From the 2025 Financial Report, See How China Green Tea Group (6831.HK) Opens Dual Growth Space in the Era of Rational Consumption

In early 2026, as “stimulating consumption” and “high-quality development” became hot topics among delegates at the National People’s Congress, practitioners in the catering industry were experiencing a complex mix of ups and downs.

On one hand, the industry was seeing a rebound driven by policy support, but on the other hand, there were deep-seated concerns about declining per capita consumption and shortening store lifespans.

In an era where “revenue growth without profit increase” has become an industry chronic condition, any performance report showing counter-cyclical growth is especially valuable and warrants exploration of its underlying growth logic.

Recently, Green Tea Group (6831.HK), a leader in casual Chinese dining, delivered its first annual report since listing. Not only did this report meet market expectations, but it also exceeded them, providing a highly research-worthy example amid industry segmentation.

Through this earnings forecast, we see not just numbers growth but a complete narrative of how a company, through strategic focus and refined operations, has carved out a high-quality growth path in a red ocean market.

1. The Value of Financial Resilience: The Logic Behind Profit Growth Outpacing Revenue

Analyzing Green Tea Group’s financial report, the most noteworthy aspect is the change in its growth structure.

The announcement shows that as of December 31, 2025, the company achieved revenue of 4.763 billion yuan, a 24.1% increase over the same period in 2024. Offline stores, as the company’s core revenue source, maintained steady growth, with restaurant operating income reaching 3.541 billion yuan during the reporting period, up 14.3%. While revenue achieved double-digit growth, the company’s profitability also significantly improved, with growth rates notably surpassing revenue growth. During the period, adjusted net profit reached 509 million yuan, up 41.0%.

This clearly indicates that the company’s growth was accompanied by effective net profit margin recovery and substantial improvement in profitability. It also means that, amid widespread price wars in the industry, Green Tea Group not only held its ground but also found effective ways to improve efficiency and increase profits.

Achieving such impressive results relies heavily on continuous expansion of the store network. Data shows that by the end of 2025, Green Tea Group operated 609 stores, covering Hong Kong SAR and all first-tier cities, 15 new first-tier cities, 30 second-tier cities, and 99 third- and lower-tier cities.

From a financial perspective, profit growth exceeding revenue growth usually indicates the release of scale effects and declining marginal costs.

In fact, in 2025, the proportion of raw materials and consumables in revenue decreased from 33.5% in the same period in 2024 to 31.7%. This change benefited from increased bargaining power through bulk procurement and resource integration at the procurement center. In the catering industry, supply chain centralization often determines profit margins; Green Tea Group’s deep partnerships with leading suppliers like Zhengda Group, Guchuan Food, and Ziyan Food are continuously releasing cost advantages from the cost side.

Meanwhile, this high-quality profitability has also provided the company with a solid cash base. Data shows that at the end of 2025, cash and cash equivalents amounted to 1.199 billion yuan, a 385.3% increase year-over-year.

Ample cash reserves not only support future store expansion but also lay a solid foundation for shareholder returns. Just over a month after listing, Green Tea Group announced a special dividend of HKD 0.33 per share. On the same day, the company also announced a final dividend of HKD 0.52 per share for the fiscal year ending December 31, 2025.

Additionally, since December 2025, the company has been actively repurchasing shares on the open market, with a total of 4.821 million shares repurchased by February 2026.

The company’s ability to pay dividends and repurchase shares simultaneously reflects confidence in its stable future development. With healthy cash flow and sustained profitability, Green Tea Group’s growth certainty and sustainability are clear, aligning with the characteristics of a “good company” and deserving higher expectations.

2. Key to Overcoming Industry Challenges: Value-for-Money, Efficiency Revolution, and Scene Re-creation

In the new normal of rational consumption, many catering companies are caught in “involution” competition, attempting to attract traffic through low prices alone, often sacrificing quality and experience, ultimately falling into a vicious cycle of “no sales without discounts.”

Green Tea Group’s counter-cyclical growth offers an opposite solution: building a moat centered on “value-for-money” and transforming it into real profits through continuous operational efficiency reforms.

Green Tea Group’s “value-for-money” is not just a simple low-price strategy but a capability that allows consumers to enjoy “beyond expectations” experiences at a ticket size of 50 to 70 yuan.

This capability is underpinned by its innovative “third-generation supply chain model”: leading suppliers + digital cold chain + smart kitchens. From sourcing high-quality ingredients, ensuring freshness through full cold chain coverage, to using smart equipment in stores for consistent quality, Green Tea achieves cost reduction through scale procurement and stable, controllable ingredient quality.

This supply chain system not only addresses market concerns about prepared dishes but also standardizes quality, forming a solid foundation for the long-term viability of “value-for-money.”

If supply chain is the internal strength, then continuous optimization of the single-store model is the lever for profit growth.

