Summary of the Conference Call Company and Industry Involved - The conference call involves Anxin International and its subsidiary, Jiumaojiu [1] Core Points and Arguments - The call is structured into two parts: an introduction to the company's recent operational status followed by a Q&A session [1] Other Important but Possibly Overlooked Content - The presence of key executives, including CEO Ayatrey and another executive named Li, indicates a focus on leadership engagement with investors [1]

Summary of Conference Call Company or Industry Involved - The document pertains to Guotai Junan Securities and its internal conference call regarding research and analysis [1] Core Points and Arguments - The conference call is intended for internal learning purposes only and is not authorized for external distribution [1] - All content discussed in the call must be reviewed and approved by Guotai Junan Securities Research Institute before retention [1] - Unauthorized media dissemination of the conference call content is strictly prohibited, and any such actions will be considered infringement [1] - Guotai Junan Securities reserves the right to pursue legal action against unauthorized use or distribution of the conference call materials [1] Other Important but Possibly Overlooked Content - Emphasis on the confidentiality and proprietary nature of the information shared during the call [1] - The document highlights the importance of compliance with internal policies regarding information sharing and dissemination [1]

Financial Performance - Jiumaojiu International Holdings Limited reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion in 2023[5] - The company achieved a net profit margin of 12%, translating to a net profit of HKD 144 million for the fiscal year[5] - The company reported a total revenue of HK$1.2 billion for the fiscal year 2023, representing a year-over-year increase of 15%[6] - Revenue for the year ended December 31, 2023, reached RMB 5,985,850, an increase of 49.4% compared to RMB 4,005,722 in 2022[15] - Profit before taxation for 2023 was RMB 636,384, significantly up from RMB 94,331 in the previous year, marking a growth of 576.5%[15] - The profit for the year increased to RMB 479,998, compared to RMB 55,610 in 2022, representing a year-on-year growth of 764.5%[15] - Total comprehensive income for the year was RMB 504,335, up from RMB 142,461 in 2022, indicating a growth of 253.5%[15] - Store level operating profit for 2023 was RMB 1,076,967, a substantial increase from RMB 516,578 in 2022, reflecting a growth of 108.5%[15] - Adjusted net profit for the year was RMB 501,151, compared to RMB 69,343 in 2022, showing a remarkable increase of 620.5%[15] - The company reported a gross margin of 35%, which is an improvement from 32% in the previous year[8] - The company reported a significant increase in user engagement, with a 25% year-over-year growth in active users[113] - The revenue for the last fiscal year reached approximately $500 million, reflecting a 15% increase compared to the previous year[114] - The gross profit margin improved to 40%, up from 35% in the previous year, indicating better cost management[114] - Profit for the year attributable to equity shareholders of the Company was RMB 453,462, a substantial increase from RMB 49,280 in 2022[195] - Adjusted net profit for the year was RMB 501,151, compared to RMB 69,343 in the previous year[195] Market Expansion - User data indicated a 20% growth in active customers, totaling 1.5 million by the end of 2023[5] - The company plans to expand its market presence by opening 30 new locations in mainland China in 2024[5] - Market expansion plans include opening 15 new locations across major cities in China by the end of 2024[8] - The Group plans to open 80 to 100 new Tai Er restaurants and 35 to 40 new Song Hot Pot restaurants in mainland China in 2024[46] - The company plans to expand its market presence by opening 50 new locations in the next fiscal year, targeting a 20% increase in market share[115] - The Group plans to expand into global markets, currently operating in Canada, Malaysia, Singapore, Thailand, and the United States[50] Strategic Initiatives - Jiumaojiu is investing HKD 50 million in new product development, focusing on innovative dining experiences[5] - The company is investing HK$50 million in technology development to enhance customer experience and operational efficiency[7] - The company is exploring potential acquisitions to enhance its market share in the hot pot segment[5] - The company is exploring potential acquisitions to strengthen its market position, with a budget of HK$300 million allocated for this purpose[6] - The introduction of a new product line is expected to contribute an additional $50 million in revenue, with a projected growth rate of 30% in the first year[114] - The company has successfully completed a strategic acquisition, which is anticipated to enhance its competitive advantage in the market[115] - The Group aims to strengthen its supply and support capabilities while expanding into global markets[194] - Cooperative relationships with suppliers have been established to ensure stable supply and competitive pricing[196] Operational Efficiency - The company has successfully integrated a new supply chain management system, improving operational efficiency by 10%[5] - The company reported a 5% increase in same-store sales, indicating strong customer retention[5] - Jiumaojiu's new technology initiatives include a digital ordering platform, expected to launch in Q2 2024[5] - The average table turnover rate for Tai Er increased to 4.1 from 3.5, indicating improved customer service and efficiency[37] - The table turnover rates for Tai Er, Song Hot Pot, Jiu Mao Jiu, and Lai Mei Li Grilled Fish increased due to higher customer traffic following the relaxation of pandemic measures[39] - The Group's restaurant network expansion strategy focused on brands with greater growth potential, optimizing operations through renovations and menu upgrades[31] Corporate Governance - The Company has complied with all applicable code provisions of the CG Code for the year ended December 31, 2023, except for deviations from code provision C.2.1[125] - The Board is responsible for the direction and control of the Company's business, establishing policies and strategies for development[127] - The Company has adopted corporate governance practices appropriate to its needs, focusing on compliance and monitoring[125] - The Board consists of four executive Directors and three independent non-executive Directors, ensuring a strong independence element in its composition[133] - The Company has established guidelines for securities transactions by employees with access to inside information, with no incidents of non-compliance noted[140] - The Company has adopted a disclosure policy to guide directors and relevant employees in handling confidential information and responding to inquiries[169] - The Company emphasizes the importance of transparency and timely disclosure of corporate information to enhance investor relations[177] Financial Stability - The company’s debt-to-equity ratio stands at 0.5, reflecting a stable financial position[115] - The Group's cash and cash equivalents increased by 20.7% from RMB1,098.9 million as of December 31, 2022, to RMB1,326.9 million as of December 31, 2023, primarily due to cash inflows from restaurant operations[88] - The Group's gearing ratio increased from 0.9% as of December 31, 2022, to 7.3% as of December 31, 2023, primarily due to an increase in the balance of bank loans[88] - Total liabilities increased from RMB2,207.9 million in 2022 to RMB3,163.9 million in 2023, resulting in a liabilities-to-assets ratio increase from 40.8% to 48.5%[87] - The current ratio decreased from 2.71 in 2022 to 2.00 in 2023, indicating a decline in liquidity[87] Employee and Management - As of December 31, 2023, the Group had 22,467 employees, with staff costs amounting to RMB1,544.1 million, an increase from RMB1,133.9 million in 2022, representing a year-over-year growth of approximately 36.3%[99] - The management team includes professionals with significant experience in listed companies and various industries[119] - The Company aims to increase the proportion of female Board members and workforce over time as suitable candidates are identified[162] - The Company has established procedures for shareholders to convene extraordinary general meetings if they hold at least one-tenth of the paid-up capital[180] Shareholder Engagement - The Company maintains a website for communication with shareholders and investors, providing updates on business operations and financial information[177] - Shareholders have the right to propose resolutions at general meetings, with separate resolutions for each substantial issue, including the election of individual Directors[179] - The Company ensures that all resolutions at general meetings are voted on by poll, with results posted on the Stock Exchange and the Company's website[179] - The Shareholders' Communication Policy was effectively implemented during the year, ensuring shareholder concerns were addressed[188]

