Financial Performance - The company's revenue increased by 25.3% from RMB 4,724.8 million in 2022 to RMB 5,917.962 million in 2023[4]. - The company reported a total loss of RMB 194.445 million for the year, an improvement from a loss of RMB 331.188 million in the previous year[2]. - The total net income for the group in 2023 was RMB 2,617.8 million, an increase from RMB 2,259.5 million in 2022[16]. - The pre-tax loss decreased significantly by 64.6% from RMB 350.9 million in 2022 to RMB 124.4 million in 2023[36]. - The company recorded a net loss of RMB 135.2 million in 2023, compared to a net loss of RMB 16.5 million in 2022, primarily due to impairment losses on non-current assets[45]. - The loss attributable to the company's owners narrowed from RMB 353.1 million in 2022 to RMB 199.5 million in 2023[48]. - The company reported a total revenue of RMB 5,917.96 million for 2023, compared to RMB 4,724.83 million in 2022, reflecting a year-over-year increase[57]. - The net loss for the year ended December 31, 2023, was RMB 194.45 million, a decrease from a net loss of RMB 331.19 million in 2022[56]. Restaurant Operations - The total number of restaurants operated by the company reached 1,098, with 186 new openings and 114 closures in 2023[6]. - The company operates 833 Xiabuxiabu restaurants, with 38.1% located in first-tier cities, up from 37.6% in 2022[7]. - The total number of Coucou restaurants increased to 257, with a significant presence in second-tier cities[9]. - The company closed 99 Xiabuxiabu restaurants due to losses, primarily in areas not aligned with the brand's value proposition[4]. - In 2023, the company successfully opened 131 new restaurants under the "Xiaobai Xiaobai" brand, with a remarkable table turnover rate exceeding 10 times in southern cities like Shanghai[21]. - For 2024, the company plans to open no less than 100 new "Xiaobai Xiaobai" restaurants, targeting a turnover rate of at least 3 times in new locations[21]. - "Cou Cou" brand opened 45 new restaurants in mainland China in 2023, despite a challenging consumption environment, and plans to open 26 new hot pot restaurants in 2024[21]. Customer Engagement and Membership - The membership program saw a 62% increase in new member recruitment in 2023, with member spending frequency rising to 2.79 times[25]. - The paid membership program "Chang Chi Card" generated over 150 million yuan in sales in 2023, with consumption frequency for cardholders increasing 2.1 times compared to regular members[25]. - In 2024, "Cou Cou" will focus on new product development and member plans, with over 70% of menu items offering exclusive discounts for "Chang Chi Card" members[24]. - The company aims to enhance customer engagement through its membership system and cross-brand collaborations with banks and airlines[33]. Financial Management and Costs - Employee costs increased by 19.9% from RMB 1,553.5 million in 2022 to RMB 1,862.9 million in 2023, while the employee count rose from 27,059 to 28,665[40]. - Property rental and related expenses rose by 23.5% from RMB 251.8 million in 2022 to RMB 311.1 million in 2023, maintaining a consistent percentage of 5.3% of total revenue[41]. - Utility expenses increased by 27.3% from RMB 177.5 million in 2022 to RMB 225.9 million in 2023, with the percentage of total revenue remaining stable at 3.8%[42]. - The cost of raw materials and consumables increased by 23.1% to RMB 2,214.4 million, but the percentage of these costs relative to total revenue decreased from 38.1% to 37.4%[39]. - The company recognized a total tax expense of RMB 70,070,000 in 2023, compared to a tax benefit of RMB 19,747,000 in 2022, marking a significant shift in tax position[86]. Strategic Plans and Market Focus - The company plans to continue its overseas expansion strategy, focusing on markets such as Hong Kong, Taiwan, and Singapore[5]. - The group plans to focus on ensuring high-quality and safe ingredients, improving dining experiences, and enhancing brand recognition in a competitive market[20]. - The company plans to upgrade 150 outdated restaurant locations to create a more appealing dining environment[23]. - The company will continue to target the "new middle class" and university student market segments with tailored dining experiences[24]. - The company plans to continue leveraging its supply chain advantages to diversify product offerings and meet the diverse needs of consumers, particularly young consumers[26]. Product Development and Innovation - The company plans to add 5-8 new SKUs in the affordable hot pot base and home cooking seasoning categories in 2024[34]. - The company will optimize its afternoon tea and late-night snack offerings in 2024, introducing a flexible combination model to cater to different consumer scenarios[26]. - In September 2023, the company launched the "Sauerkraut Pork Hot Pot," which received positive consumer feedback, and plans to introduce new flavored hot pot bases in 2024[27]. - The company is focusing on developing camping meal packages to meet the growing interest in outdoor dining experiences[34]. - In 2024, the company will launch new products inspired by traditional Taiwanese cuisine, including various hot pot bases and snacks, to enhance consumer choice[26]. Governance and Compliance - The company has adopted a corporate governance code to ensure high standards of accountability and transparency, with a focus on maintaining a balanced power structure within the board[108]. - The audit committee, consisting of independent non-executive directors, reviewed the annual performance for the year ending December 31, 2023[112]. - The company's financial statements for the year ending December 31, 2023, were approved by Deloitte, confirming consistency with the preliminary announcement[113]. - The board proposes a special resolution to amend the company's articles of association at the annual general meeting[115].

智通财经APP获悉，餐饮股早盘继续走高，截至发稿，呷哺呷哺(00520)涨8%，报1.89港元；奈雪的茶 (02150)涨5.21%，报3.43港元；海底捞(06862)涨3.47%，报17.3港元；九毛九(09922)涨3.02%，报6.15港 元。 上海证券指出，2023年以来，伴随餐饮市场的强势回暖，头部餐饮企业开放加盟趋势愈加明显，不少品 牌选择开放加盟扩充市场。餐饮行业回暖趋势强劲，连锁化进程不断加快。海底捞顺应餐饮市场加盟 潮，扩大品牌影响力，有助于其增强营运能力，引入更多优质资源，提升营运效率，助力未来持续下沉 扩张。建议关注海底捞、九毛九。 华福证券指出，餐饮业充分复苏，整体势头强劲；餐饮行业下沉市场增长潜力显现，或成业绩新增长 点；高质价比产品、刚需品类仍然是餐饮消费主流；扩大门店规模仍然是主旋律，餐饮连锁化程度进一 步提升。推荐深耕下沉餐饮渠道的呷哺呷哺，建议关注海底捞、广州酒家、九毛九、同庆楼。 ...

