Jiajiayue Group Co., Ltd.: history, ownership, mission, how it works & makes money

From its origins as the Weihai Sugar and Tobacco Company in 1981 to becoming a publicly traded retail force (Shanghai Stock Exchange ticker 603708) after its December 2016 listing, Jiajiayue Group has evolved into a regional powerhouse that by June 2024 operated 1,097 stores (mixing direct and franchise models) and reported 18.26 billion yuan in revenue for 2024-a year-over-year rise of 2.77%-while its November 2025 market capitalization reached 7.08 billion yuan (up 16.77% year-on-year); a subsidiary of Jiajiayue Holding Group with 619.93 million shares outstanding (shares up 1.19% over the year) and ~12.21% institutional ownership, the company blends traditional supermarket formats, hypermarkets, convenience stores and cold-chain fresh processing with growing foodservice and franchise income streams, ploughs investment into supply-chain infrastructure like the Huai Bei industrial park second phase, puts 13.63% of 2024 sales into self-owned and customized products, derives roughly 76.71% of revenue from Shandong (with 15.35% from other provinces in 2023), ranks eighth in the 2024 China Supermarket TOP 100 and targets high-quality transformation, network optimization and new-business innovation to boost operational efficiency and diversify earnings

Jiajiayue Group Co., Ltd. (603708.SS): Intro

• Founded: 1981 (as Weihai Sugar and Tobacco Company)
• Retail entry: 1995 - first store opened
• SPAR partnership: 2004 regional membership; first SPAR store 2005
• IPO: December 2016, Shanghai Stock Exchange (603708.SS)
• Store count (June 2024): 1,097 total - 997 direct, 100 franchised

• Mission: Provide neighborhood-focused supermarket and convenience retail solutions combining national chain standards with local agility.
• Target customers: Urban and suburban families seeking value, fresh food and daily consumables.
• Channel strategy: Predominantly directly operated supermarkets supplemented by franchised outlets for faster regional reach.

• Store operations: Company-run stores maintain centralized procurement, category management and merchandising; franchised stores operate under licensing with standardized supply access.
• Supply chain: Centralized distribution centers support freshness and scale purchasing; partnerships (e.g., SPAR) enhance international sourcing and private label capability.
• Revenue streams: Retail sales of groceries, fresh produce, packaged goods, FMCG; value-added services (promotions, category-specific margin management) and franchising fees/royalties.
• Cost structure: Merchandise procurement, store-level labor and rent, logistics and distribution, marketing and IT systems for inventory/loyalty.

• Gross margin on product sales - primary earnings source driven by purchasing scale and private-label/brand mix.
• Same-store sales growth and new store openings - incremental sales from footprint expansion (1,097 stores as of June 2024).
• Franchise model yields lower operating capex while generating fees and localized revenue share.
• Operational efficiencies - distribution, category optimization and inventory turnover reduce costs and improve margin.

• 2024 revenue: 18.26 billion yuan (up 2.77% year-over-year), indicating modest top-line growth in a competitive domestic retail market.
• Store network scale: 1,097 stores by June 2024 supports recurring consumer traffic and purchasing leverage.
• Market capitalization: 7.08 billion yuan as of November 2025, up 16.77% over the prior year - reflecting investor valuation changes post-2024 results and market dynamics.

Jiajiayue Group Co., Ltd. (603708.SS): History

• Founded as part of Jiajiayue Holding Group Co., Ltd., Jiajiayue Group Co., Ltd. operates as a subsidiary focused on residential and commercial property development, sales and related services in China.
• Listed on the Shanghai Stock Exchange under ticker 603708, the company expanded its public float to support capital needs for project development and land acquisition.

Ownership Structure

• Parent company: Jiajiayue Holding Group Co., Ltd. (primary controlling shareholder; subsidiary relationship).
• Shares outstanding: 619.93 million (shares increased 1.19% over the past year).
• Institutional ownership: ~12.21% (moderate institutional participation).
• Insider ownership: not publicly disclosed.
• Exchange / ticker: Shanghai Stock Exchange - 603708.SS.

Mission

• Deliver quality residential and commercial properties while pursuing stable growth and returns for shareholders through land acquisition, development efficiency and sales channel optimization.

How It Works & Makes Money

• Land acquisition: secure parcels through purchase or bids, often financed via a mix of equity, bank loans and pre-sales.
• Development: construct residential and commercial projects leveraging in-house project management and contractors.
• Sales and pre-sales: generate revenue primarily from property sales (pre-sales provide working capital during construction).
• Property services & rental income: ancillary revenue from property management, leasing and after-sales services.
• Financial engineering: occasional bond issuance, bank financing and share issuance (noting the recent 1.19% increase in shares) to fund growth and cash flow needs.

Jiajiayue Group Co., Ltd. (603708.SS): Ownership Structure

Jiajiayue Group Co., Ltd. focuses on transitioning from scale-driven expansion to quality retailing, prioritizing optimized network layout, supply-chain integration and product development to boost margins and operational efficiency.

• Mission and Values: prioritize quality retail services, customer experience, and efficient resource allocation.
• High-quality transformation: shifting investments from sheer store count growth to better store formats and optimized layouts.
• Supply-chain commitment: completed the second phase of the Huai Bei comprehensive industrial park project to strengthen distribution and procurement efficiency.
• Product development: self-owned and customized products accounted for 13.63% of total sales in 2024.
• Operational targets: optimize store layouts, ensure high-quality new-store openings, and reduce labor costs via innovation and new business models.

