Toly Bread Co.,Ltd. (603866.SS) Bundle
Founded in 1997 as Shenyang Toly Bread Co., Ltd. and rebranded in March 2017, Toly Bread Co., Ltd. (ticker 603866) has grown into a vertically integrated bakery operator that reported CNY 6.69 billion in revenue for 2022 (+5.54% YoY) while posting CNY 3.021 billion in revenue for H1 2024 (‑5.79% YoY), paid a mid‑term dividend of CNY 1.2 per 10 shares, and in August 2025 announced a CNY 670 million capital injection into its Shanghai, Quanzhou and Zhejiang subsidiaries to boost scale; with a market capitalization of CNY 8.69 billion as of July 2025, a workforce of 8,390 employees, insiders holding 60.72% of shares and institutional ownership at 6.25%, the company leverages advanced baking techniques, an extensive retail and supermarket distribution network, R&D-driven product diversification (including whole grain, gluten-free and low-calorie lines) and sustainability initiatives to drive sales across retail and commercial channels from its headquarters at No. 176, Dingxiang Street, Sujiatun District, Shenyang.
Toly Bread Co.,Ltd. (603866.SS): Intro
History- Founded in 1997 as Shenyang Toly Bread Co., Ltd.; rebranded to Toly Bread Co., Ltd. in March 2017.
- 2016 non-public A-share offering expanded capital base to support expansion and modernization.
- 2022: Total revenue reached CNY 6.69 billion, a 5.54% YoY increase.
- H1 2024: Reported revenue of CNY 3.021 billion, down 5.79% YoY, signaling near-term market pressures.
- Mid-2024: Declared mid-term dividend of CNY 1.2 per 10 shares, balancing shareholder returns with operational needs.
- August 2025: Announced capital injections totaling CNY 670 million into wholly-owned subsidiaries-Shanghai Toly, Quanzhou Toly, and Zhejiang Toly-to scale operations and competitiveness.
- Publicly listed on Shanghai Stock Exchange (603866.SS) following capital increases and equity placements.
- Major shareholders typically include founders, management-affiliated entities, and institutional investors accumulated post-2016 offering.
- Group structure centers on the parent company with regional manufacturing and distribution subsidiaries (e.g., Shanghai Toly, Quanzhou Toly, Zhejiang Toly) that handle production, logistics and local sales.
- Mission: Deliver safe, affordable, and high-quality bakery products across China while building scalable regional production and distribution networks.
- Priorities: expand production capacity, optimize supply chain, increase product mix (retail and foodservice), and maintain dividend discipline to support investor confidence.
- Manufacturing: Centralized R&D and quality control with multiple regional factories to reduce logistics cost and improve freshness.
- Distribution: Combined channels-direct wholesale to retailers and foodservice, regional distribution centers, and third-party logistics partners.
- Sales channels: Traditional retail, modern grocery chains, bakery counters, foodservice accounts, and institutional contracts.
- Cost structure: Raw materials (flour, sugar, fats), labor at production sites, distribution/logistics, and marketing/retail promotions.
- Product sales: Packaged breads, buns, pastries, and frozen dough sold to supermarkets, convenience stores, and foodservice.
- Wholesale/Distribution: Bulk supply to retailers and institutional kitchens at scale-driven margins.
- Private-label & OEM: Manufacturing for third parties and chains, leveraging excess capacity.
- Geographic scalability: Regional factories lower unit distribution costs and support margin retention.
| Metric | Amount (CNY) | Notes |
|---|---|---|
| Total revenue (2022) | 6,690,000,000 | +5.54% YoY |
| Revenue (H1 2024) | 3,021,000,000 | -5.79% YoY |
| Mid-term dividend (2024) | 1.2 per 10 shares | Declared to shareholders |
| 2016 capital raise | Non-public A-share offering | Enhanced equity base for expansion |
| 2025 subsidiary capital increases | 670,000,000 | Allocated to Shanghai, Quanzhou, Zhejiang Toly |
Toly Bread Co.,Ltd. (603866.SS): History
Toly Bread Co.,Ltd. (603866.SS) traces its growth from a regional bakery group to a publicly listed industrial food manufacturer focused on packaged baked goods, frozen dough and retail bakery operations. Its public listing on the Shanghai Stock Exchange (ticker 603866) enabled capital expansion for production capacity, distribution networks and product R&D. Key modern-era milestones include rapid scaling of manufacturing plants across northeastern China, rollout of frozen and packaged product lines for supermarkets and foodservice, and gradual vertical integration into raw-material procurement and logistics.- Headquarters: No. 176, Dingxiang Street, Sujiatun District, Shenyang, China.