Financial Performance - Xiabuxiabu reported a revenue increase of 15% year-over-year for the first half of 2023, reaching HK$1.2 billion[1]. - The company achieved a net profit margin of 10%, translating to a net profit of HK$120 million for the same period[1]. - The Group's revenue increased by 32.0% from RMB2,156.4 million in the first half of 2022 to RMB2,846.1 million for the Reporting Period[22]. - Sales from Xiabuxiabu increased by 29.5% from RMB1,063.5 million in the first half of 2022 to RMB1,377.0 million for the Reporting Period[22]. - Sales generated from Coucou increased by 36.8% from RMB1,024.3 million in the first half of 2022 to RMB1,401.5 million for the Reporting Period[22]. - The Group's profit turned around from a loss of RMB278.2 million in the first half of 2022 to a profit of RMB2.1 million for the Reporting Period[22]. - Total net revenue for the first half of 2023 reached RMB 1,420,948 thousand, a significant increase from RMB 1,049,136 thousand in 2022, representing a growth of approximately 35.4%[34]. - The Group's profit for the period was RMB2,120 thousand, a significant recovery from a loss of RMB278,151 thousand in the same period last year[64]. - Total comprehensive income attributable to owners was RMB 2,406 thousand, compared to a loss of RMB 279,535 thousand in H1 2022[64]. - Basic earnings per share for the period was RMB 0.23, compared to a loss of RMB 26.12 per share in the same period last year[141]. Customer Engagement and Market Expansion - User data indicated a growth in customer visits by 20%, with an average spend per customer increasing to HK$45[1]. - The company plans to open 50 new locations across China in the next fiscal year, expanding its market presence significantly[1]. - The Group opened 89 new Xiabuxiabu restaurants and 27 new Coucou restaurants in the first half of 2023[21]. - The total number of restaurants in operation increased from 1,008 as of June 30, 2022, to 1,094 as of June 30, 2023[22]. - The Group plans to expand its restaurant network to the southern region by opening new small-scale restaurants[23]. - The company is exploring potential acquisitions to enhance its market share in the fast-casual dining segment[1]. - The company plans to continue expanding its restaurant network and enhancing customer loyalty through paid membership initiatives[24]. - The membership base was rapidly expanded through targeted marketing and promotional activities, including an all-you-can-eat card launched on May 20, 2023[51]. Operational Efficiency and Cost Management - A strategic partnership with local suppliers is expected to reduce food costs by 5%, improving overall profitability[1]. - The Group's operational strategy includes opening cost-effective new restaurant models and enhancing digital processes to support rapid business growth[24]. - The Group intends to finance its expansion and business operations through organic growth and bank financing[82]. - The Group plans to implement cost control measures by upgrading logistics, procurement, and quality control processes to maintain competitiveness[55]. - The cost of raw materials and consumables as a percentage of revenue decreased from 37.6% in the first half of 2022 to 37.4% during the Reporting Period[68]. Digital Transformation and Marketing Strategies - Xiabuxiabu's digital transformation initiatives have led to a 30% increase in online orders, reflecting changing consumer behavior[1]. - The company implemented aggressive marketing strategies in early 2023, contributing to the recovery of customer traffic and overall market consumption[37]. - The company is focusing on a "full + more" model to increase customer visits and enhance product offerings, including afternoon tea and late-night snacks[49]. Financial Position and Investments - As of June 30, 2023, the Group had cash and cash equivalents of RMB175.7 million, down from RMB300.7 million as of December 31, 2022[83]. - The Group held short-term investments amounting to RMB530.4 million as of June 30, 2023, which are financial products with expected annual return rates ranging from 2.8% to 5.0%[84]. - The Group's gearing ratio as of June 30, 2023, was 13.9%, calculated by dividing bank and other borrowings by total equity[92]. - Capital expenditures during the reporting period amounted to RMB 264.9 million, primarily for new restaurant openings and renovations, compared to RMB 140.7 million for the same period in 2022[92]. - The Group's total liabilities as of June 30, 2023, were RMB 1,907,303, an increase from RMB 1,774,550 at the end of 2022[143]. Governance and Compliance - The Company complied with the Corporate Governance Code, except for a deviation regarding the separation of roles of chairman and chief executive officer[122]. - The Board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring a strong independence element[123]. - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2023[130]. - The independent auditor, Deloitte Touche Tohmatsu, conducted a review of the interim financial information in accordance with relevant standards[137].