• How it makes money: retail sales (branded and private-label), value-added services (supply-chain services to suppliers/franchisees), and margin expansion via private-label penetration and distribution efficiencies.
• Ownership highlights: listed on SSE (603708.SS) with institutional and retail shareholders; governance and capital allocation emphasize network optimization and quality growth.

Further reading: Jiajiayue Group Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Jiajiayue Group Co., Ltd. (603708.SS): Mission and Values

• Core businesses: hypermarkets, comprehensive supermarkets, department stores, convenience stores, fresh food processing and cold-chain logistics.
• Integrated supply chain: procurement, processing, cold-chain storage and distribution to reduce spoilage and speed replenishment.
• Multi-format retailing: mix of large-format stores for weekly shopping and convenience formats for daily needs.

• Retail sales from directly-operated stores (everyday merchandise, fresh and packaged food, household goods).
• Franchise revenues and fees from 150 franchise locations (as of Q1 2025).
• Wholesale of agricultural products and B2B sales to smaller retailers and institutional buyers.
• Value-added margins from in-house fresh food processing and branded private-label products.
• Logistics and cold-chain services that support third-party clients and improve internal gross margin by reducing loss.

• Revenue concentration: Heavy reliance on Shandong - 76.71% of 2023 revenue - which drives high same-region density economics but concentrates geographic risk.
• Expansion outside Shandong: Other provinces contributed 15.35% in 2023, indicating ongoing geographic diversification.
• Store mix impact: Large-format hypermarkets deliver higher basket sizes and lower unit operating costs; convenience stores provide frequency and urban coverage.
• Supply-chain ownership: In-house processing and cold-chain logistics reduce procurement-to-shelf lead time and shrinkage, supporting gross margin improvement.

• Scale benefits from 945 directly-operated stores to centralize purchasing, reduce unit costs and negotiate supplier terms.
• Private-label and processed-food lines to capture higher margins versus third-party branded goods.
• Franchise model (150 stores) to expand footprint with lower capital intensity while collecting fees and product supply revenues.
• Cold-chain logistics monetization through third-party service and improved perishable goods yield.

Jiajiayue Group Co., Ltd. (603708.SS): How It Works

• Core retail operations: company-operated supermarkets and convenience formats selling food, fresh produce, packaged goods and daily items.
• Franchise model: a network of franchise stores (150 franchise stores) that expands footprint with lower capital intensity and provides recurring fees and merchandise supply revenue.
• Product portfolio: a mix of national brands and self-owned/customized products (13.63% of total sales in 2024) to capture margin uplift and brand loyalty.
• Non-core/adjacent businesses: growing revenue streams from snack shops and other small-format outlets that diversify income beyond traditional supermarkets.
• New channels and services: investment in food delivery and bakery/fast-food operations via Linyi Jiayue Baking Management Co., Ltd., creating incremental order and last-mile revenue.

• Retail sales: day-to-day consumer purchases (fresh produce, packaged foods, household items) at company-owned stores provide bulk of cash inflow and working-capital turnover.
• Franchise fees & supply margins: franchisees pay setup/management/royalty fees and buy inventory/support services from the group, creating margin and scale without full capex.
• Private-label/self-owned products: selling higher-margin proprietary SKUs (13.63% of sales in 2024) improves gross margin and customer stickiness.
• Adjacencies & new channels: snack shops and bakery/food-delivery operations generate diversified, higher-frequency transactions and capture on-the-go consumption segments.
• Operational leverage: procurement scale, category management, and locale dominance in Shandong (76.71% of revenue in 2023) enable negotiated supplier terms and logistics optimization.

• Store economics: same-store-sales growth, new store openings vs. closures, franchise expansion speed (150 franchised outlets as a base).
• Private-label penetration: continued increase beyond 13.63% of sales to lift gross margin.
• Geographic concentration risk: 76.71% revenue dependence on Shandong-plans to diversify or deepen penetration matter for growth and risk.
• Non-retail revenue growth: performance of snack shops and the Linyi Jiayue Baking business as indicators of successful diversification and new-margin streams.

Jiajiayue Group Co., Ltd. (603708.SS): How It Makes Money

• Ranking: 8th in the 2024 China Supermarket TOP 100 - signaling strong regional scale and bargaining power.
• Private-label contribution: Self-owned and customized products accounted for 13.63% of total sales in 2024, increasing margin capture versus third-party brands.
• Supply-chain investment: Completed Phase II of the Huai Bei comprehensive industrial park to bolster distribution efficiency and reduce procurement lead times.
• Network optimization: Strategic focus on high-quality store openings and layout optimization to improve sales density and customer experience.
• Cost & efficiency: Ongoing initiatives to improve operational efficiency and lower labor costs through process innovation and new business formats.

• Revenue model breakdown: in-store retail sales (core), private-label margin uplift, distribution and procurement efficiencies (lower COGS), plus ancillary services and potential franchise/management fees in partnered formats.
• Future outlook: management emphasizes quality over rapid expansion - prioritizing profitable store openings, higher SKU localization, and improved labor productivity to sustain margins amid competitive pressure.