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，並明確表示概不就因本公告全部或 任何部分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。 Nayuki Holdings Limited 奈雪的茶控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2150） 截 至2023年6月30日止六個月 中期業績公告 董事會謹此宣佈本集團於報告期間的未經審核綜合中期業績。本集團於報告期間 的簡明綜合財務報表未經審核但已經由本公司外聘核數師畢馬威會計師事務所 根據香港會計師公會頒佈的香港審閱委聘準則第2410號「由實體獨立核數師審閱 中期財務資料」進行審閱。 – 1 – 管理層討論及分析 截 至6月30日止六個月 1. 業務回顧 於 報 告 期 間，本 集 團 收 入 由 截 至2022年6月30日止六個月的人民幣2,044.9百萬元 上 升26.8%至人民幣2,593.8百 萬 元。經 調 整 淨 利 潤╱（虧 損）由 截 至2022年6月30日 止六個月的虧損人民幣249.0百萬元變為於報告期間的盈利人民幣70.2百萬元。 於 報 告 期 間 ...

Company Overview and Structure - Nayuki Holdings Limited is an exempted company with limited liability incorporated in the Cayman Islands on September 5, 2019, and its shares are listed and traded on the Stock Exchange[5] - The company's controlling shareholders include Mr. Zhao, Ms. Peng, Linxin Group, Linxin International, Linxin Holdings, and Crystal Tide Profits Limited[5] - The company's subsidiaries and associates are detailed in the 2022 annual report[5] - The company's directors include executive, non-executive, and independent non-executive directors[5] - Linxin Group Limited, one of the controlling shareholders, was incorporated in the BVI on December 29, 2020[6] - Linxin Holdings Limited, another controlling shareholder, was incorporated in the BVI on September 5, 2019[6] - Linxin International Limited, a controlling shareholder, was incorporated in the BVI on December 29, 2020[6] - Linxin Trust, an irrevocable discretionary trust, was established in Guernsey on December 30, 2020, with Linxin Holdings as the beneficiary[6] - The company's listing date on the Hong Kong Stock Exchange was June 30, 2021[6] - The company was incorporated in the Cayman Islands on September 5, 2019[166] - The company operates Nayuki teahouses, a leading premium modern teahouse chain in China[166] - The company's headquarters and principal place of business in China is located in Zone F, 2F, Building 3, Huangguan Science Park, Chegongmiao Industrial Zone, Futian District, Shenzhen[13] - Nayuki Holdings Limited's principal place of business in Hong Kong is at the 40th Floor, Dah Sing Financial Centre, No. 248 Queen's Road East, Wanchai[14] - The company's stock code is 2150 and its website is www.naixuecha.com[15] - The company's principal bankers include China Merchants Bank Co., Ltd. and China Everbright Bank Company Limited, both with branches in Shenzhen[15] Financial Performance and Metrics - Revenue for the year was RMB 4,291,586 thousand, showing a slight decrease from RMB 4,296,618 thousand in the previous year[18] - The company reported a net loss of RMB 475,806 thousand for the year, compared to a net loss of RMB 4,525,524 thousand in the previous year[18] - Adjusted net loss (non-IFRS measure) was RMB 461,331 thousand, with an adjusted net loss margin of 10.7%[18] - Total assets decreased to RMB 6,939,700 thousand from RMB 7,328,446 thousand in the previous year[22] - Total liabilities decreased to RMB 2,174,116 thousand from RMB 2,385,016 thousand in the previous year[22] - Total equity increased to RMB 4,765,584 thousand from RMB 4,943,430 thousand in the previous year[22] - Delivery service fees increased significantly to RMB 380,520 thousand from RMB 258,976 thousand in the previous year[18] - Staff costs decreased to RMB 1,362,115 thousand from RMB 1,424,358 thousand in the previous year[18] - Advertising and promotion expenses increased to RMB 142,933 thousand from RMB 111,592 thousand in the previous year[18] - Logistics and storage fees increased to RMB 123,112 thousand from RMB 90,502 thousand in the previous year[18] - Revenue decreased by 0.1% to RMB 4,291.6 million in 2022 from RMB 4,296.6 million in 2021[24] - Adjusted net loss in 2022 was RMB 461.3 million, impacted by COVID-19 and changes in the consumption environment[24] - Store-level operating profit for Nayuki teahouses decreased by 20.6% to RMB 469.9 million in 2022, with a profit margin of 11.8%, down 2.7 percentage points from 2021[26] - Net cash generated from operating activities decreased by 39.4% to RMB 306.6 million in 2022 from RMB 506.1 million in 2021[26] - Nayuki teahouses