销售与管理视频号开通啦 欢迎关注并留下您睿智犀利的评论吧 ----------------------------------------- - - 作者： 智先生 来源：智先生（ID：zhixs10） 要说2024年有什么天坑行业排行的话，餐饮业估计能名列前茅。 很多地区的"排队王"都陷入了摆烂的局面，客流量肉眼可见变得稀疏起来，预订率下降，导致营业额也大幅缩水。 有餐饮人在网上自嘲， "开店时身上有二十多万，关店时能去到四十多万，可惜是负债"。 数据是最直观的。 哪怕它们纾尊降贵，推出298、398的"平民套餐"，也依然挡不住大规模关停潮来袭，因为老百姓对米其林评价已经祛魅。 当行业环境不济时，大部分企业首先会考虑加入红海战场，开卷价格大战，虽然"以价换量"不是什么新鲜把戏了，但胜在有用。 一部分餐饮头部借此实现了逆增长，比如像海底捞，萨莉亚、瑞幸咖啡、百胜中国等佼佼者。 不过仔细翻看各上市公司的财报，可以发现一点，能实现同比增长的寥寥无几， 与其说逆增长，不如说维持营收平衡更贴切 。 根据国家统计局数据，今年1-8月份，餐饮收入34998亿元，同比增长6.6%，从大盘来看，还算可以，最起码像房地产、家装 ...

Company Overview [Company Profile](index=2&type=section&id=Company%20Profile) Ajisen (China) is a leading fast-casual restaurant chain in China and Hong Kong, operating 575 restaurants as of June 30, 2024, and listed on the HKEX in 2007 - Ajisen (China) is a leading fast-casual restaurant chain operator in China and Hong Kong, combining elements of fast-food and traditional full-service restaurants[3](index=3&type=chunk) - As of June 30, 2024, the Group operates 575 restaurants across over 129 cities in 29 provinces and municipalities in China, with 23 in Hong Kong and 2 in Europe[3](index=3&type=chunk) - The Group listed on the Main Board of the Hong Kong Stock Exchange on March 30, 2007, becoming the first domestic catering chain to list overseas[3](index=3&type=chunk) Company Information [Company Information](index=3&type=section&id=Company%20Information) This section details the company's fundamental information, including its board of directors, committees, and key professional advisors - Ms. Pan Wei serves as the Company's Chairwoman and Chief Executive Officer[7](index=7&type=chunk) - The Company's auditor is Deloitte Touche Tohmatsu[8](index=8&type=chunk)[9](index=9&type=chunk) Financial Highlights [Financial Highlights](index=5&type=section&id=Financial%20Highlights) For H1 2024, turnover decreased by 6.6% to RMB 827 million, resulting in a net loss of RMB 7.2 million attributable to shareholders, a reversal from prior year's profit Metric (For the six months ended June 30) | Metric (For the six months ended June 30) | 2024 (RMB Million) | 2023 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Turnover | 826.8 | 884.8 | (6.6) | | Gross Profit | 636.3 | 665.0 | (4.3) | | (Loss) Profit Before Tax | (15.6) | 181.3 | Not Applicable | | (Loss) Profit Attributable to Company Shareholders | (7.2) | 133.1 | Not Applicable | | (Loss) Earnings Per Share - Basic (RMB) | (0.01) | 0.12 | Not Applicable | Management Discussion and Analysis [Industry Review](index=6&type=section&id=Industry%20Review) In H1 2024, China's catering industry saw intense competition and 7.9% revenue growth, driven by digitalization and online-offline integration - In H1 2024, China's catering industry faced intense competition, with national catering revenue growing by **7.9%**, exceeding the **3.7%** growth of total retail sales of consumer goods[14](index=14&type=chunk) - Digital transformation and online-offline integration are key trends in the catering industry, helping companies expand channels, reduce costs, foster innovation, and enhance food safety[14](index=14&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) Group turnover declined 6.6% to RMB 827 million due to economic slowdown, yet the company expanded its restaurant network to 575 outlets and optimized operations - Turnover for the period decreased by **6.6%** to approximately **RMB 827 million**, impacted by an unsustainable post-pandemic economic recovery and consumption downgrade[16](index=16&type=chunk) - The Group implemented measures such as store upgrades, launching new retail packaged products, and optimizing the supply chain to adapt to market changes[16](index=16&type=chunk) Number of Restaurants | Number of Restaurants | June 30, 2024 | June 30, 2023 | Net Change | | :--- | :--- | :--- | :--- | | Total | 575 | 569 | +6 | [Retail Chain Restaurant Business](index=8&type=section&id=Retail%20Chain%20Restaurant%20Business) Retail chain restaurants, the core business, generated RMB 792 million, a 6.0% decrease, while the total restaurant count increased to 575, with regional shifts Revenue by Business Segment | Business Segment | Revenue (RMB) | % of Total Revenue | | :--- | :--- | :--- | | Restaurant Business (2024 H1) | 792,194,000 | 95.8% | | Restaurant Business (2023 H1) | 842,594,000 | 95.2% | Restaurant Count by Region | Region | June 30, 2024 | June 30, 2023 | Net Change | | :--- | :--- | :--- | :--- | | North China | 96 | 105 | -9 | | East China | 245 | 242 | +3 | | South China | 152 | 141 | +11 | | Central China | 80 | 79 | +1 | | Europe | 2 | 2 | – | | **Total** | **575** | **569** | **+6** | [Financial Review](index=9&type=section&id=Financial%20Review) Despite a 6.6% turnover decrease and improved gross margin to 77.0%, significant losses from investment and asset revaluations led to a pre-tax loss of RMB 15.57 million - Turnover decreased by **6.6%** to **RMB 827 million**, primarily due to reduced store traffic[20](index=20&type=chunk) - Gross margin increased from **75.1%** in the prior period to **77.0%**, mainly due to enhanced supply chain management and optimized production processes[21](index=21&type=chunk)[22](index=22&type=chunk) - Other income and losses recorded a net loss of approximately **RMB 61.76 million** (compared to a net gain of RMB 70.08 million in the prior period), primarily due to unfavorable economic conditions leading to a decline in investment property and financial asset valuations[28](index=28&type=chunk) - The Group shifted from a pre-tax profit of **RMB 181 million** in the prior period to a pre-tax loss of **RMB 15.57 million** this period[30](index=30&type=chunk) [Key Operating Expenses](index=10&type=section&id=Key%20Operating%20Expenses) Staff costs rose to 27.2% of turnover, while other operating expenses increased by 15.1% to RMB 244 million, driven by higher utilities and delivery fees - Staff costs as a percentage of turnover increased from **25.7%** to **27.2%**, mainly due to a decrease in average revenue per store[23](index=23&type=chunk) Key Operating Expenses (RMB Million) | Key Operating Expenses | 2024 H1 (RMB Million) | 2023 H1 (RMB Million) | Year-on-Year Change (%) | | :--- | :--- | :--- | :--- | | Utilities | 43.0 | 36.7 | +17.2% | | Food Delivery Platform Service Fees | 28.4 | 24.4 | +16.4% | | Store and Factory Management Fees | 28.2 | 25.4 | +11.0% | | Consulting Fees | 9.3 | 0.5 | +1,760% | | Advertising and Promotion | 7.6 | 4.9 | +55.1% | [Other Income/Losses and Finance Costs](index=11&type=section&id=Other%20Income%2FLosses%20and%20Finance%20Costs) Other income decreased by 15.0%, while other income and losses shifted to a net loss of RMB 61.76 million, primarily due to investment property and financial asset revaluations - Other income and losses recorded a net loss of **RMB 61.76 million**, primarily due to a **RMB 36.79 million** decrease in investment property valuation and a **RMB 12.40 million** decrease in fair value through profit or loss investments[28](index=28&type=chunk) - Finance costs increased by **11.6%** year-on-year to **RMB 10.68 million**, mainly due to increased interest on lease liabilities from a higher number of restaurants[29](index=29&type=chunk) [Risk Management and Liquidity](index=12&type=section&id=Risk%20Management%20and%20Liquidity) The Group maintains a robust financial position with RMB 1.666 billion in cash, a 3.6 current ratio, and low gearing, while generating RMB 192 million in operating cash flow Liquidity Metrics | Liquidity Metrics | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Bank Balances and Cash (RMB) | 1.666 billion | 1.608 billion | | Current Ratio | 3.6 | 4.1 | | Gearing Ratio | 0.009 | 0.009 | - The Group's exposure to currency, interest rate, and credit risks remains low, with no hedging policies in place[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - Net cash inflow from operating activities was **RMB 192 million**. Capital expenditure was approximately **RMB 47.55 million**, a **69.6%** year-on-year increase, primarily for expanding the restaurant network under controllable risks[40](index=40&type=chunk)[41](index=41&type=chunk) - Post-balance