In the frozen food industry that exhibits both "blue ocean" and "red sea" characteristics, ANJOY FOOD's (02648) first half-year report following its Hong Kong listing reveals the company's new growth logic. On August 25, ANJOY FOOD released its 2025 interim report, marking the first mid-year report since becoming the only company in China's frozen food industry to achieve dual "A+H" listing. In the first half, ANJOY FOOD achieved revenue of 7.604 billion yuan, up 0.80% year-on-year, while net profit attributable to shareholders was 676 million yuan, down 15.79% year-on-year.

Examining the financial statements, ANJOY FOOD's profit decline was primarily due to both "external" and "internal" factors:

On one hand, rising prices of certain raw materials created cost pressures for the company. During the period, the company's cost of sales increased by 5.8% year-on-year, mainly due to increased sales and higher procurement prices for raw materials such as crayfish and fish paste. This increase in cost of sales inevitably impacted the company's gross margin, which declined by 3.5 percentage points year-on-year to 19.9%.

On the other hand, phased investments during the strategic adjustment period also put pressure on company profits. In the first half, ANJOY's strategic initiatives including accelerated product iteration and category upgrades on the product side, and deeper channel development on the distribution side, all required sustained capital support. The acquisition of Dingweitai to enter the frozen baking sector also generated one-time expenses.

From these core financial indicators, it's evident that while ANJOY FOOD's half-year report may not be a particularly impressive "scorecard," it represents a high-quality "answer sheet" rich with growth potential.

Currently, although the frozen food industry has enormous development potential with a market scale exceeding hundreds of billions, the industry has entered a mature competitive stage. Market growth has decelerated from past high-speed expansion to single-digit growth. According to Frost & Sullivan predictions, the global frozen food industry's compound annual growth rate from 2024 to 2029 will reach 6.0%.

As the era of "land grabbing" in the industry ends and the era of "intensive cultivation" begins, competition among enterprises has gradually shifted from "price wars" to comprehensive competition in product capabilities, channel strength, and brand power.

Against this development backdrop, ANJOY FOOD's strategic adjustments are not passive defense, but rather a manifestation of the company's forward-thinking approach as an industry leader - namely, as the industry enters maturity, the company's phased investment-related profit "growing pains" represent today's dormancy in preparation for tomorrow's soaring.

**Dual Approach of Brand Power and Channel Strength, Continuously Releasing Growth Momentum**

Reviewing the company's half-year report comprehensively, ANJOY FOOD's "growth potential" is mainly reflected in two dimensions: continued volume growth in frozen prepared dishes and steady growth in new retail, e-commerce, and special channel segments.

Looking at it from both perspectives, on the product side, ANJOY FOOD continued to optimize its new product development strategy of "timely B-end follow-up and C-end upgrade replacement" and competitive strategy of "competitor-oriented, channel-oriented, and dedicated counter-oriented."

For example, the company continued to develop miniaturization and strip formats for its flagship Suoxian (Lock-Fresh) series products, moving toward premiumization. For hot pot ingredient products, besides intensifying promotion of universal products like tiger skin fried eggs, the company developed series products such as tender fish balls, crayfish, and fish paste around Honghu Anjoy's fish paste resources, continuously enriching its product line.

Meanwhile, the company used B-end grilling channel products like volcanic stone sausages as samples to upgrade and launch C-end "Meat-Rich Sausage Series," achieving category upgrades and product structure optimization.

On the channel side, while actively promoting channel penetration and extending into lower-tier markets, ANJOY FOOD also fully embraced large B (special channel) customers and new retail customers, deeply exploring channel potential.

For instance, before this year's peak season, the company clearly committed to fully embracing supermarket customization. In the early stages of strategic implementation, it has established deep cooperation with traditional supermarkets like Walmart, Metro, and RT-Mart, as well as new retail channels like Freshippo, in customized product development and other areas.

It's evident that ANJOY FOOD's volume growth in frozen prepared dishes and new retail channel growth are closely related to the company's aforementioned strategic initiatives. From a deeper perspective, this also represents the company's forward-looking moves toward a higher development stage.

On one hand, in terms of product structure, ANJOY FOOD can both reduce dependence on single categories by enriching its product line, enhancing the company's risk resistance, and create proprietary brands like "Anjoy" and "Lock-Fresh" through category upgrades, forming brand premiums and improving the company's long-term profitability.