contributed 92.5% of total revenue in 2022, a decrease of 2.2 percentage points from 94.7% in 2021[29] - Average sales value per order at Nayuki teahouses decreased to RMB 34.3 in 2022 from RMB 41.6 in 2021[31] - Average orders per teahouse per day decreased to 348.2 in 2022 from 416.7 in 2021[31] - Tai Gai teahouses recorded a store-level operating loss of RMB 11.9 million in 2022, compared to a profit of RMB 18.7 million in 2021[31] - Revenue from other sub-brands increased by 3.6 percentage points to 5.6% in 2022, driven by sales of retail products such as bottled drinks and gift sets[29][33] - Freshly-made tea drinks revenue decreased by 1.1% to RMB 3,135,326 thousand in 2022 compared to RMB 3,186,988 thousand in 2021[38] - Baked products revenue decreased by 3.8% to RMB 775,672 thousand in 2022 compared to RMB 940,054 thousand in 2021[38] - Other products revenue increased by 5.0% to RMB 380,588 thousand in 2022 compared to RMB 169,576 thousand in 2021[38] - Delivery orders accounted for 46.3% of total revenue in 2022, an increase of 9.5 percentage points from 36.8% in 2021[45] - The company had 56.6 million registered members as of December 31, 2022, with 3.2 million monthly active members and a monthly repurchase rate of 26.3%[44] - The company operated 1,068 self-owned Nayuki teahouses in 89 cities as of December 31, 2022, with a net increase of 251 teahouses in 2022[50] - Type-I teahouses increased to 896 in 2022 from 718 in 2021, with significant growth in Tier 1, New Tier 1, and Tier 2 cities[51] - Type-II teahouses increased to 172 in 2022 from 99 in 2021, with growth across all city tiers[52] - Approximately 38.4% of delivery revenue in 2022 was generated from third-party platforms, while 7.9% came from the company's self-operated platform[43] - Nayuki teahouses experience higher initial sales due to strong brand influence, but daily sales per teahouse decline as store density remains low, impacting operating margins[56][58] - As store density increases and customer habits form, average daily sales per teahouse are expected to stabilize, leading to improved store-level operating profit margins[57][58] - Shenzhen leads in performance with 146 stores, average daily sales of RMB 17.7k, and a store-level operating profit margin of 17.5%[60] - Shanghai shows weaker performance with 66 stores, average daily sales of RMB 11.8k, and a store-level operating profit margin of 1.6%[60] - Type-I Teahouses (827 stores) have average daily sales of RMB 13.3k and a store-level operating profit margin of 12.5%, while Type-II Teahouses (157 stores) show lower sales (RMB 9.5k) but higher margins (16.1%)[64] - Same-store sales in Shenzhen declined from RMB 23.4k in 2021 to RMB 18.7k in 2022, with operating profit margins dropping from 21.8% to 17.5%[61] - Shanghai's same-store sales dropped significantly from RMB 18.2k in 2021 to RMB 12.7k in 2022, with operating profit margins turning negative (-0.2%)[61] - The company plans to increase store density in existing markets to accelerate market maturity and stabilize sales performance[63][65] - Revenue for the reporting period was RMB 4,291.6 million, a decrease of 0.1% compared to 2021, primarily due to the impact of recurring COVID-19 outbreaks in mainland China[72] - Nayuki teahouses contributed 92.5% of total revenue in the reporting period, down from 94.7% in 2021[72] - Other income increased significantly to RMB 125.0 million, up from RMB 27.3 million in 2021, driven by higher interest income and increased government subsidies[75] - The company aims to stabilize labor costs at store level below 20% and maintain rental costs below 15%[68] - Store expansion in 2023 will focus on increasing density in existing high-tier cities, with optimized store models that are more streamlined and easier to reach breakeven[69] - The company has sufficient cash and cash flow to support operations and expansion, with no plans for large-scale refinancing[71] - Delivery order proportion decreased as consumers returned to offline consumption, leading to recovery in same-store income and profitability[67] - The company plans to introduce more quality products with a balanced