sheet event: On July 12, 2024, the Company granted a total of **1,000,000** share options[42](index=42&type=chunk)[141](index=141&type=chunk) Condensed Consolidated Financial Statements [Review Report on Financial Statements](index=14&type=section&id=Review%20Report%20on%20Financial%20Statements) Deloitte Touche Tohmatsu reviewed the H1 2024 condensed consolidated financial statements, concluding no material non-compliance with HKAS 34 - The auditor, Deloitte Touche Tohmatsu, issued a review conclusion stating that nothing came to their attention indicating the condensed consolidated financial statements were not prepared in material respects according to Hong Kong Accounting Standard 34[44](index=44&type=chunk) [Consolidated Statement of Profit or Loss](index=15&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) For H1 2024, revenue decreased 6.6% to RMB 827 million, resulting in a net loss of RMB 4.26 million, with a basic loss per share of RMB 0.01 Item (RMB Thousand) | Item (RMB Thousand) | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Revenue | 826,790 | 884,847 | | Operating Profit | 11,121 | 65,251 | | (Loss) Profit Before Tax | (15,566) | 181,256 | | (Loss) Profit for the Period | (4,261) | 139,596 | | (Loss) Profit Attributable to Company Shareholders | (7,157) | 133,095 | | (Loss) Earnings Per Share (RMB) | (0.01) | 0.12 | [Consolidated Statement of Financial Position](index=17&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2024, total assets were RMB 3.986 billion, with net assets at RMB 2.968 billion, and bank balances and cash comprising RMB 1.666 billion Item (RMB Thousand) | Item (RMB Thousand) | June 30, 2024 (Unaudited) | December 31, 2023 (Audited) | | :--- | :--- | :--- | | **Total Assets** | **3,986,334** | **3,961,511** | | Non-current Assets | 2,066,322 | 2,059,582 | | Current Assets | 1,920,012 | 1,901,929 | | **Total Liabilities** | **1,018,125** | **903,585** | | Current Liabilities | 537,426 | 467,202 | | Non-current Liabilities | 480,699 | 436,383 | | **Net Assets** | **2,968,209** | **3,057,926** | | **Total Equity Attributable to Owners of the Company** | **2,968,209** | **3,057,926** | [Consolidated Statement of Cash Flows](index=20&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For H1 2024, operating cash flow was RMB 192 million, while investing activities used RMB 354 million, resulting in period-end cash and equivalents of RMB 857 million Item (RMB Thousand) | Item (RMB Thousand) | 2024 H1 (Unaudited) | 2023 H1 (Unaudited) | | :--- | :--- | :--- | | Net Cash Generated from Operating Activities | 191,809 | 276,892 | | Net Cash Used in Investing Activities | (353,993) | (33,029) | | Net Cash Used in Financing Activities | (115,380) | (145,100) | | Net (Decrease) Increase in Cash and Cash Equivalents | (277,564) | 98,763 | | Total Cash and Cash Equivalents at End of Period | 857,336 | 1,578,250 | Notes to the Condensed Consolidated Financial Statements [Segment Information](index=23&type=section&id=Segment%20Information) The Group operates in restaurant operations, ramen production, and investment holding, with restaurant operations shifting to a loss and investment holding recording the largest loss 2024 H1 Segment Results (RMB Thousand) | 2024 H1 Segment Results (RMB Thousand) | Restaurant Operations | Production and Sales of Ramen and Related Products | Investment Holding | Total Segments | | :--- | :--- | :--- | :--- | :--- | | External Sales | 792,194 | 34,596 | – | 826,790 | | Segment Profit (Loss) | 4,984 | 292 | (17,905) | (12,629) | 2023 H1 Segment Results (RMB Thousand) | 2023 H1 Segment Results (RMB Thousand) | Restaurant Operations | Production and Sales of Ramen and Related Products | Investment Holding | Total Segments | | :--- | :--- | :--- | :--- | :--- | | External Sales | 842,594 | 42,253 | – | 884,847 | | Segment Profit | 97,032 | 419 | 86,950 | 184,401 | [Dividends](index=28&type=section&id=Dividends) A 2023 final dividend of RMB 0.08 per share, totaling RMB 87.32 million, was recognized, but no interim dividend was declared for H1 2024 - During the period, the distribution of the 2023 final dividend of **RMB 0.08 per share**, totaling **RMB 87,323,000**, was recognized[90](index=90&type=chunk) - The Board resolved not to declare an interim dividend for 2024[173](index=173&type=chunk) [Asset Impairment and Fair Value Changes](index=30&type=section&id=Asset%20Impairment%20and%20Fair%20Value%20Changes) The Group recognized impairment losses of RMB 3.39 million for property, plant, and equipment and RMB 10.64 million for right-of-use assets, alongside a RMB 36.79 million fair value loss on investment properties - Due to underperforming restaurants, the Group recognized impairment losses of **RMB 3,391,000** for property, plant, and equipment, and **RMB 10,642,000** for right-of-use assets[98](index=98&type=chunk) - Investment properties recorded a fair value loss of approximately **RMB 36,792,000** during the period, compared to a gain of RMB 37,070,000 in the prior period[96](index=96&type=chunk) [Related Party Transactions](index=43&type=section&id=Related%20Party%20Transactions) The Group conducted various related party transactions, including RMB 13.33 million in purchases and RMB 9.90 million in franchise fees from Shigemitsu Sangyo Co., Ltd - Purchases of food, raw materials, and supplies from Shigemitsu Sangyo Co., Ltd. totaled **RMB 13,331,000**, and franchise fees paid totaled **RMB 9,897,000**[138](index=138&type=chunk) - Total remuneration for directors and other key management personnel was **RMB 3,277,000**, largely consistent with **RMB 3,221,000** in the prior period[140](index=140&type=chunk) Other Information [Corporate Governance](index=45&type=section&id=Corporate%20Governance) The Company generally complied with the Corporate Governance Code, with a noted deviation where Ms. Pan Wei holds both Chairman and CEO roles - The Company deviated from the Corporate Governance Code's provision on the separation of Chairman and Chief Executive Officer roles, with Ms. Pan Wei holding both positions[143](index=143&type=chunk) - The Company's Audit Committee has reviewed the unaudited interim results for the six months ended June 30, 2024[146](index=146&type=chunk) [Directors' and Major Shareholders' Interests](index=46&type=section&id=Directors%27%20and%20Major%20Shareholders%27%20Interests) As of June 30, 2024, Chairwoman Pan Wei held approximately 47.55% of shares, with Favor Choice Group Limited, controlled by her trust, holding 43.99% - Chairwoman Ms. Pan Wei, through a discretionary trust and personal beneficial ownership, collectively holds approximately **47.55%** of the Company's equity[148](index=148&type=chunk) - Major shareholder Favor Choice Group Limited holds **480,123,041** shares, representing **43.99%** of the issued share capital, and is ultimately controlled by a trust established by Ms. Pan Wei[155](index=155&type=chunk)[156](index=156&type=chunk) [Share Option Scheme](index=48&type=section&id=Share%20Option%20Scheme) As of June 30, 2024, 29,805,000 share options remained outstanding under the Company's scheme, with RMB 0.55 million in related expenses recognized - As of June 30, 2024, a total of **29,805,000** share options remained unexercised[124](index=124&type=chunk) - During the period, **1,736,000** share options lapsed due to unfulfilled conditions[124](index=124&type=chunk)[168](index=168&type=chunk) - For the six months ended June 30, 2024, the Group recognized an expense of approximately **RMB 548,000** related to the share option scheme[126](index=126&type=chunk)

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其 準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容 而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 Ajisen (China) Holdings Limited 味千（中國）控股有限公司 （於開曼群島註冊成立之有限公司） （股份代號：538） 截至二零二四年六月三十日止六個月之 中期業績公告 | --- | --- | --- | --- | |----------------------------|----------------|------------------------|----------------| | | | | | | 二零二四年中期業績摘要 | | | | | | | 截至六月三十日止六個月 | | | | 二零二四年 | 二零二三年 | 增加╱ （減少） | | | （人民幣千元） | （人民幣千元） | % | | 營業額 | 826,790 | 884,847 | (6.6) | | 餐廳業務銷售 | 792,194 | 842,594 | (6.0) | | 毛利 ...

