XIAO NOODLES (02408) has announced its interim results for the six months ended June 30, 2026. The group recorded revenue of RMB 939 million, a year-on-year increase of 33.6%. Net profit attributable to equity shareholders reached RMB 63.26 million, up 51.2% compared to the same period last year. Adjusted net profit came in at RMB 73.059 million, representing a 40% increase. Basic earnings per share stood at RMB 9.08 cents.

As of June 30, 2026, the group operated 432 directly-managed restaurants and 99 franchised restaurants across 25 cities in mainland China. Additionally, it had 17 directly-managed restaurants in Hong Kong SAR and 2 directly-managed restaurants in Singapore.

Driven by strong revenue growth, the company also improved its operational efficiency, thereby enhancing profitability. The improvement in profitability was primarily due to: (i) the expansion of its directly-managed and franchise restaurant network, with the total number of restaurants increasing from 417 as of June 30, 2025, to 550 as of June 30, 2026; (ii) the gradual expansion of restaurants from their current city-center locations to surrounding areas, leading to lower rental costs and higher profit margins; and (iii) further dilution of headquarters costs.