34&type=section&id=%E5%AF%A9%E6%A0%B8%E5%A7%94%E5%93%A1%E6%9C%83) The Audit Committee, comprising three independent non-executive directors, reviewed the unaudited interim consolidated results for H1 2025, confirming compliance with accounting principles, and the results were reviewed by EY - The Audit Committee, composed of **three independent non-executive directors**, reviewed the interim results and confirmed compliance with accounting principles and requirements[110](index=110&type=chunk) - Although the interim results are unaudited, they have been reviewed by **Ernst & Young** in accordance with **International Standard on Review Engagements 2410**[110](index=110&type=chunk) [Compliance with Corporate Governance Code in Appendix C1 of Listing Rules](index=34&type=section&id=%E9%81%B5%E5%AE%88%E3%80%8A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E3%80%8B%E9%99%84%E9%8C%84C1%E6%89%80%E8%BC%89%E7%9A%84%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%AE%88%E5%89%87) The company has complied with all applicable code provisions of the Corporate Governance Code in Appendix C1 of the Listing Rules from January 1, 2025, to the announcement date - The Company has complied with all applicable provisions of the **Corporate Governance Code in Appendix C1 of the Listing Rules** from January 1, 2025, to the date of this announcement[111](index=111&type=chunk) [Compliance with Model Code in Appendix C3 of Listing Rules](index=34&type=section&id=%E7%AC%A6%E5%90%88%E3%80%8A%E4%B8%8A%E5%B8%82%E8%A6%8F%E5%89%87%E3%80%8B%E9%99%84%E9%8C%84C3%E6%89%80%E8%BC%89%E7%9A%84%E6%A8%99%E6%BA%96%E5%AE%88%E5%89%87) The company adopted the Model Code for Securities Transactions by Directors of Listed Issuers in Appendix C3 of the Listing Rules, and all directors complied with its provisions during the reporting period - The Company has adopted the **Model Code in Appendix C3 of the Listing Rules**, and all directors complied with its provisions during the reporting period[112](index=112&type=chunk) [Publication of Interim Results Announcement and Interim Report](index=35&type=section&id=%E5%88%8A%E7%99%BC%E4%B8%AD%E6%9C%9F%E6%A5%AD%E7%B8%BE%E5%85%AC%E5%91%8A%E5%8F%8A%E4%B8%AD%E6%9C%9F%E5%A0%B1%E5%91%8A) This announcement and the interim report for the six months ended June 30, 2025, have been published on the HKEX and company websites - This announcement and the interim report for the six months ended June 30, 2025, have been published on the **HKEX website** and the **Company's website**[113](index=113&type=chunk)

此外，卫龙美味将于8月14日(本周四)披露截至2025年6月30日止六个月的中期业绩。中金预计1H25魔芋 品类保持高增，预计1H25毛利率环比2H24有望改善。此外，展望下半年公司在山姆、海外渠道有望贡 献新增量，另外辣条和魔芋新口味产品仍有铺货空间。 卫龙美味(09985)涨近6%，截至发稿，涨5.73%，报13.47港元，成交额8447.42万港元。 消息面上，招商证券日前研报指出，7月以来辣条侧竞争边际改善，魔芋侧关注产品推新与重点渠道拓 展。根据渠道调研反馈，辣条侧7月下旬出现边际改善，主要系市场侧中小辣条企业逐步到达极限且无 法进入新渠道，同时备货旺季到来，正常季节性回转；公司侧促销+SKU调整，进一步聚焦四大品类， 产品矩阵快速补齐所致。此外，魔芋侧增长延续，后续重点关注产品推新、山姆侧与泰国市场放量情 况。 ...

Group 1 - The core viewpoint of the article highlights that Wei Long Delicious (09985) has seen a nearly 6% increase in stock price, attributed to improved competitive margins in the spicy strip sector and new product launches in the konjac segment [1] - According to a report from China Merchants Securities, there has been a marginal improvement in the spicy strip market since late July, driven by limitations faced by small competitors and the onset of the seasonal stocking period [1] - The company is focusing on promotional activities and SKU adjustments, concentrating on four major product categories to enhance its product matrix [1] Group 2 - The konjac segment continues to show growth, with future attention on new product launches and expansion in key channels such as Sam's Club and the Thai market [1] - Wei Long Delicious is set to disclose its interim results for the six months ending June 30, 2025, on August 14, with expectations of high growth in the konjac category and improved gross margins compared to the second half of 2024 [1] - The outlook for the second half of the year suggests potential contributions from new volumes in overseas channels, as well as opportunities for new flavors in both spicy strips and konjac products [1]

