Guoquan Food (Shanghai) (2517) H1 2025 earnings summary

Executive summary

• H1 2025 revenue rose 21.6% YoY to RMB3,239.7m; net profit increased 122.5% to RMB190.2m, lifting net margin to 5.9%.

• Growth was supported by meal-product sales, store expansion, broader channels and stronger online-to-offline engagement.

• Core operating profit, adjusted for fair-value changes on unlisted convertible redeemable preferred shares, rose 52.3% to RMB190.2m.

Financial highlights

• Revenue increased 21.6% to RMB3,239.7m; meal products and related products contributed RMB3,155.4m, up 22.0%.

• Gross profit rose 17.8% to RMB717.4m; gross margin eased to 22.1% from 22.8%.

• Profit before tax increased 119.6% to RMB254.3m; net profit rose 122.5% to RMB190.2m. Basic and diluted EPS were RMB0.0684.

• Selling and distribution expenses rose 2.0% to RMB308.0m; administrative expenses fell 5.5% to RMB208.8m. Other income and gains, net increased 93.2% to RMB60.1m.

• Operating cash flow was an outflow of RMB29.0m, versus an inflow of RMB170.0m in H1 2024.

Outlook and guidance

• Expand the store network in towns and counties, deepen regional penetration, and continue franchisee training and store-management improvements.

• Broaden at-home dining occasions with Chinese and Western cuisine, beverages, ice cream and late-night snacks, with differentiated county and township offerings.

• Grow membership and online sales; develop the “one shop, one store and one warehouse” model and intelligent, unmanned 24/7 retail.

• Deepen one-product-one-factory capabilities, invest in R&D, explore corporate sales channels and selectively assess overseas markets.