Major Events - Sihuan Pharmaceutical Holdings Group Ltd. successfully administered the first human dose of the new radiopharmaceutical conjugate drug 3D1015 [1] - Shenzhen International's joint venture Shenzhen Airlines plans to raise a total of 16 billion yuan in a phased capital increase [1] - Kangzheng Pharmaceutical received clinical trial approval for its innovative oral small molecule JAK1 inhibitor Povorcitinib for indications of vitiligo and suppurative hidradenitis [1] - Ruihe Digital signed a framework agreement with Tielin Superlight Technology to jointly advance the business of real-world asset tokenization [1] - Zhongxu Future will operate and launch a new mobile game "Miracle MU" titled "New Moon Continent" [1] Financial Performance - Noah Holdings reported a net profit attributable to shareholders of 179 million yuan for Q2, a year-on-year increase of 79% driven by strong growth in investment product distribution [1] - Trip.com Group reported a net profit of 4.846 billion yuan for Q2, an increase of 26.43% year-on-year [1] - Shijiazhuang Pharmaceutical Group announced a mid-year profit attributable to equity holders of approximately 283.5 million HKD, a year-on-year decrease of about 58.7% [1] - Zhongsheng Holdings reported a mid-year profit attributable to shareholders of 1.011 billion yuan, a decrease of 36% year-on-year [1] - SF Express City reported an adjusted net profit of approximately 160 million yuan, a year-on-year increase of 139% [1] - Baidu's subsidiary reported a mid-year profit attributable to shareholders of 47.999 million yuan, returning to profitability [1] - Li Auto reported a net profit of 1.093 billion yuan for Q2, a decrease of 0.91% year-on-year [1] - Shanghai Industrial Holdings reported a mid-year profit attributable to shareholders of 1.042 billion HKD, with an interim dividend of 0.42 HKD per share [1] - Beijing Holdings reported a mid-year profit attributable to shareholders of 3.404 billion yuan, an increase of 8.07% year-on-year [1] - Qingdao Port reported a net profit of 2.842 billion yuan, a year-on-year increase of 7.58% [1] - New China Life Insurance reported a net profit of 14.799 billion yuan, a year-on-year increase of 33.5% [1] - China Galaxy Securities reported a net profit of 6.488 billion yuan, a year-on-year increase of 47.86% [1] - China Taiping reported a 12.2% increase in shareholder profit, with a nearly 23% high growth in life insurance new business value [1] - China Resources Gas reported a mid-year profit attributable to shareholders of 2.403 billion HKD, a year-on-year decrease of 30.5% [1] - SF Holding reported a net profit of 5.738 billion yuan, a year-on-year increase of 19.37%, with volume growth exceeding the overall express delivery industry [1] - SMIC reported a net profit of approximately 320 million USD, a year-on-year increase of 35.6% [1] - SenseTime reported a revenue growth of 35.6% year-on-year, reaching 2.358 billion yuan [1] - BeiGene reported a net profit of 95.59 million USD, returning to profitability [1] - Fubo Group reported a mid-year net profit exceeding 100 million, driven by AI [1] - CITIC Securities reported a net profit of 13.719 billion yuan, a year-on-year increase of 29.79% [1] - Huadian International Power reported a net profit of 3.904 billion yuan, a year-on-year increase of 13.15% [1] Additional Financial Performance - Zhou Hei Ya reported a mid-year profit attributable to shareholders of 108 million yuan, a year-on-year increase of 228% [2] - Haitian Flavoring reported a net profit of 3.91 billion yuan, a year-on-year increase of 13.3% [2] - Dasheng Holdings reported a mid-year adjusted net profit growth of 79.6% driven by store expansion and membership growth [2] - CITIC Securities reported a net profit of 4.509 billion yuan, a year-on-year increase of 57.77% [2] - Huitongda reported a mid-year profit attributable to shareholders of 13.9 million yuan, a year-on-year increase of 10.81% [2] - Yunfeng Financial reported a mid-year profit attributable to shareholders of 486 million HKD, a year-on-year increase of 142.04% [2] - Jiufang Zhitu reported a mid-year profit attributable to shareholders of 865 million yuan, returning to profitability [2] - Air China reported a net loss of approximately 1.806 billion yuan, a year-on-year narrowing of 35.11% [2] - ZTE reported a net profit of approximately 5.058 billion yuan, a year-on-year decrease of 11.77% [2] - China Merchants Securities reported a net profit of 5.186 billion yuan, a year-on-year increase of 9.23% [2] - Datang Power reported a net profit of approximately 4.874 billion yuan, a year-on-year increase of 50.3% [2] - China Pacific Insurance reported a net profit of 27.885 billion yuan, a year-on-year increase of 11% [2] - Beijing Capital International Airport reported a post-tax loss of 164 million yuan, a year-on-year narrowing of 56.48% [2] - Dongguan Rural Commercial Bank reported a mid-year net profit of 2.629 billion yuan [2] - Shenzhen Holdings reported a mid-year loss attributable to shareholders of 2.618 billion HKD, a year-on-year increase of 137.76% [2] - China Southern Airlines reported a net loss of 1.534 billion yuan, a year-on-year increase of 45.54% [2] - COSCO Shipping Holdings reported a profit attributable to shareholders of 17.528 billion yuan, a year-on-year increase of 3.9% [2] - Guofu Hydrogen Energy reported revenue of 10.9 million yuan, actively expanding overseas cooperation and business layout [2] - Kangsheng Global reported a mid-year gross profit of 197 million yuan, with stable progress across all businesses [2] - Dongfang Electric reported a net profit of 1.91 billion yuan, a year-on-year increase of 12.91%, maintaining the industry's leading market share in nuclear and gas power [2] - Eagle Eye Technology reported a profit of 443,000 yuan, returning to profitability [2] - Haier Smart Home reported a profit attributable to shareholders of 12.033 billion yuan, a year-on-year increase of 15.6% [2] - EDA Group Holdings reached a partnership agreement with UTCPAY to collaborate in digital asset trading, Web3 technology, and blockchain applications [2] - Gilead Sciences reported that ASC30 oral tablets showed good and differentiated pharmacokinetic characteristics in the U.S. Phase Ib multi-dose escalation study [2]

Core Insights - The company reported a revenue of approximately 2.593 billion, representing a year-on-year growth of 27% [1] - Profit attributable to shareholders reached 65.924 million, a significant increase of 504.4% year-on-year [1] - Adjusted net profit was 91.42 million, reflecting a year-on-year growth of 79.6% [1] - Basic earnings per share stood at 0.5 yuan [1] Revenue Growth Drivers - Revenue growth was primarily driven by the continuous expansion of the store network across the country [1] - Strong sales from new stores in new markets and sustained positive sales trends in existing markets contributed to the revenue increase [1] Store Network Expansion - As of June 30, 2025, the company operated 1,198 stores in 48 cities across mainland China [1] - Among these, 515 stores were located in first-tier cities, accounting for 43% of the total store count [1] - The company plans to open 300 new stores in 2025, having already opened 190 new stores in the first half of 2025 [1] - As of August 15, 2025, an additional 43 stores were opened, with 27 stores under construction and 35 stores signed, supporting the goal of 300 new stores for the year [1] Membership Growth and Sales Contribution - The company’s membership base reached 30.1 million, showing a year-on-year increase of over 55% [1] - Membership sales contributed to 66% of total sales, highlighting the company's effectiveness in customer recruitment and retention [1] - The rapid expansion of the store network, combined with accelerated digital application penetration, significantly enhanced the company's customer base [1]