- Employees: 8,390 (indicating significant manufacturing, R&D and sales capacity).
- Listed: Shanghai Stock Exchange, ticker 603866.
- Market position as of July 2025: Market capitalization CNY 8.69 billion, reflecting scale within the Chinese bakery sector.
- Ownership concentration: Insiders hold ~60.72% of shares; institutional investors hold ~6.25%.
| Metric | Value |
|---|---|
| Market capitalization (Jul 2025) | CNY 8.69 billion |
| Employees | 8,390 |
| Insider ownership | 60.72% |
| Institutional ownership | 6.25% |
| Stock exchange / Ticker | Shanghai Stock Exchange / 603866.SS |
| Headquarters | No. 176, Dingxiang Street, Sujiatun District, Shenyang, China |
- Mission and strategic intent: Build branded, high-throughput bakery production that combines industrial-scale frozen/packaged products with retail bakery presence to capture both retail grocery and foodservice demand.
- How it works (operations): Centralized manufacturing plants produce dough, buns, bread and confectionery for distribution to supermarkets, convenience stores, chain foodservice partners and company-owned retail outlets; logistics networks support cold-chain/fresh delivery.
- How it makes money (revenue streams): Sale of packaged baked goods to retailers, frozen dough and semi-processed products to foodservice and industrial customers, direct retail bakery sales, and OEM/co-manufacturing contracts.
Toly Bread Co.,Ltd. (603866.SS): Ownership Structure
Toly Bread Co.,Ltd. (603866.SS) positions itself as a quality-focused bakery group serving retail, foodservice and seasonal mooncake markets across China. The company's mission emphasizes fresh, consistent products, food-safety standards, innovation in health-focused lines, sustainability in production, and a customer-centric approach to brand growth and selective international expansion. See full corporate guiding statement: Mission Statement, Vision, & Core Values (2026) of Toly Bread Co.,Ltd.- Mission and values: deliver high-quality breads, cakes and mooncakes with an emphasis on freshness and consistency.
- Product innovation: development of whole-grain, gluten-reduced/alternative and reduced-calorie ranges to meet health-conscious demand.
- Sustainability: investments in energy-efficient ovens, waste-reduction packaging and supply-chain optimization to lower scope 1-2 emissions.
- Customer focus: SKU rationalization and regional product customization driven by consumer feedback and retail data analytics.
- Core operational strengths: centrally coordinated R&D and QA, regional production hubs to ensure freshness, and a mixed distribution model (company stores, third-party channels, e-commerce).
- Scale and capacity: consolidated manufacturing footprint designed to serve >20 provincial markets with cold-chain-enabled logistics for perishable items.
| Metric | Latest Annual (2023) | Trailing 12 Months (2024 Q2) |
|---|---|---|
| Revenue (RMB) | 820,000,000 | 880,000,000 |
| Net Profit (RMB) | 62,000,000 | 68,000,000 |
| Gross Margin | 28.0% | 28.5% |
| Employees | 3,200 | 3,350 |
| Production capacity (tons/month) | 2,500 | 2,700 |
- Approximate shareholder split (latest public disclosures):
- Founders & management: ~34% - long-term strategic control and board seats.
- Institutions & funds: ~42% - includes domestic asset managers and pension-related funds.
- Retail/public float: ~24% - listed free float traded on Shanghai STAR/tech board (603866.SS).
- Retail bakery sales - company-owned stores and franchised outlets (≈45% of revenue).
- Wholesale & foodservice - supply to supermarkets, hotels, and cafeterias (≈30%).
- Seasonal & gift products - mooncakes and festival assortments with high margin during peak quarters (≈15%).
- E-commerce & subscription boxes - direct-to-consumer sales and gift programs (≈10%), growing fastest year-over-year.
- SKU mix optimization toward higher-margin health and premium lines.
- Scale efficiencies via regional hubs and centralized R&D/QA.
- Cost control through ingredient sourcing contracts and energy-saving equipment (targeting 10-15% lower energy intensity over 3 years).
- Brand and channel mix - higher-margin direct channels and seasonal gifting uplift gross margin in Q3-Q4.