Corporate Governance - The company has established a whistleblowing policy updated on March 27, 2024, to provide employees a channel for reporting concerns while protecting them from retaliation[3]. - The internal control system has been confirmed to provide reasonable assurance against significant financial misstatements or losses as of December 31, 2023[4]. - The board acknowledges its responsibility to ensure that financial statements are prepared in accordance with the Hong Kong Companies Ordinance, reflecting the group's affairs and profitability accurately[5]. - The audit committee regularly reviews arrangements for reporting misconduct related to financial reporting and internal controls[2]. - The board has accepted recommendations from the audit committee to enhance the internal audit function[1]. - The company has a zero-tolerance policy for bribery and corruption, ensuring compliance with ethical standards and legal regulations[67]. - The company has established specific policies regarding potential conflicts of interest, anti-money laundering measures, and procurement management to ensure compliance with relevant laws[140]. - The independent non-executive directors confirmed their independence as per the listing rules[176]. Shareholder Communication - The company emphasizes the importance of maintaining effective communication with shareholders through its shareholder communication policy[9]. - The company has two websites to facilitate effective communication and provide the latest operational and financial information to the public[9]. Financial Performance - The company has adopted a dividend policy that aims to provide reasonable returns to shareholders, even during financial downturns caused by the COVID-19 pandemic[15]. - Proposed final dividend per share for 2023 is RMB 0.08, up from RMB 0.06 in 2022, indicating a 33.3% increase[122]. - The company reported a significant increase in revenue over the past five fiscal years, with detailed performance metrics available on page 188 of the annual report[127]. - The company's available reserves as of December 31, 2023, amounted to RMB 156,552,000, a decrease from RMB 223,643,000 in 2022[146]. Environmental, Social, and Governance (ESG) Practices - The company is committed to environmental, social, and governance (ESG) practices, as highlighted in its 2023 ESG report[17]. - The group plans to regularly measure and disclose environmental performance to identify opportunities for improvement and gradually set environmental goals for sustainable development[23]. - The group has identified 21 significant environmental, social, and governance issues relevant to its operations through independent consultants[23]. - The group is committed to promoting a green low-carbon philosophy and exploring more environmental protection policies and measures[53]. - The group will develop climate change-related policies and conduct risk assessments to identify and respond to significant climate-related risks and opportunities[54]. - The company is committed to sustainable and environmentally friendly practices as part of its corporate social responsibility[142]. - The company has implemented policies to manage environmental and social risks within its supply chain, with details on page 44-45[133]. Employee Engagement and Training - The group encourages employees to participate in external training and provides educational funding and government training subsidies to enhance their skills[38]. - A total of 310 employees received training during the reporting period, accounting for 4.20% of the total workforce, with an average training duration of 0.85 hours per employee[63]. - The group has implemented a performance management system to regularly evaluate employee capabilities and performance, using results for promotions and salary adjustments[32]. - The number of training hours per employee dropped from 1.39 hours in 2022 to 0.81 hours in 2023, reflecting a decrease in training engagement[79]. - The number of employees receiving training decreased from 956 in 2022 to 310 in 2023, a decline of approximately 68%[79]. Health and Safety - The group emphasizes the importance of occupational safety and health, providing training and insurance to ensure employee well-being[37]. - During the reporting period, there were 110 work-related injury cases, resulting in an injury rate of 0.11 per 1,000 employees and a total of 97 lost workdays[37]. - The injury rate decreased dramatically from 1.53 per 1,000 employees in 2022 to 0.11 in 2023, indicating improved workplace safety[79]. - The company reported zero fatalities due to work-related incidents in both 2022 and 2023, maintaining a safety record[79]. Environmental Impact - The total water consumption of the group during the reporting period was 131,992.80 cubic meters, with a water consumption density of 17.89 cubic meters per employee[52]. - The group emitted a total of 14,631.83 tons of carbon dioxide equivalent greenhouse gases, with a greenhouse gas emission density of 1.98 tons per employee[50]. - Total greenhouse gas emissions increased to 14,631.83 tons of CO2 equivalent in 2023, up from 7,968.90 tons in 2022, representing an 83.6% increase[98]. - The total amount of hazardous waste decreased to 0.00 tons in 2023 from 0.86 tons in 2022, indicating a 100% reduction[98]. - The total energy consumption was 17,564.94 MWh in 2023, compared to 15,469.51 MWh in 2022, which is a 13.5% increase[98]. - The total packaging material consumption was 1,548.00 tons in 2023, down from 1,692.00 tons in 2022, reflecting an 8.5% decrease[100]. Community Engagement - The group aims to strengthen community engagement and explore social investment opportunities to contribute positively to society[71]. - The company invested HKD 19,200 in community support initiatives during the reporting period, demonstrating commitment to corporate social responsibility[96]. Supplier Management - The group emphasizes the importance of supplier management to ensure the provision of quality and safe products and services[63]. - The group requires suppliers to sign a food quality safety commitment and comply with relevant standards to ensure raw materials meet safety requirements[43]. - The group encourages suppliers to adopt environmentally friendly practices and materials, promoting green procurement initiatives[64]. Employee Demographics - The total number of employees increased to 7,380 in 2023, up from 6,542 in 2022, representing a growth of 12.8%[75]. - The percentage of female employees is 63.06% in 2023, slightly down from 64.81% in 2022[75]. - The number of employees aged 24 or below increased from 5,280 in 2022 to 5,572 in 2023, showing a growth of about 5.5%[77]. - The proportion of new hires aged 41-59 increased from 66.49% in 2022 to 79.19% in 2023, indicating a shift in the age demographic of new employees[77]. Stock and Shareholder Information - The company did not issue any debt securities during the year, consistent with 2022[147]. - The company has no stock-linked agreements that would lead to the issuance of shares as of December 31, 2023[148]. - The total number of shares available for issuance under the 2017 share option scheme is 94,145,882, which is approximately 8.63% of the issued shares as of the report date[198].

Revenue and Profitability - For the year ended December 31, 2023, the group's revenue was approximately RMB 1,815,406,000, an increase of about 27.0% compared to approximately RMB 1,429,792,000 for the same period in 2022[24] - The group's restaurant business revenue for the year was approximately RMB 1,734,200,000, accounting for about 95.5% of total revenue, up from 93.7% in 2022[25] - The group recorded a pre-tax profit of approximately RMB 247,875,000 for the year ended December 31, 2023, compared to a loss of approximately RMB 176,765,000 for the year ended December 31, 2022[59] - The group reported a net profit attributable to shareholders of approximately RMB 181,188,000 for the year ended December 31, 2023, compared to a loss of approximately RMB 143,906,000 in the previous year[60] - Gross profit for the same period was approximately RMB 1,373,330,000, representing a 30.2% increase from RMB 1,054,959,000 in the previous year[69] - Operating profit for the year was RMB 126,842,000, compared to a loss of RMB 114,084,000 in 2022[78] Operational Efficiency and Strategy - The group aims to enhance operational efficiency through effective management and strengthened employee training[22] - The group is facing challenges due to economic slowdown and global inflation, prompting adjustments in operational strategies[21] - The group plans to continue expanding its restaurant network and accelerating digital upgrades to capture the recovery opportunities in the industry[20] Expenses and Costs - Employee costs amounted to approximately RMB 475,830,000, an increase of 11.9% from RMB 425,410,000 in 2022, while the proportion of employee costs to revenue decreased by 3.6 percentage points to 26.2%[71] - The group's total expenses for utilities increased by 12.1% to RMB 82.4 million in 2023, compared to RMB 73.5 million in 2022[52] - Other operating expenses increased by approximately 20.7% to RMB 453,966,000, in line with sales growth and increased operational costs post-pandemic[76] Assets and Liabilities - As of December 31, 2023, the group's bank balance was approximately RMB 1,607,635,000, an increase from RMB 1,465,111,000 as of December 31, 2022, with a current ratio of 4.1 compared to 3.2 in the previous year[47] - The group's net current assets increased to RMB 1,434,727,000 in 2023 from RMB 1,186,121,000 in 2022, reflecting a growth of approximately 21%[102] - The group’s total equity increased to RMB 3,057,926,000 in 2023 from RMB 2,921,312,000 in 2022, representing a growth of approximately 5%[103] - The group’s total liabilities decreased to RMB 1,429,792 in 2023 from RMB 1,965,253 in 2022, indicating improved financial stability[113] Investments and Financial Performance - The group confirmed a fair value gain of approximately RMB 23,935,000 on financial assets measured at fair value through profit or loss for the year ended December 31, 2023, compared to a loss of approximately RMB 63,876,000 in the previous year[56] - The group recognized government subsidies amounting to RMB 10,101, received from local authorities for business activities in mainland China[118] - The fair value gain from investment properties was RMB 8,822, a significant improvement from a loss of RMB 29,803 in 2022[120] Restaurant Operations - The total number of restaurants operated by the group was 562, down from 597 in the previous year, indicating a reduction of 35 locations[27] - The total number of chain restaurants owned by the company as of December 31, 2023, was 562, a decrease of 35 from the previous year[167] Dividends and Shareholder Information - The company proposed a final dividend of RMB 0.08 per share for the year ending December 31, 2023, totaling RMB 87,323,000, compared to RMB 0.06 per share and RMB 65,492,000 for the previous year[126] - The board proposed a final dividend of RMB 0.08 per ordinary share for the year ended December 31, 2023, compared to RMB 0.06 per share in 2022, pending shareholder approval[162] Future Outlook and Compliance - The group has not early adopted new Hong Kong Financial Reporting Standards that are effective for periods beginning on or after January 1, 2024[95] - The company expects that the application of all amendments to Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[130]

