Guo Quan (2517.HK) Core Operating Profit Soars, Four Stores Simultaneously Launched to Drive Long-term Growth

Guoquan ($GUOQUAN(2517.HK)) Core Operating Profit Soars, Four Store Formats Drive Long-Term Growth

Recently, Guoquan Food (Shanghai) Co., Ltd. (Stock Code: $GUOQUAN(2517.HK), hereinafter referred to as "Guoquan") released its annual results announcement for the year ended December 31, 2025, showcasing its growth resilience in the community dining retail sector with a stunning annual report card.

The announcement shows that Guoquan not only achieved steady growth in revenue but also unleashed strong explosive power in profitability. Amid the wave of structural changes in the consumer market, Guoquan closely adhered to its core strategy of "Community Central Kitchen," leveraging precise penetration of lower-tier markets, intelligent upgrades of its store network, and the deepening of its "Single Product, Single Factory" supply chain strategy. It successfully transformed scale advantages into profit advantages, delivering a high-quality growth report to shareholders.

Core Financial Indicators Lead, Profitability Quality Significantly Improves

In 2025, Guoquan achieved synergistic growth in scale and efficiency, with financial performance exceeding market expectations. The announcement data shows that for the year ended December 31, 2025, the company achieved total revenue of RMB 7.810 billion, a year-on-year increase of 20.7%; net profit reached RMB 454 million, a sharp year-on-year surge of 88.2%, achieving near-doubling leapfrog growth. Core operating profit (a non-IFRS measure) after excluding non-recurring items reached RMB 461 million, a year-on-year increase of 48.2%, with growth rate significantly higher than revenue growth, indicating continuous optimization of profit efficiency; the core operating profit margin rose to 5.9%, further improving compared to 2024.

In terms of profitability, the company maintained a stable overall gross profit margin of 21.6%, with significant results in operating expense control. The growth rates of sales and distribution expenses and administrative expenses were both lower than revenue growth, indicating the continuous release of scale effects. Furthermore, the Board proposed a final dividend for 2025 of RMB 0.0381 per share (tax inclusive). Throughout the year, the company achieved total shareholder returns of approximately RMB 570 million through dividends and share repurchases.

Store Network Grows in Both Quantity and Quality, Driven by Lower-Tier Markets and Intelligentization

In 2025, Guoquan continued to solidify its foundation of ten thousand stores, achieving breakthroughs in both store scale and operational quality. As of December 31, 2025, the total number of stores increased to 11,566, with a net addition of 1,416 stores for the year, covering 31 provinces, autonomous regions, and municipalities directly under the central government. The network structure dominated by the franchise model remained stable, with a mature and efficient operational system.

As the core growth engine, the company precisely grasped the consumption demands of county and township markets. In 2025, it added a net 1,004 township stores, bringing the total number of township stores to 3,010 by year-end, accounting for 26.0% of the total store count. Through differentiated designs in product structure and store displays, township stores perfectly matched the consumption characteristics of lower-tier markets, becoming a crucial support for performance growth. Simultaneously, the company accelerated the intelligent upgrade of stores, completing the intelligent and unmanned transformation of over 3,000 retail stores in 2025, and launched 24-hour unmanned retail stores, extending operating hours and covering diverse consumption scenarios, comprehensively enhancing store operational efficiency and consumer service capabilities.

Omni-Channel Operations Improve Efficiency, Member Ecosystem Value Becomes Prominent

Guoquan built an integrated online and offline instant retail network, creating the "Guoquan Flash Sale" convenient consumption system, continuously enhancing omni-channel conversion capabilities. The performance of online social e-commerce channels was outstanding. Through a multi-tiered Douyin account matrix, the company achieved over 9.41 billion platform exposures for the year, with Douyin channel GMV reaching RMB 1.49 billion, a year-on-year increase of 75.3%.

The membership system construction reached a new level. By the end of 2025, the number of registered members reached 64.9 million, a year-on-year increase of 57.1%. The prepaid card plan launched around the member ecosystem achieved significant results, with annual prepaid card deposits reaching RMB 1.20 billion, a year-on-year increase of 22.3%. The vast, highly engaged member base provides a solid foundation for stable store traffic and precise marketing.

Product and Supply Chain Drive Growth in Tandem, Fortifying Core Competitive Barriers

Adhering to the product philosophy of "Delicious, Convenient, and Affordable," Guoquan continued to enrich its product matrix in 2025, launching 282 new hot pot and barbecue SKUs throughout the year. It iterated and upgraded scenario-based products such as barbecue camping container sets, crayfish enjoyment sets, and six national hot pot sets, and added beverages like NFC juice and craft beer to meet consumers' diverse needs for four meals a day.

Industrial layout continued to deepen, with the "Single Product, Single Factory" strategy showing significant results. During the reporting period, the company owned 7 major ingredient production factories, covering core categories such as seasonings, meatballs and seafood products, and beef, forming a comprehensive production capacity matrix. The Danzhou food production base in Hainan officially commenced construction, further optimizing the supply chain radiation radius. The integrated production-supply-sales closed-loop construction significantly enhanced the company's upstream procurement bargaining power and cost control level, building an impregnable supply chain barrier.

Innovative Business Models Land, 2026 "Four Store Formats Launch Together" Charts a New Blueprint

In 2025, Guoquan actively explored new consumption scenarios. Innovative business models such as Guoquan Stir-fry and Guoquan Camping were successively launched, driving business expansion from ingredient retail to prepared food and outdoor social fields, opening up new growth curves.

Looking ahead to 2026, the company will focus on the coordinated development of four store formats: Township Large Stores, Community Large Stores, Guoquan Stir-fry, and Guoquan Camping. It will continue to deepen its presence in lower-tier markets, upgrade community stores, and expand innovative scenarios. The company has set clear operational targets for 2026: total store count to exceed 14,500, with a net addition of over 2,934 stores, and a store closure rate controlled below 4%; registered member count to exceed 95 million; core operating profit growth rate to be significantly higher than revenue growth rate.