Key takeaway

In the first quarter, BOLEX benefited from the peak Spring Festival season and new product performance, with both enterprise and consumer market ends exceeding expectations. The C-end e-commerce expense investment increased, slightly impacting the profit margin. In 2026, the company's new products are expected to contribute significant incremental volume. Chicken cutlets and typhoon shelter-style stir-fry seasoning are gradually becoming best-sellers. In May, the company launched fresh-cooked pasta, which has received good market feedback. With new products and new retail both gaining momentum, we are optimistic that the company's full-year revenue will achieve a growth rate of over 10%. On the expense side, investment in new products is expected to be relatively high, and spending on content e-commerce is increasing, so the expense ratio is expected to rise. On the profit side, gross margin and economies of scale are expected to drive profit growth higher than revenue growth.

Event

The company announced its 2025 annual report and 1Q26 report; the annual general meeting of shareholders will be held on May 15

In 2025, the company recorded operating revenue of RMB 2.934bn, up 10.66% YoY; net profit attributable to shareholders of the parent company of RMB 263mn, up 12.59% YoY; and adjusted net profit attributable to shareholders of the parent company of RMB 253mn, up 17.88% YoY.

In 4Q25 alone, the company recorded operating revenue of RMB 801mn, up 11.08% YoY; net profit attributable to shareholders of the parent company of RMB 71mn, up 18.39% YoY; and adjusted net profit attributable to shareholders of the parent company of RMB 72mn, up 28.1% YoY.

In 1Q26 alone, the company recorded operating revenue of RMB 776mn, up 16% YoY; net profit attributable to shareholders of the parent company of RMB 66mn, up 12.58% YoY; and adjusted net profit attributable to shareholders of the parent company of RMB 64mn, up 10.63% YoY.

Risks:

1) Risk of rising raw material costs:The company’s production raw materials include starch-based ingredients, edible oils for production, monosodium glutamate, salt, fruits and vegetables, etc. If raw material prices continue to rise, it will impact the company’s profitability. 2) Risk of business expansion falling short of expectations:As the company penetrates other B-end clients, it faces more diverse market demand. If the company cannot respond to customer needs in a timely manner, or if the capacity of relevant production lines cannot meet production requirements, it will affect the normal pace of business development. 3) Risk of intensifying industry competition:The compound seasoning industry currently has low concentration and a fragmented competitive landscape. As more market participants continue to enter, the company will face greater competitive pressure, which will have a certain adverse impact on its room for development.