Offshore Trust Insight | WL DELICIOUS (09985.HK) Down 0.56% Intraday; Liu Brothers Hold 78.33% via Two Offshore Trusts

On November 9, 2026, snack food and spicy snack themes traded divergently, and WL DELICIOUS (09985.HK) weakened. As of 14:01, the stock was quoted at HKD 7.125, down 0.56%, with a turnover of about HKD 6.88 million and a market capitalisation of about HKD 17.316 billion based on the latest price.

On the news front, on August 13, 2026, WL DELICIOUS announced its interim results and declared an interim dividend of RMB 0.19 per share and a special dividend of RMB 0.09 per share, totalling RMB 0.28 per share and about RMB 680 million, representing a payout ratio of about 90%; the company also published a shareholder return plan for 2026 to 2028, under which cash dividends each year will be no less than 80% of net profit attributable to shareholders. On November 3, the company announced a change of chief executive, with Liu Fuping stepping down as CEO to become co-vice chairman and former chief financial officer Yu Feng succeeding him as CEO and co-vice chairman.

It is understood that WL DELICIOUS listed on the Main Board of HKEX on December 15, 2022 at an offer price of HKD 10.560, offering 96.397 million shares globally and raising net proceeds of about HKD 899 million; the Hong Kong public offering was about 15.3 times subscribed and the international offering about 2.6 times, with three cornerstone investors — Media Global under Focus Media, Sunshine Life Insurance and Prospect Bridge — together subscribing 56.59% of the global offering. On its first trading day, the stock opened at HKD 10.200 and closed at HKD 10.020, down 5.11% from the offer price. Based on the latest disclosure, the company has 2,430,337,978 issued shares.

In terms of shareholding structure, according to the company's 2026 interim report, the brothers Liu Weiping and Liu Fuping hold a total of 1,904,243,183 shares through trusts and associated companies, representing 78.33% of the issued shares, and are the controlling shareholders, with HH Global Capital Limited as the direct holding entity. The remaining shareholding is relatively dispersed, with Vanguard holding 22,235,200 shares, or 0.91%, and China Southern Asset Management holding 15,784,000 shares, or 0.65%.

It is understood that the company's shareholding structure also involves offshore family trusts. According to the company's 2026 interim report and the HKEX disclosure of interests platform, Liu Weiping and Liu Fuping hold the controlling entity HH Global Capital Limited through The Integrity Trust and The He He Trust, with The Core Trust Company Limited and its BVI entity TCT (BVI) Limited as trustees; the holding chain runs trust → TCT (BVI) Limited (trustee) → Adroit Fairy Limited → Amused Town Limited → HH Global Capital Limited → the company's shares, corresponding to 1,904,243,183 shares, or 78.33% of the issued shares, with Liu Weiping and Liu Fuping as trust beneficiaries. The settlors, protectors and establishment dates of the trusts have not been disclosed.

Regarding offshore trusts, on July 24, 2026, the Ministry of Finance and the State Taxation Administration jointly issued the Announcement on Matters Concerning Individual Income Tax on Offshore Trusts (Announcement No. 21 of 2026), bringing the entire life cycle of an offshore trust — establishment, existence and termination — into the individual income tax administration system, establishing three look-through points of establishment, existence and termination with a uniform 20% tax rate. The announcement specifies that during the existence of an offshore trust, income generated by an individual resident's offshore trust and by overseas entities held or controlled by that trust, whether actually distributed or not, is taxable to that individual resident, who must file and pay individual income tax on an annual basis. Article 6 of the announcement specifies that where, during the existence of an offshore trust of an individual resident, the individual resident becomes a non-resident individual, the taxable income is the balance after deducting the original value from the market value of the offshore trust's property on the day the individual becomes a non-resident, and individual income tax must be filed and paid. The 90-day supplementary filing window set by the announcement runs from July 24, 2026.

On the operating side, in the first half of 2026, WL DELICIOUS recorded revenue of RMB 3.715 billion, up 6.7% year on year; gross profit of RMB 1.776 billion, up 8.1%, with a gross margin of 47.8%, up 0.6 percentage points; and net profit of RMB 766 million, up 4.0%, with a net margin of 20.6%. By category, vegetable products revenue reached RMB 2.441 billion, up 15.8%, rising to 65.7% of total revenue, while seasoned flour products revenue fell 9.8% to RMB 1.181 billion, accounting for 31.8%. By channel, offline revenue was RMB 3.232 billion, up 2.7% and accounting for 87.0%; online revenue was RMB 483 million, up 43.8%; and overseas revenue was about RMB 59 million, up 10.3% and accounting for about 1.59%. As at June 30, the company worked with 1,637 offline distributors.

CICC noted in a research report that WL DELICIOUS mainly offsets rising konjac raw material costs through supply chain efficiency improvements and production staff optimisation, and that administrative expenses still have room for optimisation, keeping pressure on the net margin manageable; the broker expects revenue growth in the second half to be similar to the first half, with profit improving as the high base pressure eases.