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].

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].

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]