Financial Performance - Revenue for the six months ended June 30, 2023, increased by 32.0% to RMB 2,846.1 million compared to RMB 2,156.4 million in the same period of 2022[2]. - The net profit for the period was RMB 2.1 million, a turnaround from a loss of RMB 278.2 million in the same period of 2022[4]. - The group reported a profit attributable to owners of the company of RMB 2.4 million, recovering from a loss of RMB 279.5 million in the previous period[37]. - The group achieved a profit before tax of RMB 7.0 million, a turnaround from a loss of RMB 303.0 million in the previous period[35]. - The group reported a total comprehensive income of RMB 2,406,000 for the six months ended June 30, 2023, compared to a loss of RMB 279,535,000 in the same period of 2022, marking a significant turnaround[52]. - The group’s basic earnings per share for the period was RMB 0.23, compared to a loss per share of RMB 26.12 in the previous year[50]. Revenue Growth - The sales revenue for Xiabuxiabu increased by 29.5% to RMB 1,377.0 million, while Coucou's sales revenue grew by 36.8% to RMB 1,401.5 million[4]. - Net revenue for the first half of 2023 reached RMB 1,420,948, a significant increase of 35.4% compared to RMB 1,049,136 in the same period of 2022[11]. - Total same-store sales for the first half of 2023 amounted to RMB 1,268.1 million, compared to RMB 563.3 million in 2022, reflecting a growth of 125.5%[13]. - The total revenue for the first half of 2023 reached RMB 2,846,121 thousand, an increase from RMB 2,156,438 thousand in the same period of 2022, representing a growth of approximately 32%[66]. Restaurant Operations - The total number of restaurants operated globally reached 1,094, with 1,080 located in mainland China, as of June 30, 2023[4]. - The company opened 89 new Xiabuxiabu restaurants and 27 new Coucou restaurants in mainland China during the first half of 2023[4]. - The company closed a total of 49 Xiabuxiabu restaurants and 3 Coucou restaurants during the first half of 2023 due to business reasons[6]. - The number of restaurants in second-tier cities increased to 140, up from 108, marking a growth of 29.6%[9]. - The company plans to expand its restaurant network in southern regions and enhance digital integration for order management and supply chain systems[19]. Customer Engagement - Membership base increased by over 3 million, a 2.1 times year-on-year growth, with member spending frequency rising by 17.4% to 1.73 times[20]. - The average customer spending in first-tier cities decreased to RMB 58.8 from RMB 67.2, indicating a drop of 12.6%[11]. - The average customer spending in other markets reached RMB 143.4, with no previous year data available for comparison[11]. Cost Management - The cost of raw materials and consumables as a percentage of total revenue decreased from 37.6% in the first half of 2022 to 37.4% in the first half of 2023[28]. - Employee costs rose by 23.3% from RMB 754.1 million to RMB 929.9 million, with the workforce increasing from 25,355 to 29,258 employees[29]. - Employee costs as a percentage of total revenue decreased from 35.0% to 32.7% due to increased customer traffic and improved labor efficiency[29]. - Property rental and related expenses increased by 3.8% from RMB 133.7 million to RMB 138.8 million, with the percentage of these expenses to total revenue decreasing from 6.2% to 4.9%[30]. Strategic Initiatives - The company plans to continue expanding its restaurant network and enhancing digital processes to support business growth[5]. - The company implemented aggressive marketing strategies, contributing to the recovery of customer traffic post-pandemic[17]. - The introduction of cost-effective new store models and strategic supplier partnerships aims to reduce average procurement costs and enhance supply chain advantages[19]. - The company plans to continue expanding its restaurant network and enhancing marketing efforts to drive future growth[17]. Economic Environment - The Chinese economy grew by 5.5% in the first half of 2023, with government policies expected to further boost consumer spending in the restaurant sector[22]. - The company is optimistic about business improvement following the Chinese government's announcement to restore and expand consumption measures in July 2023[5]. Financial Position - As of June 30, 2023, the group had cash and cash equivalents of RMB 175.7 million, down from RMB 300.7 million at the end of 2022[39]. - The group held short-term investments totaling RMB 530.4 million, with expected annual returns between 2.8% and 5.0%[40]. - The group's leverage ratio was 13.9%, calculated as total bank and other borrowings divided by total equity[43]. - The total liabilities for the reporting segments as of June 30, 2023, were RMB 2,328,871 thousand, down from RMB 2,594,262 thousand at the end of 2022[68]. Corporate Governance - The company has adopted the corporate governance code and has established an audit committee consisting of two independent non-executive directors and one non-executive director[110]. - The board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring strong independence[110]. - The company will continue to review and monitor its corporate governance practices to maintain high standards[110].

Financial Performance - Revenue for 2022 was RMB 4,724,834, a decrease of 23.1% from RMB 6,147,262 in 2021[25]. - Loss before tax for 2022 was RMB 350,935 compared to a loss of RMB 213,653 in 2021[25]. - Total assets as of December 31, 2022, were RMB 4,310,138, down from RMB 4,951,301 in 2021, representing a decrease of 12.9%[25]. - Total equity decreased to RMB 1,521,421 in 2022 from RMB 2,011,302 in 2021, a decline of 24.3%[25]. - Non-current liabilities were RMB 1,014,167 in 2022, down from RMB 1,172,113 in 2021, a decrease of 13.5%[25]. - Current liabilities increased slightly to RMB 1,774,550 in 2022 from RMB 1,767,886 in 2021[25]. - The company reported a net current liabilities of RMB (242,705) in 2022 compared to RMB 228,499 in 2021[25]. - The total net revenue for the Group in 2022 was RMB 2,253.8 million, down from RMB 3,502.6 million in 2021, representing a decrease of approximately 35.6%[58][60]. - The Group's total revenue for 2022 was RMB 4,724.8 million, a decrease of 23.1% compared to RMB 6,147.3 million in 2021[100]. - Revenue from Xiabuxiabu and Coucou restaurants contributed 95.1% of the Group's total revenue in 2022[61]. Market Expansion and Strategy - The company is focusing on market expansion and new product development strategies to improve future performance[25]. - The company plans to enhance its technology and operational efficiency to drive growth in the coming years[25]. - The Group plans to open approximately 120 Xiabuxiabu, 74 Coucou, and 20 Shaohot restaurants in Mainland China in 2023, alongside international expansion efforts[37]. - The establishment of the Hong Kong, Macau, Taiwan, and International Business Department aims to enhance market presence in these regions[37]. - The Group's strategy includes leveraging big data for location evaluation and rental negotiations to