Core Insights - The company reported a revenue of approximately 2.593 billion yuan for the first half of 2025, representing a year-on-year growth of 27% [1] - The profit attributable to the company's owners reached 65.924 million yuan, a significant increase of 504.4% year-on-year [1] - Adjusted net profit was 91.42 million yuan, marking a year-on-year growth of 79.6% [1] - Basic earnings per share stood at 0.5 yuan [1] Revenue Growth Drivers - Revenue growth was primarily driven by the continuous expansion of the store network across the country, strong sales from new stores in new markets, and sustained positive sales trends in existing markets [1] Store Network Expansion - As of June 30, 2025, the company operated 1,198 stores in 48 cities across mainland China [1] - Among these, 515 stores were located in first-tier cities, accounting for 43% of the total store count, while 683 stores were in non-first-tier cities, making up 57% [1] - The company plans to open 300 new stores in 2025, having already net opened 190 new stores in the first half of 2025 [1] - As of August 15, 2025, an additional 43 stores were net opened, with 27 stores under construction and 35 stores signed, indicating a strong potential to meet the 2025 target of 300 new stores [1] Membership Growth - The company's membership base reached 30.1 million, reflecting a year-on-year increase of over 55% [1] - Membership sales contributed to 66% of total sales, showcasing the company's effectiveness in acquiring and retaining new customers [1] - The rapid expansion of the store network, combined with accelerated digital application penetration, significantly enhanced the company's customer base [1]

Performance Summary - SF Holding reported a revenue of 146.858 billion yuan, a year-on-year increase of 9.26%, and a net profit of 5.738 billion yuan, up 19.37% year-on-year [2] - Shanghai Pharmaceuticals achieved a revenue of 141.593 billion yuan, a growth of 1.56%, with a net profit of 4.459 billion yuan, increasing by 51.56% [2] - New China Life Insurance's revenue reached 69.429 billion yuan, a 25.5% increase, and a net profit of 14.799 billion yuan, up 33.5% [2] - Huadian International Power's revenue was 59.953 billion yuan, down 8.98%, while net profit increased by 13.15% to 3.904 billion yuan [2] - China Pacific Insurance reported a revenue of 55.964 billion yuan, a slight increase of 0.2%, and a net profit of 6.764 billion yuan, up 12.2% [2] - CITIC Securities had a revenue of 46.552 billion yuan, a 16.28% increase, and a net profit of 13.719 billion yuan, up 29.79% [2] - Beijing Enterprises Holdings reported a revenue of 44.529 billion yuan, a 5.2% increase, and a net profit of 3.404 billion yuan, up 8.1% [2] - Li Auto's vehicle sales revenue for Q2 2025 was 28.9 billion yuan, down 4.7%, with a net profit of 1.093 billion yuan, a decrease of 0.9% [2] - Huishang Bank reported a revenue of 21.157 billion yuan, a 2.25% increase, and a net profit of 9.109 billion yuan, up 5.55% [2] - SMIC achieved a revenue of 4.456 billion USD, a 22% increase, with a net profit of 320 million USD, up 35.6% [2] - China Galaxy Securities reported a total revenue of 18.798 billion yuan, an 18.92% increase, and a net profit of 6.488 billion yuan, up 47.86% [2] - Zhongjun Group Holdings had a revenue of 18.521 billion yuan, down 25.4%, with a net loss of 3.48 billion yuan, a narrowing of 5.5% [2] - BeiGene reported a revenue of 2.433 billion USD, a 44.7% increase, and a net profit of 95.59 million USD, turning from a loss of 372 million USD [2] - SF Express City reported a revenue of 10.236 billion yuan, up 48.8%, and a net profit of 137 million yuan, up 120.4% [2] - China Shipbuilding Defense reported a revenue of 10.173 billion yuan, a 16.54% increase, and a net profit of 526 million yuan, up 258.46% [2] - Qingdao Port reported a revenue of 9.434 billion yuan, a 4.04% increase, and a net profit of 2.842 billion yuan, up 7.58% [2] - Shanghai Industrial Holdings reported a revenue of 9.476 billion yuan, down 8.6%, and a net profit of 1.042 billion yuan, down 13.2% [2] - Everbright Securities reported a revenue of 7.481 billion yuan, a 17.7% increase, and a net profit of 1.683 billion yuan, up 21% [2] - Baozun reported a revenue of 4.617 billion yuan, a 5.63% increase, with a net loss of 97.04 million yuan, narrowing [2] - Sichuan Chengyu Expressway reported a revenue of 4.08 billion yuan, down 23.3%, and a net profit of 838 million yuan, up 20.1% [2] - Baideli Holdings reported a revenue of approximately 3.813 billion yuan, down 10.9%, and a net profit of 7.1 million yuan, down 79.1% [2] - Tigermed reported a revenue of 3.25 billion yuan, down 3.21%, and a net profit of 383 million yuan, down 22.22% [2] - Zhengli New Energy reported a revenue of 3.172 billion yuan, a 71.9% increase, and a net profit of 220 million yuan, turning from a loss of 130 million yuan [2] - Sensong International reported a revenue of 2.687 billion yuan, down 22.7%, and a net profit of 338 million yuan, down 10.15% [2] - Dasheng Holdings reported a revenue of approximately 2.593 billion yuan, a 27% increase, and a net profit of 65.924 million yuan, up 504.4% [2] - SenseTime reported a revenue of 2.358 billion yuan, a 35.6% increase, with a gross profit of 908 million yuan, up 18.4%, and an adjusted net loss of 1.162 billion yuan, narrowing by 50% [2] - Ruian Real Estate reported a revenue of 2.074 billion yuan, flat year-on-year, with a net profit of 51 million yuan, down 29.2% [2] - Shangri-La Asia reported a revenue of 1.056 billion USD, a 0.7% increase, and a net profit of 57.9 million USD, down 38.7% [2] - Quanfeng Holdings reported a revenue of 912 million USD, an 11.9% increase, and a net profit of 95.217 million USD, up 54.8% [2] - COSCO Shipping Ports reported a revenue of 806 million USD, a 13.6% increase, and a net profit of approximately 182 million USD, up 30.6% [2] - Tianjin Development reported a revenue of 1.719 billion yuan, down 5.59%, and a net profit of 344 million yuan, up 19.57% [2] Company News - Sillodic Pharmaceuticals successfully administered the new radiolabeled drug 3D1015 to patients with PSMA-positive metastatic castration-resistant prostate cancer, demonstrating safety and preliminary efficacy [2] - Shoucheng Holdings signed a strategic cooperation framework agreement with Alter and Alrite to jointly promote breakthroughs in robotics technology, scene implementation, and industrial chain collaboration [2]

Investment Rating - The report assigns an "Outperform" rating to several companies including China Feihe, Huazhu, and others, while Budweiser APAC is rated as "Neutral" [1]. Core Insights - The report indicates a slight rebound in spot costs for essential consumer goods, with most indices showing an increase, while futures indices generally declined [35]. - The overall trend in the consumer goods sector reflects a mixed performance, with some categories experiencing cost increases while others face declines [8][35]. Summary by Category Beer - The spot cost index for beer increased by 0.39% month-on-month, while the futures index decreased by 6.06%. Year-to-date changes show a decline of 4.17% for spot and 6.16% for futures [36][13]. - Glass prices initially rose but later fell, with month-on-month changes of +0.3% for spot and -13.9% for futures [12]. Seasonings - The spot cost index for seasonings decreased by 0.16% month-on-month, while the futures index fell by 5.93%. Year-to-date changes are -1.76% for spot and -6.01% for futures [37]. - Domestic soybean prices have increased due to supply contraction, while imported soybeans remain weak [16]. Dairy - The spot cost index for dairy products increased by 0.7% month-on-month, while the futures index decreased by 1.44%. Year-to-date changes are -3.2% for spot and -2.11% for futures [38]. - Fresh milk prices have declined to 3.02 yuan/kg, with various factors contributing to price pressures [19]. Instant Noodles - The spot cost index for instant noodles increased by 1.3% month-on-month, while the futures index decreased by 2%. Year-to-date changes are -3.01% for spot and -4.21% for futures [39]. - Palm oil prices have risen, impacting overall costs [23]. Frozen Foods - The spot cost index for frozen foods increased by 1.15% month-on-month, while the futures index rose by 0.97%. Year-to-date changes are -1.83% for spot and -2.74% for futures [40]. - Vegetable prices have shown significant fluctuations due to seasonal demand [27]. Soft Drinks - The spot cost index for soft drinks increased by 0.78% month-on-month, while the futures index decreased by 5.63%. Year-to-date changes are -4.99% for spot and -8.6% for futures [41]. - PET prices are stable to weak, reflecting changes in demand and inventory levels [31].

