Stores of Yujian Xiaomian increased by nearly 40%, making it into the 100-million-yuan profit club.

The “first Chinese noodle restaurant stock,” Yujian Xiaomian, has released its first performance forecast since its listing on the Hong Kong stock exchange.

It is expected to record a net profit of 100 million to 115 million yuan in 2025, a year-on-year increase of 64.7% to 89.5%; adjusted net profit is expected to reach 125 million to 140 million yuan, a year-on-year increase of 95.6% to 119.1%.

At a time when the catering industry is generally under pressure, such profit growth far exceeding revenue growth usually means that management leverage and operational efficiency are entering a period of accelerated release.

Scale expansion remains the primary driver of growth.

By the end of 2025, the total number of Yujian Xiaomian restaurants will reach 503, a nearly 40% increase from 360 at the end of last year. This means that, on average, more than one new store opened every three days over the past year.

Yet, amid fierce market competition, Yujian Xiaomian also faces the common dilemma in the catering industry of “falling customer spend per order.”

From 2022 to 2024, the average spending per order at Yujian Xiaomian restaurants fell from 36.1 yuan to 32 yuan, and average daily sales per store are also on a downward trend.

Beyond scale, what truly determines profit elasticity lies in the “sinkdown” strategy for site selection and improvement in operational efficiency.

The company noted that its restaurants are shifting from the high-rent city center core areas to lower-cost peripheral regions. Meanwhile, as the number of stores increases, profit contribution from the Hong Kong SAR is also continuing to rise.

In the first half of 2025, the operating profit margin of Yujian Xiaomian’s directly managed restaurants in first-tier and new first-tier cities was 14.1%, while in second-tier and lower-tier cities and the Hong Kong SAR, the numbers were 19.8% and 21.8%, respectively—a difference of more than five percentage points.

Currently, the Chinese noodle restaurant market remains highly fragmented, with the top five companies’ total gross merchandise volume accounting for only about 3%. This suggests that, relying on standardized store models and strong middle-office support, leading brands still have considerable consolidation potential in the future.

Looking ahead from the current point in time, Yujian Xiaomian’s ambition has not stopped.

According to plans, the company will, between 2026 and 2028, open another 520 to 610 new restaurants through a combination of directly operated and franchised models.

This means that in the next three years, its store count is expected to double again from the current base of 500.

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