Guoquan Food (Shanghai) Co. Ltd. (2517.HK), a supplier of ingredients for hotpots and other dining at home, last Thursday reported its revenue rose 20.7% last year, as its profit rose at more than double that rate amid a focus on expansion into China's untapped smaller markets.

Guoquan reported revenue of 7.81 billion yuan ($1.13 billion) last year, up from 6.47 billion yuan a year earlier, accelerating from the slower 6.2% growth rate in 2024. Its net profit for the year rose 88% to 454 million yuan, while its core operating profit, which excludes certain non-cash items and a one-time donation, rose 48% to 461 million yuan.

Unlike many restaurant operators, which are suffering in China's economic slowdown, Guoquan has been able to maintain strong growth by focusing on ...