Revenue Performance - The group's revenue decreased by 29.1% from RMB 2,712.5 million in the first half of 2019 to RMB 1,921.9 million in the same period of 2020, primarily due to the impact of COVID-19 outbreaks [27]. - Total revenue for the first half of 2020 decreased to RMB 1,222.7 million from RMB 2,198.7 million in the same period of 2019, representing a decline of approximately 44.4% [36]. - Total revenue for the six months ended June 30, 2020, was RMB 1,921,876 thousand, a decrease of 29.2% compared to RMB 2,712,521 thousand in the same period of 2019 [104]. - The revenue breakdown shows that sales from the restaurant business contributed RMB 1,240,140,000, while the "CuoCuo" segment generated RMB 593,039,000, and other sales amounted to RMB 88,697,000 [120]. Restaurant Operations - The number of restaurants operated by the group reached 1,010 for the "Xiabuxiabu" brand and 107 for the "CouCou" brand as of June 30, 2020, following the opening of 31 and 5 new locations respectively [27]. - The group closed a total of 43 "Xiabuxiabu" restaurants in the first half of 2020 for commercial reasons, while continuing to focus on quality over quantity in its expansion strategy [32]. - The total number of restaurants increased to 107 in the first half of 2020, compared to 61 in the same period of 2019, marking a growth of 75.4% [34]. - The company opened 31 new Xiaobuxiang restaurants and 5 new Coucou restaurants in the first half of 2020, enhancing its restaurant network [48]. Financial Performance - The pre-tax loss for the first half of 2020 was RMB 311.9 million, compared to a profit of RMB 225.2 million in the same period of 2019, reflecting a significant decline in profitability [48]. - The basic and diluted loss per share for the first half of 2020 was RMB 23.84, compared to earnings of RMB 15.41 in the same period of 2019 [48]. - The company reported a loss before tax of RMB 254,942,000 for the first half of 2020, compared to a profit of RMB 164,040,000 in the same period of 2019 [121]. - The net loss attributable to owners of the company for the period was RMB 252,105 thousand, compared to a profit of RMB 162,189 thousand in the same period of 2019 [104]. Cost Management - The group implemented cost optimization measures during the pandemic, including talent sharing and negotiating lower rents, which positively impacted the income statement for the first half of 2020 [29]. - Employee costs decreased by 11.6% from RMB 719.5 million in the first half of 2019 to RMB 636.4 million in the same period of 2020, with the employee count dropping from 27,401 to 26,797 [51]. - Property rental and related expenses fell by 26.2% from RMB 126.3 million in the first half of 2019 to RMB 93.1 million in the same period of 2020, accounting for 4.8% of total revenue [52]. - Utility expenses decreased by 26.9% from RMB 91.2 million in the first half of 2019 to RMB 66.7 million in the same period of 2020, maintaining a stable percentage of 3.5% of total revenue [53]. Customer Insights - The average customer spending increased by 10.3% to RMB 63.3 in the first half of 2020, compared to RMB 57.4 in the same period of 2019, attributed to product optimization and new menu items [36]. - The average customer spending in first-tier cities for the "Coucou" brand rose to RMB 104.6, up from RMB 92.0 in the first half of 2019, reflecting a growth of 13.9% [39]. - The average customer spending in second-tier cities increased to RMB 61.2, compared to RMB 55.1 in the first half of 2019, reflecting an increase of 18.1% [36]. Market Expansion - The group plans to continue expanding the "CouCou" brand and enhance its market share while laying a solid foundation for future business development [28]. - The company plans to maintain its expansion pace while ensuring quality store openings, with a focus on optimizing site selection using big data and improving rental negotiations [41]. - The company is committed to penetrating all market segments, with its high-end brand "Cou Cou" expanding its presence and aiming for international growth [42]. Government Support and Assistance - The company received government assistance related to COVID-19, which included rent concessions from landlords [111]. - The company recognized a total of RMB 22,332,000 in rental payment changes due to COVID-19 related rent concessions during the reporting period [116]. - The company received government subsidies totaling RMB 12,512,000 during the first half of 2020, compared to RMB 4,485,000 in the same period of 2019 [125]. Shareholder Information - The company plans to distribute an interim