Guangzhou Xiao Noodles Catering Management Co., Ltd. (Xiao Noodles) released its audited results for the year ended 31 December 2025, highlighting robust top-line growth, sharp profit expansion and a rapidly widening store network.

Revenue and Profitability • Revenue climbed 40.5 % year on year to RMB1.62 billion, driven by continued restaurant expansion and stronger delivery sales.

• Net profit attributable to shareholders rose 74.8 % to RMB106.12 million, while adjusted net profit more than doubled to RMB135.35 million, lifting the adjusted net margin by 2.8 percentage points to 8.3 %.

• Cost ratios improved across key items: raw materials and consumables fell to 32.4 % of revenue (-1.9 ppts), staff costs to 21.9 % (-1.1 ppts) and rental expenses to 17.0 % (-1.2 ppts).

Segment Performance • Self-operated restaurants contributed 89.4 % of total revenue, rising 44.9 % to RMB1.45 billion. Delivery revenue share expanded from 15.6 % to 23.3 %.

• Franchise management revenue grew 12.3 % to RMB171.32 million, though its share of group turnover eased to 10.5 %.

Store Network and Operations • Total restaurants increased 39.7 % to 503 units (411 self-operated, 92 franchised). The company opened 156 new outlets and closed 13 underperforming sites.

• Same-store sales returned to growth, up 1.0 %, reversing a 4.2 % decline in 2024. Average daily orders per same store rose to 432 from 393.

• Average ticket size moderated to RMB29.9 at self-operated restaurants (2024: RMB32.1) as the group adopted a value-driven pricing strategy.

Balance Sheet and Cash Flow • Cash and cash equivalents surged to RMB676.54 million (2024: RMB42.19 million) on the back of HKD617.0 million in IPO proceeds raised in December 2025. All bank loans were repaid, cutting the gearing ratio to zero.

• Lease liabilities rose 28.2 % to RMB942.11 million, reflecting network expansion. The current ratio improved to 1.56 (2024: 0.51), while the liabilities-to-assets ratio fell to 60.5 % (2024: 89.9 %).

Capital Allocation • The board proposes a final dividend of RMB0.03 per share, following an interim dividend of RMB0.06 per share paid in 2025.

• Shareholders approved an H-share repurchase mandate of up to HKD100 million; HKD17.30 million had been utilised by 28 February 2026.

Growth Outlook • Management targets opening 150–180 new restaurants in 2026; 20 have already launched and 76 are in pre-opening stages as of 28 February 2026.

• Planned use of IPO proceeds (HKD617.0 million) focuses on store expansion (60 %), IT upgrades (10 %), brand-building (10 %), upstream investments (10 %) and general corporate purposes (10 %), with deployment scheduled through 2028.

Other Highlights • Inventory turnover improved to 20 days (2024: 23 days). Trade payable days held steady at 45.

• No material contingent liabilities or asset pledges were reported.

• The company employed 2,063 staff plus 4,370 outsourced workers at year-end 2025; staff costs rose 34.3 % to RMB356.0 million.

Xiao Noodles’ 2025 performance underscores its aggressive expansion strategy and operational efficiencies, positioning the group for continued growth as it accelerates its 2026 restaurant rollout plan.