Guoquan Food (Shanghai) (2517) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 20.7% YoY to RMB7,810.0m; net profit increased 88.2% to RMB453.9m and core operating profit rose 48.2% to RMB460.7m.

• Store expansion, broader products and increased sales through channels beyond franchisees supported growth; gross margin eased 0.3 percentage points to 21.6%.

Financial highlights

• Revenue was RMB7,810.0m, up 20.7% YoY; gross profit rose 19.0% to RMB1,686.6m.

• Profit before tax increased 88.0% to RMB600.7m; net profit rose 88.2% to RMB453.9m, with net margin up to 5.8% from 3.7%.

• Profit attributable to owners was RMB432.9m; basic and diluted EPS was RMB0.1630, up 93.8% YoY.

• Other income and gains, net increased to RMB93.7m from RMB26.1m, partly reflecting the absence of the prior-year Dmall fair-value loss in profit or loss.

Outlook and guidance

• 2026 targets: more than 14,500 stores, net additions exceeding 2,934, store closure rate below 4%, and high-single-digit growth in store efficiency.

• Registered members targeted to exceed 95m; core operating profit growth is targeted to be significantly higher than revenue growth.

• Plans include expanding county and township coverage, developing larger community stores and new formats, broadening meal and beverage products, and exploring overseas markets, initially including Hong Kong.