BRIEF: Guoquan Food feasts on China’s growing preference for stay-at-home dining

Guoquan Food (Shanghai) Co. Ltd. (2517.HK) on Monday reported its revenue rose 22% in the first half of the year, while its profit more than doubled, as the company feasted on budget-conscious Chinese consumers’ growing appetite for dining at home.

The company also continued a rapid expansion of its network of stores selling prepared ingredients for home-based cooking during the six-month period, with a special focus on price-sensitive rural markets. That network reached 10,400 stores throughout China by the end of June, most of those franchised, with growth continuing from the end of 2024, according to the company’s midyear report. Guoquan added it is also exploring expanding into other global markets.

The company is one of the few to thrive in a Chinese catering industry where most restaurant operators are reporting falling sales and customer traffic as consumers rein in their spending. Guoquan’s revenue rose to 3.24 billion yuan ($451 million) from 2.67 billion yuan a year earlier, as its profit jumped 123% year-on-year to 190 million yuan.

The company is also taking steps to improve its efficiency through greater use of automation and centralized production centers. During the six-month period, it launched a technology-supported 24-hour retail model that operates autonomously after-hours, and completed smart, unmanned upgrades at over 2,000 stores. It also plans to establish a production center in the city of Danzhou in South China’s Hainan province to expand its geographical coverage to assist in its future development.

Guoquan is also actively developing online sales channels to cater to a younger generation of Chinese consumers who prefer to shop online. The company’s account matrix on Douyin, the Chinese equivalent of TikTok, achieved over 3.2 billion impressions during the six-month period. That attracted more consumers, with revenue for Douyin channels more than doubling year-on-year.

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