Best Food Holding Company Limited reported FY 2025 revenue of RMB 399.16 million, down 15.8% year-on-year, reflecting deliberate retrenchment of self-operated outlets and intense mainland China catering competition. Despite the top-line contraction, the group generated an adjusted profit of RMB 17.16 million, reversing the prior year’s RMB 76.51 million adjusted loss.

• Profitability rebound: Statutory net loss narrowed sharply to RMB 9.21 million from RMB 257.85 million in 2024. Key drivers were a RMB 65.99 million gain from the dilution of the stake in associate Guangzhou Xiao Noodles following its Hong Kong listing, a RMB 41.64 million gain from partial disposal of that holding, and a RMB 110.46 million reduction in impairment charges on intangible assets and associates.

• Segment dynamics: – Restaurant operations revenue declined 41.0% to RMB 125.74 million as underperforming owned stores were closed and franchising increased. – Delivery business revenue rose 3.7% to RMB 174.94 million, supported by platform promotions. – Food-ingredient sales grew 6.6% to RMB 98.48 million. Group systemwide sales (owned + franchised) advanced 7% to RMB 3.74 billion, with the network steady at 1,149 outlets.

• Cost structure: Raw material spend fell 9.8% to RMB 179.72 million but climbed to 45.0% of revenue (2024: 42.0%). Employee expenses dropped 25.3% to RMB 107.72 million (27.0% of revenue). Depreciation of right-of-use assets and other assets decreased 19.9% and 31.0% respectively, reflecting store closures.

• Associates and investments: Share of profits from associates swung to a RMB 15.83 million gain (2024: RMB 10.42 million loss). Investments accounted for using the equity method rose 35.7% to RMB 208.73 million, driven by the Xiao Noodles listing and improved associate performance, partly offset by a RMB 9.90 million impairment.

• Balance-sheet highlights: – Cash and cash equivalents stood at RMB 41.37 million, nearly doubling year-on-year. – Interest-bearing bank borrowings reduced to RMB 15.63 million. – Convertible bonds totalled RMB 608.81 million after a 25-month maturity extension to December 2027; interest expense on the bonds was RMB 42.45 million. – Lease liabilities fell 28.6% to RMB 74.15 million following restaurant rationalisation. – Net deficit attributable to equity holders narrowed to RMB 178.04 million. The current ratio improved to 0.74 (2024: 0.17) after reclassification of the extended convertible bonds to non-current liabilities.

• Outlook: Management targets “operation + investment” growth, focusing on bolstering core brands such as “HHG” fast food and “Xinladao” fish hot pot, scaling associate concepts like “Xiao Noodles” and “Paotsai King,” and accelerating investments via its “Shendianbao” platform. No final dividend was declared for FY 2025.