GUOQUAN reported a solid first half for 2026, lifting revenue by 21.8% year-on-year to RMB 3.95 billion, driven by an expanding franchise network and higher online contributions.

Gross profit increased 18.3% to RMB 848.60 million, while the gross margin eased to 21.5% from 22.1% a year earlier, reflecting a greater mix of lower-margin non-traditional products and higher raw-material costs.

Net profit rose 12.1% to RMB 213.18 million, translating into a net margin of 5.4% (1H25: 5.9%). Core operating profit—excluding litigation compensation—climbed 18.3% to RMB 224.98 million, with a core operating margin of 5.7%.

Store expansion remained rapid: the number of outlets reached 12,198 as at 30 June 2026, up 1,798 year-on-year. Township locations increased by 367 to 3,377, and 684 community stores were upgraded to the large-format model.

Online traction strengthened: the company generated RMB 0.91 billion in GMV via Douyin, nearly doubling year-on-year, and total registered members jumped 63% to roughly 82.0 million, accounting for 73.2% of sales.

Operating cash flow was a negative RMB 102.36 million, reflecting higher inventory purchases ahead of product launches. Cash and bank balances stood at RMB 1.15 billion, while long-term deposits totalled RMB 78.95 million. The gearing ratio climbed to 12.0% (31 Dec 2025: 6.7%) on increased bank borrowings to fund expansion.

During the period the company repurchased 82.20 million H shares for HKD 192.10 million. These shares, together with earlier buy-backs, lifted treasury shares to 176.10 million at end-June.

The board has proposed an interim dividend of RMB 0.0503 per share, amounting to approximately RMB 127.68 million, subject to shareholder approval.

Outlook for 2H26 includes: • Total store count to exceed 13,100, implying net additions of more than 1,534 and an expected closure rate below 4%. • High single-digit improvement in average store sales efficiency. • Registered membership base targeted to surpass 95 million. • Core operating profit anticipated to deliver “stable growth”.

Capital commitments stood at RMB 201.85 million, mainly for plant construction and equipment. Management reiterated plans to deepen its “community central kitchen” model, expand large-format stores, and continue omnichannel development to sustain growth momentum.