XIAO NOODLES (02408) published its interim results, with an adjusted net profit of 73.059 million yuan, an increase of 40% year-on-year.

XIAO NOODLES (02408) released its interim results for the period ended June 30, 2026, reporting revenues of RMB 939 million, an increase of 33.6% year-on-year; the profit attributable to equity shareholders for the period was RMB 63.26 million, up 51.2%; adjusted net profit was RMB 73.059 million, a 40% increase year-on-year; basic earnings per share were 9.08 cents. As of June 30, 2026, the Group operated 432 direct dining restaurants and 99 franchised restaurants in 25 cities across mainland China, as well as 17 and 2 direct dining restaurants in the Hong Kong Special Administrative Region and Singapore, respectively. With strong revenue growth, our company also enhanced operational efficiency, thereby improving profitability. The improvement in profitability was primarily due to: (i) the expansion of our direct and franchised restaurant network, increasing the total number of restaurants from 417 as of June 30, 2025, to 550 as of June 30, 2026; (ii) the gradual expansion of restaurants from their current city center locations to surrounding areas, leading to reduced rental costs and increased profit margins; and (iii) further dilution of headquarters costs.