dividend of RMB 0.028 per share, totaling approximately RMB 30 million for the six months ended June 30, 2020 [95]. - The company confirmed dividends distributed during the period amounted to RMB 49,624,000, down from RMB 101,248,000 in 2019, reflecting a decrease of approximately 51.0% [132]. - The company has granted a total of 5,296,769 share options under the pre-IPO share incentive plan, equivalent to about 0.49% of the total issued share capital [73]. Asset Management - As of June 30, 2020, the company's cash and cash equivalents amounted to RMB 254.0 million, a decrease from RMB 785.2 million as of December 31, 2019 [66]. - The company incurred capital expenditures of RMB 152.9 million for new restaurant openings and renovations in the first half of 2020, compared to RMB 252.6 million in the same period of 2019 [71]. - The company utilized approximately 85.81% of the net proceeds from the global offering, totaling RMB 895.4 million, with RMB 666.6 million allocated for new store openings and renovations [66]. Impairment and Losses - The company reported a loss of RMB 33,498,000 related to impairment losses on right-of-use assets, compared to RMB 5,147,000 in the previous year, indicating a significant increase in impairment [128]. - The group incurred impairment losses of RMB 17,254,000 and RMB 33,498,000 for leasehold improvements and right-of-use assets, respectively, compared to RMB 2,199,000 and RMB 5,147,000 in the same period last year [137].

Financial Performance - The company achieved a revenue growth of 27.4% to RMB 6,030,167,000 for the year ended December 31, 2019, compared to RMB 4,734,080,000 in 2018[5]. - The pre-tax profit for 2019 was RMB 503,193,000, a decrease from RMB 609,440,000 in 2018[5]. - The net profit attributable to the owners of the company for 2019 was RMB 288,100,000, down from RMB 462,478,000 in 2018[5]. - Revenue increased by 27.4% from RMB 4,734.1 million in 2018 to RMB 6,030.2 million in 2019, primarily due to the expansion of the restaurant network[20][21]. - The net income from the company's main restaurant brand, Xiaobuxiang, grew by 14.5% from RMB 4,079.0 million in 2018 to RMB 4,670.9 million in 2019[54]. - The revenue from the Coucou restaurant brand surged by 116.0% from RMB 555.6 million in 2018 to RMB 1,200.1 million in 2019, accounting for approximately 19.9% of total revenue[55]. - Other income rose by 21.7% from RMB 44.0 million in 2018 to RMB 53.6 million in 2019, mainly due to government subsidies of approximately RMB 11.5 million[56]. - The overall same-store sales decreased by 1.4% nationally, totaling RMB 3,576.1 million in 2019, compared to RMB 3,625.4 million in 2018[36]. - Same-store sales for Xiaobuxi restaurants decreased by 1.4% in 2019, attributed to increased market competition and economic slowdown[24]. - Same-store sales in Beijing slightly increased by 0.2% to RMB 1,753.8 million in 2019, compared to RMB 1,750.4 million in 2018[36]. - Same-store sales in Hebei grew by 8.5% to RMB 659.8 million in 2019, up from RMB 608.1 million in 2018[36]. Expansion and Growth Strategy - The company opened 243 new restaurants in 2019, including 189 Xiabu Xiabu restaurants and 54 Coucou restaurants, achieving its target of 1,000 Xiabu Xiabu restaurants by the end of 2019[15]. - The company opened 189 new Xiaobuxi restaurants and 54 Coucou restaurants in 2019, bringing the total to 1,022 restaurants across 125 cities in China[20]. - The total number of stores increased from 692 in 2018 to 809 in 2019, representing a growth of approximately 16.9%[34]. - The proportion of revenue from restaurants outside Beijing reached approximately 56.8% in 2019, indicating successful national expansion[33]. - The company plans to open high-quality stores by utilizing scale effects from its two brands to secure optimal leasing terms and locations for future openings[18]. - The company plans to leverage social media and online communication to enhance brand awareness among younger generations[18]. - The expansion strategy includes utilizing delivery and e-commerce platforms to inject vitality into the business alongside physical stores[47]. Cost Management and Financial Health - Raw materials and consumables cost increased by 24.7% from RMB 1,784.5 million in 2018 to RMB 2,225.1 million in 2019, while the percentage of these costs to total revenue decreased from 37.7% to 36.9%[57]. - Employee costs rose by 32.2% from RMB 1,167.9 million in 2018 to RMB 1,544.3 million in 2019, with the percentage of employee costs to total revenue increasing from 24.7% to 25.6%[58]. - Property rental and related