In-Depth Analysis of the Duopoly Pattern in the Bulk Snack Industry: Strategic Comparison Between Wanchen Group and Mingming Henghang

Based on collected market data, financial information, and industry analysis, I will systematically interpret the duopoly pattern in the bulk snack industry for you.

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The bulk snack industry has formed a

, with the combined store count of the two enterprises accounting for nearly 70% of the industry, building solid market barriers [1][2].

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Core Indicator	Mingming Henghang	Wanchen Group (Haoxianglai)	Advantaged Party
Number of Stores	19,517 (over 20,000 signed)	15,365	Mingming Henghang (+4,152 stores)
Revenue (First Three Quarters of 2025)	RMB 46.371 billion	RMB 36.562 billion	Mingming Henghang (+26.8%)
GMV	RMB 66.1 billion	Approximately RMB 50 billion+	Mingming Henghang
Gross Profit Margin	9.7%	11.7%	Wanchen Group (+2 pct)
Net Profit	RMB 1.810 billion	Approximately RMB 1.2 billion	Mingming Henghang
Revenue Growth Rate	75.2%	77.0%	Wanchen Group
3-Year Revenue CAGR	203%	667%	Wanchen Group

• Mingming Henghang
  maintains a leading position in scale and revenue, but faces persistent pressure on gross profit margin
• Wanchen Group
  has a clear advantage in gross profit margin (leading by approximately 2 percentage points) and stronger profitability

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The two enterprises have adopted

:

• Core Philosophy
  : Emphasize turnover rate, small profits but quick turnover, and achieve low-price competition through “direct factory supply + high-frequency turnover”
• Operational Features
  : Inventory turnover days are only 11.6 days, leading the industry in efficiency
• Market Positioning
  : Focus on a cost-effective positioning of “25% cheaper than supermarkets”
• Expansion Strategy
  : “Five Zero Policies” (franchise fee waiver, management fee waiver, etc.) + maximum RMB 108,000 store opening subsidy [1]

• Core Philosophy
  : Pursue higher single-transaction profits and earn slightly higher gross profit from each product
• Operational Features
  : Gross profit margin increased from 9.3% in 2023 to 11.7% in the first three quarters of 2025
• Market Positioning
  : Transform from “single-category snacks” to “full-category retail”
• Format Innovation
  : Launched “Laiyoupin Discount Supermarket” and “Quanshi Youxuan”, adding categories such as daily chemicals, fresh food, and baked goods [2]

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1. Scale Leadership Advantage
   • Based on 2024 GMV, it has become the largest domestic chain retailer [3]
   • Stores cover 28 provinces and 1,327 cities/counties across the country, making it the first brand to achieve “stores in every county”
   • 59% of stores are located in county towns and townships, with a penetration rate of 66% in the sinking market [1]

2. High Turnover Efficiency
   • Inventory turnover days are only 11.6 days, with extremely high capital utilization efficiency
   • GMV growth rate reaches 74.5%, far exceeding the revenue growth rate (75.2%), indicating continuous improvement in single-store output

3. Brand Matrix Synergy
   • Dual-brand operation of Snack Busy (founded in 2017) and Zhao Yiming Snacks (founded in 2019)
   • Total SKUs reach 3,605, with hundreds of products updated monthly
   • Customized products account for approximately 34% [2]

1. Stronger Profitability
   • Gross profit margin of 11.7%, consistently leading Mingming Henghang by approximately 2 percentage points
   • Net profit in the first half of 2025 was RMB 922 million, 6% higher than Mingming Henghang’s RMB 870 million
   • Benefiting from scale effects and operational efficiency improvements [3]

2. Capital Channel Advantages
   • Listed on the A-share market (300972.SZ), with more convenient financing channels
   • Has submitted an application to the Hong Kong Stock Exchange, planning to achieve “A+H” dual listing
   • Completed a name change in September 2025, switching from “Biotechnology Group” to “Food Group”, with clearer strategic focus [2]

3. First-Mover Advantage in Full-Category Transformation
   • Launched the “Quanshi Youxuan” store format in December 2024
   • Daily chemicals and fresh food categories contribute over 30% of sales
   • Effectively increases customer unit price and profit margins

