Youyou Foods addressed the decline in gross margin and the surge in accounts receivable at its results briefing on September 23. Board Secretary Xie Yaling said the company will optimize its product and channel layout, and improve credit period management and settlement arrangements across its direct-sales channels. The company's gross margin has been declining in recent years, standing at 28.97% in 2024 and 25.73% in 2025, before slipping further to 23.08% in the first half of this year, down 4.49 percentage points from a year earlier. Xie Yaling said the fluctuation in gross margin was mainly affected by a combination of factors including the industry market environment, product structure, channel layout iteration, and supporting operating policies. A research note from Pacific Securities last month pointed out that the year-on-year decline in first-half gross margin was mainly due to a higher proportion of new channels with relatively lower gross margins, such as membership supermarkets and snack discount stores. As of the end of the first half, the company's accounts receivable stood at 218 million yuan, up 63.86% from 133 million yuan at the end of 2025. Xie Yaling said this was mainly due to revenue growth in direct-sales channels during the first half, and that the company will strengthen customer credit assessment and payment collection tracking. In terms of performance, Youyou Foods achieved revenue of 1.034 billion yuan in the first half of this year, up 34.08% year on year, while net profit attributable to shareholders reached 124 million yuan, up 14.42% year on year.
Youyou Foods Co LtdFirst-half gross margin fell to 23.08% (down 4.49pp) and accounts receivable jumped 63.86% to 218 million yuan, pressuring profitability and cash collection.
Pacific Securities Co Ltd