Green Tea Group reported an adjusted net profit of RMB508.89m in 2025, rising 41%, supported by network expansion, operational efficiencies, and initial overseas growth. The restaurant operator scales to 609 outlets and accelerates Southeast Asia growth. Adjusted net profit margin rose to 10.7%, whilst return on equity reached 29%. Revenue was up 24.1% year-on-year (YoY) to RMB4.76b.
Efficiency Drives Margins
The group’s third-generation supply chain—integrating key suppliers, digital cold chain, and smart kitchens, enabled centralised procurement and reduced logistics costs, lifting gross margin by around 1.8 percentage points. Labour efficiency gains from process optimisation and digital tools helped stabilise labour cost ratios whilst improving employee compensation. Rental and depreciation expenses declined by 1 percentage point YoY, driven by optimised store design and fit-out.
For customers, the rollout of new formats means fewer queues and more consistent food quality across cities. The standardised supply chain and smart kitchens aim to reduce wait times and ensure that a meal tastes the same in a lower-tier city as it does in a major metropolitan hub. The integration of digital cold chain technology further ensures the integrity of ingredients during transit, minimising spoilage and waste while maintaining freshness.
Expanding Footprint
Green Tea added 157 new outlets in 2025, bringing its total to 609 stores across nearly 150 cities. Its strategy focused on intensifying presence in core markets and expanding into lower-tier cities, entering 16 new locations below the second-tier level. Same-store sales declined by only 0.8% and improved progressively, turning positive from Q2. Delivery contribution increased to 25.3%, driven by single-portion meal offerings.
New store formats demonstrated higher productivity, with dine-in sales per square metre reaching RMB1,953 monthly, 48.4% above existing stores. The payback period was shortened to 12.6 months, with a new store investment return rate of 73.1%. This financial strength allows the firm to fund further rapid expansion without relying heavily on external borrowing.
International Push
The group accelerated international expansion in 2025, operating 14 overseas outlets across Singapore, Thailand, Malaysia, and Hong Kong by year-end. Overseas revenue exceeded RMB140m, increasing 16 times YoY. This rapid ascent in international earnings indicates strong demand for the brand’s menu outside of its domestic market, validating the strategic decision to prioritise Southeast Asia as a primary growth engine.
