Ruoyu Chen has already transformed into a fast-moving consumer goods company.

Ask AI · What are the key factors behind Yuyu Chen’s fast-moving consumer goods transition?

Interface News reporter | Zhu Yongling

Interface News editor | Lou Yuming

Yuyu Chen is accelerating its move from behind the scenes to the front stage, and is increasingly close to becoming a fast-moving consumer goods company with strong potential.

Founded in 2011 and listed on the A-share market in 2020, the company initially started with a brand operation outsourcing business, and in recent years has also balanced the cultivation of its own brands.

Yuyu Chen’s financial report released on March 24 shows that in 2025, revenue from its own brands for the first time exceeded its outsourcing and brand management businesses, rising from 28.37% in the previous year to 52.83% of total company revenue. This drove the group’s total revenue growth of 94.35% to 3.43B yuan, nearly doubling.

Outsourced operations and brand management businesses can be understood as both being services for external brands, but they differ in the depth of collaboration. On the business spectrum in this industry, outsourced operations at the most basic end is one end, while own-brand businesses that fully control autonomy are at the other end. Between the two are forms such as master agency, the buyout of specific market operating rights, and joint ventures with the brand owner—this part, within Yuyu Chen’s business segments, falls under brand management.

Around 2010, the rise of e-commerce in China gave birth to a batch of outsourced operations companies. However, the gross margin rate and stability of outsourced operations are relatively low, and many outsourced operations companies that had accumulated operator experience in recent years have begun to seek a transformation into a deeper brand operations model.

Yuyu Chen is relatively fast in this process. Compared with peers, for example, Baozun’s e-commerce focuses mainly on acquiring brand operations businesses in China, while Qingmu Technology’s brand incubation mainly relies on China master agency and joint venture models.

And Yuyu Chen’s own-brand business is no different from that of a typical consumer goods company: it owns the global operating rights for its brands. At present, Yuyu Chen’s two main own-brand businesses are the home-care brand Zanjia (LYCOCELLE) and the oral anti-aging brand Feicui (FineNutri).

In 2025, Zanjia’s revenue increased year over year by 120.80% to 1.07B yuan, while Feicui surged from over 10 million yuan the previous year to 696 million yuan—its growth rate is even faster than Zanjia’s. Feicui only launched in September 2024, and within less than a year and a half it has already crossed the 500 million yuan milestone. This is related to the fact that Feicui has a higher average selling price: its online main products are mostly priced per bottle between 200 yuan and 600 yuan, and some products are priced even above 1,000 yuan.

Image source: Yuyu Chen

But if you look at Yuyu Chen by the standards of a fast-moving consumer goods company, it is still in its early stage.

At present, its revenue from own brands has not yet reached 2 billion yuan. Compared with domestic companies, in the local mid-to-high-end household chemical cosmetics segment, Blue Moon’s annual revenue has already exceeded 8 billion Hong Kong dollars. Li Yibai and Natures Sunshine are not listed (they target the mass market), but according to reports their annual operating revenue, or revenue, has both at times exceeded 30 billion yuan. In the health supplement sector, Chaozeng? (Tonsen Beyjian?) has seen revenue of more than 6 billion yuan in recent years, and previously it also surpassed 9 billion yuan.

For a company that started out with an outsourced operations business, quickly ramping up new brands through online channels is not difficult. But as the business scale expands, what becomes more demanding is whether the competitiveness of the products themselves is strong enough—whether they can attract consumers to keep repurchasing, and whether R&D and channel capabilities can keep up—so as to expand the business by building a richer product portfolio and channel layout, and establish a comprehensive brand system.

From Zanjia and Feicui, you can see their efforts to launch new products and expand channels, and this is largely also the key to their rapid growth.

For example, Zanjia’s product categories have expanded from laundry detergents and floor water, as well as clothing care and environmental cleaning products, to now including space fragrances. In 2025, the brand launched no-flame fragrances. In its financial report, Yuyu Chen also disclosed plans to extend Zanjia’s products into the personal care segment, launching new products such as hand soap and hand cream. Yuyu Chen told Interface News that Zanjia’s core positioning is the brand of a “mid-to-high-end fragrance home lifestyle,” and its category expansion is also developed around this positioning.