Group 1 - The core viewpoint of the articles highlights the strong financial performance of the company, with a significant increase in revenue and profit for the first half of 2025 [1][2] - The company's revenue reached approximately 2.593 billion yuan, representing a year-on-year growth of 27% [1] - The profit attributable to the company's owners for the period was 65.924 million yuan, showing a remarkable year-on-year increase of 504.4% [1] - Adjusted net profit was reported at 91.42 million yuan, reflecting a year-on-year growth of 79.6% [1] - Basic earnings per share were recorded at 0.5 yuan [1] Group 2 - Revenue growth was primarily driven by the continuous expansion of the store network across the country, along with strong sales from new stores in new markets and positive sales trends in existing markets [1] - In Beijing and Shanghai, total revenue increased by 6.0% to 844 million yuan, supported by positive same-store sales growth and the addition of 8 new stores [1] - The company operated a total of 515 stores in first-tier cities, accounting for 43% of the total store count, generating sales of 1.0847 billion yuan, which contributed 41.8% to total revenue, with a year-on-year growth of 7.2% [1] - The new growth markets (non-first-tier cities excluding Shenzhen and Guangzhou) saw a revenue increase of 46.6% to 1.5087 billion yuan, driven by the opening of 184 new stores [2] - The contribution of revenue from non-first-tier new growth markets increased from 50.4% to 58.2% over the reported periods [2] Group 3 - The company plans to open 300 new stores in 2025, having already net opened 190 new stores in the first half of 2025 [2] - As of August 15, 2025, the company had net opened an additional 43 stores, with 27 stores under construction and 35 stores signed, aiming to achieve the target of 300 new stores for the year [2]

Core Viewpoint - The company has demonstrated significant revenue growth and profitability improvements due to its ongoing expansion strategy and strong performance in new markets [1][2][3][4] Financial Performance - Total revenue for the first half of 2025 reached RMB 2,593.4 million, a 27.0% increase from RMB 2,041.5 million in the same period of 2024 [1] - EBITDA at the store level increased by 27.7% to RMB 502.8 million, with an EBITDA margin of 19.4% compared to 19.3% in 2024 [1] - Adjusted EBITDA for the group rose by 38.3% to RMB 322.9 million, with a profit margin increase from 11.4% to 12.4% [2] - Adjusted net profit grew by 79.6% to RMB 91.4 million, with a profit margin increase from 2.5% to 3.5% [2] Market Expansion - The company opened 190 new stores during the reporting period, bringing the total to 1,198 stores across 48 cities in China [3] - Revenue from new growth markets (non-first-tier cities) increased by 46.6% to RMB 1,508.7 million, contributing 58.2% of total revenue [2][3] - The company plans to open 300 new stores in 2025, with 43 additional stores opened by mid-August 2025 [4] Customer Growth - Membership numbers reached 30.1 million, up from 19.4 million a year earlier, indicating effective customer recruitment [3] - In the past 12 months, 13.2 million new customers placed their first orders, showcasing the company's successful marketing efforts [3]

[Interim Results Summary](index=1&type=section&id=Interim%20Results%20Summary) The company reported significant growth in revenue and profit, with strong performance across both IFRS and non-IFRS financial metrics [Key Highlights](index=1&type=section&id=Key%20Highlights) The company achieved significant revenue and profit growth, with substantial increases in profit attributable to owners and basic earnings per share, alongside strong non-IFRS financial metrics Key Financial Metrics | Metric | 2025 (RMB thousands) | 2024 (RMB thousands) | Change (%) / Percentage Point Change | | :--- | :--- | :--- | :--- | | Revenue | 2,593,390 | 2,041,461 | 27.0% | | Store-level Operating Profit | 379,188 | 296,155 | 28.0% | | Store-level Operating Profit Margin | 14.6% | 14.5% | +0.1 | | Profit Before Income Tax | 110,097 | 40,894 | 169.2% | | Profit for the Period Attributable to Owners of the Company | 65,924 | 10,907 | 504.4% | | Basic Earnings Per Share (RMB yuan) | 0.50 | 0.08 | 525.0% | | Diluted Earnings Per Share (RMB yuan) | 0.49 | 0.08 | 512.5% | | **Non-IFRS Measures** | | | | | Store-level EBITDA | 502,818 | 393,902 | 27.7% | | Store-level EBITDA Margin (%) | 19.4% | 19.3% | +0.1 | | Adjusted EBITDA | 322,877 | 233,387 | 38.3% | | Adjusted EBITDA Margin (%) | 12.4% | 11.4% | +1.0 | | Adjusted Net Profit | 91,420 | 50,890 | 79.6% | | Adjusted Net Profit Margin (%) | 3.5% | 2.5% | +1.0 | [Business Overview](index=3&type=section&id=Business%20Overview) The company continues to expand its store network and membership base, with robust performance in first and second-tier cities despite a slight decline in same-store sales growth due to new market high bases [Business Summary](index=3&type=section&id=Business%20Summary) The company continues to expand its store network, significantly increasing total store count and cities entered, alongside substantial growth in membership. Same-store sales growth saw a slight decline due to high bases in new markets, but first and second-tier cities showed stable performance Store and Membership Data **Store Count:** | Market | As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | | :--- | :--- | :--- | :--- | | First-tier City Market | 515 | 509 | 498 | | Non-first-tier City Market | 683 | 499 | 416 | | **Total** | **1,198** | **1,008** | **914** | **Number of Cities Entered:** | Metric | As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | | :--- | :--- | :--- | :--- | | Number of Cities Entered | 48 | 39 | 33 | **Membership Count:** | Metric | As of June 30, 2025 | As of December 31, 2024 | As of June 30, 2024 | | :--- | :--- | :--- | :--- | | Membership Count (millions) | 30.1 | 24.5 | 19.4 | **Same-Store Sales Growth (SSSG):** | Period | Same-Store Sales Growth | | :--- | :--- | | Six months ended June 30, 2025 | -1.0% | | Year ended December 31, 2024 | 2.5% | | Six months ended December 31, 2024 | 1.6% | | Six months ended June 30, 2024 | 3.6% | - In the first half of 2025, first-tier cities achieved **positive same-store sales growth**, and markets entered before December 2022 collectively achieved **positive same-store sales growth**[10](index=10&type=chunk) [Management Discussion and Analysis](index=4&type=section&id=Management%20Discussion%20and%20Analysis) This section provides an in-depth review of the company's operational and financial performance, strategic initiatives, and future outlook for the reporting period [H1 2025 Business Review](index=4&type=section&id=H1%202025%20Business%20Review) The company's total revenue increased by 27.0% year-on-year, driven by store network expansion, strong new market sales, and positive trends in existing markets, with non-first-tier cities contributing more to revenue and profitability significantly improving - The company is the exclusive master franchisee of Domino's Pizza in mainland China, Hong Kong, and Macau, operating **1,198 directly-owned stores** across **48 cities** in mainland China as of June 30, 2025[11](index=11&type=chunk) [Total Revenue and Market Performance](index=4&type=section&id=Total%20Revenue%20and%20Market%20Performance) Total revenue grew by 27.0% year-on-year, primarily driven by store network expansion, strong sales in new markets, and favorable trends in existing markets, with non-first-tier cities increasing their contribution to total revenue Total Revenue and Market Contribution **Total Revenue and Market Contribution:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Total Revenue | 2,593.4 | 2,041.5 | 27.0% | | Beijing and Shanghai Revenue | 843.9 | 796.0 | 6.0% | | First-tier Cities Total Sales | 1,084.7 | N/A | 7.2% | | Non-first-tier Cities Revenue | 1,508.7 | 1,029.4 | 46.6% | **Non-first-tier Cities Revenue Contribution:** | Period | Contribution Percentage | | :--- | :--- | | H1 2025 | 58.2% | | H1 2024 | 50.4% | [Store Network Expansion and New Store Performance](index=4&type=section&id=Store%20Network%20Expansion%20and%20New%20Store%20Performance) The company opened 190 net new stores, reaching 1,198 total stores across 48 cities, with strong performance from new stores in growth markets and excellent cash investment payback periods - The company opened **190 net new stores** during the reporting period, reaching **1,198 stores** across **48 cities** in China as of June 30, 2025, with **9 new cities** entered[14](index=14&type=chunk) - In H1 2025, new stores in growth markets performed strongly, with **64 stores** across **15 markets** achieving an average daily sales of **RMB 47,102** and an average cash investment payback period of **11 months**[15](index=15&type=chunk) - As of Q2 2025, the company held **48 positions** in Domino's global top 50 for first 30-day sales, with the first Shenyang store setting a new global annual sales record[15](index=15&type=chunk) [Same-Store Sales Growth Analysis](index=5&type=section&id=Same-Store%20Sales%20Growth%20Analysis) Same-store sales growth for the period was -1.0%, primarily due to the negative impact of high-volume stores in new markets entered after December 2022 entering the same-store sales growth cycle, while existing markets and first-tier cities maintained positive growth - For the six months ended June 30, 2025, same-store sales growth decreased to **-1%**, mainly due to the negative impact of high-volume stores in new markets entered after December 2022 entering the same-store sales growth cycle[16](index=16&type=chunk) - Excluding the impact of stores in new markets entered after December 2022, the Group's same-store sales growth and first-tier market same-store sales growth still remained **positive**[16](index=16&type=chunk) [Membership Program and Customer Engagement](index=5&type=section&id=Membership%20Program%20and%20Customer%20Engagement) The membership program grew to 30.1 million members, a 55.2% year-on-year increase, with member contribution to revenue rising to 66.0%, demonstrating effective customer acquisition and deeper understanding of customer preferences Membership Program Data **Membership Program Data:** | Metric | As of June 30, 2025 | As of June 30, 2024 | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Membership Count (millions) | 30.1 | 19.4 | 55.2% | | Member Contribution to Total Revenue | 66.0% | 63.6% | +2.4 percentage points | - Over the past 12 months, **13.2 million new customers** placed their first orders, indicating effective new customer acquisition[17](index=17&type=chunk) [Profitability Performance](index=6&type=section&id=Profitability%20Performance) Store-level EBITDA and operating profit showed moderate growth with improved margins, while Adjusted EBITDA and Adjusted Net Profit significantly increased, reflecting enhanced company-wide efficiency and effectiveness Profitability Metrics **Profitability Metrics:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Year-on-Year Growth | | :--- | :--- | :--- | :--- | | Store-level EBITDA | 502.8 | 393.9 | 27.7% | | Store-level EBITDA Margin | 19.4% | 19.3% | +0.1 percentage points | | Store-level Operating Profit | 379.2 | 296.2 | 28.0% | | Store-level Operating Profit Margin | 14.6% | 14.5% | +0.1 percentage points | | Adjusted EBITDA | 322.9 | 233.4 | 38.3% | | Adjusted EBITDA Margin | 12.4% | 11.4% | +1.0 percentage points | | Adjusted Net Profit | 91.4 | 50.9 | 79.6% | | Adjusted Net Profit Margin | 3.5% | 2.5% | +1.0 percentage points | [Business Outlook](index=6&type=section&id=Business%20Outlook) The company prioritizes store network expansion and growth, planning to open 300 new stores in 2025, while continuing its "deep cultivation" and "broadening" strategies in existing and new markets, alongside improving cost efficiency - The company plans to open **300 new stores** in 2025, with **190 net new stores** opened as of August 15, 2025, plus **43 additional net openings**, **27 under construction**, and **35 signed**, indicating strong progress towards the annual target[19](index=19&type=chunk) - The future strategy involves continuing the "deep cultivation" of existing markets and "broadening" into new markets for network expansion, alongside improving cost efficiency as the scale expands[19](index=19&type=chunk) [Events After Reporting Period](index=6&type=section&id=Events%20After%20Reporting%20Period) No significant events requiring disclosure occurred after the reporting period up to the date of this announcement - No significant events requiring disclosure occurred after the reporting period up to the date of this announcement[20](index=20&type=chunk) [Financial Performance Analysis](index=7&type=section&id=Financial%20Performance%20Analysis) This section provides a detailed analysis of the company's revenue, cost structures, and profitability drivers for the reporting period [Revenue](index=7&type=section&id=Revenue) Total revenue increased by 27.0% year-on-year to RMB 2,593.4 million, driven by store network expansion and strong new market sales, despite a slight decrease in average daily sales per store Revenue Overview **Revenue Overview:** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Total Revenue | 2,593,390 | 2,041,461 | 27.0% | **Revenue by Market:** | Market | 2025 (RMB thousands) | 2025 (%) | 2024 (RMB thousands) | 2024 (%) | | :--- | :--- | :--- | :--- | :--- | | First-tier City Market | 1,084,740 | 41.8 | 1,012,034 | 49.6 | | Non-first-tier City Market | 1,508,650 | 58.2 | 1,029,427 | 50.4 | | **Total Revenue** | **2,593,390** | **100.0** | **2,041,461** | **100.0** | **Average Daily Sales Per Store:** | Period | Average Daily Sales Per Store (RMB yuan) | | :--- | :--- | | H1 2025 | 12,915 | | H1 2024 | 13,515 | - First-tier city market revenue increased by **7.2%** year-on-year, while non-first-tier city market revenue increased by **46.6%**, with the latter's contribution to total revenue rising from **50.4% to 58.2%**[23](index=23&type=chunk)[24](index=24&type=chunk) - Average daily sales per store decreased by **4.4%** year-on-year, primarily due to the stabilization of sales from high-performing stores opened after December 2022[25](index=25&type=chunk) [Raw Materials and Consumables Costs](index=8&type=section&id=Raw%20Materials%20and%20Consumables%20Costs) Raw materials and consumables costs increased by 26.7% year-on-year to RMB 706.8 million, in line with revenue growth, maintaining a stable percentage of revenue Raw Materials and Consumables Costs **Raw Materials and Consumables Costs:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Raw Materials and Consumables Costs | 706.8 | 557.8 | 26.7% | | Percentage of Revenue | Remained relatively stable | Remained relatively stable | N/A | [Staff Costs](index=8&type=section&id=Staff%20Costs) Staff costs increased by 23.2% year-on-year to RMB 877.4 million, mainly due to increased store-level employees from network expansion, with company-level staff costs decreasing as a percentage of revenue, reflecting economies of scale Staff Costs **Staff Costs:** | Metric | 2025 (RMB thousands) | 2025 as % of Total Revenue | 2024 (RMB thousands) | 2024 as % of Total Revenue | | :--- | :--- | :--- | :--- | :--- | | Store-level Employee Cash-based Staff Costs | 718,430 | 27.7 | 558,845 | 27.4 | | Company-level Employee Cash-based Staff Costs | 133,458 | 5.1 | 113,084 | 5.5 | | Share-based Payments | 25,496 | 1.0 | 39,983 | 2.0 | | **Total Staff Costs** | **877,384** | **33.8** | **711,912** | **34.9** | - Store-level employee cash-based staff costs as a percentage of revenue increased from **27.4% to 27.7%**, primarily due to an increase in the average number of employees per store[32](index=32&type=chunk) - Company-level employee cash-based staff costs as a percentage of revenue decreased from **5.5% to 5.1%**, reflecting economies of scale[32](index=32&type=chunk) [Rental Expenses](index=9&type=section&id=Rental%20Expenses) Rental expenses increased by 28.5% year-on-year to RMB 259.2 million, primarily due to store network expansion, maintaining a stable percentage of revenue Rental Expenses **Rental Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Rental Expenses | 259.2 | 201.7 | 28.5% | | Percentage of Revenue | Remained relatively stable | Remained relatively stable | N/A | [Depreciation of Property, Plant and Equipment](index=9&type=section&id=Depreciation%20of%20Property%2C%20Plant%20and%20Equipment) Depreciation of property, plant and equipment increased by 25.6% year-on-year to RMB 123.9 million, related to increased equipment needs from store network expansion, maintaining a stable percentage of total revenue Depreciation of Property, Plant and Equipment **Depreciation of Property, Plant and Equipment:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Depreciation of Property, Plant and Equipment | 123.9 | 98.6 | 25.6% | | Percentage