Best Food HLDG reported a narrower loss for the six months to 30 June 2026, supported by tighter cost controls and stronger earnings from associates, despite softer top-line growth amid intensifying competition in China’s catering sector.
Revenue fell 11.1% year on year to RMB 169.14 million, hurt by a 31.2% slide in restaurant sales to RMB 49.31 million and a 10.0% drop in food-ingredient sales to RMB 40.45 million. Delivery income rose 7.9% to RMB 79.37 million, reflecting increased platform penetration.
Group system sales (owned and franchised restaurants) declined 12.7% to RMB 239.30 million, but total system sales including associates improved 9.3% to RMB 1.87 billion. Store count across all brands and associates increased 4.2% to 1,179 units.
Cost of raw materials and consumables eased 8.0% to RMB 76.77 million, though the ratio to revenue edged up to 45.4% from 43.9%. Employee benefit expense contracted 13.4% to RMB 47.73 million, and depreciation of right-of-use assets fell 19.0% to RMB 20.06 million following selective store closures.
Finance costs remained heavy at RMB 24.94 million (H1 2025: RMB 24.26 million), dominated by RMB 22.53 million of interest on outstanding HK$610.68 million convertible bonds maturing in December 2027. Net loss attributable to shareholders narrowed to RMB 24.42 million from RMB 32.86 million a year earlier; adjusted loss after adding back convertible-bond interest shrank to RMB 2.98 million (H1 2025: RMB 15.42 million).
Cash and cash equivalents stood at RMB 20.12 million (31 December 2025: RMB 41.37 million). Net borrowings were RMB 18.69 million, while total lease liabilities declined 18.4% to RMB 60.48 million. The current ratio was stable at 0.74; shareholders’ funds remained in a RMB 155.10 million deficit, weighed down by the convertible bonds recorded in equity.
No interim dividend was declared. Management signalled a continued focus on operational optimisation, expansion of high-performing associate brands such as “Xiao Noodles” and “Paotsai King”, and exploration of diversified investment models via the Shendianbao platform to drive future growth.
Post-period, the board reported no material subsequent events.