Xiaocaiyuan International Holding Ltd. reported 1H26 revenue of RMB2.90 billion, up 7.00% year on year, driven by an 18.10% surge in restaurant operations to RMB1.94 billion. Delivery revenue fell 10.60% to RMB945.28 million as the group shifted focus to dine-in traffic.

Net profit declined 24.30% to RMB289.37 million, while basic EPS slid to RMB0.25 from RMB0.33. The contraction stemmed from rising input costs and wage inflation: raw materials consumed 32.30% of revenue versus 29.50% a year earlier, and staff costs climbed to 28.50% of revenue from 24.60%. Same-store sales fell 12.50%, although table turnover improved to 3.5 times per day (1H25: 3.1).

The store network expanded to 824 outlets (1H25: 672), with lower-tier cities representing 42.60% of locations and 40.50% of revenue. Average spend per customer softened across all city tiers, reflecting the company’s price-for-volume strategy.

Operating cash flow reached RMB638.64 million, down from RMB764.75 million. Cash and cash equivalents stood at RMB253.68 million, supplemented by RMB270.00 million of time deposits and RMB1.54 billion in wealth-management products. Bank borrowings increased to RMB560.00 million, lifting the gearing ratio to 23.30% (FY25: 4.10%).

Total assets were RMB4.21 billion, up 10.80% since year-end, while net assets edged down 1.30% to RMB2.41 billion. Inventory days improved to 19.7 (FY25: 25.4) on tighter supply-chain controls.

The Board declared an interim dividend of RMB0.2139 per share, equating to RMB250 million and payable on 15 September 2026. During May-June, the company repurchased 7.89 million shares for HK$54.32 million; the shares are held in treasury pending future use.

Management highlighted continued expansion in lower-tier markets, ramp-up of the Ma’anshan central factory, and ongoing investment in digital operations and supply-chain automation as near-term priorities.