of Total Revenue | Remained relatively stable | Remained relatively stable | N/A | [Amortization of Intangible Assets](index=10&type=section&id=Amortization%20of%20Intangible%20Assets) Amortization of intangible assets increased by 6.7% year-on-year to RMB 28.7 million, mainly due to increased software purchases and store franchise fees, but decreased as a percentage of total revenue due to strong revenue growth Amortization of Intangible Assets **Amortization of Intangible Assets:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Amortization of Intangible Assets | 28.7 | 26.9 | 6.7% | | Percentage of Total Revenue | 1.1% | 1.3% | -0.2 percentage points | [Utilities Expenses](index=10&type=section&id=Utilities%20Expenses) Utilities expenses increased by 21.6% year-on-year to RMB 87.4 million, primarily due to store network expansion and revenue growth, but decreased as a percentage of total revenue due to revenue growth and energy-saving equipment installation Utilities Expenses **Utilities Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Utilities Expenses | 87.4 | 71.9 | 21.6% | | Percentage of Total Revenue | 3.4% | 3.5% | -0.1 percentage points | [Advertising and Promotion Expenses](index=10&type=section&id=Advertising%20and%20Promotion%20Expenses) Advertising and promotion expenses increased by 25.7% year-on-year to RMB 137.4 million, aimed at boosting revenue, but decreased slightly as a percentage of total revenue due to improved brand marketing efficiency Advertising and Promotion Expenses **Advertising and Promotion Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Advertising and Promotion Expenses | 137.4 | 109.3 | 25.7% | | Percentage of Total Revenue | 5.3% | 5.4% | -0.1 percentage points | [Store Operating and Maintenance Expenses](index=10&type=section&id=Store%20Operating%20and%20Maintenance%20Expenses) Store operating and maintenance expenses increased by 23.7% year-on-year to RMB 159.4 million, primarily due to store network expansion, maintaining a stable percentage of total revenue Store Operating and Maintenance Expenses **Store Operating and Maintenance Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Store Operating and Maintenance Expenses | 159.4 | 128.9 | 23.7% | | Percentage of Total Revenue | Remained relatively stable | Remained relatively stable | N/A | [Other Expenses](index=11&type=section&id=Other%20Expenses) Other expenses increased by 11.4% year-on-year to RMB 74.6 million, mainly due to increased telecommunications, IT, and professional service expenses, but decreased as a percentage of total revenue due to strong revenue growth Other Expenses **Other Expenses:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Other Expenses | 74.6 | 66.9 | 11.4% | | Percentage of Total Revenue | 2.9% | 3.3% | -0.4 percentage points | [Net Finance Costs](index=11&type=section&id=Net%20Finance%20Costs) Net finance costs increased by 23.9% year-on-year to RMB 34.6 million, primarily due to increased interest expenses on lease liabilities, related to store network expansion Net Finance Costs **Net Finance Costs:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | Change (%) | | :--- | :--- | :--- | :--- | | Net Finance Costs | 34.6 | 27.9 | 23.9% | | Increase in Interest Expenses on Lease Liabilities | 5.3 | N/A | N/A | [Income Tax](index=11&type=section&id=Income%20Tax) Income tax expense increased from RMB 30.0 million to RMB 44.2 million Income Tax Expense **Income Tax Expense:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | Income Tax Expense | 44.2 | 30.0 | [Profit for the Period](index=11&type=section&id=Profit%20for%20the%20Period) Net profit for the period was RMB 65.9 million, a significant increase from RMB 10.9 million in the prior year Net Profit for the Period **Net Profit for the Period:** | Metric | H1 2025 (RMB millions) | H1 2024 (RMB millions) | | :--- | :--- | :--- | | Net Profit | 65.9 | 10.9 | [Non-IFRS Measures](index=12&type=section&id=Non-IFRS%20Measures) This section defines and reconciles non-IFRS financial measures, providing supplementary insights into the company's operational performance [Definition of Non-IFRS Measures](index=12&type=section&id=Definition%20of%20Non-IFRS%20Measures) This section defines Adjusted Net Profit, Adjusted EBITDA, Store-level EBITDA, and their respective margins as non-IFRS measures, emphasizing their role as supplementary information for evaluating operating performance - Non-IFRS measures (e.g., Adjusted Net Profit, Adjusted EBITDA, Store-level EBITDA) supplement IFRS statements by providing comparable operational performance information across different periods and companies[5](index=5&type=chunk)[43](index=43&type=chunk) - Store-level EBITDA is defined as store-level operating profit plus depreciation of property, plant and equipment and amortization of intangible assets at the store level[3](index=3&type=chunk)[44](index=44&type=chunk) - Adjusted Net Profit is defined as profit for the period plus share-based payments[6](index=6&type=chunk)[46](index=46&type=chunk) - Adjusted EBITDA is defined as Adjusted Net Profit plus depreciation and amortization (excluding depreciation of right-of-use assets), income tax expense, and net interest income and expenses[6](index=6&type=chunk)[47](index=47&type=chunk) [Reconciliation of Non-IFRS Measures](index=13&type=section&id=Reconciliation%20of%20Non-IFRS%20Measures) This section provides a reconciliation of non-IFRS financial measures to their closest IFRS equivalents, illustrating the calculation and growth of Adjusted Net Profit, Adjusted EBITDA, and Store-level EBITDA Reconciliation of Net Profit to Adjusted Net Profit and Adjusted EBITDA **Net Profit to Adjusted Net Profit and Adjusted EBITDA Reconciliation:** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Profit for the Period | 65,924 | 10,907 | | Add: Share-based Payments | 25,496 | 39,983 | | **Adjusted Net Profit** | **91,420** | **50,890** | | Adjusted Net Profit Margin | 3.5% | 2.5% | | Add: Depreciation and Amortization | 152,606 | 125,532 | | Income Tax Expense | 44,173 | 29,987 | | Net Interest Income and Expenses | 34,678 | 26,978 | | **Adjusted EBITDA** | **322,877** | **233,387** | | Adjusted EBITDA Margin | 12.4% | 11.4% | Reconciliation of Store-level Operating Profit to Store-level EBITDA **Store-level Operating Profit to Store-level EBITDA Reconciliation:** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Store-level Operating Profit | 379,188 | 296,155 | | Add: Depreciation of Property, Plant and Equipment – Store-level | 121,788 | 96,559 | | Amortization of Intangible Assets – Store-level | 1,842 | 1,188 | | **Store-level EBITDA** | **502,818** | **393,902** | | Store-level EBITDA Margin | 19.4% | 19.3% | [Liquidity and Capital Structure](index=14&type=section&id=Liquidity%20and%20Capital%20Structure) This section reviews the company's cash position, funding sources, borrowing activities, and overall financial health [Liquidity, Funding Sources, and Borrowings](index=14&type=section&id=Liquidity%2C%20Funding%20Sources%2C%20and%20Borrowings) Cash and bank balances slightly decreased, primarily due to capital expenditure for new stores, while net cash from operating activities saw a minor reduction, but the current ratio improved. The company successfully refinanced low-cost bank borrowings and maintains ample unused bank credit facilities Cash and Bank Balances **Cash and Bank Balances:** | Period | Cash and Bank Balances (RMB millions) | | :--- | :--- | | June 30, 2025 | 1,016.8 | | December 31, 2024 | 1,069.3 | | Change | -4.9% | Net Cash from Operating Activities **Net Cash from Operating Activities:** | Period | Net Cash from Operating Activities (RMB millions) | | :--- | :--- | | H1 2025 | 361.1 | | H1 2024 | 376.8 | Current Ratio **Current Ratio:** | Period | Current Ratio | | :--- | :--- | | June 30, 2025 | 0.97 | | December 31, 2024 | 0.9 | - The company fully repaid **RMB 200.0 million** in borrowings during H1 2025 and secured an equivalent amount of lower-cost bank borrowings with a three-year term[56](index=56&type=chunk) - As of June 30, 2025, the company had **RMB 300.0 million** in unused available bank credit facilities[56](index=56&type=chunk) [Treasury Policy](index=15&type=section&id=Treasury%20Policy) The company adopts a prudent financial management approach to its treasury policy, ensuring its liquidity structure consistently meets funding requirements - The Group adopts a prudent financial management