XIAOCAIYUAN (00999) rose over 5%. As of writing, the stock was up 4.43%, trading at HK$8.95, with a turnover of HK$24.3882 million.

According to a GF Securities research report, the company's official account indicated that by the end of 2025, the national store count had reached over 810, a net increase of more than 143 stores compared to the end of 2024, with H1 and H2 net additions of 5 and over 138 stores respectively, showing a clear acceleration in the second half.

Furthermore, the company targets to achieve a goal of 1,000 stores in 2026, representing a net increase of nearly 200 stores from the end of 2025, with store growth rates for both 2025 and 2026 around 23% (calculated based on the average number of stores at the beginning and end of the period).

The report suggests that the company's proactive price reduction on core menu items by the end of 2025 holds strong strategic significance, making its value-for-money advantage more prominent and potentially continuing to push the expansion limits for full-service Chinese restaurants.

Huatai Securities noted that XIAOCAIYUAN is strengthening its core "delicious yet affordable" competitiveness by optimizing its channel structure and adjusting menu prices downward.

The company's takeaway revenue growth reached 13.7% in 2H 2025, with its revenue contribution rising to 39%; its gross profit margin in 1H 2025 increased by 2.6 percentage points year-on-year to 70.5%.

At the end of 2025, the company proactively reduced prices on core dishes by approximately 20%, which is expected to impact same-store sales in the short term but benefit customer traffic growth in the long run.

Operationally, the company accelerated store openings in 2H 2025, adding a net 146 stores to reach a total of 818 stores, covering 14 provinces and 193 cities, with continued densification in stronghold regions like Jiangsu and Anhui, and accelerated penetration in new regions such as Shaanxi and Shandong.