On August 26, GUMING Holdings Limited (01364.HK) released its interim results report for 2025, with multiple metrics exceeding market expectations. The financial report shows that in the first half of 2025, GUMING achieved revenue of RMB 5.663 billion, up 41.2% year-on-year; profit attributable to shareholders reached an impressive RMB 1.625 billion, increasing 121.51% year-on-year, a figure that even exceeded the total net profit for the entire year of 2024.

The company's operational efficiency improved significantly, with scale effects continuing to be realized. As of June 30, 2025, GUMING's store network covered more than 200 cities across various tiers in China, including 11,179 stores, representing a 17.5% increase from 9,516 stores in the same period last year.

Performance Highlights: High Revenue and Profit Growth with Significant Operational Efficiency Improvement

GUMING's 2025 interim report demonstrated the company's strong growth momentum and exceptional profitability. The company's profit for the period reached RMB 1.626 billion, up 119.8% from RMB 740 million in the same period last year; adjusted net profit was RMB 1.086 billion, up 42.4% from RMB 762 million in the same period last year. This metric better reflects the company's actual operating conditions as it excludes one-time gains and share-based compensation expenses.

GUMING's GMV (Gross Merchandise Value) growth was equally impressive. In the first half of 2025, the company achieved GMV of RMB 14.094 billion, up 34.4% year-on-year. Same-store GMV was RMB 1.3705 million, up 21% year-on-year, with daily average same-store GMV increasing from RMB 6,200 in the same period last year to RMB 7,600, an increase of 22.6%. Volume-price analysis shows that in the first half of 2025, same-store sales reached 79,400 cups, up 16.6% year-on-year, with estimated average price per cup increasing approximately 4% year-on-year, presenting a healthy growth pattern of both volume and price increases.

As of June 30, 2025, GUMING's cash and bank balances increased from RMB 1.9353 billion at the end of last year to RMB 4.2693 billion, significantly strengthening its financial position.

Growth Drivers: Store Expansion and Sinking Market Strategy Combined with Significant Coffee Category Contribution

GUMING's performance growth in the first half of 2025 was primarily driven by two engines: rapid expansion of store network and improved same-store operational efficiency.

In the first half of 2025, the company added 1,570 new stores and closed 305 stores, achieving a net increase of 1,265 stores, with expansion pace significantly accelerating compared to the previous period (913 net store additions in 2024). This expansion speed demonstrates franchisees' high recognition of the GUMING brand.

By city tier, first-tier cities/new first-tier cities/second-tier cities and below had 318/1,812/9,049 stores respectively, with second-tier and below stores accounting for as high as 80.9%, and township stores increasing to 43%, continuously validating its sinking market capabilities. GUMING's deep layout in sinking markets has brought significant competitive advantages. Second-tier and below cities and townships across various city tiers represent vast undeveloped markets with enormous potential.

Additionally, the expansion of coffee categories has become an important catalyst for GUMING's performance growth. As of the end of June 2025, over 8,000 of the company's stores were equipped with coffee machines, with 16 new coffee beverages launched in the first half.

The company also officially announced Daniel Wu as its coffee quality partner, generating positive market feedback and demonstrating its accelerated momentum in category expansion.

GUMING's supply chain capabilities continue to strengthen. As of June 30, 2025, it operated 22 warehouses with a total building area of approximately 230,000 square meters and cold storage capacity exceeding 61,000 cubic meters. The company directly owns and operates 362 transport vehicles, enabling "delivery every two days" cold chain delivery service to 98% of stores, providing solid support for product quality and operational efficiency.

Future Outlook: Store Expansion Target Raised with Enormous Overseas Market Potential

Based on the strong first-half performance, GUMING has raised its full-year store expansion target. Research reports indicate that GUMING's full-year net store addition target has been raised from 2,100 to 2,500 stores. Analysts predict the company's adjusted net profit for 2025-2027 will be RMB 22.85/26.99/32.59 billion respectively, with growth rates of 48%/18%/21%.

Considering GUMING still has significant store opening space domestically (estimated to exceed 30,000 stores), along with strong R&D and new product capabilities and category expansion abilities, its market share is expected to continue growing.

Overseas markets have also become a future growth direction for GUMING. The company stated it will evaluate overseas market opportunities, reserving space for subsequent overseas expansion, with current efforts focused on domestic supply chain optimization and store network densification to lay the foundation for future overseas expansion.

Against the backdrop of intensifying competition in the new tea beverage industry, leading brands have achieved significant revenue and profit growth through strong supply chain capabilities and unique market positioning, with industry differentiation becoming increasingly apparent. As one of the industry's leading companies, GUMING is consolidating its competitive advantages through continuous product innovation, supply chain optimization, and market expansion.

GUMING's store network has become its strongest moat. As of the end of June 2025, 11,179 stores covered more than 200 cities nationwide, with 80.9% located in second-tier and below cities, and 43% of stores rooted in township markets. These stores penetrate China's vast sinking markets like capillaries, reaching consumer groups that many large chain brands find difficult to cover.

The dual-engine drive of coffee and tea beverages not only increased same-store revenue but also allowed GUMING to find new growth curves in diversified operations. Looking ahead, GUMING still has space for more than 30,000 stores domestically, and overseas markets are poised to become new growth poles. As the company continues to optimize its supply chain capabilities and product matrix, this tea beverage giant is entering its golden moment.