In late September, Haoxianglai’s parent company Wancheng Group submitted its listing application to the Hong Kong Stock Exchange, going head-to-head with Busy Ming (also known as Mingming Henmang) in a race to become the first “bulk snack” company to list in Hong Kong.
If successful, Wancheng would become the first company in the bulk snack retail segment to list both on the mainland and in Hong Kong.
Wancheng first entered the market in April 2021 as Wancheng Biotechnology, a firm originally focused on edible mushroom R&D, which went public on the ChiNext board of the Shenzhen Stock Exchange. The following year, it established a subsidiary, Nanjing Wanxing, later renamed Wancheng Group. Through a series of acquisitions, it quickly evolved into a bulk snack retail enterprise centered on the Haoxianglai brand, now boasting more than 15,000 stores nationwide.
According to the company’s latest financial report, Wancheng Group recorded RMB 36.56 billion (USD 5.1 billion) in revenue for the first three quarters of 2025, up 77.37% year-on-year. Net profit reached RMB 855 million (USD 119.7 million), a staggering 917.04% increase. Its bulk snack division alone generated RMB 36.16 billion (USD 5.1 billion) in revenue and RMB 1.59 billion (USD 222.6 million) in profit. Adjusted for share-based compensation, net profit reached RMB 1.69 billion (USD 236.6 million).
Since August 2024, Wancheng’s stock price has surged more than 767%, reflecting investors’ enthusiasm for its unique market position as one of the few bulk snack plays in the A-share market. As of October 22, its shares closed at RMB 177.34 (USD 24.8), giving the company a market capitalization of RMB 33.5 billion (USD 4.7 billion). By comparison, Busy Ming was valued at RMB 10.9 billion (USD 1.5 billion) during its April equity transfer.
A turf war within a kilometer
Though the bulk snack concept is relatively new, it has quickly become familiar to Chinese consumers.
These stores are known for slogans about helping everyone save money, whether that’s through selling snacks in large packages, breaking them down into smaller portions, or selling them by weight. Bright red or yellow storefronts grab attention, and in northern cities where the sun sets early, Haoxianglai and Busy Ming stores typically stay open from 8 a.m. to 11 p.m, with some operating 24 hours.
The business model hinges on direct sourcing from brands or factories, cutting out middlemen and passing savings to customers through high-volume, low-margin sales. Compared with e-commerce, these stores offer the immediacy of offline shopping; compared with traditional supermarkets, they’re far more cost-efficient.
So, how hot is China’s bulk snack craze?
According to 36Kr, which cited a report from China International Capital Corporation, bulk snack stores accounted for 37% of total snack sales in China as of 2024, surpassing traditional supermarkets (22%) and e-commerce platforms (20%).
In this fast-growing market, Busy Ming and Wancheng Group are the top two players. Wancheng’s IPO prospectus shows that between 2022–2024, its revenue jumped from RMB 549 million (USD 76.9 million) to RMB 32.33 billion (USD 4.5 billion), while adjusted net profit climbed from a loss of RMB 28 million (USD 3.9 million) to a gain of RMB 823 million (USD 115.2 million).
Busy Ming, meanwhile, reported revenues of RMB 4.29 billion (USD 600.6 million), RMB 10.3 billion (USD 1.4 billion), and RMB 39.34 billion (USD 5.5 billion) for the same period, with adjusted net profits of RMB 81 million (USD 11.3 million), RMB 235 million (USD 32.9 million), and RMB 913 million (USD 127.8 million).
Geographically, the two have split the country. South of Anhui, Busy Ming dominates lower-tier and rural markets. To the north, Wancheng Group leads across North and East China. As of December 31, 2024, Busy Ming operated 14,394 stores, while Wancheng had 14,196.
Data from GeoHey shows that 55% of Haoxianglai’s stores are in third- and fourth-tier cities, with nearly half located within one kilometer of a Busy Ming outlet.
Low margins, high leverage
Rapid expansion, while good for business, has brought growing pains. Both Wancheng and Busy Ming rely heavily on acquisitions and franchisees to fuel growth.
Bulk snack retailers depend on store scale to boost bargaining power with suppliers. Yet aggressive expansion often leads to homogenization due to identical product selections and layouts, intensifying focus on price. As margins shrink, operational efficiency becomes critical.
