HONG KONG, Apr 29, 2026 – (ACN Newswire) – In 2025, China’s catering market exceeded RMB5.7 trillion in overall market size, keeping constant and healthy development momentum. The sector has actually moved its focus from scale growth to effectiveness enhancement and structural optimization, getting in a brand-new phase of top quality advancement. The market’s store ratio climbed up for 6 successive years to 25%, with food shipment penetration surpassing 30%. AI and supply chain innovations are more improving functional designs throughout the sector. In the middle of this structural change, Xiao Noodles, a leading and quickly growing Chinese noodle dining establishments operator in China, has actually protected a strong grip in the middle of market reshuffling by concentrating on functional effectiveness, item quality and long-lasting worth production.
Increasing Profitability with Robust Growth in Scale and Performance
As the “First-listed Chinese Noodle Restaurant”, Xiao Noodles (2408. HK) revealed its inaugural monetary outcomes because its listing. Throughout the Reporting Period, the Company published overall profits of RMB1,622.4 million, a year-on-year boost of 40.5%. Its net earnings reached RMB106.1 million, representing a year-on-year development of 74.8%. Changed net revenue stood at RMB135.4 million, up 111.9% year on year, showing a continual enhancement in success. By the end of 2025, the brand name’s overall dining establishment network had actually broadened to 503 outlets.
Driven by the growth of self-operated dining establishments, profits from self-operated dining establishments increased by 44.9% year on year from RMB1.00 billion in 2024 to RMB1.45 billion in 2025. Its earnings contribution increased from 86.7% in 2024 to 89.4% in 2025, showing strong durability of the self-operated design. The percentage of food shipment earnings in overall earnings leapt from 15.6% in 2024 to 23.3% in 2025, emerging as a brand-new essential chauffeur of total profits development.
In regards to functional effectiveness, the typical everyday orders per dining establishment for its self-operated dining establishments and franchised dining establishments increased from 386 and 390 in 2024 to 406 and 412 in 2025, respectively. Since completion of 2025, Xiao Noodles had 395 self-operated dining establishments and 92 franchised dining establishments in 24 cities in the Chinese Mainland, 15 dining establishments in Hong Kong SAR and one dining establishment in Singapore, gradually advancing its nationwide and worldwide growth.
While attaining stable functional development, the Company has actually kept a strong dedication to investor returns. The Board proposed a last dividend of RMB0.03 per H share for financial 2025, representing a payment ratio of over 50%. This proposition not just provides concrete go back to investors for their long-lasting assistance, however likewise highlights the Company’s monetary health, identified by real success and robust capital. It even more improves financier self-confidence and rely on the Company’s business governance and brand name worth.
Deepening ESG Practices: Public Welfare and Talent Co-create Long-term Value
As ESG ends up being a core procedure of long-lasting business worth for determining a business’s long-lasting worth, Xiao Noodles has actually embedded social duty into its service design, emergency situation reaction, and skill financial investment. In 2025, its public well-being contributions reached RMB1.4 million.
Given that 2023, the Company has actually introduced the “Baobao Meal Charity Program”, contributing RMB0.1 for each child meal cost public well-being functions. Since completion of 2025, around 2.18 million infant meals had actually been offered cumulatively, creating public well-being funds of around RMB218,000. This has actually produced a virtuous cycle: increasing sales – a bigger swimming pool of charitable funds – more powerful brand name credibility. In September 2025, the Company, together with the Shanghai United Foundation, contributed RMB100,000 to release the “An Egg Donation Activity,” offering rural kids with a day-to-day egg and nutrition education courses. Through concrete actions, the effort concentrates on supporting the health and education of impoverished kids. In regards to skill and development financial investment, the Company partnered with South China University of Technology to develop the “Campus Culture Construction Fund” and the “Innovation and Entrepreneurship Public Welfare Fund.” In 2024, the Company contributed RMB600,000, with a prepared cumulative contribution of RMB3 million over 5 years. An extra RMB300,000 was contributed in 2025, showing its continuous dedication to supporting education and cultivating ingenious skill.
In reaction to emergency situations, the Company has actually shown a reputable emergency situation reaction ability. Following the fire occurrence at Wang Fuk Court in Tai Po, Hong Kong, in November 2025, the Company triggered its emergency situation charitable reaction system on the very same day and contributed HKD1 million to support the resettlement of impacted locals, showing a robust ESG governance structure and efficient permission systems.
In addition, the Company puts strong focus on internal skill advancement, sticking to the approach that “Talent Drives Development,” and offers staff members with constant knowing and profession improvement chances. Throughout the reporting duration, the worker training protection rate reached 100%, with an overall of 40,756 training hours and approximately 19.8 hours per worker, ranking at a fairly high level within the market. The Company has actually developed an online training system based upon digital facilities, providing standardized training programs and detailed on-boarding training for brand-new workers to guarantee consistency in expert requirements and service experience. While lowering skill advancement expenses throughout shop growth, this system likewise reduces the ramp-up duration for brand-new shops, thus protecting a steady skill supply chain to support fast growth.
From product-driven micro-philanthropy to targeted engagement with particular social concerns, and even more to long-lasting financial investment in education, quick crisis reaction, and internal skill advancement, Xiao Noodles has actually developed a clear course that stabilizes “the combination of company and social well-being, along with short-term and long-lasting concerns.” In doing so, the Company has actually likewise developed tactical possessions that improve brand name premium, decrease staff member turnover, and enhance financier self-confidence.
Positive Industry Positioning with Promising Growth Potential
From a market point of view, the Chinese fast-casual dining sector is accelerating its improvement towards standardization, digitalization, and branding. Customer need for healthy, hassle-free, and cost-efficient dining choices continues to increase, benefiting leading gamers with strong supply chain abilities and economies of scale as market concentration boosts. AI and automation innovations are improving expense structures, with applications such as smart labor force scheduling, accurate stock management, and self-governing shipment slowly being executed, even more opening technological dividends. In addition, ESG efficiency has actually ended up being an essential metric for examining the long-lasting worth of dining establishment business, as non-financial elements such as green shops, low-carbon operations, and neighborhood duty progressively affect both capital allotment and customer option. Leveraging its strengths in item development, functional effectiveness, and early-mover benefit in ESG practices, Xiao Noodles is well placed to additional broaden its market share within its specific niche sector.
In general, in 2025, Xiao Noodles provided a remarkable dining experience through tasty meals, premium service, and an unique dining environment. The Company attained noteworthy lead to success, monetary optimization, investor returns, and green practices, effectively transitioning from scale-driven growth to quality-driven development. Looking ahead, as market debt consolidation speeds up and digitalization and ESG efforts get traction, the Company’s competitiveness is anticipated to reinforce even more, driving its outcomes of operations to a brand-new height and injecting strong momentum into the top quality advancement and green change of the market.
Subject: Press release summary
Sectors: Food & & Beverage
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