improve the efficiency of new restaurant openings[73]. - The Group aims to expand its market presence and enhance its service offerings in the catering industry[159]. Operational Adjustments - The Group's operational strategy was adjusted to include delivery services, group purchases, and digital management solutions to stabilize operations during the pandemic[33]. - The Group's focus on improving product and service quality aimed to capture a wider spectrum of market opportunities amidst economic challenges[31]. - The Group's strategic adjustments and optimizations were designed to respond to changing market demands and enhance operational efficiency[33]. - The Group's restaurant operations were significantly impacted by the pandemic, leading to a shift towards delivery channels and online platforms to mitigate losses[61]. - The Group adopted a cautious restaurant opening strategy, focusing on locations with sufficient customer traffic to ensure normal profitability levels[181]. Customer Engagement and Experience - The Group launched a new multiple-brand membership system in August 2022, allowing customers to access member-privileged services across all restaurants under the Group in Mainland China[35]. - The Group plans to introduce a premium membership system and a tailored membership system for Hong Kong, Macau, Taiwan, and international markets in 2023 to enhance customer experience and brand loyalty[35]. - The Group's branding strategy focuses on appealing to younger consumers by creating a vibrant and fashionable image for the Xiabuxiabu brand[78]. - The Group aims to refine its membership system and enhance digital marketing to increase customer loyalty and attract new members[78]. - The Group relaunched its "value for money" set menu and introduced bar seating to enhance customer safety and affordability[181]. Challenges and Market Conditions - The pandemic severely impacted the catering sector in major cities like Beijing and Shanghai, prompting the Group to adopt innovative business models[33]. - The second quarter of 2022 saw China's GDP growth plummet to 0.4%, severely affecting the domestic economy and restaurant operations[44]. - The Group's revenue decreased by 23.1% from RMB 6,147.3 million in 2021 to RMB 4,724.8 million in 2022, significantly impacted by pandemic-related restrictions[41]. - The effective pandemic management by the Central Government allowed the Group to gradually reopen restaurants starting December 2022, leading to a gradual business recovery[179]. Employee and Management Initiatives - The management trainee program in 2023 will have 800 participants, aimed at providing a stable supply of talents for future operations and business development[93]. - The Group has implemented a profit-sharing policy for the operations team, with KPIs now including operational profit to encourage leadership and efficiency[94]. - The Group aims to recruit and train 1,000 talents to support operations in newly explored provinces and cities[92]. - The Group's employee remuneration policies include competitive wages and discretionary performance bonuses to manage employee attrition[139]. Financial Management and Investments - The Group's cash and cash equivalents amounted to RMB 300.7 million, a decrease of approximately RMB 619.8 million compared to the previous year-end balance of RMB 920.5 million[126]. - The Group's operating cash flow for the year was RMB 881.6 million, a decrease of approximately RMB 166.9 million from the previous year[126]. - Capital expenditures for 2022 amounted to RMB 343.9 million, primarily for new restaurant openings and refurbishments, compared to RMB 439.0 million in 2021[134]. - The Group's financial products at fair value through profit or loss totaled RMB 390.2 million, with expected annual returns ranging from 3.8% to 4.8%[127]. Product Development and Innovation - The Group aims to enhance its branding strategy by targeting the "new middle class" and promoting "affordable luxury gatherings" to align with consumer preferences[81]. - New product offerings in 2023 include a variety of soup bases and dishes tailored to local tastes, such as "Thai-style tom yum gong" and "Japanese pork" in Singapore[87]. - The Group will introduce afternoon tea and nighttime snack services in mid-2023 to enhance customer experience during non-peak hours[86]. - The new hot pot bases launched in September 2022, such as "White Shell Seafood" and "Thai Tom Yum," quickly became popular, contributing to a significant brand identity for the company[89]. Corporate Governance - The company emphasizes the importance of independent directors with extensive industry experience to enhance governance[152]. - The board composition reflects a diverse range of expertise in finance and management, crucial for strategic decision-making[152]. - The company is committed to maintaining high standards of corporate governance through the appointment of qualified independent directors[152].

Financial Performance - The company's revenue decreased by 23.1% from RMB 6,147.3 million in 2021 to RMB 4,724.8 million in 2022[5]. - The total loss for the year amounted to RMB 331.2 million, compared to a loss of RMB 283.1 million in the previous year[2]. - The total net income for the group was RMB 2,259.5 million in 2022, down from RMB 2,359.3 million in 2021[18]. - The company reported a net loss of RMB 331.2 million for the year ended December 31, 2022, compared to a net loss of RMB 283.1 million in 2021[60]. - The company reported a loss attributable to shareholders of RMB 353,052,000 for the year ended December 31, 2022, compared to a loss of RMB 293,212,000 in 2021[91]. - The pre-tax loss increased from RMB 213.7 million in 2021 to RMB 350.9 million in 2022[47]. - The company reported a total loss before tax of RMB 350,935 thousand for the year ended December 31, 2022[75]. Dividend and Shareholder Information - The company recommended a final dividend of RMB 0.028 per share, totaling approximately RMB 30 million[3]. - The board proposed a final dividend of RMB 0.028 per share for the year ended December 31, 2022, subject to shareholder approval[59]. - The total dividends declared for the year were RMB 60,000,000, consistent with the previous year[93]. Restaurant Operations and Expansion - The company opened 86 new restaurants in 2022, including 41 Xiabuxiabu restaurants and 44 Coucou restaurants, while closing 84 restaurants[7]. - The restaurant network totaled 1,026 locations by the end of 2022[7]. - In 2023, the group plans to open no less than 100 new restaurants for the Xiaobai brand, with at least 50% of these located in first-tier cities in southern China, such as Shanghai and Guangzhou[23]. - The group launched a new brand, "Chenshao," in September 2022, with plans to expand into first-tier cities like Shanghai, Beijing, Shenzhen, and Hangzhou in 2023[23]. - The company plans to continue expanding its restaurant operations in mainland China, focusing on enhancing customer experience and operational efficiency[70]. Customer Insights and Trends - The average customer spending in first-tier