ZHOU HEI YA (01458) delivered a standout performance in the first half of 2026, with revenue climbing 19.5% year-on-year to RMB 1.461 billion, marking the second consecutive half-year of double-digit growth with accelerating momentum. The company reported gross profit of RMB 800 million, up 11.6%, with a gross margin of 54.76%, underscoring solid profitability. Net profit attributable to shareholders reached RMB 91 million, translating to a net margin of 6.23%.

The dual-engine strategy of "stores plus channels" has clearly paid off, as the company's omni-channel business exploded with an 80.4% growth rate, with offline channel revenue more than doubling and contributing nearly 80% of total growth. This transformation signals a strategic shift from scale expansion to efficiency-driven growth, positioning ZHOU HEI YA as a pioneer in reshaping its growth model through comprehensive channel integration.

While the marinated food industry continues to undergo structural adjustments, with store growth plateauing across the sector, ZHOU HEI YA has outperformed its major competitors. In the first half, revenue grew nearly 20%, contrasting sharply with peer declines. The company's success stems from its commitment to "quality growth and stable profitability," focusing on store efficiency while aggressively developing new growth engines through channel expansion.

Direct-operated stores generated RMB 799 million in revenue, a 12.2% increase against the industry trend, accounting for 54.7% of total revenue. Meanwhile, channel business boomed, with online revenue reaching RMB 234 million (up 37.4%) and offline channels surging 207.2% to RMB 178 million. Channel revenue now represents 28.2% of total sales, contributing 77.35% of overall growth. This explosive channel performance is not driven by acquisitions or non-core products but by deepening penetration of core marinated products into modern retail avenues such as membership clubs, convenience stores, and e-commerce platforms.

The company's channel success is built on three key pillars: product strength, innovative partnership models, and replicability. Product development has accelerated with new offerings like tiger-skin chicken feet and boneless duck feet, while brand positioning focuses on younger consumers through scenario-based marketing. Strategic partnerships with major retailers like Sam's Club and Pangdonglai have been deepened, with flagship products achieving significant sales milestones. The company now operates over 50,000 sales points nationwide and has successfully demonstrated that its model can be scaled across different regions.

Supply chain capabilities have evolved from serving single-store needs to supporting multi-format, multi-preservation coordination, enhancing delivery efficiency across diverse scenarios. This infrastructure investment, combined with years of product development and partnership cultivation, creates formidable competitive barriers that are difficult for followers to replicate.

ZHOU HEI YA maintains a balanced approach between growth and profitability. While channel business offers high growth potential with network effects, the company continues to optimize its store operations and explores new opportunities in compound seasonings and overseas markets. The compound seasoning business leverages the brand's signature flavors, while international expansion focuses on European and American markets with a pilot store in Malaysia.

Shareholder returns remain a priority, with the company having repurchased 43.052 million shares this year and maintaining an average payout ratio exceeding 100% over the past three years. In the first half of 2026, dividends paid reached RMB 163 million, up 72.4% year-on-year, representing 178% of net profit. With a debt ratio of only 23% and cash equivalents of RMB 681 million, the company maintains a robust financial position. Despite a current dividend yield of 7%, the stock appears undervalued with significant room for valuation recovery.