Analysts often compare these chains to Mixue Bingcheng, the low-cost beverage giant that also grew through franchising. However, Wancheng and Busy Ming’s profitability still lags far behind Mixue’s. In 2024, Wancheng and Busy Ming reported gross profit margins of 7.6% and 10.7%, respectively, versus 32.5% for Mixue Group.
Wancheng’s selling expenses reached RMB 1.43 billion (USD 200.2 million) last year, driven by store expansion and marketing. That figure represented 4.43% of total revenue, falling to 2.92% in the first three quarters of 2025, suggesting better cost control.
Yet inventory turnover tells another story. Both companies maintain 1,800–2,000 SKUs, but Wancheng’s inventory cycle is longer at 17.93 days in 2024 and 18.99 days in the third quarter of 2025, while Busy Ming recorded 11.6 days.
To sustain sales and control both ends of the supply chain, bulk snack retailers often rely on high current liabilities to drive liquidity. As of mid-2025, Wancheng’s total debt stood at RMB 5.12 billion (USD 716.8 million), of which RMB 4.4 billion (USD 616 million) were current liabilities. Trade payables accounted for RMB 1.53 billion (USD 214.2 million), while other payables such as franchise deposits and prepaid balances reached RMB 1.57 billion (USD 219.8 million).
By September this year, total liabilities had grown to RMB 6.11 billion (USD 855.4 million), with RMB 5.53 billion (USD 774.2 million) in current liabilities and RMB 4.13 billion (USD 578.2 million) in cash and equivalents. The debt ratio remains higher than Busy Ming’s, raising investor concerns about cash flow sustainability.
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The outlook
Competition is now so fierce that every player’s business model is starting to look the same.
Alongside Wancheng and Busy Ming, new entrants such as Yummy Snack and Tangchao have each opened over 1,000 stores. Established brands like Three Squirrels and Bestore have also jumped into the segment, waiving franchise and renovation fees to attract partners. Still, most operators rely on the same playbook: factory-direct supply, neighborhood penetration, and low-price competition.
To break out of the low-margin trap, leading players are experimenting with diversification.
At the end of 2024, Wancheng launched Laiyoupin, a community-focused discount supermarket. Then, in January, it expanded its Haoxianglai business beyond snacks into daily essentials like personal care, fresh produce, and frozen goods. By March, its new-format stores debuted, featuring in-house bakeries and fresh fruit counters. Wancheng’s prospectus states that Laiyoupin will focus on building private-label brands, targeting premium SKUs and margin improvement.
Busy Ming responded in February with its own private-label strategy, introducing its own value-focused products and high-quality goods. A new store format soon unfolded, featuring household goods, stationery, and ready-to-eat foods, positioning itself as a one-stop discount supermarket.
Industry consultancy Frost & Sullivan estimates that by 2029, China’s bulk snack market could reach RMB 5 trillion (USD 700 billion). As retailers add fresh foods, household products, and even tobacco sales, they may encroach on the territory of 7-Eleven and FamilyMart.
Interestingly, Japan’s convenience stores are facing similar disruption, as low-cost drugstores and mini markets simultaneously grapple with inflationary pressures. China’s bulk snack retailers may eventually evolve into small-format, community-based supermarkets.
However, history offers cautionary tales. Over the past two decades, companies such as Yonghui Superstores, China Resources, and Hema (known internationally as Freshippo) all struggled with the high costs of fresh food logistics and urban rents when experimenting with community-based retail.
Still, one thing is clear: China’s booming bulk snack market has become a testing ground for the next generation of retail chains. As economies of scale and low prices lose their edge, success may hinge on returning to fundamentals: understanding consumer needs, strengthening supply chains, improving product development, and enhancing operational efficiency.
The lesson comes poignantly from Pangdonglai, a traditional supermarket that is redefining service quality.
As of September, Busy Ming’s store count had surpassed 20,000, while Wancheng reported coverage across 29 provinces. Yet as store density rises, average per-store revenue is starting to fall. The industry’s growth ceiling, and its moment of reckoning, may arrive sooner than expected.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by Xie Yunzi for 36Kr.