<div id="readability-page-1"><div>HONG KONG, Mar 13, 2026 - (ACN Newswire) - 12 March 2026, Guoquan Food (Shanghai) Co., Ltd. (&#34;Guoquan&#34; or the &#34;Company&#34;; stock code: 2517.HK), a leading one-stop home meal products brand in China, announced its annual results for the year ended 31 December 2025, which have been reviewed by the Audit Committee of the Board.Adhering to the strategic positioning of &#34;community central kitchen&#34; in 2025, the Company successfully established a holistic instant retail store network through a multi-channel, multi-scenario omni-channel layout and the deep integration of online and offline operating models. The Company continuously delved into consumers' demand, developed and iterated a diverse suite of product portfolios, deepened refined store operation and management, and strengthened the construction of a membership ecosystem, effectively enhancing store operational efficiency and market competitiveness. Concurrently, the Company continued to deepen its industrial layout and promote the integrated closed-loop construction of &#34;production, supply and marketing&#34;, achieving stable development throughout the year.For the year ended 31 December 2025, the Company's revenue amounted to RMB7,810.0 million, representing a year-on-year increase of 20.7%. Gross profit reached RMB1,686.6 million, a year-on-year increase of 19.0%. Net profit was RMB453.9 million, a significant year-on-year increase of 88.2%. Core operating profit (adjusted for non-recurring items such as gains or losses on fair value changes on unlisted convertible redeemable preferred shares and donations for fire rescue in Tai Po, Hong Kong) was RMB460.7 million, representing a year-on-year increase of 48.2%. Basic and diluted earnings per share were RMB0.1630, a substantial year-on-year increase of 93.8%.Continuously Strengthening Omni-channel Instant Retail: Offline Expansion and Online Engagement Drive GrowthAs of 31 December 2025, the Company's total number of stores nationwide reached 11,566, a net increase of 1,416 stores from 10,150 as at the end of 2024, covering 31 provinces, autonomous regions and municipalities. In terms of regional store layout, the Company achieved a net increase of 1,004 township-level stores in 2025. Addressing the consumption characteristics and needs of township markets, the Company developed differentiated product structures and store displays, accurately aligning with consumer demands in lower-tier markets and further enhancing township market penetration. Concurrently, the Company continued to deploy smart retail scenarios in mid-to-high-tier markets, completing the intelligent and unmanned transformation and upgrade of over 3,000 retail stores in 2025, achieving synergistic development between lower-tier and mid-to-high-tier markets.To empower franchisees, facilitate their sales growth, and further expand consumer reach while offering a more flexible shopping experience, the Company continuously provides support and guidance to franchisees in core areas such as store operations and business development. Leveraging the Company's Guoquan APP, WeChat mini-program, third-party food delivery platforms and social commerce platforms (such as Douyin), a multi-level online sales network has been established. In 2025, the Company achieved over 9.41 billion impressions on platforms through its multi-level Douyin accounts matrix. Stores generated GMV of RMB1.49 billion via the Douyin channel, representing a year-on-year increase of 75.3%.Membership Ecosystem Continuously Improved; Product Portfolio Enhances in Scenarization and RichnessIn 2025, the operation of the Guoquan membership program yielded significant results, further releasing the value of the membership ecosystem. During the Reporting Period, the number of the Company's registered members reached approximately 64.9 million, a year-on-year increase of 57.1%, demonstrating rapid expansion of the membership base. The prepaid card business also achieved stable growth, with the value stored in prepaid cards amounting to approximately RMB1.2 billion during the Reporting Period, a year-on-year increase of 22.3%. This indicates continuously improving member stickiness and consumption contribution, forging a closer connection with consumers.Relying on its substantial membership base, the Company persistently pursues innovation in its product offerings, consistently upholding the business philosophy of providing consumers with &#34;tasty, convenient and value-for-money&#34; products. It continuously enriches its product portfolio and iterates new products to comprehensively meet consumers' diverse dining needs. As of 31 December 2025, the Company had introduced 282 new SKUs of hot pot and barbecue products. It created multiple scenarized meal suites such as the &#34;Barbecue Camping Container Set&#34;, &#34;Crayfish Feast Set&#34;, and &#34;Six Popular Hot Pot Sets&#34;, achieving deep integration of products and consumption scenarios. Furthermore, the Company expanded its product categories within the drinks and beverage consumption scenario, launching products such as NFC fruit juices, craft beer, and flavored tea beverages. This continuously enhances the richness and diversification of the product matrix, further perfecting the one-stop meal products supply system.Deepening Industrial Layout; Strengthening Digitalized Supply Chain ControlGuoquan continues to promote the integrated closed-loop construction of &#34;production, supply and marketing&#34;. Adopting a &#34;one-product-one-factory&#34; strategy, it further deepens the breadth and depth of its industrial layout, providing solid production capacity support for business development. As of 31 December 2025, the Company possessed seven food ingredient production plants, covering core categories such as condiments, meatballs, paste and aquatic products, and beef products, forming a comprehensive and well-defined production capacity matrix. Concurrently, the construction of the Company's food production base in Danzhou, Hainan Province, officially commenced. This base will further expand its geographical coverage, optimize the supply chain's radiation radius, and strengthen the national production capacity layout