price range suitable for a wide range of customer groups[68] - Digitalization and automation capabilities will be enhanced to strengthen refined management[68] - The company is confident in maintaining a reasonable level of profit for shareholders in 2023, supported by store performance in January and February 2023[68] - Material costs amounted to RMB 1,416.1 million, representing 33.0% of total revenue, showing stability compared to 2021 (RMB 1,400.7 million, 32.6%)[76] - Staff costs decreased to RMB 1,362.1 million, representing 31.7% of total revenue, down from 33.2% in 2021 due to improved management efficiency[76] - Depreciation of right-of-use assets increased to RMB 434.9 million, representing 10.1% of total revenue, up from 9.8% in 2021[76] - Delivery service fees rose to RMB 380.5 million, representing 8.9% of total revenue, up from 6.0% in 2021 due to increased delivery orders influenced by COVID-19[81] - Advertising and promotion expenses increased to RMB 142.9 million, representing 3.3% of total revenue, up from 2.6% in 2021[80] - Depreciation and amortization of other assets increased to RMB 263.2 million, representing 6.1% of total revenue, up from 4.7% in 2021 due to store expansion[79] - Logistics and storage fees rose to RMB 123.1 million, representing 2.9% of total revenue, up from 2.1% in 2021[87] - Utilities expenses increased to RMB 113.6 million, representing 2.6% of total revenue, up from 2.1% in 2021[86] - Finance costs decreased to RMB 80.3 million, representing 1.8% of total revenue, down from 2.1% in 2021[88] - Other rentals and related expenses increased to RMB 229.0 million, representing 5.3% of total revenue, up from 5.0% in 2021[78] - Interest on lease liabilities increased to RMB79,182 thousand (1.8% of total revenue) in 2022 from RMB88,757 thousand (2.1% of total revenue) in 2021[93] - Other expenses for the Group amounted to RMB249.6 million, representing 5.8% of total revenue in 2022, compared to RMB176.3 million (4.1% of total revenue) in 2021[94][95] - Administrative expenses increased to RMB142,016 thousand (3.3% of total revenue) in 2022 from RMB72,631 thousand (1.7% of total revenue) in 2021[97] - Travelling and business development expenses rose to RMB40,825 thousand (1.0% of total revenue) in 2022 from RMB31,873 thousand (0.7% of total revenue) in 2021[97] - Impairment losses and write-down of inventories increased to RMB18,368 thousand (0.4% of total revenue) in 2022 from RMB8,410 thousand (0.2% of total revenue) in 2021[97] - Income tax benefits for the Group amounted to RMB40.7 million in 2022, compared to RMB4.1 million in 2021[98][100] - Adjusted net loss (non-IFRS measure) for 2022 was RMB461,331 thousand, representing a net loss margin of 10.7%, compared to RMB145,265 thousand (3.4% net loss margin) in 2021[102] - Total cash and cash equivalents amounted to RMB1,387.5 million as of December 31, 2022, compared to RMB4,052.8 million as of December 31, 2021[103] - Total term deposits and certificates of deposit amounted to RMB2,088.8 million as of December 31, 2022, compared to nil as of December 31, 2021[103] - The Group had no interest-bearing borrowings as of December 31, 2022, compared to approximately RMB0.4 million as of December 31, 2021[103] - Right-of-use assets amounted to RMB1,273.3 million as of December 31, 2022, compared to RMB1,313.3 million as of December 31, 2021[103] - Fair value changes of financial liabilities at fair value through profit or loss were one-off and non-cash, with no further gains or losses after conversion into ordinary shares on June 30, 2021[103] - Fair value changes of convertible redeemable preferred shares were non-cash and ceased after conversion into ordinary shares upon the closing of the Global Offering[103] - Listing expenses related to the Global Offering were one-off and not directly related to operating activities[103] - Equity-settled share-based payment expenses included non-cash and non-operational items, not directly correlated with business performance[103] - Interest on redeemable capital contribution ceased after conversion into ordinary shares on June 30, 2021, and was non-cash and non-operational[103] - The