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Weilong Delicious: The Category Shift from 'Latiao King' to Konjac-Driven Growth

Founded: Liu Weiping, Liu Fuping · Weilong Delicious Global Holdings Ltd.

JOURNEY

Key Fields

FIELD STAMPS
IndustryFood & Drink
RegionChina
ScaleGiant
ChannelOther

Origin

In 1999, brothers Liu Weiping and Liu Fuping moved from Pingjiang, Hunan, to Luohe, Henan, transforming Latiao from a small-scale workshop business into an industrialized assembly-line product. With low barriers to entry but stable margins, they anchored their pricing at 0.5 RMB per pack to target students, leveraging school-gate kiosks to penetrate second- and third-tier cities and towns nationwide. Latiao has long been stigmatized as low-end and unhealthy—a burden Weilong has struggled to shed for years.

Milestones

1999
Inception Turning Point
Liu Weiping and his brother Liu Fuping started their business in Luohe, Henan, producing Latiao in a small workshop using soy products and seasonings. Initially sold for 0.5 RMB at school kiosks, the product featured a simple supply chain and healthy margins, quickly capturing the local school market by leveraging seasoning recipes from their hometown in Pingjiang.
2004
Early Industrialization Growth
Liu Weiping invested in large-scale production lines in Luohe, upgrading Latiao from a workshop product to an industrialized one. He registered the 'Weilong' trademark, introduced quality control and packaging design, and used celebrity endorsements and TV commercials to brand the 0.5 RMB snack, expanding distribution to kiosks and wholesale markets in third- and fourth-tier cities outside Henan.
2010
Brand Upgrading Turning Point
The Latiao industry faced frequent food safety scandals, leading to a 'junk food' label. Weilong was affected, prompting Liu Weiping to invest in standardized clean factories, automated production lines, and quality certifications to rehabilitate the brand. He also adopted Apple-style marketing and e-commerce live streaming to create buzz, aiming to transform the 0.5 RMB snack into a trendy brand for young people.
2021
Pre-IPO Financing Pivot
Weilong completed its only pre-IPO financing round, raising approximately 3.6 billion RMB from investors including CPE, Hillhouse, Tencent, Yunfeng Capital, and Sequoia China. Post-money valuation was rumored to reach 70 billion RMB—a rare high valuation for the Latiao sector—which created a mismatch between market capitalization and revenue growth after the IPO.
2022
HKEX Listing PMF
Weilong Delicious Global Holdings listed on the Main Board of the HKEX, becoming the 'first stock' of the Latiao industry. Revenue exceeded 4.6 billion RMB that year, with seasoned flour products (Latiao) remaining the core source of income. However, growth began to slow, and capital markets questioned the growth ceiling of the Latiao sector. Post-IPO, the stock price faced pressure, leading the company to bet its second growth curve on vegetable products like Konjac Shuang.
2024
Category Shift Growth
In 2024, revenue from vegetable products like Konjac Shuang and kelp snacks surpassed that of seasoned flour products, becoming the new primary category. Weilong leveraged the high margins and social-media-friendly nature of konjac to drive revenue growth, shifting marketing resources from Latiao to konjac while increasing efforts to export both products to Southeast Asian markets.
2026
Health Focus & Globalization Pivot
In the first half of 2026, Weilong's revenue was approximately 3.7 billion RMB, with net profit growing only 4% year-on-year. Latiao sales fell by 129 million RMB, with its revenue share dropping to 31.8%, while konjac exceeded 60%. During this period, advertising expenses increased by 140 million RMB, and interim dividends reached nearly 700 million RMB, with the Liu family receiving approximately 533 million RMB. The payout ratio was raised to 90%, balancing heavy investment in health-focused marketing and overseas expansion with high dividends to stabilize shareholder confidence.

Turning Points

  • The 2010 food safety crisis forced Liu Weiping to invest heavily in clean factories to rehabilitate the brand image of the 0.5 RMB snack.
  • The 2021 pre-IPO financing round, which brought in investors like Hillhouse and Tencent at a rumored 70 billion RMB valuation, set the stage for future market cap pressure.
  • The December 2022 HKEX listing made Weilong the 'Latiao leader,' but subsequent stock pressure exposed the growth ceiling of the Latiao category.
  • In 2024, revenue from vegetable products like Konjac Shuang surpassed Latiao, marking a successful category shift.
  • In H1 2026, with Latiao revenue share falling to 31.8% and konjac exceeding 60%, the company effectively transitioned from a Latiao giant to a konjac leader.

