On August 17, XIAO NOODLES (HK: 02408) released its interim results for the first half of 2026. During this period, the company generated revenue of RMB 939 million, marking a year-on-year increase of 33.6%. Net profit for the period reached RMB 63.26 million, up 51.2% compared to the same timeframe last year.

As of June 30, 2026, the company's total restaurant count reached 550, a rise of 133 locations or 31.9% from the 417 outlets recorded a year earlier. This figure comprised 451 company-operated restaurants and 99 franchised locations.

The announcement revealed that the average spending per order at comparable stores dipped to RMB 27.7 in the first half of 2026, down 11.5% from RMB 31.3 in the corresponding period of the previous year. This marks the fourth consecutive year since 2022 that XIAO NOODLES has proactively reduced menu prices. However, the average daily order volume per comparable store climbed by 7.8%, rising from 372 orders to 401 orders year-on-year.

Despite these operational gains, XIAO NOODLES' stock has underperformed. From its mid-February peak this year to the market close on August 17, the share price has plummeted by over 43%, leaving the company's total market capitalization at just HKD 2.3 billion.

In a separate development, XIAO NOODLES faced public scrutiny in June this year after initiating a trademark infringement lawsuit against a small family-run noodle shop named "Yu Jian Xiao Mian" in Nanyang, Henan Province. On June 13, XIAO NOODLES announced it had withdrawn the lawsuit and was reflecting on its rights protection procedures. Two days later, founder Song Qi issued an open letter to the couple operating "Yu Jian Xiao Mian," apologizing for the trademark dispute and confirming the company's decision to gift the registered Class 35 "Yu Jian Xiao Mian" trademark to the couple free of charge, allowing them to continue using their existing signage without concern.