expenses decreased by 56.2% from RMB 579.8 million in 2018 to RMB 253.8 million in 2019, leading to a reduction in the percentage of these expenses to total revenue from 12.2% to 4.2%[60]. - Depreciation and amortization surged by 279.6% from RMB 221.1 million in 2018 to RMB 839.4 million in 2019, with the percentage of depreciation and amortization to total revenue increasing from 4.7% to 13.9%[62]. - Pre-tax profit decreased by 17.4% from RMB 609.4 million in 2018 to RMB 503.2 million in 2019, with the percentage of pre-tax profit to total revenue dropping from 12.9% to 8.3%[66]. - Net profit attributable to owners fell by 37.7% from RMB 462.4 million in 2018 to RMB 288.1 million in 2019, with the percentage of net profit to total revenue decreasing from 9.8% to 4.8%[69]. - Adjusted net profit was RMB 396.4 million in 2019, down 16.6% from RMB 475.1 million in 2018, with the adjusted net profit percentage to total revenue decreasing from 10.0% to 6.6%[70]. - As of December 31, 2019, the group's cash and cash equivalents amounted to RMB 785.2 million, down from RMB 1,340.7 million as of December 31, 2018, with RMB accounting for 88.8% of the total[73]. - The group had no outstanding debts or borrowings as of December 31, 2019, resulting in no calculation of debt-to-equity ratios[80]. Corporate Governance and Management - The company is committed to maintaining best corporate governance practices to navigate potential challenges in 2020[16]. - The company has a strong board with members having extensive experience in finance and management across various industries, including food retail and manufacturing[97]. - The independent non-executive directors bring over 30 years of experience in accounting and financial management, enhancing the company's governance[98]. - The board consists of experienced individuals, with the chairman and CEO roles separated to enhance governance[200]. - The company has implemented good governance policies and measures, focusing on accountability, transparency, and fairness[199]. - The company’s governance practices are continuously reviewed to maintain high standards of corporate governance[199]. Talent Development and Employee Management - The company aims to develop talent by identifying potential candidates with entrepreneurial mindsets for frontline management positions[17]. - The company plans to implement a talent development strategy to ensure a high-quality operational workforce, which is crucial for expansion[42]. - The company continues to focus on attracting and retaining qualified employees, particularly in restaurant management and operations[177]. - The company has a total of 31,373 employees, with 26,815 working in restaurants[87]. Risk Management and Future Outlook - The company faces significant risks and uncertainties, including the negative impact of COVID-19 on its operations and financial performance[114]. - The company has not been able to estimate the financial impact of COVID-19 on its restaurant operations[119]. - The overall economic growth in China is expected to face short-term negative impacts, but consumption is anticipated to gradually return to growth in the second half of 2020[49]. - For the year 2020, the company aims to enhance same-store sales, expand its restaurant network, and maintain strict food safety and quality standards while cautiously controlling costs[116]. - The company plans to continue strategic investments in brand and market expenses to enhance the Xiaobuxiang brand and quality in 2020[55]. Acquisitions and Investments - The company acquired an agricultural processing company in August 2019 to enhance food quality while reducing procurement costs[43]. - The company acquired Yishun Halal Meat Co., Ltd. for a cash consideration of RMB 96.1 million and assumed liabilities of RMB 19.0 million[81]. - Capital expenditures for 2019 amounted to RMB 727.0 million, an increase from RMB 491.6 million in 2018, primarily funded by net proceeds from global offerings and cash generated from operations[83]. Shareholder Information and Dividends - The board proposed a final dividend of RMB 0.046 per share, totaling approximately RMB 49.6 million, which represents 40% of the net profit for the six months ended December 31, 2019[88]. - The company has granted options to purchase a total of 6,162,944 shares under its pre-IPO share incentive plan, representing approximately 0.57% of the total issued shares as of December 31, 2019[130]. - A total of 4,294,765 shares were issued in 2019 from the pre-IPO share incentive plan, generating total proceeds of RMB 9,543,162.97[135].