Failures & Pitfalls

  • In H1 2026, Latiao sales dropped by approximately 129 million RMB, indicating a substantial contraction in the core 0.5 RMB Latiao business.
  • Despite an increase of 140 million RMB in advertising spend in H1 2026, Latiao sales declined, proving that marketing spend can no longer reverse the category's downward trend.
  • H1 2026 net profit grew only 4% year-on-year, a significant slowdown compared to pre-IPO growth, exposing that the second curve (konjac) is also facing growth pressure.
  • Post-IPO, the company faced stock price pressure despite a rumored 70 billion RMB valuation, as capital markets continued to question the long-term growth ceiling of the Latiao sector.

关键成功要素

  • Transforming 0.5 RMB Latiao into a national brand using industrialized assembly lines and celebrity marketing.
  • Pivoting to the high-margin, health-oriented konjac category before the Latiao growth peaked.
  • Repackaging low-end snacks into trendy cultural symbols for youth through co-branding and Apple-style design.
  • Using the sole pre-IPO financing round to bring in top-tier investors like Hillhouse and Tencent to provide brand endorsement before the Hong Kong IPO.
  • Stabilizing capital market confidence and alleviating valuation pressure from slowing growth through a 90% dividend payout ratio.

Lessons

  • The growth ceiling of a single hit product is inevitable; the second curve must be laid out before the first peaks.
  • High-cost marketing cannot blindly drive growth for legacy products; when a category enters a decline, spending on ads only increases losses.
  • Food safety is the most critical risk in the food industry; quality control and standardization must be solidified early during the transition from workshop to industrial scale.
  • High dividends are effective for maintaining stock prices in the short term post-IPO, but long-term valuation requires a genuine growth narrative.
  • The ability to penetrate rural school channels was Weilong's early moat, but expanding into Southeast Asia requires rebuilding a complete channel and brand awareness strategy.

Core Data

  • 2026 H1 Revenue：Approx. 3.7 billion RMB (based on public data, not independently verified)
  • 2026 H1 Net Profit YoY Growth：4% (based on public data, not independently verified)
  • 2026 H1 Latiao Revenue Share：31.8% (based on public data, not independently verified)
  • 2026 H1 Konjac Category Revenue Share：Over 60% (based on public data, not independently verified)
  • 2026 H1 Latiao Sales Decline：Approx. 129 million RMB (based on public data, not independently verified)
  • 2026 H1 Advertising Spend Increase：Approx. 140 million RMB (based on public data, not independently verified)
  • 2026 Interim Dividend：Nearly 700 million RMB (based on public data, not independently verified)
  • 2026 Interim Payout Ratio：90% (based on public data, not independently verified)
  • Liu Family Dividend Income：Approx. 533 million RMB (based on public data, not independently verified)
  • Pre-IPO Financing Amount：Approx. 3.6 billion RMB (based on public data, not independently verified)
  • Pre-IPO Valuation：Approx. 70 billion RMB (based on public data, not independently verified)
  • Revenue in Listing Year：Over 4.6 billion RMB (based on public data, not independently verified)

Competitors / Peers

In the Latiao sector, Weilong's direct competitors include regional brands such as Mala Prince, Feiwang, Junzai, and Chandazui. Among them, Mala Prince has recently focused on high-end and health-conscious positioning, directly squeezing Weilong's mid-to-high-end price segments. In the konjac sector, snack giants like YanJin Shop, Jinzai Food, Bestore, and Three Squirrels have all entered the market with konjac 'tripe' and konjac snack products. YanJin Shop's 2023 strategy saw significant growth in konjac products, creating direct competition for Weilong's Konjac Shuang. Bestore and Three Squirrels also exert pressure on Weilong's e-commerce presence due to their brand power and traffic advantages online. Regarding international expansion, the Southeast Asian spicy snack market is already occupied by local brands and Japanese/Korean snack giants, requiring Weilong to build channel and brand awareness from scratch.

Sources

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⚠️ This entry draws on self-reported accounts and public reporting, not independently verified, and is not investment, startup, or legal advice; revenue figures are case-specific and not representative of typical results.