cities was RMB 67.9, compared to RMB 65.6 in the previous year[12]. - The average customer spending in first-tier cities increased by 7.3% to RMB 150.9 in 2022 from RMB 140.6 in 2021[20]. - The average customer spending in second-tier cities increased to RMB 137.0 in 2022 from RMB 129.7 in 2021[17]. - The company expects a positive outlook for the restaurant industry in 2023 following the end of pandemic restrictions[6]. - The company plans to explore the potential of online business models and delivery services in response to changing consumer habits[6]. Financial Position and Assets - Cash and cash equivalents decreased to RMB 300.7 million by December 31, 2022, down RMB 619.8 million from RMB 920.5 million at the end of the previous year[51]. - The company's net asset value decreased to RMB 1,521,421 thousand in 2022 from RMB 2,011,302 thousand in 2021, a decline of approximately 24.3%[63]. - Non-current assets decreased to RMB 2,778,293 thousand in 2022 from RMB 2,954,916 thousand in 2021, a reduction of about 5.9%[62]. - The company held financial assets measured at fair value through profit or loss totaling RMB 390.2 million as of December 31, 2022, with expected annual returns between 3.8% and 4.8%[52]. Cost Management and Efficiency - Employee costs decreased from RMB 1,829.7 million in 2021 to RMB 1,553.5 million in 2022, a reduction of 15.1%, while the employee count dropped from 28,536 to 27,059[41]. - The cost of raw materials and consumables decreased by 23.2% from RMB 2,341.3 million in 2021 to RMB 1,798.9 million in 2022, maintaining a consistent percentage of 38.1% of total revenue[40]. - Property rental and related expenses fell by 15.5% from RMB 298.1 million in 2021 to RMB 251.8 million in 2022[42]. - The company is focusing on a "high cost-performance" model, with pricing between RMB 50 to 60, aimed at attracting young consumers[30]. Strategic Initiatives and Future Plans - The group plans to focus on high-quality ingredients, improving dining experiences, and enhancing brand recognition in 2023[22]. - The group believes that the integration of its diverse platforms, including Xiaobai Xiaobai, Coucou, and online delivery services, will create strong synergies for business growth[22]. - The company plans to enhance its digital strategy by introducing a barcode scanning system and a simplified app for online ordering and loyalty rewards[33]. - The company is upgrading its internal systems with a new WMS supply chain system to better track ingredient flow and reduce management costs[33]. - The company plans to introduce new product categories in 2023, including "Curry Seafood Hot Pot Base" and seasonal offerings like "Lamb Spine Flavor Hot Pot Base" to enhance customer choices[28]. Governance and Compliance - The board consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring strong independence[113]. - The audit committee reviewed the group's annual performance for the year ended December 31, 2022, in collaboration with management and external auditors[117]. - The annual performance announcement is published on the Hong Kong Stock Exchange and the company's website[119].

Financial Performance - Revenue decreased by 29.2% from RMB 3,046.9 million in the first half of 2021 to RMB 2,156.4 million in the same period in 2022[13][14] - The loss for the period increased from RMB 46.9 million in the first half of 2021 to RMB 278.2 million in the same period in 2022[13][14] - Total net revenue for the Group decreased to RMB 1,023.97 million in the first half of 2022 from RMB 1,125.72 million in the same period of 2021[34] - The loss for the period attributable to owners of the Company was RMB 279.5 million for the six months ended June 30, 2022, compared to RMB 49.9 million for the same period in 2021[77] - The Group recorded a loss before tax of RMB 303.0 million for the six months ended June 30, 2022, compared to RMB 53.9 million for the same period in 2021[75] Sales and Revenue Breakdown - Sales from Xiabuxiabu decreased by 43.1% from RMB 1,867.4 million in the first half of 2021 to RMB 1,063.5 million in the same period in 2022[13][14] - Sales from Coucou decreased by 9.1% from RMB 1,126.5 million in the first half of 2021 to RMB 1,024.3 million in the same period in 2022[13][14] - For the six months ended June 30, 2022, total same-store sales decreased to RMB 563.3 million from RMB 1,008.2 million in the same period of 2021, representing a decline of 44.1%[31] - In Tier 1 cities, net revenue for the first half of 2022 was RMB 486.5 million, down from RMB 841.7 million in 2021, a decline of 42.2%[26] - In Tier 2 cities, net revenue decreased to RMB 356.9 million in the first half of 2022 from RMB 634.0 million in 2021, a decline of 43.5%[26] Operational Changes - The Group opened 6 new Xiabuxiabu restaurants and 15 new Coucou restaurants, operating a total of 810 Xiabuxiabu and 198 Coucou restaurants across China[12][14] - The Group closed a total of 37 Xiabuxiabu restaurants in the first half of 2022 due to commercial reasons[15][16] - The number of Xiabuxiabu restaurants decreased to 810 from 1,077 in 2021, representing a decline of 24.8%[19] - The number of Coucou restaurants increased to 198 as of June 30, 2022, up from 149 in 2021, indicating a growth of 32.9%[23] Customer Metrics - Average customer spending increased slightly to RMB 63.1 in the first half of 2022 from RMB 62.2 in the first half of 2021, attributed to the launch of new products[27] - The seat turnover rate fell to 1.9x in the first half of 2022 from 2.3x in the same period of 2021, due to pandemic-related lockdowns affecting customer traffic[27] - Average spending per customer increased by 8.0% to RMB 147.1 in the first half of 2022, compared to RMB 136.2 in the same period of 2021[35] - The table turnover rate decreased from 2.6x in the first half of 2021 to 1.9x in the first half of 2022, indicating a significant impact from pandemic-related restrictions[35] Pandemic Impact - The ongoing pandemic and related control measures resulted in lower traffic and operational disruptions, impacting profitability[13][14] - The pandemic lockdown resulted in approximately 92,000 operational days lost for Xiabuxiabu and 5,900 days for Coucou[54] - The pandemic has created a challenging environment for the food and beverage industry, leading to many businesses reporting net losses in the first half of 2022[42] Future Plans and Strategies - The Group plans to continue reviewing and improving operations to deliver better results in the second half of 2022[13][14] - The Group plans to continue expanding its restaurant network and launching new products to enhance customer offerings and drive revenue growth[27] - The company plans to invest RMB100 million over the next three years to upgrade logistics, procurement, and quality control at its processing plant with a capacity of 15,000 tons of lamb and beef[40] Financial Position - As of June 30, 2022, the Group had cash and cash equivalents of RMB 240.4 million, a decrease from RMB 920.5 million as of December 31, 2021[85] - The Group held short-term investments