Group's right-of-use assets primarily represent leases for teahouses, headquarters office, and warehouses[103] - Property and equipment increased to RMB1,024.1 million as of December 31, 2022, up from RMB801.4 million in 2021, primarily due to store expansion and office building purchase in Shanghai[105] - Inventories decreased to RMB126.3 million as of December 31, 2022, down from RMB174.1 million in 2021, with inventory turnover days increasing from 36.1 days to 38.7 days[105] - Trade and other receivables increased to RMB376.5 million as of December 31, 2022, up from RMB346.1 million in 2021, mainly due to a loan to an ongoing investment[105] - Trade and other payables decreased to RMB478.5 million as of December 31, 2022, down from RMB654.2 million in 2021, primarily due to reduced payables for raw material purchases[105] - Gearing ratio decreased to 31.3% as of December 31, 2022, compared to 32.5% in 2021[106] - Cash and cash equivalents decreased to RMB1,387.5 million as of December 31, 2022, down from RMB4,052.8 million in 2021, with RMB2,088.8 million in term deposits and certificates of deposit[106] - The company had no bank loans or interest-bearing borrowings as of December 31, 2022, with a current ratio of 3.30 times[106] - Capital expenditures for the reporting period amounted to approximately RMB448.3 million, primarily for equipment purchases and leasehold improvements[108] - The company invested in Shanghai Chatian, acquiring approximately 43.64% of its enlarged equity capital, expected to be completed in the first half of 2023[108][110] - As of December 31, 2022, the company had no significant contingent liabilities[108] - Bank deposits of RMB1.0 million were restricted by courts due to contractual disputes, with RMB0.3 million released by the report date[108] - The company does not engage in foreign exchange hedging activities apart from forward foreign exchange contracts[108] - Shanghai Chatian, operator of the "LELECHA" brand, is expected to enhance the company's brand diversity and reduce store expansion and operation costs[109] - The State Administration for Market Regulation issued a decision on no further examination regarding the investment in Shanghai Chatian, indicating regulatory approval[110] - As of December 31, 2022, the company had no plans for acquiring other material investments or capital assets beyond the disclosed investment in Shanghai Chatian[111][112] - The company had a total of 7,557 full-time employees as of December 31, 2022, with 1,550 working at headquarters and regional offices, and the rest as in-store staff[114] - The company allocated HK$3,389.8 million (70% of net proceeds) to expand its teahouse network and deepen market penetration over the next three years[116] - HK$484.2 million (10% of net proceeds) will be used to improve overall operations through enhanced technology capabilities over the next three years[116] - HK$484.2 million (10% of net proceeds) will be invested in strengthening the supply chain and product distribution capabilities over the next three years[116] - The remaining HK$484.2 million (10% of net proceeds) will be used for working capital and general corporate purposes[116] - As of December 31, 2022, the company had utilized HK$1,063.8 million out of the HK$3,389.8 million allocated for teahouse network expansion and market penetration[121] - The company had utilized HK$253.8 million out of the HK$484.2 million allocated for improving overall operations as of December 31, 2022[121] - HK$233.8 million out of the HK$484.2 million allocated for strengthening supply chain capabilities had been utilized as of December 31, 202

[268 -> 269] Wait, is that how you do it? [589 -> 592] and gained a relatively high profit margin. [595 -> 620] In terms of members, in the second half of last year, the number of members registered for our water-resistant tea exceeded 50 million and reached 5,660,000 at the end of last year. In order to better demonstrate the active situation of members, we reduced the activity of the season from IPO to the activity of the month. Our monthly activity increased from 24% in 2021 to more than 25% in the first ...