approach to its treasury policy, ensuring that the liquidity structure of its assets, liabilities, and other commitments consistently meets funding requirements[57](index=57&type=chunk) [Gearing Ratio](index=15&type=section&id=Gearing%20Ratio) The gearing ratio decreased by 0.3 percentage points to 8.6%, primarily due to an increase in total equity driven by improved profitability Gearing Ratio **Gearing Ratio:** | Period | Gearing Ratio | | :--- | :--- | | June 30, 2025 | 8.6% | | December 31, 2024 | 8.9% | | Change | -0.3 percentage points | - The decrease in the gearing ratio is primarily due to the Group's improved profitability, which led to an increase in total equity[58](index=58&type=chunk) [Material Investments](index=15&type=section&id=Material%20Investments) The company made or held no material investments during the reporting period - As of June 30, 2025, the Group made or held no material investments[59](index=59&type=chunk) [Material Acquisitions and Disposals](index=16&type=section&id=Material%20Acquisitions%20and%20Disposals) The company had no material acquisitions or disposals during the reporting period - As of June 30, 2025, the Group had no material acquisitions or disposals of subsidiaries, associates, or joint ventures[60](index=60&type=chunk) [Pledged Assets](index=16&type=section&id=Pledged%20Assets) The company had no pledged assets at the end of the reporting period - As of June 30, 2025, the Group had no pledged assets[61](index=61&type=chunk) [Contingent Liabilities](index=16&type=section&id=Contingent%20Liabilities) The company had no contingent liabilities at the end of the reporting period - As of June 30, 2025, the Group had no contingent liabilities[62](index=62&type=chunk) [Foreign Exchange Risk](index=16&type=section&id=Foreign%20Exchange%20Risk) The company primarily operates in China, with transactions settled in RMB, resulting in no significant foreign currency risk, and has not entered into derivative instruments for hedging - The Group primarily operates in China, with most transactions settled in RMB, thus not exposed to significant foreign currency risk[63](index=63&type=chunk) - During the reporting period, the Group did not enter into any derivative instruments to hedge its foreign exchange risk[63](index=63&type=chunk) [Employees and Remuneration Policy](index=17&type=section&id=Employees%20and%20Remuneration%20Policy) As of June 30, 2025, the company had 9,235 full-time and 23,715 part-time employees, primarily in mainland China, with total staff costs increasing, and a focus on talent attraction, retention, competitive compensation, systematic training, and "Best Employer" recognition Employee Count **Full-time Employee Count:** | Function | Employee Count as of June 30, 2025 | % of Total | | :--- | :--- | :--- | | Store Development and Operations | 8,761 | 94.9% | | Sales, Marketing and Product Development | 48 | 0.5% | | Supply Chain, Central Kitchen and Quality Control | 247 | 2.7% | | General Administration and Others | 179 | 1.9% | | **Total** | **9,235** | **100.0%** | **Part-time Employee Count:** | Period | Part-time Employee Count | | :--- | :--- | | June 30, 2025 | 23,715 | | December 31, 2024 | 19,640 | Total Staff Costs **Total Staff Costs:** | Period | Total Staff Costs (RMB millions) | | :--- | :--- | | H1 2025 | 877.4 | | H1 2024 | 711.9 | - The company provides employees with attractive remuneration (basic salary, discretionary bonuses, incentive bonuses), and group commercial insurance for riders[66](index=66&type=chunk) - The company has been recognized as a "Best Employer" by Mercer for **three consecutive years** in 2024[66](index=66&type=chunk) - The company offers continuous, systematic training to ensure employees possess necessary operational, management, and business skills, and provides standardized delivery safety training for riders[67](index=67&type=chunk) [Future Plans for Material Investments and Capital Assets](index=18&type=section&id=Future%20Plans%20for%20Material%20Investments%20and%20Capital%20Assets) The company has no future plans for material investments and capital assets other than the store expansion plans disclosed in the business outlook - As of June 30, 2025, the Group had no other future plans for material investments and capital assets beyond those disclosed in "Management Discussion and Analysis – Business Outlook"[68](index=68&type=chunk) [Dividends](index=19&type=section&id=Dividends) The Board of Directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2025 - The Board of Directors does not recommend the distribution of an interim dividend for the six months ended June 30, 2025[69](index=69&type=chunk) [Corporate Governance and Other Information](index=19&type=section&id=Corporate%20Governance%20and%20Other%20Information) This section details the company's adherence to corporate governance standards, board committee activities, and other relevant disclosures [Compliance with Corporate Governance Code](index=19&type=section&id=Compliance%20with%20Corporate%20Governance%20Code) The company has adopted and complied with all applicable code provisions of the HKEX Corporate Governance Code - The company has adopted and complied with all applicable code provisions of the Corporate Governance Code set out in Appendix C1 Part 2 of the HKEX Listing Rules[71](index=71&type=chunk)[72](index=72&type=chunk) [Compliance with Standard Securities Dealing Code for Directors](index=19&type=section&id=Compliance%20with%20Standard%20Securities%20Dealing%20Code%20for%20Directors) The company has adopted and complied with the Standard Code set out in Appendix C3 of the Listing Rules, with directors and relevant employees confirming compliance during the reporting period - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Issuers set out in Appendix C3 of the Listing Rules, and all directors and relevant employees have confirmed compliance with the Standard Code during the reporting period[73](index=73&type=chunk) [Audit and Risk Committee](index=19&type=section&id=Audit%20and%20Risk%20Committee) The Audit Committee has reviewed the interim condensed consolidated financial information and discussed accounting policies, practices, and internal control matters with the independent auditor and senior management - The Audit Committee has reviewed the Group's unaudited interim condensed consolidated financial information for the reporting period and met with the independent auditor, PricewaterhouseCoopers[74](index=74&type=chunk) - The Audit Committee also discussed matters concerning the company's accounting policies and practices, as well as internal controls, with members of the Group's senior management[74](index=74&type=chunk) [Other Board Committees](index=20&type=section&id=Other%20Board%20Committees) In addition to the Audit Committee, the company has established a Nomination Committee and a Remuneration Committee - In addition to the Audit and Risk Committee, the company has also established a Nomination Committee and a Remuneration Committee[75](index=75&type=chunk) [Purchase, Sale or Redemption of the Company's Listed Securities](index=20&type=section&id=Purchase%2C%20Sale%20or%20Redemption%20of%20the%20Company%27s%20Listed%20Securities) Neither the company nor its subsidiaries purchased, sold, or redeemed any listed securities during the reporting period, nor did it hold any treasury shares - During the reporting period, neither the company nor any of its subsidiaries purchased, sold, or redeemed any of the company's securities listed on the Stock Exchange[76](index=76&type=chunk) - As of June 30, 2025, the company did not hold any treasury shares[76](index=76&type=chunk) [Material Litigation](index=20&type=section&id=Material%20Litigation) The company was not involved in any material litigation or arbitration during the reporting period, nor was it aware of any outstanding or threatened material litigation or claims - As of June 30, 2025, the company was not involved in any material litigation or arbitration[77](index=77&type=chunk) [Use of Proceeds](index=20&type=section&id=Use%20of%20Proceeds) The net proceeds from the global offering were approximately HK$499.9 million, with HK$263.8 million utilized as of June 30, 2025, leaving HK$236.1 million remaining. The Board has extended the expected timetable for the use of net proceeds to the end of 2026 Use of Net Proceeds **Use of Net Proceeds:** | Purpose | % of Net Proceeds | Net Proceeds (HK$ millions) | Unutilized