[Company Overview](index=1&type=section&id=Company%20Profile) Ajisen (China) is a leading quick-service restaurant chain operating 569 restaurants in China, 22 in Hong Kong, and 2 in Europe as of June 30, 2023 [Company Profile](index=1&type=section&id=Company%20Profile) Ajisen (China) is a leading quick-service restaurant chain operating 569 restaurants in China, 22 in Hong Kong, and 2 in Europe as of June 30, 2023, listed on HKEX in 2007 - As of June 30, 2023, the Group operated **569 restaurants** across **134 cities in China**, with **100 in Shanghai** being the highest concentration[4](index=4&type=chunk) - The Group operates **22 restaurants in Hong Kong** and **2 in Europe**, supported by five production bases in major Chinese cities[4](index=4&type=chunk) - The company was listed on the Main Board of the Hong Kong Stock Exchange on **March 30, 2007**, as the first Chinese restaurant chain listed overseas[4](index=4&type=chunk) [Corporate Information](index=2&type=section&id=Corporate%20Information) This section provides details on the company's governance structure, including the Board of Directors and key committee members [Board of Directors and Committee Members](index=3&type=section&id=Corporate%20Information) The report details the Board and key committee members, with Ms. Pan Wei serving as Chairperson and CEO, and independent non-executive directors chairing various committees to ensure governance independence - The Chairperson and Chief Executive Officer is **Ms. Pan Wei**[14](index=14&type=chunk) - The Audit Committee is chaired by **Mr. Ren Xiwen**, the Remuneration Committee by **Mr. Lu Jiaxing**, and the Nomination Committee by **Mr. Wang Jincheng**, all independent non-executive directors[7](index=7&type=chunk)[14](index=14&type=chunk) [Financial Highlights](index=4&type=section&id=Financial%20Highlights) This section presents a concise overview of the Group's key financial performance indicators for the reporting period [Key Financial Indicators for H1 2023](index=5&type=section&id=Financial%20Highlights) In H1 2023, the company's performance significantly improved, with turnover increasing by 30.6% to RMB 885 million and a turnaround to pre-tax profit of RMB 181 million and profit attributable to shareholders of RMB 133 million H1 2023 Financial Summary (Year-on-Year Comparison) | Metric | H1 2023 (RMB million) | H1 2022 (RMB million) | Change Rate | | :--- | :--- | :--- | :--- | | Turnover | 884.8 | 677.5 | +30.6% | | Gross Profit | 665.0 | 496.3 | +34.0% | | Profit (Loss) Before Tax | 181.3 | (136.1) | Not Applicable | | Profit (Loss) Attributable to Company Shareholders | 133.1 | (106.5) | Not Applicable | | Basic Earnings (Loss) Per Share (RMB) | 0.12 | (0.10) | Not Applicable | [Management Discussion and Analysis](index=5&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the Group's operational and financial performance, along with industry trends and future outlook [Industry Review and Outlook](index=6&type=section&id=Industry%20Review%20and%20Outlook) In H1 2023, China's catering market saw a 21.4% revenue increase due to economic recovery, with digitalization becoming a key strategy, while the Group plans continued refined management and digital upgrades despite global uncertainties - In H1 2023, national catering revenue reached **RMB 2,432.9 billion**, a **21.4% year-on-year increase**, indicating significant consumer spending release in the catering market[29](index=29&type=chunk) - Digital transformation is a crucial trend in the catering industry, enhancing supply, fostering innovation, and improving operational efficiency and standardization[20](index=20&type=chunk) - For H2, the Group will continue refined management, stringent food safety control, and accelerated digital upgrades to enhance operational efficiency and turnover[300](index=300&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) During the period, retail chain restaurants remained the core business, contributing 95.2% of total revenue, with the Group implementing strategies like supply chain optimization and cost control, leading to a reduction in restaurant count from 669 to 569 by June 30, 2023 - Revenue from retail chain restaurant operations was approximately **RMB 843 million**, accounting for **95.2% of total Group revenue**, a **34.1% year-on-year increase**[47](index=47&type=chunk) - The Group implemented various cost control measures, including optimizing global supply chains, leveraging five production bases for stable supply, and streamlining operations to reduce labor requirements[31](index=31&type=chunk) Restaurant Count Changes (by Region) | Region | June 30, 2023 | June 30, 2022 | Change | | :--- | :--- | :--- | :--- | | North China | 105 | 136 | -31 | | East China | 242 | 286 | -44 | | South China | 141 | 151 | -10 | | Central China | 79 | 94 | -15 | | Europe | 2 | 2 | 0 | | **Total** | **569** | **669** | **-100** | [Financial Review](index=9&type=section&id=Financial%20Review) In H1 2023, the Group's financial performance rebounded strongly with turnover up 30.6% to RMB 885 million, gross margin improving to 75.1%, and a successful turnaround to a profit attributable to shareholders of RMB 133 million due to revenue growth, cost control, and fair value gains [Turnover](index=9&type=section&id=Turnover) For the six months ended June 30, 2023, Group turnover was approximately RMB 885 million, a 30.6% increase year-on-year, primarily due to unrestricted full-capacity restaurant operations post-pandemic Turnover Performance | Item | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Turnover (RMB thousand) | 884,847 | 677,469 | +30.6% | [Gross Profit & Gross Margin](index=9&type=section&id=Gross%20Profit%20%26%20Gross%20Margin) During the period, Group gross profit increased by 34.0% to approximately RMB 665 million, with gross margin rising from 73.3% to 75.1%, driven by lower raw material costs and reduced waste due to increased revenue Gross Profit and Gross Margin Performance | Metric | H1 2023 | H1 2022 | Change | | :--- | :--- | :--- | :--- | | Gross Profit (RMB thousand) | 664,952 | 496,329 | +34.0% | | Gross Margin | 75.1% | 73.3% | +1.8pp | - The ratio of inventory consumption cost to turnover decreased from **26.7% to 24.9%**, primarily due to lower pork prices and reduced waste from increased revenue[49](index=49&type=chunk) [Operating Expenses](index=10&type=section&id=Operating%20Expenses) During the period, staff costs and depreciation were well-controlled, with staff costs as a percentage of turnover decreasing from 31.1% to 25.7%, while other operating expenses generally increased by 7.4% due to revenue recovery, notably delivery platform fees - Staff costs were approximately **RMB 228 million**, a **7.9% year-on-year increase**, but their proportion of turnover decreased from **31.1% to 25.7%**[52](index=52&type=chunk) - Depreciation expenses were approximately **RMB 160 million**, a **14.7% year-on-year decrease**, mainly due to a reduction in restaurant count[53](index=53&type=chunk) - Other operating expenses were approximately **RMB 212 million**, a **7.4% year-on-year increase**, with delivery platform service fees growing by **20.2%** and variable lease payments by **56.0%**[36](index=36&type=chunk)[37](index=37&type=chunk) [Other Income, Gains and Losses](index=11&type=section&id=Other%20Income%2C%20Gains%20and%20Losses) During the period, other income and other gains/losses significantly boosted profitability, with other income up 54.6% due to increased interest and waived franchise fees, and other gains/losses turning to a net gain of RMB 70.08 million from a net loss, driven by fair value increases in financial investments and investment properties - Other income was approximately **RMB 54.92 million**, a **54.6% year-on-year increase**, mainly due to higher deposit interest rates and waived franchise commissions[55](index=55&type=chunk) - Other gains and losses recorded a net gain of approximately **RMB 70.08 million** (compared to a net loss of RMB 56.30 million in the prior period), primarily due to fair value gains of **RMB 26.47 million** from financial investments and **RMB 37.07 million** from investment properties[56](index=56&type=chunk) [Finance Costs](index=11&type=section&id=Finance%20Costs) For the six months ended June 30, 2023, Group finance costs decreased by approximately 24.7% to RMB 9.57 million, primarily due to reduced bank loans and lower interest on lease liabilities from fewer stores Finance Costs Breakdown | Item | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | Change | | :--- | :--- | :--- | :--- | | Interest on bank loans | 523 | 634 | -17.5% | | Interest on lease liabilities | 9,047 | 12,081 | -25.1% | | **Total** | **9,570** | **12,715** | **-24.7%** | [Profit/Loss](index=12&type=section&id=Profit%2FLoss) Combining these factors, the Group achieved a significant performance turnaround in H1 2023, reporting a pre-tax profit of approximately RMB 181 million (compared to a loss of RMB 136 million last year) and a profit attributable to shareholders of RMB 133 million (compared to a loss of RMB 107 million) Profit/Loss Performance | Metric | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | | :--- | :--- | :--- | | Profit (Loss) Before Tax | 181,256 | (136,066) | | Profit (Loss) Attributable to Company Shareholders | 133,095 | (106,513) | [Liquidity and Financial Resources](index=12&type=section&id=Liquidity%20and%20Financial%20Resources) As of June 30, 2023, the Group maintained a robust liquidity and financial position with cash and cash equivalents of approximately RMB 1.578 billion, a current ratio of 3.3, and a low debt-to-asset ratio of 1.0%, indicating a healthy financial structure - Cash and cash equivalents increased to approximately **RMB 1.578 billion** from RMB 1.465 billion at the end of 2022[60](index=60&type=chunk) - The current ratio improved to **3.3** from 3.2 at the end of 2022[60](index=60&type=chunk) - The debt-to-asset ratio (total loans/total assets) remained at a low