ZHOU HEI YA (01458) reported a 19.5% increase in revenue for the first half of the year, reaching 1.461 billion yuan, with rapid growth in channel business and layouts for new segments both domestically and overseas.

ZHOU HEI YA (01458) announced its mid-year results for 2026, reporting revenue of approximately 1.461 billion yuan, an increase of 19.5% year-on-year; gross profit of around 800 million yuan, an increase of 11.6%; and net profit attributable to shareholders of the parent company amounting to 91.496 million yuan. As of June 30, 2026, the group operated a total of 2,972 stores, consisting of 1,860 self-operated stores and 1,112 franchised stores, covering 221 cities across 28 provinces, autonomous regions, and municipalities in China. Overall store sales demonstrated steady year-on-year growth, with a higher proportion of profitable stores and steadily improving store operational quality. The announcement stated that the revenue growth was primarily due to the groups vigorous channel expansion and operational efficiency enhancements, which drove solid growth in channel business while optimizing store structure and improving the quality of single-store operations, overall promoting revenue growth. The channel business has become the core growth engine of the group. In the first half of the year, the focus was on establishing benchmarks and promoting sales conversions, with differentiated operational solutions tailored for various formats such as member supermarkets, bulk snack stores, chain convenience stores, and e-commerce platforms. In offline channels, member stores and chain convenience stores were core areas, achieving efficient output through a progressive strategy of setting benchmarks, standardized execution, and scenario-based marketing, while deepening collaborations with channels like Sam's Club and Pang Donglai; concurrently, the group actively expanded terminal coverage, with over 50,000 points of sale nationwide. In online channels, Douyin was established as a core platform for building brand strength, creating a closed loop from content seeding to omnichannel conversion; platform e-commerce captured spillover traffic, while fresh retail saw steady volume growth, and multi-channel collaboration continuously improved overall conversion efficiency. The Zhongbao series became a major product line within channels, with Wuxi Online Offline Communication Information Technology Co., Ltd. achieving full channel coverage, exceeding sales of 50 million yuan during the period, with strong sales growth. Additionally, the channel division continued to reinforce talent acquisition and incentive mechanisms, steadily enhancing organizational capabilities. The channel business achieved rapid growth in the first half of the year, with overall revenue growth rates for online and offline channels reaching 80.4%, including a 37.4% increase in online channel revenue and a 207.2% increase in offline channel revenue. While delving into its core business, the group considers rescaling and overseas expansion as long-term growth reserves, steadily advancing its innovation sectors. The rescaling business, relying on joint venture Sichuan ZHOU HEI YA Food Technology Co., Ltd., focuses on the taste of ZHOU HEI YA as a core sensory asset, promoting the brands extension into home cooking and convenient fast food scenarios. During the reporting period, the product matrix covered categories such as marinade packages, hot pot base, flavored noodle sauces, and turkey noodles, while simultaneously tapping into e-commerce and overseas channels, with business progressing steadily. In terms of overseas business, channel trade exports and first-store models are being concurrently verified. During the reporting period, products entered multiple overseas markets, with Europe and America as key development areas; the first store in Malaysia continuously refines the localized operational model, accumulating experience for future expansion. Looking ahead to the second half of 2026, structural reshaping in the industry will continue. The group will focus on three major directions based on its mid-year operational results: first, upgrading the growth model, continually enhancing channel coverage and penetration depth, driving channel business towards higher quality scale growth. Second, strengthening brand and product competitiveness, continuously improving the product matrix, and accelerating the launch of innovative products; comprehensively upgrading the brand's visual and communication system to deepen the penetration of young consumer mindsets. Third, solidifying operational bases, deepening operational improvements of existing stores and enhancing single-store profitability, advancing cost reduction and efficiency improvements, and building flexible supply capabilities to enhance overall operational efficiency. The group will always focus on product quality, consumer experience, and operational efficiency, responding to investors long-term trust with solid performance growth and sustainable shareholder returns.