Shanghai Laiyifen Co., Ltd. operates snack food stores in China. Its products include cakes and pastries, seeds and nuts, legumes, puffed and instant foods, seafood, dried fruits, sweets, fruits and vegetables, and meat-based products, as well as imported goods. The company also sells through its online platform and operates approximately 3,000 stores. Founded in 1999, it is headquartered in Shanghai, China.
Laiyifen's first-half revenue falls 6.6% as losses widen; franchise share rises to 89% while gross margin declines
On October 9, Laiyifen held its 2026 interim results briefing, with Chairman Shi Yonglei, President Yu Ruifen and other senior executives attending to face investor questions. The interim report shows first-half revenue of 1.812 billion yuan, down 6.6% year on year; net loss attributable to the parent was 92.13 million yuan, widening 81.77% from a loss of 50.68 million yuan in the same period last year; net loss after deducting non-recurring items reached 110 million yuan, down 93.43% year on year; net cash flow from operating activities swung from a net inflow of 22.4 million yuan a year earlier to a net outflow of 82.98 million yuan, a year-on-year plunge of 470.54%. The company has now posted losses for two consecutive years, with a net loss attributable to the parent of 75.27 million yuan in 2024 and 161 million yuan in 2025. The channel structure has undergone a fundamental shift. As of June 30, 2026, the total number of stores was 2,968, a net increase of 150 from the end of 2025. Directly operated stores fell sharply from 1,044 to 318, a net reduction of 726 in the half year, while franchised stores rose from 1,774 to 2,650, lifting their share from 63% to 89%. In the first half, franchise wholesale revenue was 983 million yuan, up 36.1% year on year, with its share rising to 54.26% and becoming the largest revenue source, about 2.16 times the 455 million yuan from direct operations. However, the gross margin of the franchise business was only 11.71%, down 2.54 percentage points from 14.25% a year earlier, while the direct-operation gross margin remained above 40%. As a result, the company's overall gross margin fell to 23.66%, while selling expenses dropped 38.28% year on year over the same period. Shi Yonglei told investors that the company will optimise the profit model for individual franchise stores and deepen lean management, that the current share transfer at the shareholder level does not change corporate control, and that as of now there are no confirmed industrial synergy arrangements with Donghe Hengyi. To support the franchise system, the company relaxed its credit policy, with accounts receivable rising 51.40% year on year to 65.73 million yuan and long-term receivables surging 2,250.15% to 16.92 million yuan. Management said the financial assistance is a supporting measure during the transition period.
603777.CG · Capital · Negative First-half revenue fell 6.6% and net loss widened 81.77% to 92.13 million yuan, with operating cash flow swinging to a net outflow.
603777.CG · Pricing · Negative Franchise gross margin fell 2.54pp to 11.71%, dragging overall gross margin down to 23.66%.
Laiyifen's 2026 interim report shows net loss of 92.1305 million yuan, widening year-on-year
Laiyifen released its 2026 interim report. Total operating revenue was 1.812 billion yuan, down 6.60% year-on-year. Net profit attributable to the parent company was negative 92.1305 million yuan, a decrease of 41.4466 million yuan compared with the same period last year, with the loss widening. Net cash flow from operating activities was negative 82.9842 million yuan, down 470.54% year-on-year. The company's asset-liability ratio was 42.54%, gross margin was 23.66%, down 8.94 percentage points from the same period last year, return on equity was negative 6.21%, and diluted earnings per share was negative 0.28 yuan.
Fresh Snack Market Heats Up as Leading Brands Accelerate Expansion
The fresh snack market continues to gain momentum, with leading brands accelerating their expansion, but product homogenization and supply chain bottlenecks are becoming key tests for the industry to break through. Recently, Jiangsu 7-Eleven launched its own category '7 Fresh Snacks', Laiyifen opened its first fresh snack store 'LYFEN life Fresh Life', and established players like Jiduoquan and Jinlimen are also speeding up their expansion outside their home regions. Fresh snacks typically refer to new-style leisure foods with short or medium shelf lives, freshly made, and with fewer additives. The initial investment for a store is about 2 to 3 million yuan, with a payback period of around 8 months and a gross margin of about 30%. High customer traffic is the foundation for profitability, so stores are mostly located in core commercial areas or subway entrances. However, as more players enter the market, homogenization issues are emerging in categories such as Swiss rolls, cream puffs, and freshly made beverages. Moreover, supply chain management demands high requirements for localized production and full cold chain distribution, and a nationwide supply system for short-shelf-life fresh goods is relatively scarce. Laiyifen stated it will first refine its model through directly operated flagship stores, planning to set up 20 stores in Shanghai's core benchmark shopping centers. ST Juewei also emphasized that the business is still in the model validation and exploration stage.
Laiyifen forecasts first-half loss of 90 million yuan, loss widens about 78% year-on-year
Laiyifen has released its 2026 half-year performance forecast, estimating a net loss attributable to the parent company of around 90 million yuan, and a net loss after deducting non-recurring items of approximately 106 million yuan. Compared with the first half of 2025, when the net loss attributable to the parent was 50.6839 million yuan and the loss after deducting non-recurring items was 56.6132 million yuan, the net loss attributable to the parent in the first half of this year has widened by about 78 percent year-on-year, while the loss after deducting non-recurring items has widened by about 87 percent. The company said the main reasons for the loss are pressure on consumer markets in its key sales regions, intense industry competition, and a year-on-year decline in revenue scale and gross margin caused by proactive adjustments to store structures and sales models in some regions. In addition, the impact of non-recurring gains and losses on net profit during the reporting period was about 16 million yuan, mainly from government subsidies, investment income from bank wealth management products, and fair value changes in financial assets, but this was insufficient to cover the losses from the main business. Laiyifen is in a transition period from a traditional direct-sales model to a dual-driver model of direct sales plus franchising. As of the end of 2025, the proportion of franchised stores had risen to 63 percent, and franchising revenue had grown 105.08 percent year-on-year. However, the gross margin of the franchising business was only 12.54 percent, far lower than the 47.83 percent of directly operated stores, highlighting a sharp contradiction of increasing revenue without increasing profit.
China