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GUOQUAN FOOD (2517.HK) Surging core operating profit, Four Stores Jointly Advancing with Concerted Efforts for Long-Term Growth

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HONG KONG, Mar 17, 2026 - (ACN Newswire) - Guoquan Food (Shanghai) Co., Ltd. (Stock Code: 2517.HK, “Guoquan”) recently released its annual results for the year ended December 31, 2025. The company delivered a stellar performance, showcasing remarkable growth resilience within the community catering retail sector.

The announcement reveals that while maintaining steady revenue growth, Guoquan has demonstrated a powerful surge in profitability. By adhering to its “community central kitchen” strategy, Guoquan has successfully converted its scale into a profit advantage through deep penetration of lower-tier markets, smart store upgrades, and the “one-product-one-factory” supply chain model.

Strong Financial Performance Driven by Substantial Improvements in Earnings Quality

In 2025, Guoquan achieved synchronized growth in scale and efficiency, with financial performance exceeding market expectations. According to the annual results, for the year ended December 31, 2025, the company recorded total revenue of RMB 7.81 billion, a year-on-year (YoY) increase of 20.7%. Net profit reached RMB 454 million, representing a stunning YoY surge of 88.2%, marking a major milestone in the company’s profitability. The core operating profit (Non-IFRS measure), which excludes non-recurring items, amounted to RMB 461 million, representing a year-on-year increase of 48.2%. Notably, the profit growth rate significantly outpaced revenue growth, reflecting continuous optimization of earning efficiency. The core operating profit margin rose to 5.9%, further improving from 2024.

In terms of profitability, the company maintained a stable gross margin of 21.6%. Cost control initiatives yielded significant results, as the growth rates of selling, distribution, and administrative expenses remained below the rate of revenue growth, allowing for the continuous release of economies of scale. Furthermore, the Board has proposed a final dividend of RMB 0.0381 per share (tax inclusive) for 2025. Total shareholder return via dividends and share repurchases for the full year amounted to approximately RMB 570 million.

Elevating Network Scale and Quality Through Lower-tier Market Penetration and Intelligent Evolution

In 2025, Guoquan further solidified its foundation as a ten-thousand-store enterprise, achieving dual breakthroughs in network scale and operational quality. As of December 31, 2025, the total store count rose to 11,566, with a net addition of 1,416 stores across 31 provinces, autonomous regions and municipalities. The franchise-led network structure remained stable, supported by a mature and highly efficient operational system.

Lower-tier markets functioned as a pivotal growth driver as the company accurately addressed consumption needs across counties and townships. In 2025, Guoquan achieved a net addition of 1,004 township stores, bringing the year-end total to 3,010 and representing 26.0% of the entire network. These township outlets have become a vital pillar of revenue growth by leveraging tailored product assortments and differentiated merchandising that align perfectly with the consumption patterns of lower-tier markets. Meanwhile, the company fast-tracked its intelligent transformation by completing smart and unmanned upgrades for over 3,000 retail stores during the year. The rollout of 24-hour unmanned outlets has successfully extended operating hours and reached a wider range of consumption scenarios, leading to a comprehensive elevation in both operational efficiency and service delivery.

Enhancing Omni-channel Operations to Maximize Membership Ecosystem

Guoquan has built an instant retail network through the deep integration of online and offline channels, establishing the “Guoquan Instant Commerce” system to consistently enhance omni-channel conversion capabilities. The company’s social media and e-commerce performance was particularly strong, leveraging a multi-tiered TikTok (Douyin) account matrix to achieve over 9.41 billion platform exposures. This digital momentum drove store-level GMV on TikTok (Douyin) to RMB 1.49 billion, representing a significant year-on-year increase of 75.3%.

The membership ecosystem reached a new milestone as registered members surged to 64.9 million by the end of 2025, up 57.1% year-on-year. The prepaid card program within this ecosystem yielded substantial results, with the year-end prepaid card balance reaching RMB 1.20 billion, a 22.3% increase from the previous year. This vast and highly engaged member base provides a robust foundation for maintaining stable store traffic and executing precision marketing strategies.

Fortifying Competitive Moats through Integrated Product and Supply Chain Excellence

Guided by its core product philosophy of “tasty, convenient and value-for-money”, Guoquan continued to diversify its product matrix in 2025 by launching 282 new SKUs in the hotpot and barbecue categories. The company upgraded its scenario-based offerings, including “Barbecue Camping Container Set”, “Crayfish Feast Set”, and “Six Popular Hot Pot Sets”, while expanding into the beverage segment with NFC fruit juices and craft beers to satisfy diverse consumer needs across all four daily meal occasions.

The company also deepened its industrial footprint as the “one-product-one-factory” strategy yielded significant results. During the reporting period, Guoquan operated seven major food production facilities covering core categories such as seasonings, paste and aquatic products, and beef, creating a comprehensive production capacity matrix. The commencement of the Hainan Danzhou food production base further optimized the company’s supply chain radius. This integrated “production-supply-retail” closed-loop system has substantially enhanced upstream bargaining power and cost control, establishing an impenetrable supply chain moat.

Scaling Innovative Formats and Unveiling the 2026 Four Stores Strategic Blueprint

In 2025, Guoquan actively explored new consumption scenarios with the successful rollout of innovative formats such as Guoquan Stir-fry and Guoquan Camping. These ventures have successfully extended the business from ingredient retail into freshly prepared meals and outdoor social dining, effectively unlocking a new growth curve for the company.

Looking ahead to 2026, the company will focus on the synergistic development of four stores jointly advancing with concerted efforts—county and rural markets, community stores, Guoquan Stir-fry, and Guoquan Camping—to further penetrate lower-tier markets, upgrade community outlets, and expand innovative scenarios. Guoquan has set clear operational targets for 2026: total store count to exceed 14,500 with a net addition of over 2,934 outlets; maintaining a closure rate below 4%; expanding the registered member base to over 95 million; and ensuring that core operating profit growth significantly outpaces revenue growth.




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