中旬旬旬 Xiabuxiabu Catering Management (China) Holdings Co., Ltd. 呷哺呷哺餐飲管理(中國)控股有限公司 (於房曼群島註冊成立的有限公司) 股份代號：520 2019 中期報告 混合凝品 澳自自實任對 良林資劃的極强 FSC" C120915 2 公司資料 4 業務概覽及展望 14 管理層討論及分析 其他資料 25 簡明綜合財務報表審閱報告 36 38 簡明綜合損益及其他全面收入表 39 簡明綜合財務狀況表 41 簡明綜合權益變動表 簡明綜合現金流量表 42 43 簡明綜合財務報表附註 2019 INTERIM REPORT | 1 目錄 董事會 公司秘書 執行董事 伍秀薇女士 賀光啓先生（主席） 授權代表 楊淑玲女士（於二零一九年八月二十九日辭任） 趙怡女士（於二零一九年八月二十九日獲委任） 非執行董事 陳素英女士 張弛先生（李潔女士為其替任董事） 德勤 • 關黃陳方會計師行 執業會計師 香港 金鐘道88號 太古廣場一座35樓 獨立非執行董事 謝慧雲女士 韓炳祖先生 張詩敏女士 公司網站 審核委員會 www.xiabu.com 謝慧雲女士（主席） 張 ...

Financial Performance - Total revenue for 2018 reached RMB 4,734,080 thousand, representing a 29.2% increase from RMB 3,663,993 thousand in 2017[8] - The operating profit at the restaurant level was RMB 897,642 thousand, up 11.9% from RMB 802,455 thousand in the previous year[8] - Profit before tax increased to RMB 609,440 thousand, a rise of 12.2% compared to RMB 542,787 thousand in 2017[8] - Net profit attributable to owners of the company was RMB 462,478 thousand, reflecting a 10.1% growth from RMB 420,170 thousand in 2017[8] - The group's revenue for 2018 was RMB 4,734,080, representing a 29.2% increase from RMB 3,663,993 in 2017[36] - The group's pre-tax profit for 2018 was RMB 609,440, a 12.3% increase from RMB 542,787 in 2017[36] - The group reported a net profit of RMB 461,972 for 2018, reflecting a 9.9% increase from RMB 420,170 in 2017[36] - The overall comprehensive income for 2018 was RMB 462,041, a 9.7% increase from RMB 421,333 in 2017[36] - The net profit attributable to the owners of the company increased by 10.0% from RMB 431.8 million in 2017 to RMB 475.1 million in 2018, with the profit margin decreasing from 11.8% to 10.1%[43] Assets and Liabilities - Total assets as of December 31, 2018, amounted to RMB 3,253,316 thousand, an increase from RMB 2,845,592 thousand in 2017[9] - Total equity reached RMB 2,247,467 thousand, up from RMB 1,985,531 thousand in 2017, indicating a growth of 13.2%[9] - Current liabilities were RMB 994,157 thousand, compared to RMB 846,774 thousand in 2017, showing an increase of 17.4%[9] - The net asset value increased to RMB 2,247,467,000 in 2018 from RMB 1,985,531,000 in 2017, representing a growth of approximately 13.2%[149] - Total liabilities increased to RMB 994,157,000 in 2018 from RMB 846,774,000 in 2017, which is a rise of 17.4%[148] Restaurant Expansion and Operations - The company opened 168 new restaurants under the "Xiabuxiabu" brand and 27 "CouCou" restaurants in 2018, bringing the total to 934 restaurants across 20 provinces and 108 cities in China[17] - Revenue increased by 29.2% from RMB 3,664.0 million in 2017 to RMB 4,734.1 million in 2018, driven by restaurant network expansion and same-store sales growth of 2.3%[17] - The company closed a total of 20 restaurants in 2018 for various business reasons, while still increasing the total number of operating restaurants by 175[23] - The total number of "Xiabuxiabu" restaurants in Beijing reached 309, accounting for 34.9% of the total restaurant count[24] - The total revenue from all "Xiabuxiabu" restaurants amounted to RMB 4,078.95 million in 2018, up from RMB 3,491.62 million in 2017[26] Market Strategy and Growth Plans - The company aims to enhance its market position as a leader in casual dining in China, focusing on quality and innovation[15] - The company plans to continue expanding its restaurant network and improving operational efficiency to drive future growth[15] - The group plans to maintain a similar expansion rate in 2019 as in 2018, focusing on enhancing market penetration in existing markets and developing emerging markets like East and South China[33] - The company plans to continue optimizing its product offerings and leveraging its procurement and logistics advantages for future growth[16] - The company aims to upgrade the dining experience with the launch of the