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，並明確表示概不就因本公告全部或 任何部分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。 Nayuki Holdings Limited 奈雪的茶控股有限公司 （於開曼群島註冊成立的有限公司） （股份代號：2150） 截 至2022年12月31日止年度 全年業績公告 董事會謹此宣佈本集團截至2022年12月31日 止 年 度 的 經 審 核 綜 合 全 年 業 績（「業 績 公 告」）連 同 截 至2021年12月31日止年度的比較數字，見下文。審核委員會已審閱 有關業績。 – 1 – 管理層討論及分析 1. 業務回顧 包括現製茶飲行業在內的線下消費行業在2022年面臨了巨大挑戰。COVID-19 疫 情（「疫 情」）不 斷 反 覆，對 行 業 內 企 業 的 運 營 造 成 了 顯 著 的 干 擾，並 通 過 相 對較高的經營槓桿，對盈利能力造成衝擊。同時，受宏觀環境影響，消費者 收入下降或增速放緩，收入預期受到壓制，對未來不確定性預期有所增加， 進而影響了其消費可選消費品的能力和意願。 為 ...

Financial Performance - In the first half of 2022, Nayuki Holdings' revenue decreased by 3.8% to RMB2,044.9 million from RMB2,125.9 million in the same period of 2021[14]. - The adjusted net loss for the first half of 2022 was RMB249.0 million, compared to a profit of RMB48.2 million in the first half of 2021[14]. - Store-level operating profit for Nayuki teahouses fell by 49.2% to RMB195.6 million, with a store-level operating profit margin of 10.4%, down 8.8 percentage points from the previous year[15]. - Net cash generated from operating activities decreased by 72.8% to RMB102.9 million from RMB377.9 million in the first half of 2021[15]. - The total revenue for the first half of 2022 was RMB 2,044,947, a decrease from RMB 2,125,927 in the same period of 2021[24]. - The net loss for the period was RMB 256.9 million, a substantial improvement from a net loss of RMB 4.3 billion in the previous year[121]. - Adjusted net loss for the period was RMB 249.0 million, with an adjusted net loss margin of (12.2)% compared to 2.3% in the previous year[121]. Revenue Sources - Nayuki teahouses contributed 91.8% of total revenue, amounting to RMB1,878.0 million, while the sub-brand Tai Gai contributed 2.2% with RMB43.7 million[19]. - The revenue from the "Others" category increased by 4.0% to RMB123.2 million, compared to RMB41.9 million in the previous year[19]. - Freshly-made tea drinks generated RMB 1,472,141, accounting for 72.0% of total revenue, down from RMB 1,587,444 and 74.7% in the first half of 2021[24]. - Baked products revenue decreased to RMB 380,610, representing 18.6% of total revenue, compared to RMB 468,754 and 22.0% in the same period of 2021[24]. - Delivery orders increased to RMB 836,909, making up 44.6% of total income, up from RMB 687,830 and 34.3% in the first half of 2021[32]. Market Conditions and Strategy - The overall performance reflects the ongoing impact of the COVID-19 pandemic, particularly in high-tier cities where Nayuki teahouses are concentrated[14]. - The company is actively monitoring market conditions and adjusting strategies to navigate the challenges posed by the pandemic[14]. - Future outlook remains cautious as the company aims to recover from the operational disruptions caused by COVID-19[14]. - The company plans to focus on the research and development of freshly-made tea drinks to restore profitability more quickly[24]. - The company intends to continue