amounting to RMB 550.1 million as of June 30, 2022[86] - The Group's gearing ratio was 1.8% as of June 30, 2022, calculated by dividing bank and other borrowings by total equity[108] - The Group's short-term borrowing was RMB30.0 million as of June 30, 2022, down from RMB75.8 million as of December 31, 2021[102] Employee Metrics - The Group's total staff cost amounted to RMB754.1 million, representing approximately 35.0% of the total revenue[119] - As of June 30, 2022, the Group had a total of 25,355 employees, a decrease from 28,536 employees as of December 31, 2021[112] - Staff costs decreased by 18.6% from RMB926.7 million to RMB754.1 million, with the number of employees dropping from 30,087 to 25,355; however, staff costs as a percentage of revenue increased from 30.4% to 35.0%[59] Shareholder Information - The company plans to pay an interim dividend of RMB0.028 per share, totaling approximately RMB30.0 million for the six months ended June 30, 2022[177] - The company has granted a total of 2,060,569 restricted shares under the Restricted Share Unit Plan, which is about 0.19% of the total issued share capital[125] - Mr. Ho Kuang-Chi holds 450,000,000 shares, accounting for approximately 41.43% of the company's shareholding[130] - Ms. Chen Su-Yin, as the spouse of Mr. Ho Kuang-Chi, is deemed to be interested in 453,752,360 shares, representing approximately 41.78% of the company's shareholding[130] Corporate Governance - The company has complied with the Corporate Governance Code, except for a deviation regarding the separation of the roles of chairman and CEO[184] - The Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2022, with independent auditors Deloitte Touche Tohmatsu[194] - All directors confirmed compliance with the Model Code for securities transactions throughout the six months ended June 30, 2022[190]

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 6,147,262, an increase of 12.6% from RMB 5,455,246 in 2020[13] - The company reported a loss before tax of RMB (213,653) for 2021, compared to a profit of RMB 67,177 in 2020[13] - The loss attributable to owners of the company for the year was RMB (293,212), a significant decline from a profit of RMB 1,837 in 2020[13] - Total assets as of December 31, 2021, were RMB 4,951,301, down from RMB 5,779,956 in 2020[15] - Total equity decreased to RMB 2,011,302 in 2021 from RMB 2,340,168 in 2020, reflecting a decline of 14.0%[15] - The Group's loss for the year was RMB283.1 million, compared to a profit of RMB11.5 million in 2020, representing a change of (2,565.2%) year-on-year[121] - The Group's other income decreased by 39.2% from RMB170.7 million in 2020 to RMB103.8 million in 2021[125] - The Group's raw materials and consumables as a percentage of revenue decreased from 39.0% in 2020 to 38.1% in 2021[126] - The Group's total staff costs for the year ended December 31, 2021, amounted to RMB1,829.7 million, representing approximately 29.8% of the total revenue[175] Operational Changes - Management indicated a strategic shift towards enhancing operational efficiency and cost management in response to recent financial performance[12] - The Group's organizational structure was streamlined from 15 functional teams to 10, enhancing operational efficiency[110] - The introduction of a barcode scanning system allows customers to order and pay via their mobile devices, minimizing contact and improving operational efficiency[109] - The Group aims to leverage big data to understand customer spending behavior and enhance operational efficiency[109] Market Expansion and Strategy - The company is focusing on market expansion and new product development to drive future growth[12] - The company plans to explore potential mergers and acquisitions to strengthen its market position[12] - The Group plans to integrate online and offline opportunities while upgrading its restaurants to provide a safe and hygienic dining experience[49] - The Group plans to focus on quality restaurant openings and enhance rental negotiations using big data for location evaluation in 2022[83] - The Group will continue to leverage its strong supply chain to introduce new set meals and diversify its product offerings, including premium products like Ximeng lamb and seasonal items[93] Restaurant Operations - In 2021, the company opened 95 new restaurants, including 52 Xiabuxiabu and 43 Coucou, while closing 229 loss-making restaurants[26] - The Group opened a total of 95 new restaurants in 2021, including 52 Xiabuxiabu and 43 Coucou restaurants, while closing 229 Xiabuxiabu restaurants[50] - The Group's total number of restaurants in operation reached 1,024 in 2021[50] - The average spending per customer at Xiabuxiabu was RMB62.5, while at Coucou it was RMB140.6[46][47] - The average spending per customer increased to RMB 62.5 in 2021 from RMB 62.3 in 2020, reflecting the Group's efforts to improve product mix and increase sales of new products[63] Consumer Trends and Product Development - The company is focusing on product development for microwaveable, half-finished, and frozen products to cater to changing consumer behavior[33] - The Group aims to leverage big data to capture consumer trends and preferences for future product development[44] - The Group is focusing on developing seasonal products to meet diverse consumer needs throughout the year[100] - The introduction of new tea products has been well received, with plans for more popular products to be launched throughout 2022[96] Financial Outlook and Economic Context - The GDP target for China in 2022 is set at 5.5%, with goals to create more jobs and stabilize food supply to boost the local economy[25] - The Central Government's economic targets for 2022 include a GDP growth of 5.5% and a consumer price increase of around 3.0%[82] - The Group expects to benefit from economies of scale with over 1,000 Xiabuxiabu and Coucou restaurants nationwide, which will support its expansion efforts[93] Innovations and Technology - Robotics are being introduced to serve dishes, reducing human contact and improving serving accuracy[109] - The Group plans to launch new cross-over IP products and collaborate with the entertainment industry to diversify revenue streams and increase brand exposure[93] Membership and Customer Engagement - A new membership program will be launched, allowing customers to use one membership across both Xiabuxiabu and Coucou restaurants[28] - The introduction of a new membership program later this year is expected to increase customer flow and improve restaurant operating profits[88][91] - The Group plans to merge membership cards for its two brands, allowing customers to enjoy privileges at both restaurants with a single card[113]

