Xiaocaiyuan H1 2026: Revenue Rises 7% but Net Profit Falls 24%; Interim Dividend Set at RMB0.2139 per Share

Bulletin Express
Aug 14

Xiaocaiyuan International Holding Ltd. released its unaudited results for the six months ended 30 June 2026, highlighting top-line growth but weaker profitability amid rising costs and a strategic tilt toward dine-in traffic.

Revenue and Earnings • Revenue increased 7.0% year on year to RMB2.90 billion, driven mainly by an expanded restaurant network. • Profit before tax declined 28.0% to RMB0.39 billion; profit for the period fell 24.3% to RMB0.29 billion. • Basic and diluted EPS slipped to RMB0.25 (-24.2% YoY). • Adjusted EBITDA (non-IFRS) dropped 20.4% to RMB0.51 billion.

Operating Drivers • Restaurant operations revenue jumped 18.1% to RMB1.94 billion, now contributing 67.0% of total sales (H1 2025: 60.7%). • Delivery revenue contracted 10.6% to RMB0.95 billion, reflecting a strategic shift toward dine-in services and a reduction in orders (14.7 million vs. 16.8 million a year earlier). • Network expanded to 824 outlets (H1 2025: 672); lower-tier cities account for 40.5% of restaurant revenue. • Overall table turnover improved to 3.5 times per day (H1 2025: 3.1), while average spend per diner fell to RMB50.5 (-11.6%), evidencing the “value-for-money” strategy. • Same-store sales declined 12.5% to RMB2.21 billion.

Cost Dynamics and Margins • Raw materials and consumables rose 17.0% to RMB0.94 billion, lifting the cost-to-sales ratio to 32.3% (H1 2025: 29.5%). • Staff costs jumped 24.1% to RMB0.83 billion, representing 28.5% of revenue (H1 2025: 24.6%) amid increased headcount and remuneration enhancements. • Other expense lines reflected network growth: depreciation and amortisation of other assets up 18.4% to RMB0.11 billion; utility expenses up 20.5% to RMB0.10 billion. • Advertising and delivery expenses both declined in value terms, aligning with lower promotional spending and softer delivery volumes.

Balance Sheet and Liquidity • Cash and cash equivalents stood at RMB0.25 billion, supplemented by RMB0.27 billion in time deposits and RMB1.54 billion in financial assets at fair value. • Short-term bank borrowings increased to RMB0.56 billion, lifting the gearing ratio to 23.3% (31 Dec 2025: 4.1%). • Net cash generated from operations totalled RMB0.64 billion (H1 2025: RMB0.76 billion).

Capital Allocation • The Board declared an interim dividend of RMB0.2139 per share (HKD0.2472), payable on 15 September 2026 to shareholders on record as of 1 September 2026; total payout approximates RMB0.25 billion. • During May–June 2026, the company repurchased 7.89 million shares for HKD54.32 million, which are held as treasury shares.

Operational Focus and Outlook Management points to a more value-conscious consumer environment, continued expansion of chain penetration, and increasing importance of digital and supply-chain capabilities in China’s catering sector. Xiaocaiyuan plans to: 1. Deepen network penetration, especially in lower-tier cities; 2. Advance digital operations and supply-chain upgrades following commencement of its Ma’anshan central factory; 3. Develop a multi-brand portfolio to serve diversified dining scenarios.

No significant post-period events were reported up to the announcement date.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10