upgraded "Xiabuxiabu 2.0" concept, focusing on improved environment and service quality[32] Customer and Market Insights - In 2018, the average customer spending in Beijing increased to RMB 55.4 from RMB 49.5 in 2017, reflecting a growth of approximately 10.0%[27] - The total revenue from restaurants outside Beijing accounted for about 52.8% of the group's total revenue in 2018, indicating a continued upward trend[27] - The same-store sales growth rate in Beijing was 2.7% in 2018, compared to 8.6% in 2017, indicating a slowdown in growth[30] - The average turnover rate across all locations decreased to 2.8 times in 2018 from 3.3 times in 2017, indicating a potential challenge in customer flow[27] Employee and Management Insights - Employee costs increased by 40.1% to RMB 1,167,868 in 2018, compared to RMB 833,366 in 2017[36] - The company has implemented competitive compensation and benefits to control employee turnover, including discretionary performance bonuses for restaurant staff[56] - The management team has extensive experience in the restaurant industry, with the chairman having over 20 years of experience[58] - The company has adopted a restricted share unit plan effective from the listing date, managed by a trustee[56] Corporate Governance and Compliance - The company has adopted a board diversity policy, considering factors such as gender, age, cultural background, and industry experience when selecting board members[110] - The company has complied with the corporate governance code as set out in the listing rules for the year ended December 31, 2018[110] - The board consists of seven members, including executive and non-executive directors, ensuring a diverse skill set and experience relevant to the company's operations[110] - The audit committee reviewed the group's accounting principles and policies, as well as risk management and internal control matters for the fiscal year ending December 31, 2018[100] Financial Management and Investments - The company has maintained a significant cash position, with 88.2% of cash and cash equivalents held in RMB[52] - The company plans to continue utilizing internal financial resources for its expansion plans, rather than using proceeds from the global offering[52] - The company has no outstanding debts or contingent liabilities as of December 31, 2018[55] - The company’s capital expenditures were primarily funded through cash generated from operations[55] Risk Management and Internal Controls - The company has established a comprehensive internal control and risk management system covering all business areas, including restaurant openings, site selection, procurement, quality control, marketing, financing, treasury activities, finance, and human resources management[131] - The board regularly reviews and assesses the effectiveness of the internal control and risk management systems, covering all significant controls, including financial, operational, and compliance monitoring[132] - The company has strengthened internal control measures to reduce the risk of fines from regulatory authorities related to restaurant licenses and approvals[128] Accounting and Financial Reporting - The consolidated financial statements reflect a significant balance of RMB 766,834,000 for leasehold improvements as of December 31, 2018, with an impairment loss of RMB 7,448,000 recognized for the year[140] - The audit opinion confirms that the financial statements present a true and fair view of the group's financial position and performance in accordance with International Financial Reporting Standards[136] - The company’s financial reporting adheres to the International Financial Reporting Standards and relevant local regulations[181] - The group recognizes revenue from the sale of seasoning products and other goods at the point of delivery when control is transferred[184]