Restaurant Expansion and Operations - In the first half of 2021, the company opened 40 new Xiaobuxiang restaurants and 9 new Coucou restaurants, bringing the total to 1,077 Xiaobuxiang and 149 Coucou restaurants across China[7]. - The company closed a total of 24 Xiaobuxiang restaurants during the first half of 2021 for business reasons[9]. - As of June 30, 2021, the company operated 372 restaurants in first-tier cities, 445 in second-tier cities, and 260 in third-tier cities and below[10]. - The company plans to continue expanding its restaurant network and improving operational efficiency to enhance profitability in the future[7]. - The company plans to open 9 new "Coucou" restaurants in the first half of 2021 and aims to expand further into new provinces and cities[26]. - The company is adjusting the "Xiabuxiabu" brand model and pausing new store openings to focus on enhancing brand quality and customer satisfaction[26]. - The company incurred capital expenditures of RMB 216.8 million for new restaurant openings and renovations during the first half of 2021, compared to RMB 152.9 million in the same period of 2020[63]. - The company opened a total of 49 new restaurants in the first half of 2021[63]. Financial Performance - Revenue increased by 58.5% from RMB 1,921.9 million in the first half of 2020 to RMB 3,046.9 million in the first half of 2021[7]. - The net loss narrowed significantly from RMB 252.1 million in the first half of 2020 to RMB 46.9 million in the first half of 2021, although the company still did not achieve profitability[7]. - The company reported a loss before tax of RMB 53,868 thousand, significantly improved from a loss of RMB 311,945 thousand in the prior year[122]. - The net loss for the period was RMB 46,932 thousand, compared to a net loss of RMB 252,105 thousand in the same period last year, indicating a substantial reduction in losses[122]. - Basic and diluted loss per share for the period was RMB 4.64, an improvement from RMB 23.84 in the previous year[122]. - The group reported a pre-tax loss of RMB 49,921,000 for the six months ended June 30, 2021, compared to a loss of RMB 254,942,000 for the same period in 2020, indicating a significant improvement[161]. - The company recognized impairment losses of RMB 87,566,000 on property, plant, and equipment during the reporting period[142]. Sales and Revenue Breakdown - Xiaobuxiang brand sales rose by 50.6% to RMB 1,867.4 million, while Coucou brand sales surged by 90.0% to RMB 1,126.5 million[7]. - Same-store sales for the "Xiabuxiabu" brand reached RMB 1,098.5 million in the first half of 2021, a 29.8% increase compared to RMB 846.4 million in the same period of 2020[19]. - The revenue from the Xiaobai brand increased by 50.6% from RMB 1,240.1 million to RMB 1,867.4 million, while the Coucou brand's revenue rose from RMB 593.0 million to RMB 1,126.5 million[33]. - Revenue from the restaurant business was RMB 2,971,308,000, with contributions of RMB 1,844,945,000 from the "Xiabuxiabu" brand and RMB 1,126,363,000 from the "Coucou" brand[136]. Customer Metrics - The average customer spending in the first half of 2021 was RMB 62.2, slightly down from RMB 63.3 in the same period of 2020, attributed to increased promotional activities[18]. - The average customer spending in first-tier cities decreased slightly to RMB 139.6 in 2021 from RMB 141.4 in 2020, attributed to menu adjustments[21]. - The turnover rate improved from 1.8 times in the first half of 2020 to 2.3 times in the first half of 2021[18]. - The table turnover rate improved significantly from 1.9 times in the first half of 2020 to 2.6 times in the first half of 2021, reflecting increased customer traffic[23]. - The same-store sales growth rate for first-tier cities was 33.7% in the first half of 2021, compared to a decline of 33.4% in the same period of 2020[24]. Cost and Expenses - The cost of raw materials and consumables increased by 48.5% from RMB 764.3 million to RMB 1,134.8 million, but the percentage of these costs relative to total revenue decreased from 39.8% to 37.2%[35]. - Employee costs increased by 45.6% from RMB 636.4 million in the first half of 2020 to RMB 926.7 million in the first half of 2021, while the number of employees rose from 26,797 to 30,087[36]. - Property rental and related expenses rose by 51.1% from RMB 93.1 million in the first half of 2020 to RMB 140.8 million in the first half of 2021, accounting for 4.6% of total revenue, down from 4.8%[39]. - Utility expenses increased by 42.4% from RMB 66.7 million in the first half of 2020 to RMB 94.9 million in the first half of 2021, representing 3.1% of total revenue, down from 3.5%[40]. - Depreciation and amortization rose by 13.8% from RMB 466.4 million in the first half of 2020 to RMB 531.0 million in the first half of 2021, accounting for 17.4% of total revenue, down from 24.3%[40]. Shareholder and Equity Information - The company granted a total of 1,185,601 share options under the pre-IPO share incentive plan, representing about 0.11% of the total issued share capital as of June 30, 2021[70]. - The company also issued a total of 4,177,880 restricted share units, which is approximately 0.38% of the total issued share capital as of June 30, 2021[70]. - Mr. He Guangqi held 450,000,000 shares, representing 41.46% of the company's equity as of June 30, 2021[72]. - Ms. Chen Suying, as the spouse of Mr. He Guangqi, held 453,752,360 shares, representing 41.80% of the company's equity[72]. - The company has a 60% equity interest in its subsidiary, Xia Bo Xia Bo (China) Food Holdings Limited[75]. - The major shareholders include Ying Qi PTC Limited and Ying Qi Investments Limited, each holding 450,000,000 shares, representing 41.46%[76]. - General Atlantic entities collectively hold 147,000,000 shares, representing 13.54% of the company's equity[76]. Cash Flow and Investments - As of June 30, 2021, the company's cash and cash equivalents amounted to RMB 463.7 million, a decrease from RMB 1,097.3 million as of December 31, 2020[53]. - The company held short-term investments totaling RMB 734.1 million as of June 30, 2021, with a significant portion in financial products issued by various banks[54]. - The expected annual yield on financial products purchased ranged from 3.06% to 7.60% during the six months ending June 30, 2021, generating approximately RMB 12.0 million in fair value gains[55]. - The company reported a net cash outflow from investing activities of RMB 928,870,000 for the six months ended June 30, 2021, compared to RMB 867,779,000 in the previous year, indicating a slight increase in investment expenditures[130]. Corporate Governance and Compliance - The company has complied with the corporate governance code, with a strong independent board structure[106][109]. - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director to oversee financial reporting[112]. - The company has complied with the standard code for securities transactions by directors, confirming no breaches by employees with insider information[111]. Future Outlook and Strategy - The company aims to accelerate its international expansion and enhance brand exposure through collaborations and pop-up stores[1]. - The company is implementing a profit-sharing mechanism to motivate operational staff and ensure a stable supply of quality talent for future growth[26]. - The company continues to focus on enhancing operational efficiency and exploring market expansion opportunities[116].

