Labixiaoxin Snacks Group Limited reported a turnaround to profit for the year ended 31 December 2025, driven by solid expansion in jelly and snack sales, tighter cost control and lower impairment charges. Despite the recovery, the auditor highlighted a material uncertainty related to the group’s ability to continue as a going concern because current liabilities exceed current assets and bank debt remains high.
Revenue and Earnings • 2025 revenue rose 11.90% to RMB969.80 million, marking a fifth consecutive annual increase. • Gross profit climbed 13.55% to RMB266.36 million; gross margin edged up 0.4 percentage points to 27.5%. • Adjusted EBITDA rebounded to RMB70.00 million (2024: RMB-6.70 million), lifting the EBITDA margin to 7.2% from –0.8%. • Net profit reached RMB11.90 million, reversing the prior-year loss of RMB93.50 million. Basic EPS turned positive at RMB0.05. • Return on equity improved to 5.5% (2024: –41.7%).
Segment Performance • Jelly products contributed RMB870.04 million, up 14.6%, supported by snacks-oriented convenience stores and e-commerce channels. • Confectionary sales fell 32.6% to RMB62.43 million as Lunar New Year orders shifted into 2026. • Beverage revenue dropped 28.7% to RMB1.74 million amid intense competition and limited new launches. • Other snacks surged 185.7% to RMB35.60 million, led by bean-curd items.
Cost Management • Selling and distribution expenses declined 17.6% to RMB138.91 million; advertising and promotion spend fell 41.4% to RMB56.28 million. • Administrative expenses were cut 18.9% to RMB93.56 million. • Allowance for expected credit losses on trade receivables narrowed to RMB5.84 million from RMB22.88 million.
Balance Sheet and Liquidity • Total assets stood at RMB872.31 million; total liabilities climbed to RMB645.94 million. • Net current liabilities widened to RMB166.15 million. • Bank borrowings increased 14.84% to RMB524.09 million, pushing the gearing ratio to 235.6%. • Cash and bank balances improved to RMB76.80 million (2024: RMB52.50 million). • Capital expenditure reached RMB60.59 million, mainly for production-line upgrades.
Going-Concern Uncertainty The auditor drew attention to the group’s negative working-capital position and large short-term debt, noting that continued operation depends on shareholder support, successful refinancing and sustained positive cash flow.
Operational Highlights • Distributor count fell to 325 (2024: 435) as the company pivoted toward larger snack convenience chains and online platforms. • Inventory turnover improved marginally to 48 days (2024: 49 days); trade-receivable days shortened to 61 from 93. • No final dividend was proposed.
Post-Year Event On 5 February 2026 the company agreed to acquire HK-incorporated target shares for HK$188.48 million, to be settled via new shares and a convertible bond, pending completion.
Outlook Management plans to deepen penetration in convenience-store and e-commerce channels, launch new snack lines, and enhance technology-driven marketing and production efficiencies to sustain growth, while addressing liquidity and leverage challenges highlighted by the auditor.