【6831 Earnings】Green Tea Group, Parent Company of "Green Tea Restaurant," Pure Profit Increased 39% to 486 Million CNY, Dividend of 52 Hong Kong Cents, Overseas Stores to Increase to 30 This Year

Green Tea Group (06831), which operates the Zhejiang cuisine chain restaurant “Green Tea Restaurant,” reported full-year revenue for 2025 increased by 24% to 4.76 billion yuan (RMB), with net profit rising by 39% to 486 million yuan. Earnings per share are 0.8 yuan, with a final dividend of 52 HK cents.

Green Tea Group’s return on equity (ROE) for 2025 decreased to 29%, down from 46.8% in 2024, a decline of 17.8%. Chief Financial Officer Shang Wei stated that the ROE decline is due to the company’s listing in 2025, and the company will continue to increase dividend payouts in the future to optimize ROE.

The group stated that its revenue mainly comes from restaurant operations and takeout services, accounting for 74% and 25%, respectively. Restaurant operating income increased by 14% to 3.54 billion yuan due to an increase in the number of restaurants. Takeout revenue grew by 66% to 1.2 billion yuan, driven by strengthened takeout business deployment and expanded coverage.

Co-founder, CEO, Chairman of the Board, and Executive Director Wang Qinsong pointed out that currently, takeout accounts for about 25%, compared to about 30-40% in the industry, leaving about 5% growth potential. Shang Wei added that the profit margin of the takeout business is actually higher than dine-in, but the company still prioritizes dine-in.

Green Tea Group indicated that as of the end of last year, it operated 609 restaurants across Mainland China, Hong Kong, Singapore, Thailand, and Malaysia. During the reporting period, 157 new restaurants were opened, with an average cash investment recovery period of 12.6 months.

Currently, Green Tea Restaurants has opened 10 outlets in Hong Kong. Regarding operations in Hong Kong, Shang Wei noted that although labor costs and rent are high, the average spending per customer in Hong Kong is higher than in Mainland China, and profit margins are close to those of Mainland stores.

Shang Wei expects to open at least 30 new stores overseas this year, mainly in Southeast Asia and other international markets. Wang Qinsong added that the overseas stores will mainly serve Chinese communities in countries or regions such as Singapore, Thailand, Malaysia, and Vietnam.

Wang Qinsong stated that this year, new stores in Mainland China will grow at a rate comparable to previous expansion, and with about 600 stores currently, approximately 200 new stores could be opened proportionally. He also mentioned that Guangdong and Zhejiang provinces already have over 100 Green Tea Restaurant outlets, demonstrating that store density can surpass 100. Given that some provinces still have only a few stores (single digits), and others like Xinjiang, Ningxia, and Qinghai have yet to be developed, there is still room for growth.

Wang Qinsong continued that although store expansion increases pressure on individual stores, the company faces fewer competitors, future supply chain growth, improved management efficiency, and increased takeout proportion will enhance competitiveness. Overall, the advantages outweigh the disadvantages.