launching more baked products once market conditions improve[26]. Membership and Customer Engagement - As of June 30, 2022, Nayuki had approximately 49.0 million registered members, an increase of 5.7 million from December 31, 2021[35]. - The number of active members reached approximately 7.2 million, with a repurchase rate of approximately 33.6%, up by 3.3 percentage points year-over-year[35]. - For the six months ended June 30, 2022, approximately 36.1% of revenue from Nayuki teahouses was generated from delivery orders placed by third-party platforms, while approximately 8.5% came from the Group's self-operated platform[33]. Store Operations and Expansion - As of June 30, 2022, the Group operated 904 self-owned Nayuki teahouses across 85 cities, with 87 new teahouses opened in the first half of 2022[42]. - The total number of Type-I Teahouses increased to 767, with 261 in Tier 1 cities, 252 in New Tier 1 cities, and 184 in Tier 2 cities[45]. - The total number of Type-II Teahouses rose to 137, with 48 in Tier 1 cities and 25 in Tier 2 cities[45]. - The company plans to convert existing regular teahouses into PRO teahouses upon lease expiration, enhancing operational efficiency and market adaptability[41]. Cost Management - Raw material costs were maintained at 34.5% in June 2022, slightly improved from 35.1% in June 2021, indicating ongoing supply chain optimization efforts[71]. - Labor costs were reduced to 18.9% in June 2022 from 23.7% in June 2021, reflecting successful optimization measures[71]. - Rent costs increased to 15.7% in June 2022 from 13.9% in June 2021, due to renegotiation and stricter requirements for new stores[71]. - The Group aims to stabilize labor costs at the store level within 20% in the short to medium term, better than the level in the first half of 2021[75]. Financial Position and Liquidity - As of June 30, 2022, the total cash and bank balances of the Group amounted to approximately RMB3,721.6 million, a decrease from approximately RMB4,052.8 million as of December 31, 2021[125]. - The Group's gearing ratio as of June 30, 2022, was 31.3%, compared to 32.5% as of December 31, 2021[136]. - The Group did not have any interest-bearing borrowings as of June 30, 2022, down from approximately RMB0.4 million as of December 31, 2021[125]. - Capital expenditures for the reporting period were approximately RMB 239.1 million, primarily related to equipment purchases and leasehold improvements[149][155]. Shareholder Information - As of June 30, 2022, Mr. Zhao Lin and Ms. Peng Xin each hold a beneficial interest of 1,007,281,120 shares, representing approximately 58.73% of the Company's issued share capital[187]. - As of June 30, 2022, Linxin Group holds 977,344,414 shares, representing approximately 56.98% of the voting rights in Nayuki Holdings Limited[195]. - The ownership structure of Chengdu Tiantu includes multiple stakeholders, with the largest being Shantou Dongfeng Printing Co., Ltd.[200].

