Breaking Down Xi'an Catering Co., Ltd. Financial Health: Key Insights for Investors

Founded in 1956, Xi'an Catering Co., Ltd. (000721.SZ) blends centuries-old culinary heritage with modern business ambitions-boasting a market capitalization of about CNY 5.68 billion (as of December 12, 2025) while operating restaurants, hotels and food-processing units that anchor a top-ten position in Shaanxi with roughly 12% market share in 2022; yet the company faces headwinds after reporting CNY 665.81 million in revenue for 2024 (a 14.66% drop from 2023) and a net loss of CNY 128.01 million (up 8.55%), prompting a strategic push into digital transformation-including about CNY 200 million allocated to online ordering and app development-alongside sustainability commitments (sourcing over 80% of ingredients locally within 100 km and historically 70% local sourcing in 2022), a loyalty program of 300,000+ members with a 75% retention rate, CNY 10 million donated to local charities in 2022, and a vision to scale nationally and globally while upholding core values of unity, pragmatism, integrity, diligence and innovation, fostering inclusion, quality, food safety and the "one person, one pot" model to reduce waste and elevate value for customers and shareholders

Xi'an Catering Co., Ltd. (000721.SZ) - Intro

• Founded: 1956; long-standing national and regional brand centered in Shaanxi Province.
• Business scope: restaurants, hotels, and food processing - traditional and modern Chinese cuisine across multiple formats.
• Market capitalization: ≈ CNY 5.68 billion (as of 12 Dec 2025).
• Regional footprint: top-10 catering enterprise in Shaanxi; estimated regional market share ≈ 12% (2022).
• Digital & sustainability priorities: CNY 200 million invested in digital transformation (online ordering, app development) in the fiscal year; sourcing >80% of ingredients from local farmers within a 100 km radius.

• Deliver authentic Shaanxi and broader Chinese culinary experiences with consistent food safety and quality.
• Support regional agri-economies by prioritizing local procurement and traceability.
• Leverage technology to make traditional cuisine accessible and convenient for modern customers.

• Become the leading modern custodian of Shaanxi culinary heritage while scaling a profitable, tech-enabled catering network across western China.
• Achieve sustainable growth that balances regional cultural stewardship, environmental responsibility, and digital innovation.

• Quality & Authenticity - culinary integrity rooted in local ingredients and recipes.
• Customer-Centricity - convenience, consistency, and service across dine-in and digital channels.
• Local Partnership - economic support and long-term partnerships with regional farmers and suppliers.
• Innovation - continuous investment in digital platforms and operational efficiency.
• Sustainability - procurement and operations that reduce supply-chain footprint and strengthen local ecosystems.

• Cost and margin focus: address profitability gap following consecutive net losses by optimizing procurement, labor scheduling, and menu engineering.
• Monetize digital investments: convert app/online traffic into higher-frequency transactions and takeout/delivery revenue.
• Scale profitable formats regionally: replicate high-performing outlets and food-processing efficiencies while preserving brand authenticity.
• Strengthen supply resilience: maintain local sourcing while diversifying suppliers to reduce single-point risks.

Xi'an Catering Co., Ltd. (000721.SZ) - Overview

Xi'an Catering Co., Ltd. (000721.SZ) operates with a focused mission to deliver authentic, high-quality Chinese cuisine rooted in the culinary heritage of Xi'an, emphasizing customer satisfaction, community support, and digital-enabled accessibility. The company leverages local ingredients and traditional techniques while scaling customer retention and modern service channels.

• Deliver authentic Xi'an cuisine using traditional cooking methods and locally sourced ingredients.
• Create memorable dining experiences and prioritize high customer satisfaction.
• Build long-term customer loyalty through a rewards ecosystem and digital engagement.
• Support local agricultural communities and participate in social responsibility initiatives.

Key operational and social-responsibility highlights (2022):

Mission-driven initiatives and customer engagement tactics include:

• Rewards & retention: a loyalty program exceeding 300,000 members that supports a ~75% retention rate among regulars.
• Supply-chain localization: 70% of ingredients sourced locally to ensure freshness and support farmers.
• Digital channel expansion: ~CNY 200 million invested in 2022 to improve online ordering, mobile app performance, and operational efficiencies.
• Community investments: CNY 10 million donated in 2022 to food banks and charities, reinforcing corporate social responsibility.

For historical context and a deeper look at ownership, mission evolution, and business model, see: Xi'an Catering Co., Ltd.: History, Ownership, Mission, How It Works & Makes Money

Xi'an Catering Co., Ltd. (000721.SZ) - Mission Statement

• Deliver food safety and health compliance across all outlets through standardized sourcing, HACCP-aligned processes, and centralized quality controls.
• Provide consistently superior price-performance to consumers, reinforcing brand trust and loyalty while returning value to shareholders.
• Promote sustainable development via innovation in menu design, ingredient utilization, and measures to reduce food waste at the source.
• Expand responsibly across China and internationally, scaling the "one person, one pot" model while maintaining compliance with local laws and market expectations.
• Continuously align product development with customer needs and market dynamics to exceed customer expectations with safer, healthier, and more delicious offerings.

• Become the leading Chinese catering company with a strong domestic footprint and growing international presence.
• Uphold sustainable development through innovation and corporate responsibility to create long-term shareholder and societal value.
• Operate strictly within legal and regulatory frameworks, prioritizing food safety, public health, and customer-centric service.
• Continuously improve product quality and service to deliver safer, healthier, and tastier meals that surpass customer expectations.
• Embed a reputation for high price-performance, returning tangible benefits to consumers and securing long-term trust.
• Leverage the "one person, one pot" model to tightly couple product development with menu design, control ingredient use from the source, and materially reduce food waste.

Xi'an Catering Co., Ltd. (000721.SZ) - Vision Statement

• Expand and optimize multi-format foodservice networks (retail, institutional catering, quick service, and specialty dining) to reach broader demographics.
• Invest in food safety, nutrition R&D, and supply-chain traceability to ensure product integrity and consumer trust.
• Leverage digital transformation-online ordering, data-driven menu optimization, and loyalty platforms-to improve service quality and efficiency.
• Deepen partnerships and strategic alliances to pursue win-win growth and shared innovation.

• Unity & Teamwork: cross-department collaboration to accelerate rollout and standardization.
• Pragmatism: data-driven decision-making and measurable KPIs across operation centers.
• Integrity & Safety: strict supplier audits, HACCP standards, and traceability systems.
• Diligence & Service: continuous front-line training and customer feedback loops.
• Innovation: new product development, menu localization, and digital service pilots.
• Inclusion & Respect: diversity hiring targets and employee development programs.

• Supply-chain upgrades: cold-chain expansion, supplier traceability, and centralized QC labs.
• Nutrition-focused portfolio: fortified and lower-sodium product lines, ingredient transparency.
• Employee development: vocational training, safety certification, and leadership pipelines.
• Sustainability programs: waste reduction targets, energy-efficient kitchens, and packaging optimization.

• Partnerships with local farmers and cooperatives to secure quality raw materials and support rural incomes.
• Collaborative R&D with food science institutes for healthier product innovation.
• Community nutrition and food-safety education initiatives tied to brand responsibility.