[Baking] Ligao Food released its first half of 2025 financial report, with revenue increasing by more than 16% year-on-year.

(Fast-market consumer goods news) Recently, Ligao Food Co., Ltd. (300973.SZ) released its first half of 2025 financial report, showing strong financial performance. According to the semi-annual report, Ligao Food achieved operating income of 2.07 billion yuan, a year-on-year increase of 16.20%, and net profit attributable to shareholders of 171 million yuan, a year-on-year increase of 26.24%. This excellent result is particularly prominent in the context of the overall decline of the industry.

Fast-Customer Products learned that the increase in revenue was mainly due to the rising market demand for frozen baked goods and baking raw materials, among which the sales performance of cream and sauce products was particularly impressive. Profit growth is driven by cost control and scale effects, with operating net profit margin increasing by about 1% year-on-year. Litao Food has continuously improved its operating quality through the strategy of "precise operation and efficiency improvement". The customized product sales of large customers in the frozen baking product line have performed outstandingly, and the upgraded egg tart products have successfully expanded to the national market. These new products contributed more than 10% of revenue, and the quality of listing has also been significantly improved. In terms of technology and product diversification, Ligao Foods maintains significant advantages in the baking industry. The company has improved its market coverage and risk resistance through its extensive marketing network and diversified sales channels. The diversity of products and R&D advantages have consolidated its industry position and further expanded its influence.

However, the company ushered in a group reduction of holdings by major shareholders. On September 3, Ligao Food disclosed the completion of the share reduction plan for shareholders Bai Baokun, Chen Hejun, and the employee shareholding platform. Bai Baokun reduced his holdings in Ligao Food in July and September, cashing out a total of about 120 million yuan, while Chen Hejun reduced his holdings by about 217,790 shares, cashing out a total of 11 million yuan. The simple equity change report released by Ligao Food on the same day showed that employee stock ownership platforms Ligaoxing and Ligaochuang reduced their holdings by 483,900 shares and 371,000 shares respectively. It is worth noting that Ligauxing and Ligauxengo are both the top ten shareholders of Ligaux Food and play a role as a joint actor for the company's actual controller Peng Yuhui, which shows that their share reduction is related to capital needs. Before this, Ligao Food founder Zhao Jian had conducted a clearance reduction in holdings, cashing out about 1.3 billion yuan. His reduction began in 2022 and continued until 2023.

There is concern in the market about the trends of shareholders' share reduction after the share reduction. The company's securities department responded that the share reduction was due to the shareholder's personal funds demand, and the subsequent share reduction will be updated according to the shareholder's notice and relevant announcements will be disclosed in a timely manner. In the report, Ligao Food stated that China's baked food industry still has a lot of room for improvement, and the market size is expected to exceed 850 billion yuan. With the improvement of residents' living standards and the adjustment of consumption structure, the acceptance of baked goods is constantly increasing. Driven by technology improvement and cost optimization, the development and growth rate of the frozen baking industry will continue to accelerate, bringing more opportunities to the company.