In recent years, Green Tea Group has focused on developing small restaurants with an area of 300 to 350 square meters or less. This “small store + high turnover” strategy has yielded immediate results: lower initial investment costs and higher operational efficiency.

Data shows that in 2025, the average sales per store of new openings increased by 48.4% compared to older stores; the profit margin per store reached 15.9%, 0.2 percentage points higher than older stores. Meanwhile, the payback period for new stores shortened from about 18 months to approximately 12.6 months. This means each new store not only contributes to revenue growth but also quickly recovers capital, creating healthy cash flow cycles.

Notably, beyond dine-in, Green Tea Group has keenly captured changing consumption scenes by launching a “quality-oriented takeout revolution,” opening new growth space. Looking at the current takeout market, this strategy’s foresight and rarity become even clearer.

Starting in 2025, the subsidy war among delivery platforms appeared to be a win-win for consumers, platforms, and merchants, but the chain reactions it triggered are deeply eroding the industry’s healthy foundation.

Lixin Consulting’s survey of over 2,000 catering merchants nationwide shows that in 2025, nearly 70% of merchants experienced a decline in revenue year-over-year during the subsidy war, 80% saw a drop in net profit, and over one-third reported profit declines exceeding 30%. “Orders increased, revenue decreased, profits lost” has become the real picture behind the traffic frenzy for most catering businesses.

Against this backdrop, Green Tea Group’s choice is particularly clear-headed. While many peers are forced into price wars, struggling with low margins and poor quality, Green Tea did not blindly follow the subsidy trend. Instead, leveraging strong product R&D and supply chain advantages, it launched high-quality, cost-effective takeout products, achieving remarkable results.

In 2025, the company’s takeout revenue share jumped from 18.8% in 2024 to 25.3%, reaching 1.204 billion yuan, a 66.5% year-over-year increase. Takeout is no longer just a supplement to dine-in but has become a key growth driver, creating a virtuous cycle of “dining foundation + takeout scene expansion,” jointly enhancing the brand’s overall competitiveness.

3. Looking Ahead: What More Is There to Expect from Green Tea?

If analyzing last year’s performance reveals Green Tea Group’s current operational resilience, then its future growth potential is the anchor of its long-term value. After refining internal efficiency to the extreme, Green Tea is now opening new growth avenues through “domestic deep cultivation” and “overseas expansion.”

First, domestically, Green Tea still has significant growth potential.

According to Zhuoshi Consulting, although the total number of stores has exceeded 600, the store density per million people is only 0.64, still far below industry peers, indicating untapped expansion potential. Zhuoshi suggests that, based on a 30% market penetration rate in shopping malls, Green Tea’s store expansion space could be doubled.

From a broader perspective, Green Tea’s growth potential is closely tied to the structural opportunities within the Chinese Chinese cuisine market.

According to Zhuoshi’s industry report, China’s catering market is expected to grow at a compound annual rate of 7.1% to reach RMB 7.85 trillion by 2029. Among segments, casual Chinese dining, with its cost-performance advantage, shows greater growth potential. With increasing consumer value awareness, it is projected to grow at a 9.1% CAGR from 2024 to 2029, reaching RMB 826.1 billion.

In this highly fragmented market, companies like Green Tea with strong standardized operations and supply chain management are better positioned to meet consumer needs and thus more likely to benefit from market growth.

Additionally, Green Tea is steadily advancing its internationalization based on a solid domestic foundation.

Chinese cuisine going abroad is not new, but most are scattered single stores; few have the scale and standardization to replicate as chains. Green Tea’s overseas expansion demonstrates systematic combat capability from the start, supported by dual advantages: the founder’s rich overseas business background and the strategic investor United Group’s global resources.

More fundamentally, the cultural appeal of “New National Style” and its “fusion cuisine” positioning, which resonates globally, give it strong universal appeal.

Since opening its first store in Hong Kong in September 2024, Green Tea has established 14 stores across Hong Kong, Singapore, Malaysia, and Thailand, initially completing its Southeast Asian footprint.

Data shows that Hong Kong stores generate stable monthly revenue of HKD 1.5-2 million, with store-level operating profit margins exceeding 15%. This demonstrates that a brand rooted in Chinese culture can thrive abroad and has significant profit potential.

The company plans to open at least 15 more overseas stores by 2026, with overseas profits expected to account for 20% of the group’s incremental profits by then. This indicates that international expansion is no longer just a branding effort but is poised to become another powerful engine driving overall performance.

4. Conclusion

Looking back in spring 2026, Green Tea Group’s first post-listing annual report carries far more significance than just impressive numbers. It is a response to the uncertain consumer era—a company returning to core business principles, focusing on operational efficiency, and keenly capturing scene changes, delivering a “certainty” report.

From building a “value-for-money” supply chain moat, to launching a “small store + high turnover” efficiency revolution, to strategically expanding domestically and internationally, every step aligns with industry development logic.

For the capital market, such a company—combining defensiveness with growth potential and clear growth logic—may just be beginning its valuation re-rating.