Fast-expanding Guoquan Food thrives on home dining popularity

Guoquan Food (Shanghai) Co. Ltd. (2517.HK), a supplier of ingredients for hotpots and other dining at home, on Monday reported double-digit revenue and profit growth in the first half of 2026, as online channels made a growing contribution to its growing network of mostly franchised offline stores.

The company’s revenue rose 21.8% year-on-year to 3.95 billion yuan ($586 million) during the six months to June. As of June 30, the number of stores in Guoquan’s network increased to 12,198.

Its net profit rose 12.1% year-on-year to 213 million yuan, while its non-IFRS core operating profit rose 18.3% to 225 million yuan. The company also returned 296 million yuan to investors in the first half through 168 million yuan in share buybacks and 128 million yuan in dividends, a return on equity rate of 7.1%.

Guoquan upgraded 684 outlets to its large-store format in the first half, as it seeks to lift store productivity by offering more products and positioning the stores as gateways for community and household dining.

The company also stepped up development of Guoquan Farm, its premium-ingredient retail offering that transcends physical space and freezer constraints of individual stores. Paid gross merchandise value (GMV) from the business reached 240 million yuan over the period, up 631% year-on-year. The company sees Guoquan Farm as a new growth engine that links direct sourcing with online sales and near-instant store pickup, using an unlimited online assortment to eliminate shelf-space constraints of physical stores.

Guoquan also opened its first store in Hong Kong on Aug. 18 to gain offshore experience before expanding into other international markets.

The company is also finding big business in its membership program, which reached 82 million members by the end of June, up 63% year-on-year.

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