Guoquan Food (Shanghai) (2517) investor relations material

Executive summary

• H1 2026 revenue rose 21.8% YoY to RMB3,946.9m; net profit increased 12.1% to RMB213.2m, while net margin eased to 5.4% from 5.9%.

• Core operating profit, adjusted for RMB11.8m of litigation compensation, was RMB225.0m, up 18.3% YoY; core operating margin was 5.7%.

• Store count reached 12,198, up from 10,400 a year earlier; the network remained 99.9% franchised.

• Growth strategy centered on community stores, omnichannel sales, wider meal occasions, franchisee support and supply-chain integration.

Financial highlights

• Revenue increased 21.8% YoY to RMB3,946.9m; meal products and related products contributed RMB3,848.7m, up 22.0%.

• Gross profit rose 18.3% to RMB848.6m; gross margin was 21.5% versus 22.1% a year earlier, but improved from 21.2% in H2 2025.

• Profit before tax increased 10.2% to RMB280.2m; net profit rose 12.1% to RMB213.2m, including RMB211.2m attributable to owners.

• Basic and diluted EPS were RMB0.0807 versus RMB0.0684 in H1 2025; EPS increased 18.0% YoY.

• Selling and distribution expenses rose 24.6% to RMB383.7m and administrative expenses increased 17.7% to RMB245.7m, reflecting expansion, remodeling and higher staffing costs.

Outlook and guidance

• FY2026 store count is expected to exceed 13,100, with net additions above 1,534; H2 openings are expected to favor large-format stores and closure rate to remain below 4%.

• Store efficiency is expected to achieve high-single-digit growth, registered members to exceed 95m, and full-year core operating profit to grow steadily.

• Priorities include expanding county, township and rural markets; upgrading community stores; developing camping and stir-fry formats; and deepening online-to-offline conversion.

• Product plans span more meal occasions and categories, regional assortments, and AI-enabled membership and supply-chain management.

• Overseas expansion is planned in phases, starting with pilot store operations in Hong Kong.