Financial Performance - Nayuki Holdings Limited reported a revenue of HK$1.2 billion for the fiscal year 2021, representing a year-on-year increase of 30%[2]. - The company achieved a net profit of HK$150 million, which is a 25% increase compared to the previous year[2]. - The company reported a revenue of RMB 1.2 billion for the year ended December 31, 2021, representing a year-over-year increase of 25%[15]. - Revenue for 2021 reached RMB 4,296,618, an increase from RMB 3,057,181 in 2020, representing a growth of 40.5%[25]. - The Group recorded revenue of RMB 4,296.6 million for the Reporting Period, representing a 40.5% increase compared to RMB 3,057.2 million in 2020[72]. - The revenue from freshly-made tea drinks was RMB 3,186,988 thousand, accounting for 74.2% of total revenue, while baked products contributed RMB 940,054 thousand, representing 21.9%[39]. - The company expects revenue growth of 20% to 25% for the upcoming fiscal year, driven by new product launches and market expansion[16]. - The company aims for a revenue growth target of 20% for the next fiscal year[2]. User Engagement and Market Expansion - User data indicated that the number of active users reached 5 million, up 40% from the previous year[2]. - User data indicated a total of 5 million active users, with a 30% increase compared to the previous year[16]. - The company plans to open 200 new stores in 2022, expanding its market presence significantly[2]. - The company plans to expand its market presence by opening 100 new stores across key cities in China within the next year[16]. - The company aims to increase its online sales channel contribution to 40% of total sales by the end of the next fiscal year[16]. - The company plans to continue expanding its market presence and investing in new product development to drive future growth[25]. - The company aims to expand its market presence primarily in existing Tier 1 and New Tier 1 cities, focusing on cultivating consumer habits for high-end freshly-made tea drinks[48]. Product Development and Innovation - Nayuki Holdings Limited is investing HK$300 million in new product development, focusing on innovative tea beverages[2]. - New product lines are set to be introduced, including a range of health-focused beverages aimed at capturing a growing health-conscious consumer segment[16]. - The company has initiated a strategic partnership with a leading technology firm to enhance its supply chain efficiency[2]. - The company is investing RMB 200 million in technology development to improve supply chain efficiency and customer experience[16]. Financial Challenges and Losses - Loss for the year amounted to RMB 4,525,524, compared to a loss of RMB 203,302 in 2020, indicating a significant increase in losses[26]. - Adjusted net loss margin for 2021 was (3.4)%, a decline from 0.5% in 2020, reflecting worsening profitability[26]. - The adjusted net loss (non-IFRS measure) turned from a profit of RMB 16.6 million in 2020 to a loss of RMB 145.3 million in 2021[29]. - The company reported a loss before taxation of RMB (4,529,629) in 2021, compared to RMB (190,095) in 2020, reflecting a substantial increase in pre-tax losses[26]. Operational Efficiency and Cost Management - The company reported a gross margin of 60%, maintaining a stable margin compared to the previous year[2]. - The gross margin for the reporting period was reported at 60%, reflecting improved operational efficiencies[15]. - Cost of materials for 2021 was RMB (1,400,674), up from RMB (1,159,322) in 2020, which is an increase of 20.8%[26]. - Staff costs in 2021 totaled RMB (1,424,358), compared to RMB (919,096) in 2020, marking a rise of 55%[26]. - The increase in staff costs was primarily due to the expiration of COVID-19-related labor cost benefits that were applicable in 2020[81]. - The reduction in material costs as a percentage of revenue was attributed to the introduction of multi-channel suppliers and optimization of product structure[80]. Store Operations and Performance - Store-level operating profit for Nayuki teahouses was RMB 591.5 million, representing an increase of approximately 68.4% compared to 2020[29]. - The store-level operating profit margin for Nayuki teahouses was 14.5% in 2021, an increase of approximately 2.3 percentage points compared to 2020[29]. - The average daily sales per teahouse in Shenzhen reached RMB 24.1 thousand, while the store-level operating profit margin was 21.7%[55]. - The average daily sales per teahouse in Shanghai were RMB 17.5 thousand, with a store-level operating profit margin of 11.6%[55]. - The number of regular Nayuki teahouses was 444, with an average daily sales of RMB 20.3 thousand and a profit margin of 17.5%[60]. Management and Governance - The board consists of eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors[138]. - The management team has extensive experience in the food and beverage industry, contributing to the company's strategic direction[140]. - The company emphasizes the importance of human resources management, with a dedicated director overseeing HR strategies[159]. - The board's composition includes a balance of executive and independent directors to ensure effective governance[138]. Future Outlook and Strategic Initiatives - The management expressed confidence in achieving long-term growth through digital transformation initiatives[2]. - The Group plans to achieve positive free cash flow in 2022 while strictly controlling labor costs[69]. - The Group's strategy focuses on increasing store density in Tier 1 and key Tier 2 cities to enhance brand profile[68]. - The Group aims to open 350 new Nayuki teahouses in 2022, aligning with the plan stated in the Prospectus published on June 18, 2021[68].