Babi Mantou's Strong H1: 18% Profit Surge, 542 New Outlets. Proving Steamed Buns are Big Business.

Babi Food: How a Steamed Bun Business Made Over 1 Billion Yuan in Half a Year

In a challenging market, a steamed bun company has delivered impressive results.

Babi Food, the parent company of Babi Steamed Bun, recently released its 2025 first-half earnings report. Here’s what you need to know:

Strong Financial Performance

• Revenue: ¥835 million (up 9.31% year-on-year)
• Net Profit: ¥132 million (up 18.08% year-on-year)
• Q2 Was Even Better: Revenue grew 13.50%, and net profit jumped 31.42%.

The company also has ¥600 million in cash. Although this decreased compared to the start of the year, it was mainly because Babi paid dividends to shareholders and made smart investments.

In simple words:
They made over ¥800 million selling steamed buns, earned more than ¥130 million in profit, and still shared earnings with their investors.

Growing Store Network

Babi isn’t just making money—it’s also expanding quickly:

• 542 new stores opened in the first half of 2025
• Total stores now: 5,685

But it’s not just about opening more stores. Babi is also improving each store’s performance through:

• Store upgrades
• Better delivery services
• Stronger training for franchise owners

These efforts are working—average sales per store are going up again.

Expanding Through Acquisitions

Babi is also growing by buying other brands. Recently, it acquired:

• “Qinglu” in Nanjing
• “Xunweilai” and “Xunzao” in Jiangxi
• “Manxiangren” in Zhejiang (about 250 stores)

By supplying these stores from its central kitchen, Babi is strengthening its supply chain and expanding its reach in Eastern China.

New Business Opportunities

Babi isn’t just selling in stores. It’s also tapping into two growing markets:

1. Bulk Sales (团餐):Selling customized fillings to restaurants, schools, and companiesThis segment grew 90% in the first half of 2025
2. Retail Sales:Selling packaged buns in supermarkets and onlineSales through Hema Fresh (Alibaba’s grocery store) grew 187%Sales through Meituan and Tmall also grew strongly

This means Babi is becoming more than a bun store—it’s turning into a full food supply platform.

Why Is Babi Succeeding?

• The steamed bun market in China is very large but also very fragmented. The top 10 brands only hold 6-7% of the market.
• Babi is using its strong brand and supply chain to expand and consolidate the market.
• More people are buying frozen buns and eating prepared meals at home or work.
• The group meal market is growing fast and is expected to be worth ¥2.2 trillion in 2025.