CHABAIDAO (02555) reported solid topline and exceptional bottom-line growth for the year ended 31 December 2025.

Revenue rose 9.70% to RMB5.40 billion, driven chiefly by a 10.10% increase in sales of goods and equipment to RMB5.12 billion, which accounted for 94.9% of total turnover. Royalty and franchising income slipped 10.20% to RMB191.65 million, while the “Others” segment, including design and online-operation services as well as self-operated stores, surged 58.30% to RMB82.66 million.

Gross profit expanded 14.30% to RMB1.75 billion, lifting the gross margin by 1.3 percentage points to 32.5% on improved cost control and logistics optimisation. Profit before tax climbed 60.36% to RMB997.32 million, and net profit advanced 71.20% to RMB821.36 million. Earnings per share rose to RMB0.547 (basic). Adjusted net profit (non-IFRS) increased 29.21% to RMB833.34 million, with the adjusted net margin improving to 15.4% from 13.1%.

Operating expenses were tightly managed: distribution and selling expenses fell 7.50% to RMB365.40 million, administrative expenses declined 5.50% to RMB482.10 million, and finance costs dropped 16.30% to RMB3.64 million as lease liabilities shrank.

Store expansion remained disciplined. The domestic network grew 2.7% to 8,621 outlets, with fourth-tier and below cities posting a 7.0% increase to 2,296 stores, reflecting deeper penetration into lower-tier markets. Overseas presence reached 38 stores across 10 countries and regions. Registered members exceeded 182.7 million, of which 56.3 million were active.

The balance sheet stayed robust. Cash and cash equivalents stood at RMB3.07 billion, down 13.70% after dividend payments; the Group had no bank borrowings, leaving gearing at zero. Inventory turnover days remained stable at 21.9, while trade payables turnover shortened to 27.7 days.

The Board proposed a final dividend of RMB0.18 per share (payout ratio 33.04%), subject to approval at the AGM on 21 May 2026. The dividend is expected to be distributed around 30 June 2026.

Looking to 2026, management targets continued product innovation, further domestic penetration and measured global expansion while enhancing supply-chain efficiency and digital capabilities.