The leading frozen food company Anjoy Food has experienced its first annual net profit decline since its A-share listing in 2017.
Recently, Anjoy Food released its performance forecast for 2025, indicating that during the reporting period, the company achieved operating revenue of 16.193 billion yuan, a year-on-year increase of 7.05%; the net profit attributable to shareholders was 1.359 billion yuan, a year-on-year decrease of 8.46%.
In its annual report, Anjoy Food pointed out that the pressure on profits was mainly influenced by three factors: the depreciation of fixed assets and the rising cost of crayfish raw materials leading to a contraction in gross profit, the depreciation of the US dollar against the yuan resulting in expanded foreign exchange losses, and an increase in goodwill impairment losses.
The large goodwill impairment directly dragged down the current profit performance. The financial report showed that in 2025, Anjoy Food recognized a total goodwill impairment of 182 million yuan for the year, of which the two entities acquired in the crayfish sector, Xin Hongye and Xin Liuwu, accounted for a total impairment of 164 million yuan.
According to Chen Jingjing, founder of Jingjie Brand Consulting, the crayfish and other ingredient sectors are characterized by strong cycles, high volatility, and heavy supply chains, which are not driven by branding, making operational difficulties significantly higher than traditional frozen products; the company's rapid entry into heavily operated fields through acquisitions has led to high expectations and insufficient synergy. When the pace of acquisitions clearly exceeds the ability to consolidate, large goodwill impairments also serve as a correction to this scale-first strategy.
Anjoy Food was established in 2001 and listed on the Shanghai Stock Exchange main board in 2017, focusing on the research, production, and sales of frozen hot pot ingredients, frozen noodle and rice products, frozen dishes, and other frozen foods.
In September 2022, Anjoy Food acquired a 70% stake in Xin Liuwu to strengthen its freshwater fish paste industry layout and further expand its crayfish business segment. That year, the crayfish business (Xin Hongye + Xin Liuwu) contributed significant growth to its prepared food segment.
The crayfish business, which was once highly anticipated, gradually became a drag on the financial statements as crayfish prices continued to decline after a short-term growth period.
In the first half of 2024, Anjoy Food's revenue from frozen dishes was 2.208 billion yuan, with growth rates plummeting from 58.19% in the same period last year to just 0.4%.
Southwest Securities pointed out in its research report at that time that the company's frozen fast food dish business was under pressure, mainly affected by the decline in the crayfish business of Xin Hongye Food and Xin Liuwu Food.
&#34;We still maintain confidence in the future development of the crayfish business.&#34; Regarding the progress of the crayfish business, in June 2025, Anjoy Food mentioned in an investor survey that it established a seafood division in the first half of 2025, led by the group's vice president, with key categories such as clear water shrimp, shrimp tails, and seasoned shrimp showing growth trends.
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However, the 2025 annual report data shows that as of the end of the reporting period, in addition to over 160 million yuan in goodwill impairment, Anjoy Food's gross profit margin for frozen dishes (including crayfish) was only 9.49%, a decrease of 2.27 percentage points from 2024, the lowest among all business segments
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At the same time, the inventory of frozen dishes increased by 54.85% year-on-year. The company clarified in its annual report that the inventory growth was mainly due to the increase in stock of crayfish-related products.
Dongxing Securities research report pointed out that in 2025, Anjoy Food's subsidiaries, Xin Hongye and Xin Liu Wu (both core entities of the company's frozen dish business, mainly engaged in crayfish processing and fish paste production), are expected to achieve revenues of 1.58 billion yuan and 1.25 billion yuan, respectively, but their net profit margins are only 2.0% and -0.6%, indicating that while crayfish revenue increases, profit pressure is significant.
In response to questions regarding the positioning of the crayfish business, subsequent investment strategies, and the risk of remaining goodwill impairment, Anjoy Food's Chairman Liu Mingming stated during the earnings call interaction with Phoenix WEEKLY Finance that the company's previous acquisitions of the two leading frozen fish paste companies, Xin Hongye and Xin Liu Wu, established a long-term stable supply guarantee for the core strategic raw material fish paste. The comprehensive procurement cost of fish paste has a significant advantage compared to before the acquisition, forming a unique industry moat.
