As Chinese Consumption Slows, Dacheng and Namchow Adjust Strategies While Tingyi China Holdings Maintains Growth

(Central News Agency reporter He Xiu-Ling, Taipei, June 13) Taiwanese food companies observe that China's consumer market has slowed in recent years, with consumers becoming increasingly rational and competition intensifying. Facing these environmental shifts, companies have adjusted their strategies. Tingyi China Holdings, invested in by Uni-President Enterprises, has strengthened brand management and product upgrades. Dacheng has increased its food processing ratio, while Namchow has expanded its bakery products and ASEAN market presence in search of new growth drivers.

Uni-President holds 72.98% of Tingyi China Holdings Group. In 2025, Tingyi China Holdings reported revenue of RMB 31.71 billion, a 4.6% year-on-year increase. Net profit after tax reached RMB 2.05 billion, up 10.9% annually, with earnings per share at RMB 0.47, setting new highs for both revenue and profit. In the first quarter of 2025, net profit after tax was RMB 737 million, a 22.5% year-on-year increase, marking a record high for the period.

Lo Chi-Hsien, Chairman of Uni-President Enterprises, stated in Tingyi China Holdings' 2025 annual report that China's consumer market is undergoing a structural transformation, shifting from 'scale expansion' to 'quality improvement.' Tingyi China Holdings noted that to face market competition, it has continuously optimized its product mix in recent years, enhancing competitiveness through emerging distribution channels such as membership stores and wholesale clubs, along with brand management and product innovation.

A senior food industry executive privately said that price competition in the Chinese market has been intense in recent years, making operations difficult for many companies. However, Tingyi China Holdings maintains solid growth momentum due to its established distribution channels, brand strength, and operational foundation.

Dacheng Foods, invested in by Dacheng, operates multiple chicken production bases and large-scale processed food production facilities across mainland China. Chairman Han Jia-Yu recently stated in an interview that the 'neijuan' (fierce competition) economy in mainland China has indeed made operations challenging, with significant pressure on the agriculture and livestock industry. Therefore, Dacheng Foods continues to increase the proportion of its food processing business, with processed food revenue now exceeding 50% of total revenue, surpassing that of its agriculture and livestock operations.

To expand food processing and poultry slaughtering, Dacheng Foods has successively launched Phase I and Phase II of its food processing plant in Bengbu, Anhui Province, in recent years. Han said that processed foods such as chicken nuggets, Taiwanese salt-and-pepper chicken, and Italian sausages are highly popular in mainland China. To further expand its processed food footprint, the company plans to add new production capacity and is planning Phase III of the Bengbu facility.

Chen Zhengwen, Chairman of oil and fat giant Namchow, said that the Chinese market is not without recovery, but the pace is slow, with rational consumption trends continuing. Observing this year's Dragon Boat Festival consumption, the market has not noticeably rebounded.

He said that post-pandemic consumer habits have changed rapidly, with intensified competition in the bakery and food service markets, leading many bakeries and restaurants to exit. Conversely, many dairy companies have recently entered the bakery market, further escalating competition.

Chen pointed out that in response to market changes, Namchow has increased its bakery product ratio in recent years. Moving from primarily supplying fat and oil raw materials, the company has gradually expanded into frozen semi-finished and high-completion bakery products, entering new consumption scenarios such as convenience stores, membership supermarkets, and tea beverage shops. Additionally, Namchow is integrating its China and ASEAN markets, seeking new growth opportunities through regional supply chain deployment. (Edited by Zhang Liangzhi, Zhai Sijia) 1150613