HK Stock Market Move | XIAOCAIYUAN(00999) has risen by more than 5% and the in-store dining customer traffic has significantly increased year-to-date.

XIAOCAIYUAN (00999) rose more than 5%, as of the time of writing, it increased by 5.08% to HKD 6.62, with a turnover of HKD 141.13 million. On the news front, according to Jiemian News, it was recently learned from XIAOCAIYUAN that since the beginning of the year, their in-store dining traffic has significantly increased, with the annual fee membership activity "88VIP" launched within 4 months driving an increase in repurchase rate, with a cumulative member repurchase rate of 46.48%. The growth of new customers through multiple channels is higher than last year, and the frequency of consumption by existing customers has increased. By the end of April, XIAOCAIYUAN's in-store dining traffic had increased by 450,000 people. This is the first time XIAOCAIYUAN has publicly disclosed its in-store dining performance outside of its annual report after withdrawing from discount activities on food delivery platforms. Guosen's previous research report pointed out that the company's stock price has declined significantly in the past six months, mainly due to the company's proactive price reduction and control measures on food delivery business, which have affected the progress of in-store revenue recovery. Looking ahead to 2026, the company's pace of store expansion is expected to remain steady, and after the implementation of the new membership system, it is expected to strengthen the consumption stickiness of in-store dining users. With a series of operational optimization measures gradually taking effect, the company's in-store performance is expected to steadily improve. It is necessary to continue monitoring the progress and actual effectiveness of store expansion, membership operation, and cost reduction measures.