as of Jan 1, 2025 (HK$ millions) | Utilized during Reporting Period (HK$ millions) | Unutilized as of June 30, 2025 (HK$ millions) | Updated Expected Full Utilization Timetable | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Expand Store Network | 90% | 450.0 | 337.6 | 107.6 | 230.0 | Before December 31, 2026 | | General Corporate Purposes | 10% | 49.9 | 6.1 | – | 6.1 | Before December 31, 2026 | | **Total** | **100%** | **499.9** | **343.7** | **107.6** | **236.1** | | - The Board has resolved to extend the expected timetable for the use of net proceeds from the end of 2025 to the end of 2026[78](index=78&type=chunk) [Financial Statements](index=21&type=section&id=Financial%20Statements) This section presents the company's consolidated statement of profit or loss and other comprehensive income, condensed consolidated statement of financial position, and condensed consolidated statement of cash flows [Consolidated Statement of Profit or Loss and Other Comprehensive Income](index=21&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss%20and%20Other%20Comprehensive%20Income) This section provides the consolidated statement of profit or loss and other comprehensive income for the six months ended June 30, 2025, detailing key financial figures such as revenue, various costs, profit, and earnings per share Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary) **Consolidated Statement of Profit or Loss and Other Comprehensive Income (Summary):** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Revenue | 2,593,390 | 2,041,461 | | Raw Materials and Consumables Costs | (706,819) | (557,811) | | Staff Costs | (877,384) | (711,912) | | Depreciation of Right-of-Use Assets | (188,301) | (145,686) | | Depreciation of Property, Plant and Equipment | (123,886) | (98,612) | | Amortization of Intangible Assets | (28,720) | (26,920) | | Utilities Expenses | (87,438) | (71,931) | | Advertising and Promotion Expenses | (137,401) | (109,318) | | Store Operating and Maintenance Expenses | (159,368) | (128,881) | | Variable Lease Payments, Short-term Leases and Other Related Expenses | (70,870) | (56,054) | | Other Expenses | (74,561) | (66,935) | | Other Income | 7,327 | 9,036 | | Net Other Losses | (1,298) | (7,646) | | Net Finance Costs | (34,574) | (27,897) | | Profit Before Income Tax | 110,097 | 40,894 | | Income Tax Expense | (44,173) | (29,987) | | **Profit for the Period Attributable to Equity Holders of the Company** | **65,924** | **10,907** | | Other Comprehensive (Loss) / Income for the Period, Net of Tax | (1,940) | 3,916 | | **Total Comprehensive Income for the Period Attributable to Equity Holders of the Company** | **63,984** | **14,823** | | Basic Earnings Per Share (RMB yuan) | 0.50 | 0.08 | | Diluted Earnings Per Share (RMB yuan) | 0.49 | 0.08 | [Interim Condensed Consolidated Statement of Financial Position](index=22&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Financial%20Position) This section provides the interim condensed consolidated statement of financial position as of June 30, 2025, detailing the composition of assets, liabilities, and equity Interim Condensed Consolidated Statement of Financial Position (Summary) **Interim Condensed Consolidated Statement of Financial Position (Summary):** | Metric | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total Non-current Assets | 3,899,916 | 3,507,566 | | Total Current Assets | 1,333,484 | 1,368,560 | | **Total Assets** | **5,233,400** | **4,876,126** | | **Equity** | | | | Total Equity Attributable to Equity Holders of the Company | 2,336,078 | 2,243,232 | | **Liabilities** | | | | Total Non-current Liabilities | 1,515,966 | 1,115,896 | | Total Current Liabilities | 1,381,356 | 1,516,998 | | **Total Liabilities** | **2,897,322** | **2,632,894** | | **Total Equity and Liabilities** | **5,233,400** | **4,876,126** | [Interim Condensed Consolidated Statement of Cash Flows](index=24&type=section&id=Interim%20Condensed%20Consolidated%20Statement%20of%20Cash%20Flows) This section provides the interim condensed consolidated statement of cash flows for the six months ended June 30, 2025, detailing cash flow activities from operating, investing, and financing Interim Condensed Consolidated Statement of Cash Flows (Summary) **Interim Condensed Consolidated Statement of Cash Flows (Summary):** | Metric | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 361,146 | 376,809 | | Net Cash (Used in) / From Investing Activities | (189,784) | 299,070 | | Net Cash Used in Financing Activities | (222,191) | (175,093) | | Net (Decrease) / Increase in Cash and Cash Equivalents | (50,829) | 500,786 | | Cash and Cash Equivalents at Beginning of Period | 1,069,102 | 587,038 | | Cash and Cash Equivalents at End of Period | 1,016,636 | 1,089,066 | [Notes to the Financial Statements](index=25&type=section&id=Notes%20to%20the%20Financial%20Statements) This section provides detailed explanatory notes supporting the interim condensed consolidated financial statements, covering general information, basis of preparation, new standards, and specific account breakdowns [General Information](index=25&type=section&id=General%20Information) The company was incorporated in the British Virgin Islands, primarily operating Domino's Pizza fast-food chains in mainland China, Hong Kong, and Macau under an exclusive master franchise agreement valid until June 1, 2027 - Dash Brands Ltd. was incorporated in the British Virgin Islands on April 30, 2008, primarily operating Domino's Pizza fast-food chains in mainland China, Hong Kong, and Macau[83](index=83&type=chunk) - The Group is the master franchisee for Domino's Pizza in these regions, with the master franchise agreement valid until **June 1, 2027**, and renewable for two 10-year terms[83](index=83&type=chunk) [Basis of Preparation](index=25&type=section&id=Basis%20of%20Preparation) The financial information is prepared in accordance with IAS 34 and based on a going concern assumption, with directors confident in the company's ability to meet liabilities for the next 12 months - The interim condensed consolidated financial information has been prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting"[85](index=85&type=chunk) - Despite recording net current liabilities of approximately **RMB 47,872,000** as of June 30, 2025, the directors assess that the Group has sufficient funds to meet its liabilities and continue as a going concern for at least the next twelve months[86](index=86&type=chunk) [New Standards and Interpretations](index=26&type=section&id=New%20Standards%20and%20Interpretations) Certain new and amended standards were adopted during the reporting period without changing accounting policies, and new standards not yet effective are not expected to have a significant impact on financial performance or position - Certain amended standards became applicable during the reporting period, and the Group did not change its accounting policies as a result of adopting these standards[89](index=89&type=chunk) - The Group has begun assessing the impact of new or amended standards not yet effective, with preliminary assessments indicating no significant impact on the Group's financial performance and position[91](index=91&type=chunk) [Revenue and Segment Information](index=26&type=section&id=Revenue%20and%20Segment%20Information) The company operates primarily as a fast-food chain, managed as a single reporting operating segment, with all revenue derived from mainland China, and provides information on contract liabilities and geographical distribution of non-current assets - The directors consider the Group to be managed as a **single reporting operating segment**[93](index=93&type=chunk) - For the six months ended June 30, 2025, all of the Group's revenue was derived from mainland China[94](index=94&type=chunk) Contract Liabilities **Contract Liabilities:** | Period | Contract Liabilities (RMB thousands) | | :--- | :--- | | June 30, 2025 | 56,756 | | December 31, 2024 | 63,010 | [Other Expenses](index=27&type=section&id=Other%20Expenses) This section details the composition of other expenses, including professional services, auditor's remuneration, telecommunications and IT, travel, and other miscellaneous fees Other Expenses Details **Other Expenses Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Professional Service Expenses | 13,656 | 11,382 | | Auditor's Remuneration | 3,395 | 2,899 | | Telecommunications and IT Related Expenses | 22,548 | 21,490 | | Travel and Related Expenses | 14,540 | 18,760 | | Others | 20,422 | 12,404 | | **Total** | **74,561** | **66,935** | [Staff Costs](index=28&type=section&id=Staff%20Costs) This section details the composition of staff costs, including salaries, wages and bonuses, pension scheme contributions, housing provident fund, medical and other social insurance, other benefits, and share-based payments Staff Costs Details **Staff Costs Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Salaries, Wages and Bonuses | 725,065 | 571,831 | | Pension Scheme Contributions | 59,364 | 46,373 | | Housing Provident Fund, Medical Insurance and Other Social Insurance | 57,902 | 46,252 | | Other Benefits | 9,557 | 7,473 | | Total Salary-based Expenses | 851,888 | 671,929 | | Share-based Payments | 25,496 | 39,983 | | **Total Staff Costs** | **877,384** | **711,912** | [Net Finance Costs](index=28&type=section&id=Net%20Finance%20Costs) This section details the composition of net finance costs, including bank cash interest income, interest expenses (bank borrowings, lease liabilities, long-term payables), and net foreign exchange gains/losses from financing activities Net Finance Costs Details **Net Finance Costs Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Bank Cash Interest Income | 8,940 | 11,768 | | Interest Expenses | (43,618) | (38,746) | | – Bank Borrowings | (3,842) | (4,651) | | – Lease Liabilities | (38,659) | (33,315) | | – Long-term Payables | (1,117) | (780) | | Net Foreign Exchange Gains / (Losses) from Financing Activities | 104 | (919) | | **Total** | **(34,574)** | **(27,897)** | [Income Tax Expense](index=28&type=section&id=Income%20Tax%20Expense) This section details the composition of income tax expense, including current and deferred income tax, and explains applicable tax rates and preferential policies across different regions Income Tax Expense Details **Income Tax Expense Details:** | Item | H1 2025 (RMB thousands) | H1 2024 (RMB thousands) | | :--- | :--- | :--- | | Current Income Tax – Mainland China Corporate Income Tax | 58,846 | 54,827 | | Deferred Income Tax | (14,673) | (24,840) | | **Income Tax Expense** | **44,173** | **29,987** | - Subsidiary companies incorporated in mainland China are subject to a corporate income tax rate of **25%**, with some qualifying as small and micro-enterprises enjoying a **5% preferential tax rate**, and one subsidiary enjoying a **15% preferential tax rate**[104](index=104&type=chunk) [Earnings Per Share](index=29&type=section&id=Earnings%20Per%20Share) This section provides the calculation methods and specific data for basic and diluted earnings per share, showing an increase in basic earnings per share from RMB 0.08 to RMB 0.50 Basic Earnings Per Share **Basic Earnings Per Share:** | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB thousands) | 65,924 | 10,907 | | Weighted Average Number of Ordinary Shares in Issue (thousands) | 130,778 | 130,153 | | **Basic Earnings Per Share (RMB yuan)** | **0.50** | **0.08** | Diluted Earnings Per Share **Diluted Earnings Per Share:** | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Profit Attributable to Equity Holders of the Company (RMB thousands) | 65,924 | 10,907 | | Weighted Average Number of Ordinary Shares for Diluted EPS (thousands) | 134,292 | 131,127 | | **Diluted Earnings Per Share (RMB yuan)** | **0.49** | **0.08** | [Dividends](index=30&type=section&id=Dividends) The company neither paid nor declared any dividends during the reporting period - For the six months ended June 30, 2025, the company neither paid nor declared any dividends[109](index=109&type=chunk) [Trade Receivables](index=30&type=section&id=Trade%20Receivables) Total trade receivables amounted to RMB 16.382 million, primarily from third parties and aged within 30 days, with carrying amounts approximating fair values Trade Receivables Aging **Trade Receivables Aging:** | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | Within 30 days | 16,752 | 13,255 | | Less: Impairment Provision for Trade Receivables | (370) | (293) | | **Total** | **16,382** | **12,962** | [Trade Payables](index=31&type=section&id=Trade%20Payables) Total trade payables amounted to RMB 240.507 million, primarily aged within 3 months, with carrying amounts approximating fair values Trade Payables Aging Analysis **Trade Payables Aging Analysis:** | Aging | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | – Within 3 months | 240,463 | 248,591 | | – 4 to 6 months | 7 | 20 | | – Over 6 months | 37 | 34 | | **Total** | **240,507** | **248,645** | [Accrued Expenses and Other Payables](index=31&type=section&id=Accrued%20Expenses%20and%20Other%20Payables) Total accrued expenses and other payables amounted to RMB 768.541 million, including non-current restoration cost provisions and current wages and benefits, payables for property, plant and equipment, and accrued expenses Accrued Expenses and Other Payables Details **Accrued Expenses and Other Payables Details:** | Item | June 30, 2025 (RMB thousands) | December 31, 2024 (RMB thousands) | | :--- | :--- | :--- | | **Non-current** | | | | Restoration Cost Provision | 49,167 | 36,939 | | **Current** | | | | Wages and Benefits Payables | 204,068 | 241,025 | | Payables for Property, Plant and Equipment and Intangible Assets | 201,829 | 126,163 | | Accrued Expenses | 273,192 | 264,066 | | Others | 40,285 | 44,797 | | **Total Accrued Expenses and Other Payables** | **768,541** | **712,990** | [Other Information](index=32&type=section&id=Other%20Information) This section covers the publication of interim results announcements and reports, along with other relevant disclosures [Publication of Interim Results Announcement and Interim Report](index=32&type=section&id=Publication%20of%20Interim%20Results%20Announcement%20and%20Interim%20Report) This interim results announcement has been published on the HKEX and company websites, and the interim report will be dispatched to shareholders in due course - This interim results announcement has been published on the HKEX website www.hkexnews.hk and the company's website www.dpcdash.com[114](index=114&type=chunk) - The Group's interim report for the six months ended June 30, 2025, will be dispatched to shareholders in due course[114](index=114&type=chunk)

Group 1 - The Hong Kong stock market's new consumption concept stocks experienced a widespread decline, with notable drops in several companies [1] - Blucco (00325) saw a significant decrease of 8.27%, closing at 112.000 [2] - Other companies such as Laopu Gold (06181) and Pop Mart (09992) also faced declines of 3.44% and 2.32% respectively [2] Group 2 - Additional companies in the new consumption sector, including Qi (02517) and Weilon Delicious (09982), reported declines of 2.50% and 2.12% respectively [2] - Xpeng Motors (09868) and Li Auto (02015) experienced minor declines of 1.66% and 1.51% [2] - Other companies like Juzhi Biotechnology (02367) and Mijue Group (02097) also showed slight decreases, indicating a broader trend in the market [2]

Core Viewpoint - Berkshire Hathaway, led by Warren Buffett, has reduced its holdings in technology and financial stocks like Apple and Bank of America while increasing investments in resilient consumer companies with strong cash flows, such as Domino's Pizza and Constellation Brands [1] Group 1: Investment Actions - Berkshire Hathaway's second-quarter 13F filing reveals a strategic shift towards consumer brands with stable demand and anti-cyclical properties [1] - The firm has increased its stakes in companies like Domino's Pizza, Constellation Brands, Nucor Steel, and Pool [1] Group 2: Market Analysis - The current economic environment favors consumer brands that demonstrate resilience, making them attractive as safe-haven assets [1] - In the pizza chain sector, Domino's Pizza has established a differentiated competitive advantage through product innovation, a comprehensive service system, and supply chain barriers [1] Group 3: Consumer Resilience - Brand recognition and consumer loyalty support Domino's performance during the consumption recovery phase [1] - A mature delivery network and global presence enhance the brand's ability to withstand market fluctuations [1] Group 4: Capital Market Sentiment - The investment trends reflect a deep recognition in the capital market of consumer resilience [1] - Companies that combine anti-cyclical capabilities with global strategies are becoming reliable choices in uncertain environments [1]