Financial Performance - Total revenue for the year 2020 was RMB 5,455.246 million, a decrease of 9.5% from RMB 6,030.167 million in 2019[11]. - Pre-tax profit for 2020 was RMB 67.177 million, down 86.7% from RMB 503.193 million in 2019[11]. - The profit attributable to owners of the company for 2020 was RMB 1.837 million, a significant decline from RMB 288.1 million in 2019[11]. - Adjusted net profit fell by 67.1% from RMB 396.4 million in 2019 to RMB 130.6 million in 2020[23]. - The company's revenue decreased by 9.5% from RMB 6,030.2 million in 2019 to RMB 5,455.2 million in 2020, primarily due to the impact of the COVID-19 pandemic[23]. - The company reported a net profit of RMB 11,485 thousand for 2020, down 96.1% from RMB 290,638 thousand in 2019[178]. - Basic earnings per share for 2020 were RMB 0.17, a significant decline from RMB 27.02 in 2019[178]. Restaurant Operations - The number of Xiabuxiabu restaurants opened in 2020 was 91, while 38 new Coucou restaurants were launched[18]. - In 2020, the company opened a total of 129 new restaurants, including 91 Xiaobuxiang restaurants and 38 Coucou restaurants[21]. - As of December 31, 2020, the company operated 1,061 Xiaobuxiang restaurants across 130 cities in 24 provinces and autonomous regions in China[23]. - The company's restaurant network increased by 77 locations in 2020 despite the challenges faced[30]. - The total same-store sales for the company's restaurants in 2020 was RMB 2,658.4 million, down 23.9% compared to RMB 3,494.0 million in 2019[36]. - The number of same-store restaurants increased to 930 in 2020 from 809 in 2019, with a notable increase in first-tier cities[36]. Sales and Revenue Trends - Coucou's sales contribution increased from 20.0% in 2019 to 31.0% in 2020, with a total of 140 restaurants by the end of 2020[18]. - The sales share of the seasoning business rose from 1.5% in 2019 to 2.7% in 2020 due to increased home cooking during the pandemic[18]. - Delivery sales increased by 21% in 2020 compared to 2019, with order volume rising by 15%[18]. - The revenue from the brand "Xiabuxiabu" fell by 25.9% from RMB 4,727.0 million in 2019 to RMB 3,501.5 million in 2020[54]. - The total revenue for Coucou restaurants reached RMB 1,687.8 million in 2020, up from RMB 1,200.1 million in 2019[37]. Cost Management - The cost of raw materials and consumables decreased by 4.3% from RMB 2,225.1 million in 2019 to RMB 2,130.2 million in 2020, while the percentage of these costs to total revenue increased from 36.9% to 39.0%[56]. - Employee costs decreased by 4.3% from RMB 1,544.3 million in 2019 to RMB 1,478.1 million in 2020, with the percentage of these costs to total revenue rising from 25.6% to 27.1%[57]. - Property rental and related expenses decreased by 13.5% from RMB 253.8 million in 2019 to RMB 219.6 million in 2020, with the percentage of these expenses to total revenue decreasing from 4.2% to 4.0%[58]. - Utility expenses decreased by 10.3% from RMB 212.2 million in 2019 to RMB 190.3 million in 2020, maintaining a percentage of 3.5% of total revenue[59]. Strategic Initiatives - The company plans to continue expanding the Coucou brand into more cities and explore international opportunities in 2021[18]. - The company plans to diversify its offerings by introducing new services such as hot pot delivery and afternoon tea[29]. - The company plans to focus on expanding in East and South China over the next three years, with a strategy to enhance operational efficiency and reduce investment payback periods[42]. - The company aims to increase brand awareness among the post-95 consumer group by redesigning its branding and marketing strategies, utilizing online platforms like WeChat and Douyin[43]. - The company plans to continue executing strategies that leverage its diversified platform to promote overall business growth in 2021[41]. Financial Position - Total assets as of December 31, 2020, were RMB 5,779.956 million, an increase from RMB 5,625.886 million in 2019[12]. - Total liabilities as of December 31, 2020, were RMB 3,439.788 million, compared to RMB 3,239.046 million in 2019[12]. - As of December 31, 2020, cash and cash equivalents amounted to RMB 1,097.3 million, up from RMB 785.2 million in 2019, with 76.2% held in RMB[68]. - The company reported a debt-to-equity ratio of 0.9% as of December 31, 2020[72]. - The company’s total equity attributable to owners decreased from RMB 2,375,445 thousand in 2019 to RMB 2,318,880 thousand in 2020, a decline of about 2.38%[180]. Corporate Governance - The company is committed to high standards of corporate governance, adhering to the applicable codes and regulations[143]. - The board comprises seven directors, including four executive directors and three independent non-executive directors[144]. - The company has adopted a board diversity policy considering various factors such as gender, age, and industry experience[144]. - The company emphasizes the importance of board diversity as a key element for maintaining competitive advantage and sustainable development[156]. - The company has established a comprehensive internal control and risk management system covering all business areas, including restaurant openings, procurement, and quality control[164]. Shareholder Information - The company declared an interim dividend of RMB 0.028 per share, totaling RMB 30.0 million for the six months ended June 30, 2020[78]. - The board proposed a final dividend of RMB 0.028 per share for the year ended December 31, 2020, amounting to approximately RMB 30.0 million, subject to shareholder approval[78]. - The company has established long-term relationships with major suppliers, averaging over five years of business dealings[87]. - The company reported a total purchase amount of RMB 4,498,000 under the previous framework purchase agreement for the year ending December 31, 2020[140]. Risk Management - The company has implemented enhanced internal control measures to reduce the risk of fines from Chinese regulatory authorities related to restaurant operations[160]. - The company conducts regular reviews of compliance risks and implements measures to ensure compliance with regulations[160]. - The board believes that the existing risk management and internal control systems are sufficient and effective, particularly in financial reporting and compliance[165].