HONG KONG, Apr 29, 2026 - (ACN Newswire) - In 2025, China's catering industry surpassed RMB5.7 trillion in total market size, maintaining steady and healthy growth momentum. The sector has shifted its focus from scale expansion to efficiency improvement and structural optimization, entering a new stage of high-quality development. The industry’s chain store ratio climbed for six consecutive years to 25%, with food delivery penetration exceeding 30%. AI and supply chain technologies are further reshaping operational models across the sector. Amid this structural adjustment, Xiao Noodles, a leading and rapidly growing Chinese noodle restaurants operator in China, has secured a solid foothold amid industry reshuffling by focusing on operational efficiency, product quality and long-term value creation.

Rising Profitability with Robust Growth in Scale and Performance 

As the “First-listed Chinese Noodle Restaurant”, Xiao Noodles (2408.HK) unveiled its inaugural financial results since its listing. During the Reporting Period, the Company posted total revenue of RMB1,622.4 million, a year-on-year increase of 40.5%. Its net profit reached RMB106.1 million, representing a year-on-year growth of 74.8%. Adjusted net profit stood at RMB135.4 million, up 111.9% year on year, reflecting a sustained improvement in profitability. By the end of 2025, the brand’s total restaurant network had expanded to 503 outlets.

Driven by the expansion of self-operated restaurants, revenue from self-operated restaurants rose by 44.9% year on year from RMB1.00 billion in 2024 to RMB1.45 billion in 2025. Its revenue contribution increased from 86.7% in 2024 to 89.4% in 2025, demonstrating strong resilience of the self-operated model. Meanwhile, the proportion of food delivery revenue in total revenue jumped from 15.6% in 2024 to 23.3% in 2025, emerging as a new key driver of overall revenue growth.

In terms of operational efficiency, the average daily orders per restaurant for its self-operated restaurants and franchised restaurants increased from 386 and 390 in 2024 to 406 and 412 in 2025, respectively. As of the end of 2025, Xiao Noodles had 395 self-operated restaurants and 92 franchised restaurants in 24 cities in the Chinese Mainland, 15 restaurants in Hong Kong SAR and one restaurant in Singapore, steadily advancing its national and international expansion.

While achieving steady operational growth, the Company has maintained a strong commitment to shareholder returns. The Board proposed a final dividend of RMB0.03 per H share for fiscal 2025, representing a payout ratio of over 50%. This proposal not only delivers tangible returns to shareholders for their long-term support, but also underscores the Company’s financial health, characterized by genuine profitability and robust cash flows. It further enhances investor confidence and trust in the Company’s corporate governance and brand value.

Deepening ESG Practices: Public Welfare and Talent Co-create Long-term Value

As ESG becomes a core measure of long-term corporate value for measuring a company’s long-term value, Xiao Noodles has embedded social responsibility into its business model, emergency response, and talent investment. In 2025, its public welfare donations reached RMB1.4 million.

Since 2023, the Company has launched the “Baobao Meal Charity Program”, donating RMB0.1 for every baby meal sold for public welfare purposes. As of the end of 2025, approximately 2.18 million baby meals had been sold cumulatively, generating public welfare funds of approximately RMB218,000. This has created a virtuous cycle: rising sales - a larger pool of charitable funds - stronger brand reputation. In September 2025, the Company, together with the Shanghai United Foundation, donated RMB100,000 to launch the “An Egg Donation Activity,” providing rural children with a daily egg and nutrition education courses. Through tangible actions, the initiative focuses on supporting the health and education of underprivileged children. In terms of talent and innovation investment, the Company partnered with South China University of Technology to establish the “Campus Culture Construction Fund” and the “Innovation and Entrepreneurship Public Welfare Fund.” In 2024, the Company donated RMB600,000, with a planned cumulative donation of RMB3 million over five years. An additional RMB300,000 was contributed in 2025, demonstrating its ongoing commitment to supporting education and cultivating innovative talent.

In response to emergencies, the Company has demonstrated a well-established emergency response capability. Following the fire incident at Wang Fuk Court in Tai Po, Hong Kong, in November 2025, the Company activated its emergency charitable response mechanism on the same day and donated HKD1 million to support the resettlement of affected residents, reflecting a robust ESG governance structure and effective authorization mechanisms.

In addition, the Company places strong emphasis on internal talent development, adhering to the philosophy that “Talent Drives Development,” and provides employees with continuous learning and career advancement opportunities. During the reporting period, the employee training coverage rate reached 100%, with a total of 40,756 training hours and an average of 19.8 hours per employee, ranking at a relatively high level within the industry. The Company has established an online training system based on digital infrastructure, offering standardized training programs and comprehensive on-boarding training for new employees to ensure consistency in professional standards and service experience. While reducing talent development costs during store expansion, this system also shortens the ramp-up period for new stores, thereby securing a stable talent supply chain to support rapid expansion.

From product-driven micro-philanthropy to targeted engagement with specific social issues, and further to long-term investment in education, rapid crisis response, and internal talent development, Xiao Noodles has established a clear path that balances “the integration of business and social welfare, as well as short-term and long-term priorities.” In doing so, the Company has also built strategic assets that enhance brand premium, reduce employee turnover, and strengthen investor confidence.

Forward-Looking Industry Positioning with Promising Growth Potential

From an industry perspective, the Chinese fast-casual dining sector is accelerating its transformation toward standardization, digitalization, and branding. Firstly, consumer demand for healthy, convenient, and cost-effective dining options continues to rise, benefiting leading players with strong supply chain capabilities and economies of scale as market concentration increases. Secondly, AI and automation technologies are reshaping cost structures, with applications such as intelligent workforce scheduling, precise inventory management, and autonomous delivery gradually being implemented, further unlocking technological dividends. In addition, ESG performance has become a key metric for assessing the long-term value of restaurant enterprises, as non-financial factors such as green stores, low-carbon operations, and community responsibility increasingly influence both capital allocation and consumer choice. Leveraging its strengths in product innovation, operational efficiency, and early-mover advantage in ESG practices, Xiao Noodles is well positioned to further expand its market share within its niche segment.

Overall, in 2025, Xiao Noodles delivered an exceptional dining experience through flavorful dishes, high-quality service, and a distinctive dining atmosphere. The Company achieved notable results in profitability, financial optimization, shareholder returns, and green practices, successfully transitioning from scale-driven expansion to quality-driven growth. Looking ahead, as industry consolidation accelerates and digitalization and ESG initiatives gain traction, the Company's competitiveness is expected to strengthen further, driving its results of operations to a new height and injecting strong momentum into the high-quality development and green transformation of the industry.

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