Wallace Announces Delisting, Trending Online: Exit from Capital Market, Store Operations Unaffected

On March 11th, Wallace officially announced delisting, and the related topic quickly became a trending search on the internet, rising to the top ranks. As of the time of publication, the topic ranked fourth on the hot search list, with discussion heat continuing to increase, attracting widespread attention.

According to reports, after nearly ten years of listing on the New Third Board, Wallace, known as the king of Western fast food, has officially bid farewell to the capital market. Currently, facing ongoing challenges from emerging restaurant brands like Tustin and the reality of slowing performance growth, Wallace is at a new development crossroads, trying to find new breakthroughs amid fierce industry competition.

Public information shows that Fujian Wallace Food Co., Ltd. was established in August 2009 and listed on the New Third Board in April 2016. The company’s main business is providing pre-packaged foods and related equipment to Wallace brand stores, serving as an important supply-side enterprise within the Wallace restaurant system.

Looking at the brand development history, Wallace was founded by the well-known industry brothers, the Hua brothers. In 2001, Hua Huaiyu and Hua Huaijing opened their first store domestically, entering the market with ultra-low prices—Coke at 1 yuan, chicken legs at 2 yuan, and hamburgers at 3 yuan—quickly gaining popularity in lower-tier markets due to their excellent value for money, attracting many consumers.

Building on this, Wallace expanded rapidly through store crowdfunding, employee partnerships, and unified management models. By 2022, the number of stores nationwide had exceeded 20,000, making it one of the larger chain fast-food brands in China. However, as expansion slowed and brand growth plateaued, some operational and management concerns began to emerge.

From operational data, Wallace Food disclosed in its 2025 semi-annual report that in the first half of the year, the company achieved an operating revenue of 4.625 billion yuan, a slight decrease of 0.49% year-on-year; net profit attributable to the parent company was 1.22 billion yuan, up 35.32% year-on-year. Overall, although revenue growth faced pressure, the company maintained relatively stable profitability.

On February 12th of this year, Wallace Food officially ceased listing on the New Third Board. Regarding the delisting, the company explained in its announcement that it was a prudent decision made after comprehensive assessment of current operations, market environment, and long-term development strategy. By exiting the listing, the company aims to improve decision-making efficiency, reduce operational costs, and gain greater flexibility for future development.

It is worth noting that during dissemination, some netizens misunderstood the delisting news as Wallace brand withdrawing from the market, with some worried they would no longer be able to buy affordable products. It should be clarified that Wallace Food’s delisting only means a temporary withdrawal from the capital market; it does not involve store closures or business cessation, and will not directly affect consumers’ daily purchasing behavior.

Wallace Food also previously stated that after completing the delisting, the company will continue to focus on its main business, strengthen internal management, and improve overall market competitiveness and sustainable operation levels. The normal operation of the Wallace brand will continue.

In response to industry competition, Wallace is also exploring new business avenues. Earlier this year, the brand launched a product called WA Coffee Monthly Card. Consumers only need to pay 9.9 yuan to exchange for a classic American coffee every two hours within 30 days via a mini-program. According to the rules, the maximum exchangeable cups in a month can reach 210, with the cost per cup less than 0.05 yuan.

This move is seen as a significant signal that Wallace is officially entering the domestic coffee market. By offering extremely competitive prices to attract nearby coffee consumers, it aims to drive cross-sales of other products within stores. Whether Wallace can open new growth space beyond fast food remains to be further observed by the market.