level of **1.0%**[73](index=73&type=chunk) [Risk Management](index=12&type=section&id=Risk%20Management) The Group faces low financial risk, with minimal currency risk due to RMB-denominated transactions, limited interest rate risk from no significant interest-bearing assets, and low credit risk concentration as most sales are cash/credit card based and bank deposits are with reputable institutions - Currency Risk: Most operations are denominated in RMB, resulting in minimal currency risk, with no currency hedging policy in place[42](index=42&type=chunk) - Interest Rate Risk: The Group has no significant interest-bearing assets, so income and operating cash flows are largely unaffected by market interest rate changes[43](index=43&type=chunk) - Credit Risk: The Group has no highly concentrated credit risk, as retail customers primarily settle with cash or credit cards, and bank balances are held with reputable institutions[62](index=62&type=chunk) [Other Matters](index=13&type=section&id=Other%20Matters) During the period, Group capital expenditure remained low at approximately RMB 28.03 million, with no significant contingent liabilities, major investments, or disposals, and new Articles of Association were approved at the AGM on June 7, 2023 - Capital expenditure was approximately **RMB 28.03 million**, maintained at a low level due to uncertain economic prospects[64](index=64&type=chunk) - As of June 30, 2023, the Group had no significant contingent liabilities[63](index=63&type=chunk) - There were no significant investments, acquisitions, or disposals during or after the reporting period[65](index=65&type=chunk)[79](index=79&type=chunk) [Condensed Consolidated Financial Statements](index=13&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the Group's condensed consolidated financial statements, including the statement of profit or loss, financial position, changes in equity, and cash flows [Review Report](index=13&type=section&id=Review%20Report) Deloitte Touche Tohmatsu, the auditor, reviewed the interim financial statements in accordance with HKSRS 2410, concluding that nothing came to their attention suggesting the statements were not prepared in all material respects according to HKAS 34 - Deloitte Touche Tohmatsu, the auditor, issued a review conclusion on the interim financial statements[67](index=67&type=chunk)[81](index=81&type=chunk) - The review concluded that nothing came to their attention suggesting the condensed consolidated financial statements were not prepared in all material respects in accordance with HKAS 34[82](index=82&type=chunk) [Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=14&type=section&id=Condensed%20Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This statement details the Group's profit composition, showing H1 2023 turnover of RMB 885 million, operating profit of RMB 65.25 million, pre-tax profit of RMB 181 million, and profit for the period of RMB 140 million, a significant turnaround from a loss of RMB 120 million in the prior period H1 2023 Statement of Profit or Loss Summary | Item (RMB thousand) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Revenue | 884,847 | 677,469 | | Operating Profit (Loss) | 65,251 | (99,587) | | Profit (Loss) Before Tax | 181,256 | (136,066) | | Profit (Loss) for the Period | 139,596 | (120,361) | | Profit (Loss) Attributable to Company Shareholders | 133,095 | (106,513) | [Condensed Consolidated Statement of Financial Position](index=16&type=section&id=Condensed%20Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2023, the Group's total assets were approximately RMB 3.97 billion, total liabilities RMB 949 million, and net assets RMB 3.022 billion, with investment properties (RMB 1.049 billion) and cash and cash equivalents (RMB 1.578 billion) being the largest components of non-current and current assets respectively Statement of Financial Position Summary (as of June 30, 2023) | Item (RMB thousand) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **3,970,878** | **3,868,584** | | Non-current Assets | 2,148,656 | 2,146,242 | | Current Assets | 1,822,222 | 1,722,342 | | **Total Liabilities** | **948,548** | **947,272** | | Non-current Liabilities | 400,544 | 411,051 | | Current Liabilities | 548,004 | 536,221 | | **Net Assets** | **3,022,330** | **2,921,312** | | **Total Equity** | **3,022,330** | **2,921,312** | [Condensed Consolidated Statement of Changes in Equity](index=18&type=section&id=Condensed%20Consolidated%20Statement%20of%20Changes%20in%20Equity) The statement shows that as of June 30, 2023, total equity attributable to company shareholders increased to RMB 2.966 billion, primarily driven by RMB 133 million profit for the period and RMB 23.06 million in other comprehensive income, partially offset by RMB 65.49 million in declared dividends - Equity attributable to company shareholders increased from **RMB 2.875 billion** at the beginning of the period to **RMB 2.966 billion** at the end[88](index=88&type=chunk)[86](index=86&type=chunk) - Key changes in equity include a **RMB 133 million** increase from profit for the period, a **RMB 23.06 million** increase from other comprehensive income, and a **RMB 65.49 million** decrease from dividends paid[88](index=88&type=chunk) [Condensed Consolidated Statement of Cash Flows](index=19&type=section&id=Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) In H1 2023, the Group generated a net cash inflow of RMB 277 million from operating activities, a significant improvement from RMB 100 million in the prior period, with net cash outflows of RMB 33.03 million from investing and RMB 145 million from financing activities, leading to a period-end cash and cash equivalents total of RMB 1.578 billion Cash Flow Statement Summary | Item (RMB thousand) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Net cash generated from operating activities | 276,892 | 99,978 | | Net cash used in investing activities | (33,029) | (23,196) | | Net cash used in financing activities | (145,100) | (88,619) | | Net increase (decrease) in cash and cash equivalents | 98,763 | (11,837) | | Total cash and cash equivalents at end of period | 1,578,250 | 1,528,194 | [Notes to the Condensed Consolidated Financial Statements](index=20&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and breakdowns of the figures presented in the condensed consolidated financial statements [Basis of Preparation and Principal Accounting Policies](index=20&type=section&id=Basis%20of%20Preparation%20and%20Principal%20Accounting%20Policies) These condensed consolidated financial statements are prepared under HKAS 34 "Interim Financial Reporting," with the Group adopting several newly revised HKFRS standards for the first time during the period, though accounting policies remain consistent with the prior annual report except for these new applications - The financial statements are prepared in accordance with **HKAS 34 "Interim Financial Reporting"** and the HKEX Listing Rules[106](index=106&type=chunk) - The Group adopted several newly revised Hong Kong Financial Reporting Standards for the first time during this period, with no significant impact on financial position or performance[92](index=92&type=chunk)[93](index=93&type=chunk) - Following the application of HKAS 12 (Amendments), the Group recognized related deferred tax assets and liabilities on a gross basis, with no impact on retained earnings[96](index=96&type=chunk) [Revenue from Contracts with Customers and Segment Information](index=23&type=section&id=Revenue%20from%20Contracts%20with%20Customers%20and%20Segment%20Information) The Group's revenue primarily derives from restaurant operations, accounting for 95.2% of total revenue and contributing most external sales and operating profit, with Mainland China being the main geographical revenue source at 88.3% Revenue Breakdown (by Business Segment) | Business Segment | H1 2023 (RMB thousand) | H1 2022 (RMB thousand) | | :--- | :--- | :--- | | Restaurant operations | 842,594 | 628,250 | | Production and sale of ramen and related products | 42,253 | 49,219 | | **Total** | **884,847** | **677,469** | Segment Results Summary (H1 2023) | Segment | External Sales (RMB thousand) | Segment Profit (RMB thousand) | | :--- | :--- | :--- | | Restaurant operations | 842,594 | 97,032 | | Production and sale of ramen and related products | 42,253 | 419 | | Investment holding | - | 86,950 | | **Total Segments** | **884,847** | **184,401** | Revenue and Non-current Assets (by Geographical Location) | Region | Revenue from External Customers (RMB thousand) | Non-current Assets (RMB thousand) | | :--- | :--- | :--- | | Mainland China | 781,701 | 1,445,320 | | Hong Kong | 103,146 | 501,184 | | **Total** | **884,847** | **1,946,504** | [Analysis of Operating Items](index=26&type=section&id=Analysis%20of%20Operating%20Items) This section analyzes key income statement items, showing other income significantly increased to RMB 54.92 million from property rentals, bank interest, and waived franchise fees, while other gains and losses recorded a net gain of RMB 70.08 million due to fair value gains on investment properties and financial assets, with current income tax expense at RMB 41.66 million due to improved profitability Other Income Breakdown | Item (RMB thousand) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Property rental income | 15,743 | 12,307 | | Bank interest income | 15,019 | 6,807 | | Franchise commission payable to related parties waived | 12,049 | - | | Government grants | 4,466 | 11,216 | | **Total** | **54,915** | **35,522** | Other Gains and Losses Breakdown | Item (RMB thousand) | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Fair value gain on investment properties | 37,070 | 5,630 | | Fair value gain (loss) on financial assets at fair value through profit or loss | 26,471 | (33,587) | | Fair value gain on financial liabilities at fair value through profit or loss | 6,567 | 11,874 | | Impairment losses recognized | (1,174) | (36,873) | | **Total** | **70,077** | **(56,301)** | - Current income tax expense was **RMB 41.66 million**, compared to an income tax credit of RMB 15.71 million in the prior period, with Hong Kong profits tax at an estimated **16.5%** and Mainland China corporate income tax at **25%**[127](index=127&type=chunk)[158](index=158&type=chunk) [Dividends and Earnings Per Share](index=29&type=section&id=Dividends%20and%20Earnings%20Per%20Share) The Board resolved not to declare an interim dividend for H1 2023, with basic earnings per share at RMB 0.12 (compared to a loss of RMB 0.10 last year), and no dilutive effect due to option exercise prices exceeding average market prices - The Board resolved not to declare an interim dividend for the six months ended June 30, 2023[268](index=268&type=chunk) Earnings (Loss) Per Share Calculation | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Profit (Loss) Attributable to Company Shareholders (RMB thousand) | 133,095 | (106,513) | | Number of ordinary shares | 1,091,538,820 | 1,091,538,820 | | Basic earnings (loss) per share (RMB) | 0.12 | (0.10) | [Key Assets Analysis](index=30&type=section&id=Key%20Assets%20Analysis) At period-end, key Group assets included investment properties, property, plant and equipment, right-of-use assets, and financial assets, with investment properties recording a fair value gain of RMB 37.07 million, only minor asset impairment recognized for one Hong Kong restaurant due to improved performance, and financial assets at fair value through profit or loss increasing to RMB 172 million - Fair value gain on investment properties was approximately **RMB 37.07 million**[165](index=165&type=chunk) - Due to significant performance improvement, no material impairment was recognized for property, plant and equipment or right-of-use assets this period, with only **RMB 0.187 million** impairment recognized for one loss-making restaurant in Hong Kong[148](index=148&type=chunk) - Financial assets at fair value through profit or loss (unlisted equity investments and fund investments) increased from **RMB 125 million to RMB 172 million**[188](index=188&type=chunk) - Trade receivables increased from **RMB 18.47 million to RMB 23.81 million**, with most balances aged within **30 days**[172](index=172&type=chunk)[154](index=154&type=chunk) [Key Liabilities and Equity Analysis](index=34&type=section&id=Key%20Liabilities%20and%20Equity%20Analysis) The Group's liability structure remained stable, with trade payables of approximately RMB 95.52 million (average credit period 60 days), total bank loans of RMB 39.93 million (weighted average effective interest rate 1.46%), unchanged share capital of 1.092 billion ordinary shares, and share option scheme expenses of RMB 0.95 million recognized during the period - Total trade payables were **RMB 95.52 million**, with most balances aged within **60 days**[194](index=194&type=chunk)[195](index=195&type=chunk) - Total bank loans were **RMB 39.93 million**, all denominated in HKD, with a weighted average effective interest rate of **1.46%**[196](index=196&type=chunk)[181](index=181&type=chunk) - Share capital remained unchanged, with **1,091,538,820** issued and fully paid ordinary shares[182](index=182&type=chunk) - As of June 30, 2023, the Group recognized expenses of approximately **RMB 0.95 million** for the share option scheme[216](index=216&type=chunk) [Financial Instruments and Fair Value](index=39&type=section&id=Financial%20Instruments%20and%20Fair%20Value) This note details financial instrument fair value measurement, categorizing assets and liabilities into three levels, with most unlisted investments valued using Level 2 (discounted cash flow) and Level 3 (market and income approaches), and total fair value changes for Level 3 financial instruments amounting to a gain of RMB 32.21 million during the period - The Group uses a three-level fair value hierarchy for financial instruments, with Level 1 for quoted prices, Level 2 for observable inputs, and Level 3 for unobservable inputs[204](index=204&type=chunk)[218](index=218&type=chunk) - Unlisted equity investments and fund investments are primarily valued using Level 2 (discounted cash flow) and Level 3 (market approach, income approach) valuation techniques[205](index=205&type=chunk) - Total fair value changes for Level 3 financial assets and liabilities held at the end of the reporting period amounted to a gain of **RMB 32.21 million**, recognized under "Other gains and losses"[221](index=221&type=chunk)[207](index=207&type=chunk) [Related Party Transactions](index=42&type=section&id=Related%20Party%20Transactions) During the period, the Group engaged in related party transactions, primarily involving procurement of food supplies, payment of franchise commissions and technical fees, and receipt of renovation services, all conducted in the ordinary course of business, with significant transactions involving Shigamitsu Sangyo Co., Ltd. for procurement, sales, and franchise fees Summary of Major Related Party Transactions (H1 2023) | Related Party | Nature of Transaction | Amount (RMB thousand) | | :--- | :--- | :--- | | Shigamitsu Sangyo Co., Ltd. | Purchase of food, raw materials and supplies | (14,418) | | Shigamitsu Sangyo Co., Ltd. | Franchise commission (Mainland China and Hong Kong) | (9,825) | | Guangzhou Yunyi Information Technology Co., Ltd. | Purchase of services | - (Prior period: 5,530) | | Hubei Jupeng Kitchen Equipment Co., Ltd. | Purchase of property, plant and equipment | (319) | - Remuneration for directors and key management personnel is determined by the Remuneration Committee based on individual performance and market trends[242](index=242&type=chunk) [Other Information](index=44&type=section&id=Other%20Information) This section covers additional disclosures, including corporate governance practices, directors' and shareholders' interests, share option schemes, and employee and dividend information [Corporate Governance](index=44&type=section&id=Corporate%20Governance) The Group complied with all applicable Corporate Governance Code provisions during the period, with the only deviation being Ms. Pan Wei holding both Chairperson and CEO roles, which the Board believes provides strong, consistent leadership, and the Audit Committee has reviewed the interim results - The Group complied with the Corporate Governance Code, with one deviation: Ms. Pan Wei holds both Chairperson and Chief Executive Officer roles, which the Board believes provides strong and consistent leadership at this stage[211](index=211&type=chunk) - The Audit Committee, comprising three independent non-executive directors, has reviewed the company's unaudited interim results[213](index=213&type=chunk) - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's listed securities[228](index=228&type=chunk) [Directors' and Shareholders' Interests](index=45&type=section&id=Directors'%20and%20Shareholders'%20Interests) This section discloses directors' and major shareholders' interests in company shares, with Chairperson Ms. Pan Wei holding approximately 47.55% through a discretionary trust and beneficial ownership, and Invesco Asset Management Ltd. among other institutional investors - Chairperson **Ms. Pan Wei** holds approximately **47.55%** of the company's shares through a discretionary trust and personal beneficial ownership[230](index=230&type=chunk) - Non-executive Director **Mr. Katsuaki Shigamitsu** holds approximately **2.97%** of the company's shares through beneficial ownership and controlled corporate interests[230](index=230&type=chunk) - Major shareholder **Favor Choice** (controlled by Ms. Pan's trust) holds **43.99%** of shares, and **Invesco Asset Management Ltd.** holds **7.90%**[252](index=252&type=chunk) [Share Option Scheme](index=48&type=section&id=Share%20Option%20Scheme) The company has share option schemes to incentivize contributors, detailing the 2007 (expired) and 2017 plans' objectives, eligibility, total shares issuable, and exercise price determination, with 32.171 million outstanding options as of June 30, 2023, representing approximately 2.94% of issued shares - The company has a **2017 Share Option Scheme** to grant options to eligible directors, employees, and consultants who contribute to the Group[237](index=237&type=chunk)[270](index=270&type=chunk) - The total number of shares available for issue under the **2017 Share Option Scheme** is **79,982,882 shares**, representing **7.33%** of issued shares as of the reporting date[272](index=272&type=chunk) - As of June 30, 2023, a total of **32,171,000 share options** granted and outstanding under both schemes represented approximately **2.94%** of the issued shares[263](index=263&type=chunk)[265](index=265&type=chunk) [Employees and Dividends](index=53&type=section&id=Employees%20and%20Dividends) As of June 30, 2023, the Group had 7,746 employees with total remuneration of approximately RMB 228 million, regularly reviewing compensation policies and providing discretionary bonuses or share options based on performance, while the Board resolved not to declare an interim dividend for 2023 - As of June 30, 2023, the Group had **7,746 employees**, a decrease from **7,982** in the prior period[267](index=267&type=chunk) - Total remuneration for the six months ended June 30, 2023, was approximately **RMB 228 million**[281](index=281&type=chunk) - The Board resolved not to declare an interim dividend for the six months ended June 30, 2023[268](index=268&type=chunk)[288](index=288&type=chunk)

Financial Performance - The group recorded a profit before tax of approximately RMB 181,256,000 for the six months ended June 30, 2023, compared to a loss of approximately RMB 136,066,000 for the same period in 2022[3]. - The profit attributable to shareholders for the six months ended June 30, 2023, was approximately RMB 133,095,000, compared to a loss of approximately RMB 106,513,000 for the same period in 2022[4]. - Operating profit improved to RMB 65,251,000, compared to an operating loss of RMB 99,587,000 in the prior year[46]. - The company reported a net profit attributable to shareholders of RMB 133,095,000, a significant recovery from a loss of RMB 106,513,000 in the same period last year[46]. - The company reported a profit of RMB 139,596,000 for the period, compared to a loss in the previous year, indicating a strong performance[90]. - The company experienced a pre-tax loss of RMB 136,066,000 for the current period, compared to a pre-tax loss of RMB 114,352,000 in the same period last year, indicating a deterioration in financial performance[115]. - The company's net loss for the period was RMB 120,361,000, compared to a net loss of RMB 106,513,000 in the previous year, reflecting a worsening trend in profitability[127]. - The company reported a fair value gain on investment properties of RMB 37,070,000 for the current period, a substantial increase from RMB 5,630,000 in the previous year, highlighting improved asset performance[122]. - The company reported interest income of RMB 15,019,000 for the current period, up from RMB 6,807,000 in the previous period, reflecting an increase of approximately 120%[95]. Revenue and Sales - The group's revenue for the six months ended June 30, 2023, was approximately RMB 884,847,000, an increase of about 30.6% from RMB 677,469,000 in the same period of 2022[19]. - Restaurant business sales reached RMB 842,594,000, up 34.1% from RMB 628,250,000 year-over-year[46]. - Total revenue for the six months ended June 30, 2023, was RMB 884,847,000, an increase from RMB 677,469,000 in the same period