Sichuan Baicha Baidao Industrial Co., Ltd. (Chabaidao) reported first-half 2026 revenue of RMB2.65 billion, up 6.20% year on year, driven mainly by a 7.0% rise in sales of goods and equipment to franchisees. Royalty and franchising income declined 19.50% to RMB81.02 million, reflecting a strategic shift that favoured franchisee profitability. Other revenue climbed 22.00% to RMB50.15 million.
Gross profit slipped 2.10% to RMB797.47 million as the company’s gross margin narrowed to 30.0% from 32.6% a year earlier, pressured by promotional support for the fledgling freshly-brewed coffee business. Distribution and selling expenses fell 7.90% to RMB138.34 million following brand-promotion restructuring, while administrative costs eased 4.20% to RMB246.60 million due to tighter expense control. Net finance costs were broadly stable at RMB2.31 million.
Profit for the period rose 3.50% to RMB344.73 million, with adjusted EBITDA up 2.60% to RMB462.91 million, yielding an adjusted EBITDA margin of 17.4% (1H25: 18.0%). Adjusted net profit increased 2.34% to RMB348.31 million, translating into an adjusted net margin of 13.1%.
Cash and cash equivalents stood at RMB2.96 billion at period-end, modestly lower than the RMB3.07 billion recorded on 31 December 2025 after dividend payments and higher trade receivables linked to equipment sales. Inventory fell 22.12% to RMB173.85 million on refined supply-chain management, cutting inventory days to 19.7 from 21.9. The group remains debt-free, with no bank borrowings and gearing at zero.
Operationally, Chabaidao expanded its global network to 8,863 stores (8,791 in mainland China, 72 overseas), a 4.70% increase versus June 2025. Lower-tier Chinese cities led growth, with store count up 7.20% year on year. Overseas outlets tripled to 72 across 13 markets, led by South Korea (32 stores). Registered members surpassed 201.40 million, of which 35.90 million were active.
The board proposed an interim cash dividend of RMB0.15 per share, amounting to RMB221.65 million and representing a 65.9% payout of first-half attributable profit, pending shareholder approval. Capital commitments totalled RMB7.56 million, while unutilised IPO proceeds of HK$706.80 million are earmarked for supply-chain upgrades, digitalisation and R&D, with full deployment targeted by June 2027.
Looking ahead, management plans to deepen multi-category development, accelerate coffee expansion, reinforce brand IP, and sustain disciplined store growth, particularly in lower-tier domestic markets and select overseas regions.
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