XIAO NOODLES (02408) has released its annual results for the period ending December 31, 2025. The group reported revenue of RMB 1.622 billion, representing a 40.5% increase compared to the previous year. Profit attributable to equity shareholders for the year was RMB 106 million, a rise of 74.8%. The adjusted net profit reached RMB 135 million, marking a significant surge of 111.9%. Basic earnings per share were 17.41 cents, and the company has proposed a final dividend of HKD 0.03 per H-share.

The company enhanced its operational efficiency on the back of strong revenue growth, leading to improved profitability. For the year ending December 31, 2025, the group achieved a net profit of RMB 106 million, up approximately 74.8% from the net profit of RMB 60.7 million in 2024. The adjusted net profit (a non-IFRS measure) for the period was RMB 135 million, an increase of approximately 111.9% from the adjusted net profit of RMB 63.9 million in 2024.

The improvement in profitability was primarily driven by several factors. These include the expansion of the company's network of self-operated and franchised restaurants, with the total number of restaurants increasing from 360 as of December 31, 2024, to 503 by the end of 2025. Furthermore, the expansion of restaurants from current downtown locations to surrounding areas led to lower rental costs and higher profit margins. An increased contribution from restaurants in the Hong Kong Special Administrative Region, which operate with higher profit margins, also played a role. Additionally, there was a further dilution of headquarters costs.