WL Delicious Global Holdings Ltd released its audited results for the year ended 31 December 2025, reporting solid top-line expansion and a sharp improvement in profitability.

Financial Highlights

• Revenue grew 15.3% year on year to RMB7.22 billion, driven by product innovation and deeper omni-channel penetration.

• Gross profit increased 14.9% to RMB3.47 billion; gross margin slipped 0.1 ppt to 48.0% as higher raw-material costs were largely offset by supply-chain efficiencies.

• Net profit rose 33.6% to RMB1.43 billion, lifting net margin to 19.8% (2024: 17.0%).

• Basic and diluted EPS improved 30.4% to RMB0.60.

• The Board proposes a final dividend of RMB0.17 per share (total payout: RMB413.30 million). Together with the interim dividend of RMB0.18 already paid, full-year dividends represent 60% of 2025 net profit.

Operational Breakdown

• Vegetable products (mainly Konjac Shuang and Fengchi Kelp) contributed 62.4% of revenue, rising 33.7% to RMB4.51 billion.

• Seasoned flour products revenue declined 4.3% to RMB2.55 billion, accounting for 35.3% of total sales.

• Other products generated RMB164.29 million, down 28.2%.

• Offline channels delivered 89.7% of group revenue, advancing 16.5% to RMB6.48 billion. Online channels rose 6.0% to RMB746.80 million, with self-operated e-commerce sales up 26.1%.

Cash Flow & Balance Sheet

• Cash, cash equivalents and term deposits (initial term > 3 months) totalled RMB7.92 billion at year-end, up 50.4% from 2024, buoyed by operating cash generation and May 2025 share placement proceeds (net HKD1.17 billion).

• Total borrowings increased to RMB2.20 billion (2024: RMB0.39 billion), lifting the gearing ratio to 30.1%.

• Inventories stood at RMB889.10 million; inventory turnover stretched to 86 days (2024: 73 days) due to higher raw-material reserves.

• Capital commitments for plant and equipment amounted to RMB160.70 million.

Capital Expenditure & Capacity

• Designed production capacity expanded to 409,108 tonnes (up 21.0% year on year), supported by new vegetable-product lines and commencement of construction on a Nanning, Guangxi facility.

• Overall capacity utilisation edged up to 77.9% (2024: 77.7%).

Cost Structure

• Distribution & selling expenses rose 14.1% to RMB1.17 billion, representing 16.2% of revenue (2024: 16.4%).

• Administrative expenses fell 14.5% to RMB419.74 million, aided by a RMB15.50 million share-based-payment reversal; admin ratio improved to 5.8% (2024: 7.8%).

Strategic Developments

• Product pipeline broadened with new Konjac Shuang flavours and a spicy beef variant of Kiss Burn.

• Digital transformation advanced through supply-chain automation, private cloud upgrades and enhanced omni-channel data integration.

• Net IPO proceeds (HKD903.30 million) are fully deployed; funds from the 2025 placement are earmarked for production expansion (50%), channel build-out (20%), brand marketing (20%) and general corporate purposes (10%).

Governance & Outlook

• The company maintained full compliance with Hong Kong’s Corporate Governance and Model Code requirements during 2025.

• Management plans to intensify product innovation, strengthen youth-focused branding, and continue scaling omni-channel coverage while upgrading production and digital capabilities to sustain growth.

Key Dates

• Register closure for AGM: 8–11 June 2026; for dividend entitlement: 17–18 June 2026.

• Final dividend payment targeted for on or about 29 June 2026.