What happened
Wanchen Group (300972.SZ) released its 2026 semi-annual report on the evening of Aug 28. Revenue reached 34.836 billion yuan, up 54.26% year over year, while net profit attributable to shareholders hit 1.210 billion yuan, up 156.58%.
Every major cost line grew slower than revenue: operating costs rose 51.76%, sales expenses 48.14%, administrative expenses 47.71%, and finance expenses 17.94%. The bulk snack food business generated 34.521 billion yuan in revenue, over 99% of the total, with net profit of 1.931 billion yuan and a 5.59% net margin.
Cash flow signals were mixed: operating cash flow reached 1.811 billion yuan, up 39.50%, but investing and financing outflows expanded, leaving a net cash increase of 1.034 billion yuan, 10.04% lower than the year-ago period.
Why it matters
The profit-beats-revenue arithmetic works on paper, but it rests heavily on cost growth lagging revenue growth, a gap that may not persist as the company expands.
The bulk snack business contributes more than 99% of revenue, leaving the edible fungus segment, with just 315 million yuan in revenue, too small to cushion any downturn in the main business.
The report itself flags that the bulk snack business is still in an investment and expansion phase, with uncertain payback periods and near-term profitability, and notes that share-based payment costs will continue to weigh on future net profit.
Key facts
Group revenue was 34.836 billion yuan in H1 2026, up 54.26% year over year; net profit attributable to shareholders was 1.210 billion yuan, up 156.58%.
Bulk snack food revenue was 34.521 billion yuan, up 54.49%, accounting for more than 99% of total revenue; its snack product gross margin was 12.74%, up 1.25 percentage points.
Operating cash flow was 1.811 billion yuan, up 39.50%; net cash and equivalents increased by 1.034 billion yuan, down 10.04% from 1.149 billion yuan a year earlier.
Total assets reached 11.354 billion yuan, up 13.00% from year-end; net assets attributable to shareholders rose 81.76% to 2.696 billion yuan.
Restricted assets from pledges, freezes, or custody totaled 475 million yuan as of the reporting date.
The company first filed for an H-share listing on the Hong Kong Stock Exchange on Sep 23, 2025, and resubmitted its application on Mar 30, 2026.
What to watch next
Whether cost and expense growth can continue to trail revenue growth as the bulk snack business scales up and competition intensifies.
The progress of the H-share listing application, which the company says supports its international strategy, brand awareness, and supply chain development.
Whether the declining net cash increase and reduced bank borrowings signal a deliberate deleveraging or emerging constraints on expansion.