Feicui, which launched only a bit more than a year ago, is also increasing product variety. The number of SKUs increased from 6 in Q1 2025 to 11 by the end of 2025. In addition to e.g., ergothioneine as a core ingredient, Feicui is also introducing new ingredients such as ruby oil, NAD+, AKK bacteria, and shark peptide, among others.

However, it is worth mentioning that for Feicui, keeping high growth during the customer acquisition stage is not difficult, but in the long run performance still needs support from repurchases to drive growth—especially considering that oral supplements typically do not have immediate results, so the repurchase rate is a key focus. The brand has not yet disclosed data such as its repurchase rate or the proportion of repeat customers. But Yuyu Chen told Interface News that Feicui’s core single product, the anti-aging small purple bottle, has long ranked TOP 1 across three lists on Tmall—ergothioneine sales, repurchase, and positive reviews—making user retention and repurchase contributions stand out.

Yuyu Chen told Interface News that in 2026, Feicui will balance two driving forces: “acquiring new customers + deepening repurchase.” In addition to further refining operations on existing platforms to increase value per customer, it will also focus on the JD.com platform to fill out the male customer segment, while simultaneously expanding offline channels, with a focus on entering retail chains such as Watsons and Mannings.

Image source: Yuyu Chen

As for offline channels, this is Yuyu Chen’s relative weakness, and the clear gap between it and some long-established fast-moving consumer goods companies.

Zanjia, which started earlier than Feicui, has already been developing the offline market. In its financial report, Yuyu Chen mentioned that besides supermarkets and CS channels such as Sam’s Club, Yonghui, and KKV, Zanjia is also piloting and planning the layout of emerging channels such as Meituan Buy and Eat?

Although Zanjia’s mid-to-high-end positioning means its offline channels are unlikely to penetrate widely through distribution models layer by layer like some mass brands, but based on existing channels, there is still room to deepen cooperation in Zanjia’s offline channels.

For example, Interface News searched in Sam’s Club’s Shenzhen store and found that currently the Zanjia products on the shelves only include two SKUs: underwear laundry detergent and camphorwood strips. Zanjia’s flagship product, fragrance laundry detergent, has not yet entered Sam’s Club. The laundry detergent brands currently available at Sam’s Club mainly include Sam’s Club’s own brand, as well as established foreign brands such as Tide by Procter & Gamble, Wolume and Wuli? KA like?

In addition, for fast-moving consumer goods companies that have reached a certain scale, having inventory management capabilities for a large number of SKUs and efficient working capital turnover is also something Yuyu Chen needs to keep learning.

By the end of 2025, Yuyu Chen’s inventory reached 462 million yuan, up 104% year over year. For comparison, Chaozeng? (Tonsen Beyjian?) had inventory of 685 million yuan by the end of 2025. As of the time of this release, Blue Moon has not disclosed its 2025 performance, but you can refer to its inventory of 488 million Hong Kong dollars as of the end of 2024.

Yuyu Chen responded to Interface News that facing inventory management pressure driven by the increase in new products and channel expansion, the company mainly ensures healthy inventory through two major processes: procurement plan control and warehousing and storage management control. In addition, the company has also built an operational system based on an AI-enabled digital operations middle platform, using a flexible supply chain as the backbone and end-to-end quality control as the core.

Related to the increase in inventory, Yuyu Chen’s net cash flow from operating activities in 2025 declined 54.51% year over year to 152 million yuan, and in the third quarter it even turned negative for a time. Yuyu Chen explained in its financial report that the main reasons for the decrease in net operating cash flow were an increase in inventory stocking and promotion-related prepaid expenses.

Yuyu Chen told Interface News that these expenditures mainly go to the high-growth own-brand and brand management businesses, “which is normal phased investment during the period of scale expansion.” On one hand, Yuyu Chen has increased the amount of distributor pre-stocking for newly added partner brands; on the other hand, as sales of its own brands increase, safety stock and promotion prepayments also rise accordingly.

These investments also caused Yuyu Chen to take on more debt. By the end of 2025, Yuyu Chen’s short-term borrowings rose 142% year over year to 664 million yuan, mainly due to an increase in bank loans. For comparison, Chaozeng? (Tonsen Beyjian?) had short-term borrowings of 948 million yuan by the end of 2025.