September 19, 2025 Commercial Times Li Li-man

Nien-Yen Group Chairman Chen Fei-Lung stated that the market competition in mainland China has not eased and has decided to proceed with a ten-year expansion plan for mainland China. Photo/Li Li-Man

Nien Chiang's recent revenue and profit overview

Despite the food industry being affected by intense competition in the mainland market, leading to turbulent performance, Nanqiao Chairman Chen Feilong still approved a ten-year expansion plan for the mainland on the 18th. Chen Feilong announced that Nanqiao has set a ten-year plan. Although Taiwan is the base, considering that 70% of Nanqiao's business is already from overseas, the goal for the first five-year phase is to increase the proportion of overseas business to 85%. Chen Feilong emphasized that this is not a shrinkage of Taiwanese business, but rather the overseas market is expected to grow faster.

Chen Feilong stated that Nan Qiao has recently been actively expanding its business in second and third-tier cities in mainland China. This is mainly because consumer habits in these areas are gradually approaching Nan Qiao's products, and customers are also developing outwards. Although the current economic climate is not good, Nan Qiao continues to invest in areas such as manpower, land, and factories. While capital expenditures will affect financial report performance, Nan Qiao firmly believes that future production scale will be the key to success.

This also led Chen Feilong, who wanted to start a business in mainland China at the time, to decide to conquer Shanghai before venturing into the mainland.

Since the second half of this year, the mainland's economic recovery has remained slow. Nanqiao President Li Kanwen stated that although consumer confidence and market purchasing power have been impacted, revenue has not been significantly affected. However, due to fierce market competition, price adjustments have led to a slight decline in profits. Nevertheless, it is estimated that the decline has bottomed out, and profits are expected to rebound.

Learn from inspiration, then innovate.

Of course, imitating others' success stories won't guarantee your own. After Chen Feilong draws inspiration from others' experiences, he still needs to establish his own operational principles.

Regarding the advantages of overseas expansion, Chen Feilong said that Namchow has a technological lead in mainland China and Thailand. Coupled with the Regional Comprehensive Economic Partnership (RCEP) between Thailand and mainland China, Thai products in mainland China are only establishing a foundation with few customers. However, the expansion goal is to integrate with the demands of mainland China. The difficulties in the mainland China market over the past two years will not affect Namchow's expansion plans. He also emphasized that since he took over, the mainland China business has not had a single year of losses.

As for Nanqiao's mainland business experiencing a single-month loss in July this year, it was primarily due to the off-season and market competition factors. However, Nanqiao believes that with the upcoming pre-Mid-Autumn Festival stocking peak and the traditional fourth-quarter peak season for the food industry, there's a chance for a more optimistic outlook.

Nien Cue's consolidated revenue for the first half of this year was 11.628 billion yuan, a year-on-year increase of 1.47%. Consolidated net profit after tax was 173 million yuan, a year-on-year decrease of 72.50%, with an EPS of 0.70 yuan. The self-reported profit before tax for the first seven months was 505 million yuan, a year-on-year decrease of approximately 56.8%.