On the evening of August 14th, Xiaocaiyuan International Holdings Limited (Xiaocaiyuan) announced that in the first six months of 2026, the group’s revenue increased by 7% year-on-year, while profits decreased by 24.3%, indicating a situation of increasing revenue but decreasing profits. Xiaocaiyuan attributed the decline in profits to the investment in AI (Artificial Intelligence) digitalization upgrade. Moreover, nearly 300 of Xiaocaiyuan’s stores have already introduced cooking robots.
In the evening of the 14th, Xiaocaiyuan released the “Interim Performance Announcement for the six months ended June 30, 2026”. The announcement revealed that, “Group revenue was 2.903 billion yuan (RMB, same below), a 7% year-on-year increase; and profits within the period were 289 million yuan, a 24.3% decrease.”
The announcement indicated that the revenue growth was mainly driven by dine-in services, which increased by 298 million yuan, a growth rate of 18.1%; while takeaway services decreased by 112 million yuan.
The announcement did not provide a detailed explanation for the profit decline, only stating simply: “The concentration of Chinese restaurant dining convenience is still relatively low, and the sinking market has become a new engine for growth. The competition logic has shifted from ‘competing by scale’ to ‘competing by efficiency, supply chain, and standardization’.”
Meanwhile, on August 15th, the “Daily Economic News” reported that Xiaocaiyuan’s revenue is rising while profits are declining; dine-in is on the rise, while takeaway is declining. Behind this lies Xiaocaiyuan’s strategic adjustments over the past year: price reductions, cutting takeaway services, implementing a membership system, investing in AI digitalization upgrade, and establishing a central factory.
Among Xiaocaiyuan’s more than 800 stores, nearly 300 have introduced cooking robots. In the view of the management, Xiaocaiyuan can promote the popularization and data collection of cooking robots through real-life scenarios such as store operations, becoming a defining presence in the food robot industry.
In addition to the stores, Xiaocaiyuan’s central factory in Ma’anshan, which officially started production this year, has also introduced robot production and AI visual quality control. A Xiaocaiyuan executive stated: “The diced chicken packaging line has been reduced from seven personnel to almost unmanned operation.”
Regarding the introduction of cooking robots in Xiaocaiyuan stores, public opinion varies. Some believe that this can save labor costs and bring greater profits to businesses, while others think that cooking robots, following preset operations, must control heat, ingredients, and seasoning accurately. If any part goes wrong, the taste of the dish changes, leading to Chinese cuisine losing its essence.
Public records show that Xiaocaiyuan International Holdings Limited was established on December 11, 2023, registered in the Cayman Islands and listed on the Main Board of the Hong Kong Stock Exchange on December 20, 2024. The company mainly engages in self-operated chain restaurant operations, owning the Xiaocaiyuan brand, with key business areas covering dine-in, food delivery, and supply chain management.