Cash Out Another 190 Million Yuan! Performance Declining, HuanLe Home's Actual Controller Busy Reducing Holdings

The concentrated sell-off by the family of the actual controller has raised market concerns about Happy Family’s future development. Currently, its performance has experienced a “plummeting” decline.

Recently, “the No. 1 A-share coconut juice company” Happy Family (300997.SZ) announced that its actual controller and chairman, Li Xing, transferred 10.9368 million shares through an inquiry-based transfer at a price of 17.34 yuan per share. The buyers were 17 institutional investors. Through this transaction, Li Xing cashed out approximately 190 million yuan, with all shares held being acquired before the company’s listing.

This is not the first time Li Xing and his concerted parties have reduced their holdings.

According to iFinD, since July 2025, Li Xing has reduced his shares in the company three consecutive times, cashing out a total of about 400 million yuan. At the end of last year, his wife, Zhu Wenzhan, also reduced 3.3092 million shares at 19.43 yuan per share, amounting to 64 million yuan. The reasons for these reductions have all been “personal funding needs.”

The concentrated sell-off by the actual controller’s family has caused market concerns about Happy Family’s future development. Currently, its performance has experienced a “catastrophic” decline.

According to the earnings forecast, the company expects net profit attributable to the parent company to be between 35 million and 50 million yuan in 2025, a year-on-year decrease of 66.07% to 76.25%. Compared with previous performance, this will be its worst annual report in nearly eight years, with profits halved for two consecutive years.

As the “No. 1 A-share coconut juice company,” Happy Family’s core products are coconut water and fruit canned goods, with the former contributing about 60% of total revenue. The company pointed out that one of the reasons for last year’s decline was the impact of a sluggish consumer environment and fierce industry competition, leading to a certain decrease in product sales.

In fact, according to data from multiple research institutions, the domestic coconut water market in 2025 is expected to reach about 16 billion yuan, with double-digit growth, outperforming most categories in the beverage industry.

The deeper reason why Happy Family has “underperformed” the industry mainly lies in insufficient product competitiveness and channel aging.

In the past, Happy Family’s competitors were only established coconut water brands like Coconut Tree and Special Forces. However, with the recent popularity of coconut water, it now also faces competition from imported brands like IF, as well as channels such as Hema and Yonghui. Market sales have slowed, and sales pressure has become significant.

Originally, when other coconut water brands launched low-price strategies at 1L/9.9 yuan, Happy Family chose to raise prices against the trend.

In mid-2022, Happy Family announced a 1%–8% increase in ex-factory prices for some products to offset rising raw material costs for coconuts. The market’s response to the price increase was swift. In the third quarter, the company’s revenue was 294 million yuan, a year-on-year decline of over 25%, marking the largest quarterly drop.

The bigger problem lies in distribution channels.

In the past, Happy Family achieved a very high offline shelf presence by offering discounts to distributors, especially in catering and wedding channels. However, in recent years, with the rise of community retail and convenience snack stores, the company has chosen to reduce rebates and tighten expenses for old distributors, focusing more resources on new channels.

Policy adjustments have made it difficult for many distributors to withstand the pressure, leading to their departure and affecting profitability.

According to financial reports, last year in the first half, Happy Family lost 511 distributors (dropping from 2,236 to 1,725), with distributor revenue decreasing by nearly 30% year-on-year.

Happy Family stated that the current layout of snack specialty chain channels and raw coconut material processing (coconut pulp) sales has shown initial results. However, these channels and businesses have relatively low gross margins and have not yet achieved scale effects, which impacts profits.

Reporter: Shui Furong

Editor: Zuo Yu