of 2022, representing a growth of approximately 30.6%[94]. - The restaurant business generated approximately RMB 842,594,000 in revenue during the period, representing a 34.1% increase compared to RMB 628,250,000 in the same period last year, and accounted for about 95.2% of total revenue[156]. Costs and Expenses - For the six months ended June 30, 2023, the financing cost was approximately RMB 9,570,000, a decrease of about 24.7% compared to RMB 12,715,000 for the same period in 2022[1][2]. - The cost of inventory for the six months ended June 30, 2023, was approximately RMB 219,895,000, an increase of about 21.4% from RMB 181,140,000 in the same period of 2022[20]. - Employee costs for the six months ended June 30, 2023, were approximately RMB 227,664,000, an increase of about 7.9% from RMB 211,016,000 in the same period of 2022[23]. - Cost of goods sold was RMB 219,895,000, up from RMB 181,140,000, reflecting a 21.4% increase year-over-year[166]. - The total depreciation expense for the period was RMB 160,333,000, down from RMB 187,855,000 in the previous year, indicating a reduction in asset-related costs[122]. Assets and Liabilities - The company's current assets net amount was approximately RMB 1,274,218,000, with a current ratio of 3.3, slightly up from 3.2 at the end of 2022[41]. - Total assets minus current liabilities increased to RMB 3,422,874 thousand as of June 30, 2023, compared to RMB 3,332,363 thousand as of December 31, 2022, reflecting a growth of approximately 2.7%[57]. - Cash and cash equivalents rose to RMB 1,578,250 thousand as of June 30, 2023, up from RMB 1,465,111 thousand as of December 31, 2022, indicating an increase of about 7.7%[56]. - The total equity attributable to shareholders reached RMB 2,966,327 thousand as of June 30, 2023, compared to RMB 2,874,715 thousand as of December 31, 2022, marking an increase of approximately 3.2%[78]. - The total liabilities decreased to RMB 548,004 thousand as of June 30, 2023, from RMB 536,221 thousand as of December 31, 2022, indicating a reduction of about 2.0%[56]. - The company's total liabilities decreased to RMB 154,372,000 as of June 30, 2023, compared to RMB 154,599,000 as of December 31, 2022[106]. Operational Insights - The group had no significant contingent liabilities as of June 30, 2023[9]. - The total number of restaurants as of June 30, 2023, was 569, down from 669 in the previous year[46]. - The group employed 7,746 staff as of June 30, 2023, a decrease from 7,982 staff a year earlier, indicating ongoing optimization of operational processes[141]. - The group is focused on cost control amid rising inflation pressures on food and labor, with efforts to stabilize supply chain and optimize supplier relationships[135]. - The group continues to adopt a prudent operational and store opening strategy to improve overall profitability post-pandemic[153]. - The group is committed to maintaining food quality and safety standards while adjusting operational strategies to enhance competitiveness[136]. - The group has established five production bases in mainland China to ensure food quality, safety, and stable supply for its restaurants[135]. Future Outlook - The company plans to accelerate digital transformation of its stores to enhance customer experience and operational efficiency in the second half of 2023[152]. - The economic recovery in China is reflected in a GDP growth of 5.5% for the period, compared to 2.5% in the previous year, which may positively impact the company's performance[132]. - The estimated annual tax rates for Hong Kong and mainland China remain at 16.5% and 25%, respectively, consistent with the previous year, which may affect future profitability[124]. Other Information - The company did not declare an interim dividend for the six months ended June 30, 2023, compared to zero dividend in the same period of 2022[163]. - The company has not engaged in any purchase, sale, or redemption of its listed securities during the six months ended June 30, 2023[167]. - The company plans to distribute its interim report to all shareholders and publish it on its website and the Hong Kong Stock Exchange[164].

Financial Performance - The company's revenue for 2022 was RMB 1,429.8 million, a decrease of 28.4% compared to RMB 2,000.2 million in 2021[13] - Restaurant business sales dropped to RMB 1,339.6 million, down 28.8% from RMB 1,880.9 million in the previous year[13] - The company reported a net loss attributable to shareholders of RMB 143.9 million, compared to a profit of RMB 20.9 million in 2021[13] - The group's revenue for the period was approximately RMB 1,430 million, a decline of about 28.4% compared to RMB 1,996 million in the same period last year, primarily due to COVID-19 restrictions[24] - The group recorded a pre-tax loss of approximately RMB 176,765,000 for the year, compared to a profit of RMB 52,440,000 in 2021[44] - The attributable loss to shareholders was approximately RMB 143,906,000, compared to a profit of RMB 20,940,000 in 2021[47] - The cost of goods sold for the year was approximately RMB 374,833,000, down about 30.2% from RMB 537,336,000 in 2021, with the cost as a percentage of revenue at 26.2%, a slight decrease from 26.9% in the previous year[32] - Gross profit for the year was approximately RMB 1,054,959,000, a decrease of about 27.7% from RMB 1,458,873,000 in 2021, while the gross margin increased to 73.8% from 73.1%[33] Operational Metrics - The total number of restaurants decreased to 597, representing a 19.0% decline from 737 in 2021[13] - As of December 31, 2022, the group operated 597 restaurants, a decrease of 140 from 737 in 2021, with 161 closures due to various reasons including poor performance and contract expirations[17] - The average consumption per customer in the Hong Kong market reached a new high, while the cost of inventory consumption as a percentage of revenue was approximately 26.2%, a decrease of 0.7 percentage points year-on-year[24] - The group achieved a gross margin of 73.8%, up from 73.1% in the previous year, despite a revenue decline[24] - The proportion of labor costs to revenue was approximately 29.8%, an increase of 2.6 percentage points from 27.2% in the previous year, mainly due to underutilization of labor resources[24] Membership and Customer Engagement - Membership numbers reached 24.63 million, with total member spending amounting to RMB 735 million[16] - The company plans to enhance customer engagement through a new membership strategy that includes scenario-based, product-oriented, and social elements[16] Strategic Initiatives - The group aims to optimize its supply chain for international meat procurement in 2023, maintaining partnerships with large meat suppliers to control procurement costs[17] - The group has increased its direct procurement ratio to 72.42%, enhancing the quality and quantity of domestic and international suppliers[17] - The group plans to accelerate its restaurant expansion and optimize its network layout in 2023 as the restaurant industry continues to recover[18] - The group is focusing on digital transformation, enhancing its membership system and supply chain management to better capture market opportunities[22] Governance and Compliance - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with the standards set forth in the Listing Rules Appendix 10[68] - The board consists of seven members, including three independent non-executive directors, ensuring a strong level of independence[74] - The company has implemented a fair disclosure policy to broadly disseminate information to the public through various channels[72] - The board reviews its governance framework annually to ensure its effectiveness[80] - The company has not been involved in any legal cases related to corruption during the reporting period[71] Risk Management and Internal Controls - The company is committed to maintaining a robust risk management and internal control system to manage inherent business risks[122] - The board has delegated the Audit Committee to continuously monitor the effectiveness of the risk management and internal control systems, which include financial, operational, and compliance controls[122] - Management is responsible for identifying and mitigating risks that may impact the company's performance, with regular reviews and updates to the risk management system[128] Environmental, Social, and Governance (ESG) Initiatives - The company operates leading fast-casual restaurant chains in mainland China and Hong Kong, focusing on environmental, social, and governance (ESG) initiatives[151] - The group is committed to continuously improving its ESG performance and governance structure[160] - The company emitted 7,968.90 tons of CO2 equivalent greenhouse gases during the reporting period, with a greenhouse gas emission density of 10.28 tons per employee[171] - The total energy consumption of the company was 15,469.51 MWh, with an energy consumption density of 19.96 MWh per employee[177] - The company plans to regularly measure and disclose environmental performance to identify opportunities for improvement and gradually set environmental goals[168] Employee Management and Development - The company employs 6,542 staff members across its restaurant operations and related product sales, with a focus on fair employment practices[189] - The company emphasizes the importance of employee training and development to enhance skills and improve work efficiency, aligning training plans with business development needs[193] - The company has established a comprehensive compensation system to motivate employees, adjusting salaries and bonuses based on performance evaluations[185] - The company actively promotes equal opportunities and diversity in the workplace, opposing any form of discrimination[188]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 1,429,792 thousand, a decrease of 28.4% compared to RMB 1,996,209 thousand in 2021[2]. - Restaurant business sales decreased by 28.8% to RMB 1,339,611 thousand from RMB 1,880,923 thousand in the previous year[2]. - The company reported a gross profit of RMB 1,054,959 thousand, down 27.7% from RMB 1,458,873 thousand in 2021[2]. - Operating loss for the year was RMB 114,084 thousand, compared to an operating profit of RMB 24,030 thousand in 2021[2]. - The company incurred a loss attributable to shareholders of RMB 143,906 thousand, compared to a profit of RMB 20,940 thousand in the previous year[2]. - Basic loss per share was RMB (0.13), a decline from earnings of RMB 0.02 per share in 2021[2]. - Revenue from external customers in mainland China for the year ended December 31, 2022, was RMB 1,270,628, a decrease of 30.6% from RMB 1,831,816 in 2021[47]. - Revenue from external customers in Hong Kong for the year ended December 31, 2022, was