Liu Mingming indicated that in 2025, the crayfish business of Xin Hongye and Xin Liu Wu would be affected by rising raw material costs, reduced government subsidies, and increased tax costs, leading to additional goodwill impairment provisions. The company will continue to enhance the production capacity and process efficiency of freshwater fish paste while ensuring the orderly operation of the crayfish business, and will hire professional evaluation agencies annually to conduct overall value assessments of the relevant asset groups of the invested enterprises based on profit forecasts and valuation methods.
Against the backdrop of profit pressure, Anjoy Food is proactively adjusting its channel and business strategies to seek a second growth curve.
In the third quarter of 2025, the company completed the acquisition of Dingwei Thai and Dingyifeng Food (Taicang) Co., Ltd. and achieved consolidation. Relying on the existing supply chain and cold chain network, it will incorporate baked goods into its product matrix, creating a &#34;frozen products + baking&#34; dual-driven pattern.
Media reports indicate that Anjoy Food expects a post-tax internal rate of return of 10.38% for the Dingyifeng project, with an investment payback period of 8 years. This calculation is based on relatively ideal operating assumptions, and there is some uncertainty regarding actual implementation.
Anjoy Food's annual report shows that in 2025, the baked goods business consolidated from Dingwei Thai alone achieved operating revenue of 67.955 million yuan, with a gross profit margin of 13.46%.
In the annual report, Anjoy Food optimized its customization strategy, proposing the direction of &#34;controlled large B customization.&#34;
Additionally, according to Anjoy Food's Secretary of the Board Liang Chen during the earnings call, the company has established cooperation with membership channels and hard discount systems such as Sam's Club, Hema, Pang Donglai, Metro, and Aldi, continuously optimizing the structure of large B customers, with category extensions providing support for channel expansion. The company positions its sausage business as the third growth curve, aiming to achieve dual sales and brand reach by deploying over 30,000 terminal devices, with the goal of entering the industry's top tier within 2-3 years
At the end of 2025, Anjoy Food also launched the &#34;Anzhai&#34; halal project. According to Liang Chen, Henan Anzhai Food has obtained production licenses and product barcodes, with the first batch planning to launch 5 products.
It is noteworthy that Anjoy Food completed its listing on the Hong Kong Stock Exchange in 2025, accelerating its globalization layout by relying on overseas capital market platforms. Liang Chen revealed that the net amount raised by the company is approximately HKD 2.3 billion, which will be focused on the Southeast Asia, Europe, and North America markets. For different regions, the company adopts differentiated expansion strategies: the Southeast Asian market focuses on deep cultivation, prioritizing the establishment of its own factories, replicating the mature product system and channel model from the domestic market, and quickly achieving localized production capacity and market penetration; the European and American markets focus on mergers and acquisitions, planning to acquire established local companies with mature channels to reduce market entry risks and shorten cultivation cycles.
Liang Chen stated that Anjoy Food strives to achieve substantial breakthroughs in overseas capacity expansion and channel expansion within the next 3 to 5 years.
&#34;Anjoy is looking for a second curve through multiple categories and acquisitions. This seems reasonable, but the cost is that business complexity increases exponentially. When past capabilities cannot support new business demands, there will be a situation of increasing revenue without increasing profits in the short term,&#34; said Chen Jingjing

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Anjoy Food reported its first annual net profit decline since going public in 2017. In 2025, it is expected to achieve operating revenue of 16.193 billion yuan, a year-on-year increase of 7.05%, and a net profit attributable to the parent company of 1.359 billion yuan, a year-on-year decrease of 8.46%. This is mainly affected by fixed asset depreciation, rising raw material costs for crayfish, expanded foreign exchange losses, and goodwill impairment. In 2025, a goodwill impairment of 182 million yuan is expected, primarily related to the crayfish business. The crayfish business contributed to growth in the short term, but its performance is gradually dragged down by price declines

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Anjoy Food reported its first annual net profit decline since going public, with the crayfish business dragging down performance, previously stating "still maintaining confidence."