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Risk Type	Specific Performance
Gross Profit Margin Pressure	Has lingered between 7.5% and 9.7% for a long time, far lower than Wanchen Group’s level
Deteriorating Franchisee Ecosystem	Store closure rate increased from 0.74% (2022) to 1.9% (2024); payback period extended from 1 year to 2-3 years
Governance Hidden Risks	Some shareholders withdrew capital (Liangpin Puzi liquidated its holdings, Yanjin Puzi exited); received an antitrust fine of RMB 1.75 million
Product Quality Control Risks	Over 2,400 complaints on Black Cat Platform, involving food safety issues
Litigation Risks	Unresolved lawsuit filed by former shareholders may affect the listing process [4]

Challenge Type	Specific Performance
Scale Gap	Lags behind by approximately 4,000 stores, and the gap is expanding
Loss History	Recorded an operating loss in 2023 (RMB -28.1 million)
Weak Presence in Southern Markets	Relatively less solid foundation compared to Mingming Henghang
Category Replication Risk	Whether the supply chain model can be successfully replicated to complex categories remains to be verified [3]

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1. Scale Dividend Fades
   : High-quality locations are scarce, and the model relying solely on expansion is nearing its end
2. Competition Focus Shifts
   : From “opening stores to seize market share” to “intensive cultivation to improve efficiency”
3. Category Expansion Becomes Key
   : Non-snack categories such as daily chemicals, baked goods, and frozen products have become new growth drivers
4. Fierce Capital Competition
   : Both parties plan to list on the Hong Kong Stock Exchange, extending competition to the capital market [2]

Dimension	Mingming Henghang	Wanchen Group
Store Strategy	Density increase + sinking, deeply cultivate county-level markets	Accelerate catch-up + expand full-category stores
Product Strategy	Customized products (34% share)	Own brand matrix + Quanshi Youxuan
Category Expansion	3.0 store format adds daily chemicals, trendy toys, and baked goods	Quanshi Youxuan covers fresh food, daily chemicals, and frozen products
Capital Actions	Passed Hong Kong Stock Exchange listing hearing	Advancing A+H dual listing
Potential Mergers and Acquisitions	Exploring upstream M&A opportunities	Deepening supply chain integration [1][2][3]

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Evaluation Dimension	Mingming Henghang	Wanchen Group
Short-Term (1-2 Years)	⭐⭐⭐⭐ Leading in scale, strong expansion momentum	⭐⭐⭐⭐ Excellent profitability, strong capital support
Mid-Term (3-5 Years)	⭐⭐⭐ Needs to resolve governance and gross profit margin issues	⭐⭐⭐⭐ First-mover advantage in full-category transformation
Long-Term (5+ Years)	⭐⭐⭐ Depends on refined operation capabilities	⭐⭐⭐⭐ Supply chain replication capability determines the upper limit

• Mingming Henghang
  is suitable for investors optimistic about
  scale expansion
  and
  sinking markets
  , but they need to be alert to governance risks and the deteriorating franchisee ecosystem
• Wanchen Group
  is more suitable for investors focusing on
  profitability
  and
  differentiated transformation
  , and its “A+H” capital structure provides more strategic flexibility
• Industry as a Whole
  : The bulk snack track has shifted from incremental competition to stock competition, and will enter a reshuffle period in the next 3-5 years. Enterprises with supply chain and capital advantages will win out

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[1] 36Kr - “Mingming Henghang Takes the Lead in Landing on the Hong Kong Stock Exchange, the New Year’s Goods Festival Becomes the First Battle in the Second Half of the Bulk Snack Industry” (https://m.36kr.com/p/3628833763492871)

[2] Nanfang Plus - “One Step Away, Mingming Henghang May Become the First Bulk Snack Stock on the Hong Kong Stock Exchange” (https://www.nfnews.com/content/EynGXlpd3Z.html)

[3] Sina Finance - “Mingming Henghang vs Wanchen Group: The Duel of ‘Turnover Rate’ and ‘Profit Margin’ Between the Two Bulk Snack Giants” (https://finance.sina.com.cn/stock/stockzmt/2025-11-03/doc-infwcefv1408600.shtml)

[4] Eastmoney - “Mingming Henghang: A Scale Myth or a Bubble Phantom?” (https://caifuhao.eastmoney.com/news/20260108103733539611010)

[5] CICC/CITIC Securities - Bulk Snack Industry Research Report (Citation of Industry Forecast Data)