XIAOCAIYUAN (00999) saw its stock price surge by 5.44% in intraday trading, following the release of its impressive interim results for the first half of 2025. The company reported a significant 35.7% year-over-year increase in profit attributable to equity shareholders, reaching RMB382 million, while revenue climbed 6.5% to RMB2.714 billion.

The robust financial performance was primarily driven by the expansion of XIAOCAIYUAN's store network and growth in both dine-in and delivery segments. As of June 30, 2025, the company operated 672 stores, up from 617 in the same period last year. The dine-in business revenue increased by RMB35.5 million, while the delivery business saw a substantial rise of RMB128 million.

Looking ahead, XIAOCAIYUAN's management has outlined an ambitious growth strategy, focusing on enhancing product value and improving restaurant profitability. The company aims to maintain a dividend payout ratio of 50% to 60%, demonstrating its commitment to shareholder returns. Furthermore, XIAOCAIYUAN plans to accelerate its store expansion, targeting 800 stores by the end of 2025 and 1,000 stores by the end of 2026. This aggressive growth plan, coupled with the company's strong financial results, has bolstered investor confidence and contributed to the stock's impressive performance.