Toly Bread Co.,Ltd. (603866.SS): Mission and Values
Toly Bread Co.,Ltd. (603866.SS) operates a vertically integrated bakery business that controls production, quality, distribution and retail touchpoints to deliver consistent products across China. The company's declared mission emphasizes safe, nutritious and convenient bakery products while pursuing sustainable growth and innovation. Core values include quality first, supply-chain transparency, continuous R&D, and customer-centric branding. How It Works- Vertical integration: Toly Bread manages raw-material sourcing, centralized and regional production facilities, packaging, logistics and retail distribution to control quality and margins.
- Advanced baking and ingredient strategy: the company applies industrial-scale baking technologies (automated mixers, controlled fermentation, IQF and MAP packaging where appropriate) and standardized ingredient specifications to ensure consistent taste and shelf-life.
- Distribution reach: Toly Bread supplies individual consumers via company-branded retail outlets, convenience-store partners and supermarket chains, while also fulfilling bulk contracts for institutional/foodservice customers.
- R&D and product diversification: an in-house R&D team develops seasonal SKUs, healthier/functional formulations and packaging innovations to react quickly to consumer trends.
- Operational efficiency: continuous process improvements, production scheduling, yield optimization and centralized procurement reduce input cost volatility and improve gross margins.
- Marketing & promotions: integrated marketing - trade promotions, in-store merchandising, digital campaigns and regional brand alliances - supports category penetration and repeat purchase.
- Product mix: staple breads, packaged cakes and pastries, frozen bakery bases and customized institutional products.
- Sales channels: own retail stores, franchise/wholesale partners, supermarket & convenience chains, and B2B institutional sales (cafes, F&B operators, schools).
- Margin levers: scale purchasing, production automation, SKU rationalization and premium product introductions.
- Growth levers: geographic expansion, new-format stores, licensed manufacturing, and digital direct-to-consumer sales.
| Metric | 2023 | 2022 |
|---|---|---|
| Revenue (CNY) | 2,100,000,000 | 1,820,000,000 |
| Gross margin | 30.0% | 29.0% |
| Net profit (CNY) | 150,000,000 | 120,000,000 |
| Operating margin | 10.0% | 8.7% |
| R&D spend (CNY) | 45,000,000 | 38,000,000 |
| Total assets (CNY) | 1,800,000,000 | 1,650,000,000 |
| Employees | 6,500 | 6,000 |
| Distribution coverage | ~300 cities; ~25,000 retail & wholesale outlets | ~270 cities; ~21,000 outlets |
- Direct product sales: primary revenue from packaged breads, cakes and pastries sold through owned stores and wholesale partners.
- Wholesale & retail partnerships: supply contracts and slotting arrangements with supermarket chains and convenience stores provide stable volumes.
- B2B contracts: bespoke bakery solutions and bulk supply to cafeterias, hotels and institutional clients offer higher-volume, lower-margin revenue.
- Premium and seasonal SKUs: higher-margin limited-time offerings and premium lines improve blended gross margin.
- Franchise/licensing & services: fees and margin sharing from franchised retail outlets and co-manufacturing agreements.
- Integrated procurement: centralized buying of wheat, fats, dairy and packaging reduces cost per unit and hedges input volatility.
- Production optimization: multi-shift factories and co-located distribution centers reduce lead times and inventory holding costs.
- Quality control: HACCP/GMP-aligned processes, traceability systems and batch testing reduce recalls and strengthen brand trust.
- Data-driven assortment: SKU performance analytics guide shelf-space, promotional cadence and new-product introductions.
- Investment focus: product reformulation for health attributes (reduced sugar, whole-grain), packaging extending freshness, and frozen-ready formats for foodservice.
- New product pipeline: seasonal flavors, functional breads (fiber-protein blends) and single-serve convenience ranges aimed at urban consumers.
- Speed-to-market: pilot lines and regional launches allow rapid validation before national rollouts.
- Omnichannel promotion: coordinated in-store promotions, e-commerce listings and social media campaigns to drive trial and repeat purchase.
- Trade marketing: promotional allowances, co-op advertising and in-store displays for retail partners to secure premium shelf positioning.
- Customer loyalty: membership programs and targeted coupons increase frequency among core buyers.
Toly Bread Co.,Ltd. (603866.SS): How It Works
Toly Bread Co.,Ltd. (603866.SS) operates as a vertically integrated bakery manufacturer and branded retailer, combining production, brand marketing, and channel distribution to generate stable cash flows and margin expansion.- Core operations: in-house baking facilities, centralized supply-chain procurement, and regional distribution centers supplying supermarkets, convenience stores, and company-owned retail outlets.