Core Insights - Wei Long, a leading player in the spicy snack food industry, has signed Guan Le as the brand ambassador for its "Feng Chi Hai Dai" seaweed product, aiming to enhance its market reach and accelerate the growth of its vegetable product line centered around konjac and seaweed [1][7] Brand and Product Alignment - Guan Le's public image of sunshine, health, and vitality aligns perfectly with the characteristics of "Feng Chi Hai Dai," which promotes a non-greasy, pure, and refreshing experience [3] - The collaboration emphasizes a commitment to high-quality ingredients and craftsmanship, ensuring the natural crispness and flavor of seaweed are preserved, which resonates with consumer trust [3][5] Target Consumer Engagement - The partnership effectively targets the core consumer group of young individuals, particularly young women, who prioritize quality of life, health management, and sharing experiences [5] - The introduction of creative videos showcasing the product in relatable daily scenarios aims to lower the barriers to trying the product and foster a habit of frequent consumption [5] Product Innovation and Market Strategy - Wei Long is expanding its product offerings from "Classic Spicy Flavor" to "Refreshing Sour and Spicy Flavor," indicating a strategic move towards diversifying its vegetable product line following the success of "Mo Yu Shuang" [7] - The collaboration with Guan Le is not just about a single product but represents Wei Long's broader strategy to promote multi-category and youth-oriented growth, reinforcing its position as an industry leader [7]

Summary of Wei Long Mei Wei Conference Call Company and Industry Overview - **Company**: Wei Long Mei Wei - **Industry**: Food and Beverage, specifically focusing on konjac products and spicy snacks Key Points and Arguments 1. **Significant Growth in 2025**: Wei Long Mei Wei's performance in 2025 is expected to show substantial growth, primarily driven by the konjac category, with sales projected to increase from 3 billion to 4.5-5 billion yuan [2][5][29] 2. **Market Potential of Konjac**: The konjac category is becoming a crucial growth driver in the food and beverage industry due to its high price point, broad audience, and health benefits. The market size for konjac snacks is estimated to reach 10-12 billion yuan in 2024, indicating further growth potential [2][6][27] 3. **Product Innovation**: Wei Long is addressing market gaps by launching new flavors, such as spicy and sesame flavors, while also optimizing its product structure by eliminating underperforming SKUs to enhance competitiveness in the spicy snack market [2][8][11] 4. **High Profit Margins**: Wei Long maintains a high net profit margin, typically between 15%-18%, with potential for further growth due to supply chain advantages [2][12][15] 5. **Expansion into Overseas Markets**: The company is actively expanding into overseas markets, particularly in Southeast Asia, potentially collaborating with Charoen Pokphand Group, which could significantly enhance its valuation [2][13][29] 6. **Competitive Landscape**: Salted Fish (盐津铺子) is rapidly developing in the konjac sector, with sales expected to grow from 1 billion to 2.2 billion yuan by 2025, creating a duopoly with Wei Long and increasing market concentration [2][10][27] 7. **Short-term Stock Price Volatility**: Factors such as quarterly report pressures, management changes, and public opinion events have impacted Wei Long's stock price, but the fundamental logic remains unchanged, with stable profit growth forecasts [3][16] 8. **Long-term Growth Potential**: Wei Long's long-term growth potential is bolstered by its leadership in spicy snacks, strong brand power, and product innovation capabilities, with an average annual revenue growth of about 15% [9][17][15] 9. **Differentiation from Competitors**: Wei Long differentiates itself from Salted Fish through brand premium pricing and strong R&D capabilities, while Salted Fish relies on efficiency advantages for profitability [18] 10. **Future Product Development**: Wei Long is exploring new product categories, including vegetable products and innovative bean products, which are expected to become new growth points [23][29] Other Important Insights - **Market Trends**: The konjac product market is expected to grow significantly, with Wei Long holding a market share of approximately 50%-60%, far exceeding Salted Fish's 15%-20% [20][21][27] - **Channel Strategy**: Wei Long is enhancing its channel strategy by increasing display expenses and SKU offerings, aiming to improve brand exposure and category development [22][24][26] - **Risks and Challenges**: Potential risks include underperformance in channel and new product expansion, as well as slower-than-expected growth in snack retail, online, and overseas markets [29]

Investment Rating - The report maintains an "Increase" rating for the food and beverage industry, indicating a positive outlook for the sector [4]. Core Insights - The report highlights that the liquor industry is gradually releasing pressure from distribution channels, indicating a potential for future growth. It suggests focusing on three main lines: leading brands, high-certainty regional liquors, and elastic stocks benefiting from recovery and increased risk appetite [1][2]. - The snack sector shows significant growth potential, with companies like Yanjing Beer and Zhujiang Beer being highlighted for their strong performance. The report emphasizes the importance of channel leadership and growth potential in selecting stocks [3][6]. Summary by Sections Liquor Industry - The report notes that the liquor industry is experiencing a deep adjustment, shifting from scale growth to high-quality development. It emphasizes the importance of brand strength and strategic initiatives to capture new consumer trends [2]. - The expected revenue for Zhenjiu Lidong in H1 2025 is projected to be between 2.4 billion to 2.55 billion yuan, reflecting a year-on-year decline of 38.3% to 41.9% due to economic uncertainties and policy impacts [2]. Beer and Beverage Sector - The beer segment shows promising results, with Huiquan Brewery reporting a revenue of 351 million yuan in H1 2025, a year-on-year increase of 1.03%, and a net profit of 40 million yuan, up 25.52% [3]. - Unified Enterprises China achieved a revenue of 17.087 billion yuan in H1 2025, representing a 10.6% year-on-year growth, with a net profit of 1.287 billion yuan, up 33.2% [3]. Snack Sector - The snack sector is highlighted for its recovery in stock prices, with expectations for continued high growth due to new product launches and channel transformations. The report notes a narrowing decline in raw milk prices, which may positively impact the dairy segment [6].