RMB 159,164, a decrease of 3.8% from RMB 164,393 in 2021[47]. - The group reported a loss attributable to shareholders of approximately RMB 143,906,000 for the year ended December 31, 2022, compared to a profit of approximately RMB 20,940,000 in 2021[147]. - The group recorded a pre-tax loss of approximately RMB 176,765,000 for the year ended December 31, 2022, compared to a profit of RMB 52,440,000 in the previous year[171]. Dividends and Shareholder Returns - The company proposed a final dividend of RMB 0.06 per share, down from RMB 0.08 per share in 2021[2]. - The company declared dividends of RMB 91,480 thousand for 2022, an increase from RMB 87,323 thousand in 2021[86]. - Share transfer registration will be suspended from June 14 to June 16, 2023, to determine the list of shareholders entitled to the final dividend[194]. Assets and Liabilities - Non-current assets totaled RMB 2,146,242 thousand, a decrease from RMB 2,492,104 thousand in 2021[8]. - Total equity attributable to shareholders decreased to RMB 2,874,715 thousand from RMB 3,060,105 thousand in the previous year[9]. - The carrying amounts of right-of-use assets and lease liabilities as of December 31, 2022, were RMB 369,970,000 and RMB 412,478,000, respectively[29]. - The group has not reported total assets and total liabilities as they were not reviewed by the main operating decision-makers[36]. - The group’s bank borrowings were approximately RMB 40,417,000 as of December 31, 2022, down from RMB 77,003,000 a year earlier, resulting in a debt-to-asset ratio of 1.0[177]. - The net current assets of the group were approximately RMB 1,186,121,000, with a current ratio of 3.2 as of December 31, 2022[182]. Operational Metrics - The total number of restaurants as of December 31, 2022, decreased to 597 from 737 in the previous year[2]. - The group had a total of 597 chain restaurants as of December 31, 2022, a decrease of 140 from 737 restaurants in the previous year[135]. - The proportion of labor costs to revenue increased to approximately 29.8%, up 2.6 percentage points from 27.2% in 2021, primarily due to the pandemic affecting operational hours[102]. - Comparable store sales growth in Hong Kong decreased by 12.3% and in mainland China by 20.5% for the year 2022[158]. - Average spending per customer in Hong Kong was HKD 105.5, while in mainland China it was RMB 43.0 for the year 2022[158]. - Daily table turnover in Hong Kong was 3.7, compared to 2.5 in mainland China for the year 2022[158]. Costs and Expenses - The total employee costs for the year ended December 31, 2022, were RMB 425,410, a decrease of 21.6% from RMB 542,546 in 2021[54]. - The group’s inventory cost was approximately RMB 374,833,000, a reduction of about 30.2% from RMB 537,336,000 in the previous year[138]. - The cost of goods sold as a percentage of revenue was approximately 26.2%, a decrease of about 0.7 percentage points from the previous year[137]. - Financing costs decreased by approximately 13.2% to RMB 26.02 million, down from RMB 29.96 million in 2021[119]. - The company recognized a total impairment loss of RMB 16,953,000 for the year ended December 31, 2022, compared to a reversal of impairment loss of RMB 1,348,000 in 2021[62]. Future Outlook and Strategic Initiatives - The company will continue to optimize its member system and accelerate digital transformation to capture development opportunities in the industry[100]. - The group will closely monitor market conditions and respond swiftly to changes to enhance competitiveness[103]. - The company expects that the application of new accounting standards will not have a significant impact on the consolidated financial statements in the foreseeable future[20]. - The group has not adopted new Hong Kong Financial Reporting Standards that are effective from January 1, 2023, which may impact the financial statements in the future[19]. Miscellaneous - The group maintained a strong financial position with bank balances of approximately RMB 1,465,111,000 as of December 31, 2022, compared to RMB 1,527,538,000 in the previous year[152]. - The group maintained a diversified investment portfolio, with significant investments in Guangzhou Cloud System valued at RMB 17,274,000 as of December 31, 2022, down from RMB 47,675,000 in the previous year[173]. - The group did not engage in any significant acquisitions or disposals of subsidiaries during the review period[180]. - The group has no significant contingent liabilities as of December 31, 2022[181]. - The company will hold its annual general meeting on June 7, 2023, with relevant notices to be published on its website[196].

Financial Performance - For the six months ended June 30, 2022, the revenue was RMB 677.5 million, a decrease of 33.1% compared to RMB 1,012.5 million in the same period of 2021[12]. - Gross profit for the same period was RMB 496.3 million, down 32.7% from RMB 738.0 million year-on-year[12]. - The company reported a loss before tax of RMB 136.1 million, compared to a profit of RMB 86.2 million in the previous year[12]. - The loss attributable to shareholders was RMB 106.5 million, compared to a profit of RMB 49.7 million in the prior year[12]. - For the six months ended June 30, 2022, the group's restaurant business revenue was approximately RMB 628,250,000, a decrease of about 33.9% compared to RMB 951,011,000 in the same period last year, accounting for 92.7% of total revenue[23]. - The group's total revenue for the six months ended June 30, 2022, was approximately RMB 677,469,000, down about 33.1% from RMB 1,012,542,000 in the same period last year due to COVID-19 restrictions[27]. - The group recorded a pre-tax loss of approximately RMB 136,066,000 for the six months ended June 30, 2022, compared to a profit of RMB 86,228,000 for the same period in 2021[44]. - The loss attributable to shareholders was approximately RMB 106,513,000 for the six months ended June 30, 2022, compared to a profit of approximately RMB 49,658,000 in the same period of 2021[45]. - The total loss for the period was RMB 120,361,000, significantly higher than the profit of RMB 51,072,000 reported in the previous year[101]. - The company experienced a significant decline in segment profit, with a loss of RMB 129,018,000 for the first half of 2022 compared to a profit of RMB 78,227,000 in the same period of 2021[101]. Operational Metrics - The number of restaurants operated by the company reached 669, covering over 153 cities and 26 provinces in China as of June 30, 2022[4]. - The group operated a total of 669 restaurants as of June 30, 2022, a decrease of 38 from 707 restaurants in the same period last year[22]. - Comparable store sales growth was -23.6% for the first half of 2022, compared to 13.7% in the same period of 2021[60]. - The company plans to enhance its membership system to improve repurchase rates and accelerate digital transformation[15]. - The company is focusing on a new retail model combining offline dining, online delivery, and new retail strategies[15]. Cost Management - The group's inventory cost for the six months ended June 30, 2022, was approximately RMB 181,140,000, a decrease of about 34.0% from RMB 274,547,000 in the same period last year, with inventory cost accounting for 26.7% of revenue[28]. - Employee costs for the six months ended June 30, 2022, were approximately RMB 211,016,000, a decrease of about 20.4% from RMB 265,160,000 in the same period last year, with employee costs accounting for 31.1% of revenue[33]. - The group will strategically reduce the number of underperforming restaurants to mitigate cash flow and profit burdens during the pandemic[19]. - The group will closely monitor market conditions and actively control operating costs to minimize the impact of negative factors[19]. Cash Flow and Liquidity - As of June 30, 2022, the group maintained a strong liquidity position with cash reserves of approximately RMB 1,528,194,000 and a current ratio of 2.8[46]. - The group generated a net cash inflow from operating activities of approximately RMB 99,978,000, despite recording a pre-tax loss of RMB 136,066,000[54]. - The net cash generated from operating activities for the six months ended June 30, 2022, was RMB 99,978 thousand, down 53.0% from RMB 212,225 thousand in the same period of 2021[85]. - The company reported a net cash outflow from investing activities of RMB 23,196 thousand for the six months ended June 30, 2022, compared to RMB 41,775 thousand in the prior year, indicating an improvement in cash flow management[85]. - The net cash used in financing activities was RMB 88,619 thousand for the first half of 2022, a decrease from RMB 174,940 thousand in the same period of 2021, showing a reduction in financing costs[85]. Market Conditions - The overall restaurant industry in China saw a revenue decline of 7.7% year-on-year, with total dining revenue at RMB 20,040 billion[14]. - The gross domestic product (GDP) of China grew by 2.5% during the same period, indicating economic recovery amidst challenges[14]. - In the first half of 2022, the company's restaurant operations in China were severely impacted by COVID-19, leading to a revenue decrease of 28.5% from RMB 1,012,542 thousand in 2021 to RMB 677,469 thousand in 2022[95]. Asset and Liability Management - Cash and cash equivalents as of June 30, 2022, were RMB 1,528,194 thousand, slightly increased from RMB 1,527,538 thousand as of December 31, 2021[75]. - Total liabilities as of June 30, 2022, were RMB 652,742 thousand, compared to RMB 575,138 thousand as of December 31, 2021[75]. - The company’s total liabilities decreased to RMB 548,909 thousand from RMB 611,930 thousand, indicating a reduction of approximately 10.3%[78]. - The company’s net assets decreased to RMB 2,927,090 thousand from RMB 3,114,149 thousand as of December 31, 2021, representing a decline of approximately 6.0%[78]. - The total equity attributable to shareholders decreased to RMB 2,885,848 thousand from RMB 3,060,105 thousand, reflecting a decrease of about 5.7% year-over-year[78]. Related Party Transactions - Related party transactions included sales of ramen and related products amounting to RMB 514 thousand for the six months ended June 30, 2022, up from RMB 396 thousand in the previous year, reflecting a growth of approximately 29.6%[196]. - The company incurred procurement costs for food, raw materials, and supplies from related parties totaling RMB (7,089) thousand for the six months ended June 30, 2022, a decrease from RMB (16,550) thousand in the prior year, showing a reduction of about 57.3%[196]. - The total compensation for directors and key management personnel was RMB 2,954 thousand for the six months ended June 30, 2022, compared to RMB 2,251 thousand in the previous year, representing an increase of approximately 31.1%[199].