# franchise expansion

China’s ‘Baozi Champion’ Sees Profits Hit by Stock Bets as Sales Keep Rising

Babi Foods grew revenue 11.2% in 2025 to RMB 1.859 billion but saw net profit dip 1.3% to RMB 273 million after a RMB 93.82 million hit from fair‑value losses on its holding in Dongpeng Beverage. The result highlights a wider issue in China: industrial firms using stock investments to boost returns can import volatility into corporate earnings.