On April 14, GUOQUAN Food (Shanghai) Co., Ltd. released an operational update for the first quarter of 2026. The announcement indicates that during the reporting period, the company expects to achieve total revenue of approximately 22 to 23 billion yuan, representing a year-on-year increase of about 31.3% to 37.2%. Core operating profit is projected to be between 1.85 and 2.05 billion yuan, marking a significant year-on-year growth of approximately 45.3% to 61.0%.
Regarding store expansion, GUOQUAN added a net 192 new stores in the first quarter, bringing the total store count to 11,758 by the end of March 2026. Among these, 113 were net new stores in township markets, increasing the total number of stores in these areas to 3,123. The steady pace of store openings and the continuous expansion of the store network have laid a solid foundation for the development of GUOQUAN's flash sale business and its overall annual growth.
The first-quarter performance demonstrates that GUOQUAN has maintained positive momentum in store expansion, revenue growth, and core operating profit growth. This aligns with the full-year operational direction and growth guidance presented by the company during its March earnings conference. The company had previously stated that for 2026, it would continue to expand its store network, improve store efficiency, and aim for core operating profit growth to significantly outpace revenue growth. The first-quarter results show steady progress in store expansion, rapid revenue growth, and profit growth continuing to exceed revenue growth, indicating the successful implementation of these operational strategies.
Since the beginning of the year, GUOQUAN has consistently advanced its operational upgrades centered around the theme of "innovation." Organizational initiatives have been a key driver of the business growth in the first quarter. The company has continued its organizational restructuring and evolution focused on regionalized operations, further enhancing the operational capabilities and execution efficiency of its frontline teams. This provides stronger organizational support for store expansion, performance improvement of existing stores, and multi-scenario operations.
Concurrently with ongoing organizational optimization, AI tools are being rapidly deployed to empower the entire operational chain. GUOQUAN is promoting the application of digital and intelligent tools in key areas such as marketing, site selection, 24-hour store operations, and individual staff training. This further boosts store operational efficiency and frontline execution capabilities. The combination of AI empowerment and organizational adjustments is becoming a crucial method for the company to enhance operational efficiency and leverage the advantages of its ten-thousand-store network.
Focusing on improving store efficiency and upgrading its business model, GUOQUAN's large-store transformation continues to yield positive results. The company is persistently upgrading its stores from traditional shelf-based operations to community consumption hubs with greater capacity for handling diverse scenarios. According to the company's previously disclosed strategy, community flagship stores offer stronger capabilities in terms of product variety, extended consumption scenarios, and coverage of daily family meal times. The number of SKUs can increase from about 300 to approximately 600, with additional categories such as beverages and breakfast items being introduced. As this model is progressively implemented, the large-store transformation is gradually shifting the focus from "scale of ten thousand stores" to "quality of ten thousand stores," supporting the rapid performance growth of existing stores.
As an important business vehicle that integrates online and offline operations, GUOQUAN's flash sale service is continuously unlocking the fulfillment value and service advantages of its store network. Leveraging its extensive store network and integrated store-warehouse model, GUOQUAN is strengthening its multi-channel, multi-scenario layout. Through diverse packaged product combinations and more efficient online-to-offline coordination, the company is further enhancing user reach efficiency, order handling capacity, and fulfillment efficiency. The network advantage of stores being "close to consumers and close to home kitchens" is rapidly translating into faster, higher-frequency, and more efficient service capabilities.
Looking ahead to the full year, large-store transformation, organizational initiatives, and AI empowerment will continue to be the key drivers for the development of GUOQUAN's flash sale business. As the "Community Central Kitchen" strategy is steadily implemented, GUOQUAN's comprehensive capabilities in the home meal consumption and community retail service sectors are expected to strengthen further, laying a more solid foundation for the company's annual business growth.