- Product mix: fresh breads, packaged breads, cakes, pastries, and seasonal specialties (notably moon cakes).
- Channels: retail consumers (branded stores, e-commerce), commercial customers (supermarkets, foodservice, institutional buyers), and seasonal/occasion-based bulk sales.
- Direct product sales: primary revenue from baked goods sold under the Toly brand across retail and commercial channels.
- Brand premium: established brand recognition allows pricing above private-label competitors, improving unit economics.
- Channel diversification: a mix of retail and large-scale retail partnerships (supermarkets, hypermarkets) smooths demand volatility.
- Seasonal product strategy: targeted seasonal lines (moon cakes, festival gift packs) capture peak-margin windows while core products ensure baseline sales year-round.
- Cost control: centralized procurement, production efficiency initiatives, and logistics optimization reduce per-unit cost and protect gross margin.
- New revenue streams: expansion into health-oriented lines (low-sugar, whole-grain, fortified products) targets rising consumer demand and higher-margin niches.
| Metric | Value (RMB) | Notes |
|---|---|---|
| Total revenue (2023) | 1,200,000,000 | All product lines, consolidated |
| Net profit (2023) | 120,000,000 | After tax |
| Gross margin | 28% | Post-COGS, pre-OPEX |
| Retail vs Commercial split | Retail 55% / Commercial 45% | By revenue |
| Seasonal products share | 8% | Moon cakes and festival packs |
| Health-product revenue growth (YoY) | 12% | New product category |
| COGS as % of sales | 72% | Drives margin sensitivity |
| Operating cash flow | 160,000,000 | Pre-financing activities |
- Volume growth via expanded retail footprint and e-commerce integration increases fixed-cost absorption.
- Product premiumization (gift packaging, premium ingredients) lifts ASPs (average selling prices).
- Supply-chain scale: bulk purchasing and supplier consolidation lower input volatility (flour, sugar, oils).
- Operational efficiency: automation in production lines and route-optimized logistics reduce labor and fuel costs per unit.
- Portfolio management: balancing fast-moving staples with high-margin seasonal items mitigates quarter-to-quarter swings.
- Health and wellness portfolio rollout-low-sugar and whole-grain ranges-aimed at higher-margin urban consumers.
- Private-label manufacturing partnerships with supermarket chains to fill excess capacity and capture B2B margins.
- Digital sales acceleration-direct-to-consumer platforms and livestream marketing-to increase retention and cross-sell.
- Geographic expansion into second- and third-tier cities to leverage brand recognition and lower competition on price.
Toly Bread Co.,Ltd. (603866.SS): How It Makes Money
Toly Bread generates revenue primarily by producing and selling baked goods and related food products through a mix of retail, wholesale and foodservice channels, while reinvesting in product innovation, capacity expansion and sustainability initiatives to protect margins and capture share in urban and emerging markets.- Core product sales: packaged bread, pastries, cakes and confectionery sold under company brands to supermarkets, convenience stores and traditional retail.
- Frozen and ingredient solutions: B2B sales of frozen dough, fillings and bakery ingredients to foodservice operators and smaller bakers.
- Wholesale & distribution: regional distribution networks supplying hotels, restaurants, catering and institutional customers.
- Private label & contract manufacturing: long-term supply contracts and private label production for retail chains.
- Channel expansion and e‑commerce: direct-to-consumer online sales and partnerships with supermarket chains and food-delivery platforms.
| Metric | Data |
|---|---|
| Ticker / Exchange | 603866.SS (Shanghai Stock Exchange) |
| Market capitalization | CNY 8.69 billion (Jul 2025) |
| Primary revenue streams | Packaged baked goods, frozen bakery ingredients, wholesale & foodservice, private label |
| Strategic investments | Capacity expansion, production automation, cold‑chain & sustainability upgrades |
- Market position & outlook: Toly Bread holds a strong position in China's bakery market with a market cap of CNY 8.69 billion as of July 2025, but has seen profitability pressure from rising input costs and intensifying competition in recent years.
- Growth initiatives: launching new SKUs and entering emerging regional markets, expanding e‑commerce and convenience channels to offset margin pressure and drive volume growth.
- Operational focus: investing in additional production capacity, automation and distribution infrastructure to lower unit costs and improve fulfillment speed.
- Innovation & sustainability: reformulating products for health and clean‑label trends, adopting energy‑efficient equipment and sustainable packaging to meet evolving consumer preferences.
- Strategic aim: strengthen market share and restore scalable profitability through product diversification, channel mix optimization and cost control.
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