Xiaocaiyuan International Holding (999) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 2.6% YoY to RMB5,345.1m; net profit increased 23.2% to RMB715.1m, with 146 net new stores and 819 stores at year-end.

• Expansion and stronger cost control supported profitability, while same-store sales declined 9.4% as delivery strategy shifted toward dine-in experience and more competitive menu pricing.

Financial highlights

• Revenue was RMB5,345.1m versus RMB5,209.9m in 2024; gross profit was RMB3,763m and gross margin 70.4%.

• Profit before tax increased to RMB985.6m from RMB771.3m; income tax rose to RMB270.5m from RMB190.6m, and net profit reached RMB715.1m versus RMB580.6m.

• Adjusted net profit was RMB715.1m versus RMB586.2m; adjusted EBITDA was RMB1,207.7m versus RMB968.9m.

• Raw material costs fell 4.7% to RMB1,582.2m; cost as a share of revenue declined to 29.6% from 31.9%. Staff costs fell 3.4% to RMB1,373.4m.

• Operating cash flow rose to RMB1,162.2m from RMB902.9m; cash and cash equivalents were RMB297.8m at year-end versus RMB616.7m.

Outlook and guidance

• Priorities include steady mainland store expansion, stronger product quality and food safety, menu and technology innovation, and deeper customer loyalty through value and service.

• The Ma'anshan central factory was progressing to plan, with commissioning expected in H1 2026 to strengthen standardized supply, quality control and cost advantages.

• Hong Kong is planned as the first overseas market; new retail formats will also be explored to diversify revenue and improve resilience.

• Digital upgrades in 2026 will link front-end operations, management and supply chain data to improve issue resolution, gross profit control and coordination.