Wanchen Group's 2025 Net Profit Surges; Franchise Management Risks Remain Unresolved

AI Customer Disputes Frequently Occur: How Can Companies Improve Risk Management Measures?

On the evening of March 17, leading bulk snack company Wancheng Group (300972.SZ) disclosed its 2025 annual report, achieving an operating revenue of 51.459 billion yuan, a year-on-year increase of 59.17%; net profit attributable to shareholders was 1.345 billion yuan, a surge of 358.09% year-on-year.

Behind the significant profit growth, the franchise model has played a crucial role. In October 2023, Wancheng Group merged its brands “Liu Xiao Chan,” “Hao Xiang Lai,” “Lai You Pin,” and “A Di A Di” into the brand “Hao Xiang Lai,” and introduced a low-threshold policy of “0 franchise fee, 0 management fee, 0 delivery fee” to attract franchisees. As a result, the number of franchise stores grew rapidly. Financial reports show that by the end of 2025, the company operated a total of 18,314 stores nationwide. On the revenue side, wholesale supply accounts for as much as 96.45% of the company’s revenue, with revenue increasing by 61.03% year-on-year.

However, behind this rapid growth, the company’s aggressive franchise expansion model also poses risks, such as uneven quality among franchisees and the need for further oversight of terminal service quality.

According to media reports, on February 2, 2026, a “Hao Xiang Lai” snack store in Lixian County, Xianyang, Shaanxi, was suspected of theft after surveillance footage prompted suspicion of two 14-year-old girls. Staff forcibly called the girls back and detained them for over 20 minutes after they had paid and left. During detention, the girls requested to contact their parents due to discomfort but were refused, and they were ultimately forced to open their bags to prove innocence. Police verified that the two girls had not committed any theft.

After the incident gained attention, Wancheng Group closed and rectified the involved franchise store and issued an apology. This is not the first customer dispute involving “Hao Xiang Lai.” Since 2025, the brand has been involved in multiple similar incidents, including young children mistakenly accused of theft and staff insulting consumers. The Black Cat Complaint Platform shows that there have been over 1,900 complaints related to “Hao Xiang Lai” stores.

Public information indicates that Wancheng Group listed on the Shenzhen Stock Exchange’s ChiNext Board in 2021 as the “First Stock of Edible Mushrooms,” and in 2022, it expanded into the bulk snack sector. Currently, nearly 99% of its revenue comes from the snack business. Financial reports show that in 2025, Wancheng Group’s bulk snack business revenue reached 50.857 billion yuan, a 59.98% increase year-on-year; the gross profit margin for the snack business was 12.32%, up 1.46 percentage points year-on-year. (Reported by Feng Hao, with contributions from intern Zou Wannuo)

Source: Economic Information Daily