On the other hand, in channel layout, the company actively cooperates with premium supermarkets like Freshippo and Sam's Club, as well as online platforms, forming multi-channel development across B-end (catering), C-end (retail), special channels (hotels, group meals), and e-commerce. This not only reaches more young and high-end consumer groups but also better resists risks from single channels.

Numbers serve as the best touchstone, and the positive feedback effects from this strategic investment are clearly well-reflected in ANJOY FOOD's latest performance. In the first half, the company's frozen prepared dishes continued to lead growth, recording revenue of 2.416 billion yuan, up 9.4% year-on-year, mainly benefiting from both volume and price increases in crayfish products. Frozen prepared food and frozen noodle and rice products businesses maintained steady momentum, recording revenues of 3.759 billion yuan and 1.241 billion yuan, respectively.

Simultaneously, during the reporting period, ANJOY FOOD's new retail, e-commerce, and special channels also achieved steady growth. In the first half, sales revenue from new retail and e-commerce platforms reached 581 million yuan, up 21.5% year-on-year, accounting for 7.7% of total revenue. Sales revenue from special direct customers reached 548 million yuan, up 9.3% year-on-year, accounting for 7.2% of total revenue.

Thus, it's clear that as the industry gradually shifts toward comprehensive competition in product capabilities, channel strength, and brand power, ANJOY FOOD's product brand upgrades and channel construction initiatives not only further strengthen the company's brand power and channel strength to create core competitive advantages but also provide the company with strong growth momentum.

**Strategic Acquisitions + International Layout Opening New Growth Space**

If the positive feedback effects from ANJOY FOOD's brand upgrades and channel construction represent currently visible growth momentum, then the company's strategic acquisitions + international layout anchor future growth potential. This strategic layout may open entirely new growth space, providing new growth vitality for the company's future performance.

According to information obtained, during the reporting period, pressure on ANJOY FOOD's profit side, besides the impact of developing new channels and promoting new brands on short-term profits, was also partly due to phased investments from strategic acquisitions of companies like Dingweitai.

However, from a long-term perspective, this is also an important strategic "move" in the company's layout. As mentioned earlier, China's frozen food industry has moved from the high-growth blue ocean stage to the single-digit growth stock competition red ocean stage, with relatively intense homogeneous competition.

In this market environment, ANJOY FOOD's promotion of strategic acquisitions and international exploration is undoubtedly a forward-looking and inevitable strategic choice as an industry leader to reshape growth logic after the domestic market enters "new trends."

During the reporting period, ANJOY FOOD completed the acquisition of 70% equity in Jiangsu Dingweitai Food Co., Ltd. and 100% equity in Dingyifeng Food (Taicang) Co., Ltd., formally entering the frozen baking sector with products covering frozen baking finished products such as toast, pineapple buns, and scones.

This acquisition not only expanded business boundaries but also achieved synergy with premium supermarkets like Walmart and Aldi, as well as convenience store networks, by integrating Dingweitai's channel resources in premium cod fish paste products and oden subdivision categories, opening new space for future growth.

Additionally, during the period, ANJOY FOOD successfully achieved "A+H" listing - the company officially listed on the Hong Kong Stock Exchange Main Board on July 4, becoming China's first "A+H" listed frozen food enterprise. This not only helps enhance ANJOY's international profile but also provides a more convenient platform for future internationalization strategies and financing.

According to strategic planning, Hong Kong stock fundraising will be used for capacity expansion and channel construction in Southeast Asia, Europe, and North American markets, accelerating global layout and injecting new momentum for the company's long-term growth.

From the above strategic layout, although strategic acquisitions + international layout bring phased financial pressure to ANJOY FOOD, in the long term, the growth value brought by this strategic layout far exceeds short-term growing pains. Its impact is comprehensive and long-term, serving as the core strategic pillar supporting the company's development over the next decade, determining whether Anjoy can transform from "China's Anjoy" to "the world's Anjoy."

**Summary**

Overall, ANJOY FOOD's strategic investment initiatives essentially represent a "self-revolution." It proactively chose to sacrifice some short-term profits before the industry inflection point arrives, in exchange for a healthier, more diversified, and more competitive long-term development model.

Meanwhile, the company's exchange of current profit "sacrifice" for future value "gains" is being realized. The company's first-half performance also had commendable aspects: continued volume growth in high-potential prepared dishes, effective expansion of emerging channels, and opening new growth space through strategic acquisitions and international layout, further demonstrating the company's development potential.

Taking a long-term view is essential. From a deeper perspective, as the company's growth capabilities continue to be released, ANJOY FOOD's high-quality growth path is clearly becoming increasingly clear, with promising long-term development prospects.