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 卫龙美味全球控股有限公司（於開曼群島註冊成立的有限公司） FF301 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09985 | 說明 | 普通股 | | | | | | | | 已發行股份（不包括庫存股份）數目 | | 庫存股份數目 | | 已發行股份總數 | | | 上月底結存 | | | 2,431,145,578 | | 0 | | 2,431,145,578 | | 增加 / 減少 (-) | | | 0 | | 0 | | | | 本月底結存 | | | 2,431,145,578 | | 0 | | 2,431,145,578 | 第 2 頁 共 10 頁 v 1.1.1 I. 法定/註冊股本變動 ...

| 代码 | 名称 | 最新价 | 涨跌幅 ▽ | | --- | --- | --- | --- | | 02145 | 下美股份 | 81.500 | 7.73% | | 06181 | 老铺黄金 | 731.500 | 6.01% | | 09863 | 零跑汽车 | 61.250 | 4.88% | | 02367 | 巨子生物 | 57.200 | 2.97% | | 01364 | 古茗 | 23.620 | 2.92% | | 09992 | 泡泡玛特 | 250.000 | 2.80% | | 01810 | 小米集团-W | 54.500 | 2.06% | | 09985 | 卫龙美味 | 12.160 | 1.50% | | 09868 | 小鹏汽车-W | 72.350 | 1.47% | | 01405 | 达势股份 | 85.250 | 1.31% | | 01318 | 毛戈平 | 100.400 | 0.80% | | 09896 | 名创优品 | 37.180 | 0.35% | | 09866 | 蔚来-SW | 37.920 | 0.32% | | 02097 | 蜜雪集 ...

Investment Rating - The report maintains an "Increase" rating for the food and beverage industry, indicating a positive outlook for the sector [5]. Core Insights - The implementation of the childcare subsidy policy is expected to stimulate growth in the food and beverage sector, particularly benefiting the infant formula and dairy product markets [4]. - The report highlights three main investment themes in the liquor segment: strong leading brands, sustained regional advantages, and recovery-driven elastic stocks [1][2]. - In the beer and beverage segment, Budweiser faces sales pressure but is seeing price recovery, while the sugary tea category is gaining market share during peak seasons [3]. Summary by Sections Liquor Industry - Leading brands such as Moutai, Wuliangye, and Luzhou Laojiao dominate the global rankings, with Moutai valued at $58.4 billion, maintaining its position as the most valuable liquor brand globally [2]. - The liquor sector is transitioning from scale growth to high-quality development, with a focus on brand strength and market positioning [2]. Beer and Beverage Sector - Budweiser's Q2 2025 results show a revenue decline of 3.9% and a profit drop of 31.1%, with a notable 6.2% decrease in sales volume [3]. - The sugary tea segment is experiencing a resurgence, with brands like Kang Shifu and Uni-President maintaining leading positions, and sales of Yuanqi Forest's iced tea growing by 53.9% year-on-year [3]. Food Sector - The national childcare subsidy program, effective from January 1, 2025, is projected to enhance birth rates and subsequently increase demand for dairy products [4]. - New product launches by companies like Qiaqia and Ximai are aimed at expanding market presence and tapping into health-oriented consumer trends [4][7].

Core Insights - Chacha Food launched new ice cream products and the brand "Konjac Princess" to compete in the konjac snack market, aiming to capture consumer interest amidst increasing competition from established players like Weilong and Yanjinpuzi [2][5] - The company is adopting a "dual-wheel drive" strategy focusing on overseas early layout and domestic product innovation to enhance its presence in the konjac snack sector [5][6] - The snack industry is shifting towards healthier, functional, and scenario-based products, with Chacha introducing five new products including konjac layers and ice cream to meet evolving consumer demands [3][4] Product Strategy - Chacha's new product lineup includes mountain series sunflower seeds, all-nut series, fresh-cut potato strips, Chacha sunflower seed ice cream, and "Konjac Princess" konjac layers [3][4] - The company plans to start shipping products by late August 2023, with significant promotional efforts including trial packages and engaging marketing materials [5] - The ice cream product is expected to officially launch in January 2026, with ongoing development to redefine the combination of sunflower seeds and ice cream [6] Market Context - The konjac snack market has shown strong growth, with a compound annual growth rate (CAGR) of 20% over the past decade, projected to reach a market size of 26.9 billion yuan in 2024 [8] - Major competitors like Weilong and Yanjinpuzi have reported significant revenue growth from konjac snacks, indicating a lucrative market opportunity that Chacha aims to tap into [8][10] - The konjac snack segment is expected to maintain a CAGR of 20% over the next five years, suggesting substantial growth potential for new entrants [8]