and logistics reach.This solid industrial foundation continuously improves the operational efficiency of the digitalized supply chain. Based on the supply chain system operating from factory to central warehouse and to retail stores, the Company can monitor supply and demand dynamics from the procurement end to the store end, and closely manage inventory levels, thereby achieving efficient management of the entire supply chain. As of 31 December 2025, the Company had deployed 20 digitalized central warehouses across China, achieving swift product circulation through digital stock and barcode management. Simultaneously, the digitalization of the supply chain covering core segments such as production, procurement, warehousing, and logistics allows for precise monitoring of supply-demand dynamics and inventory levels, ensuring the timely supply of products to stores in the Chinese mainland. This comprehensively enhances the overall operational efficiency of the supply chain, solidifying core barriers in cost control and quality assurance.Six Core Strategic Directions: Continuously Advancing Business UpgradesIn 2026, Guoquan targets that the total number of stores will exceed 14,500, representing a net increase of over 2,934 stores, with an estimated store closure rate of less than 4%. It targets high-single-digit growth in store efficiency, and the number of registered members is targeted to exceed 95 million. The Company targets that the growth rate of core operating profit will be significantly higher than that of its revenue.First, Fully expand the sales network with four stores jointly advancing with concerted efforts. Guoquan will continue to build a multi-level sales network, accelerate the expansion of large stores in townships, practice the philosophy of &#34;food equality&#34;, and precisely meet the consumption needs of residents in county and township markets. Concurrently, it will explore innovative store formats and upgrade the franchisee management system to build a symbiotic and mutually beneficial franchise ecosystem.Second, Deepen the strategy of community central kitchen to expand community consumption scenarios. The Company will focus on creating food retail solutions for &#34;four meals a day&#34;, continuously diversifying its product categories and building a more competitive product matrix to achieve organic sales growth while further consolidating its advantages in lower-tier market layout.Third, Deepen membership operation and IP to advance the community brand project. The Company will continue to advance refined membership operation, deeply integrate media resources such as popular TV commercials, offline community advertising and social media and e-commerce platforms (such as Douyin) to expand its membership base, and improve the membership rights system to enhance member loyalty and stickiness. Furthermore, it will further deepen the operation of its brand IP image &#34;Guobao&#34; to strengthen brand value and emotional resonance with consumers.Fourth, AI big data empower stores to innovate smart retail scenarios. By integrating Internet of Things, big data, and AI technology, the Company will drive the smart operation of stores with data. It will promote the in-depth integration of the Guoquan stir-fry business format with smart cooking machines, accurately analyze consumers' dining habits, optimize dish parameters and cooking procedures for smart cooking machines, realize the standardized production of stir-fry dishes, and optimize the consumer experience.Fifth, Continue to promote the industrial layout and strengthen the advantage of one-product-one-factory. Adhering to the &#34;one-product-one-factory&#34; strategy, Guoquan will further integrate upstream resources domestically and internationally, accelerate the construction of the food production base in Danzhou, Hainan Province, increase R&amp;D investment, and launch more product portfolios with a high quality-price ratio.Sixth, Develop overseas markets in phases to deliver the good taste of China. Guoquan plans to explore and establish a presence in overseas regional markets in a phased manner to unlock long-term growth potential. Leveraging its core competitiveness, it will steadily advance its overseas market exploration. It also plans to take the lead in opening stores in Hong Kong Special Administrative Region, China to accumulate and gather operational experience, gradually achieving overseas product sales and enhancing global brand visibility.About Guoquan Food (Shanghai) CO., LTD. (2517.HK):Guoquan Food (Shanghai) Co., Ltd. ('Guoquan'; Stock Code: 2517.HK) is the leading one-stop home meal products brand in China, offering a variety of ready-to-eat, ready-to-heat, ready-to-cook and prepared ingredients, with a focus on at-home hotpot and barbecue products. Leveraging Company's robust supply chain capabilities, a strategic industrial layout with self-owned factories, a nationwide network of around 10,000 instant retail stores, and a carefully curated product portfolio, Company offer a variety of home meal products solution under the 'Guoquan Shihui' brand, catering to different dining scenarios.This press release is issued by EverBloom (HK) Communications Consultants Group Limited on behalf of Guoquan Food (Shanghai) Co., Ltd.Source: Guoquan Food (Shanghai) Co., Ltd.Copyright 2026 ACN Newswire . All rights reserved.</div></div>

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Guoquan Food (Shanghai) Co., Ltd. reported a strong performance for the year ending December 31, 2025, with revenue of RMB7.81 billion, up 20.7%, and net profit soaring 88.2% to RMB453.9 million. Core operating profit increased by 48.2% to RMB460.7 million. The company expanded its store network to 11,566 locations, focusing on both township and mid-to-high-tier markets. The membership program grew to 64.9 million members, enhancing customer engagement. Guoquan also introduced 282 new product SKUs, emphasizing innovation and diversification in its offerings, while strengthening its supply chain and production capabilities.

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Guoquan Achieves Simultaneous Growth in Scale and Profitability, Core Operating Profit Increases by 48.2% in 2025