Guming H1 2026 Revenue Up 31.9% to RMB 7.47 Billion, Adjusted Profit RMB 1.568 Billion

Guming released its first-half 2026 results. During the period, the company generated revenue of RMB 7.470 billion, up 31.9% year-on-year. Gross profit rose 39.6% to RMB 2.493 billion, with gross margin improving to 33.4%. Reported profit for the period was RMB 1.568 billion, down 3.6% year-on-year, mainly due to a RMB 556.9 million fair value gain on convertible redeemable preferred shares recorded in the same period of 2025. Excluding such non-recurring impact, adjusted profit was RMB 1.568 billion, up 44.4% year-on-year.

As of June 30, 2026, Guming operated 14,351 stores, up 28.4% from 11,179 a year earlier. The company has slowed new store expansion, placing greater emphasis on store quality, advancing sixth-generation store upgrades, and raising site-selection standards. In the first half, 1,318 new stores were opened and 521 were closed. By store mix, stores in second-tier and below cities accounted for 82% of the total, while township stores rose to 45%. At the end of the period, the company had 7,153 franchise partners, up from 5,875 in the same period of 2025.

On operating metrics, total store GMV reached RMB 19.747 billion in H1 2026, with over 1.110 billion cups sold. Average daily GMV per store was RMB 7,800, versus RMB 7,600 in the same period of 2025. Mini-program registered members reached 236 million, with about 59 million quarterly active members. On the product front, the company launched 51 new products in the first half. Its coffee business expanded rapidly, with about 13,500 stores equipped with coffee machines and 12 new coffee beverages introduced, extending into breakfast consumption scenarios.

By revenue composition, sales of goods and equipment generated RMB 5.969 billion, accounting for 79.4% of total revenue, up 32.8% year-on-year, primarily due to increased demand for company goods driven by store network expansion and higher total GMV. Franchise management service revenue was RMB 1.493 billion, up about 28.9% year-on-year. Direct-operated store sales were RMB 7.274 million, roughly flat year-on-year. All revenue came from mainland China, with the store network covering more than 200 cities across all tiers.

Supply chain construction continued. As of end-June, Guming operated 24 warehouses with a total floor area of about 277,000 square meters and cold storage capacity exceeding 82,000 cubic meters. About 73% of stores were within a 150-kilometer radius of a warehouse, enabling cold-chain delivery every two days to about 99% of stores. Warehouse-to-store delivery costs accounted for less than 1% of GMV. Per-store GMV, average daily GMV per store, cups sold per store, and average daily cups per store remained broadly stable year-on-year, as the benefit of a richer coffee menu and breakfast-scenario sales was partly offset by reduced subsidies from third-party food delivery platforms.

On expenses, selling and distribution expenses were RMB 378 million, administrative expenses RMB 208 million, and R&D expenses RMB 124 million, with all growing slower than revenue. Income tax expense was RMB 376 million, up 48.4% year-on-year, mainly due to higher taxable profit and withholding tax on distributable profits of mainland subsidiaries. On the balance sheet, as of June 30, 2026, Guming had net assets of RMB 6.314 billion, cash and bank balances of RMB 3.295 billion, and restricted cash of RMB 6.525 billion. Interest-bearing bank borrowings totaled RMB 5.640 billion, all short-term, with the gearing ratio falling to 59.2%.

Net cash generated from operating activities in the first half was about RMB 2.062 billion, with capital expenditure of RMB 391 million, mainly for plant and equipment purchases and land-use rights acquisition.