Investment Rating - The report maintains a "Buy" rating for Jiumaojiu International (9922 HK) with a target price of HK$6.10, representing a potential upside of 27% from the current price of HK$4.79 [1][2][5]. Core Views - Jiumaojiu's short-term performance is constrained by a high base, but steady growth is expected in the future. The company is exploring new demand through brand transformation, which requires further observation [4][5]. - The target price has been adjusted downwards by 13% from HK$7.00 to HK$6.10, corresponding to a 15x P/E ratio for 2024 [5]. Summary by Sections Financial Performance - In Q1 2024, same-store sales for the brand "Tai Er" declined by 13.9% year-on-year, with a table turnover rate dropping to 3.9 times per day. However, the decline is expected to narrow as the base effect diminishes [4]. - The company plans to open 105 new stores in 2024, with 84 in domestic markets and 21 overseas, aiming for a total of 683 stores. The average customer price is projected to decrease slightly by 1.0% to RMB 74.3 [4][5]. - Revenue from restaurant operations is expected to grow by 14.5% year-on-year to RMB 5.12 billion in 2024 [4]. Brand Development - The "Song" brand saw a 34.8% decline in same-store sales in Q1 2024, indicating that existing demand has been largely met. The brand is focusing on enhancing its menu and appealing to younger consumers [4]. - The "Song" brand is expected to open 30 new stores in 2024, with revenue projected to increase by 32.0% year-on-year to RMB 1.06 billion [4]. Earnings Forecast and Valuation - Revenue forecasts for 2024-2026 have been reduced by 7.1%, 10.7%, and 12.4% to RMB 69.5 billion, RMB 80.3 billion, and RMB 90.3 billion respectively. Net profit estimates have also been lowered by 13.1%, 18.1%, and 19.6% to RMB 5.3 billion, RMB 6.1 billion, and RMB 6.9 billion [5][6]. - The report projects a market capitalization range of HK$61 billion to HK$107 billion based on a P/E ratio of 12-16x for 2024, with the current market cap at HK$69 billion [5].

Investment Rating - The investment rating for the company is "Buy" with a 6-month target price increase of over 20% [1]. Core Views - The report highlights that the company is facing pressure on same-store sales recovery due to high base comparisons from the previous year, but share buybacks demonstrate confidence in long-term development [1]. - The company plans to open 80-100 new stores for its brand "Tai Er" in mainland China and 15-20 internationally, with a total of 35-40 new stores for "Song Hotpot" in mainland China [1]. - The report anticipates steady expansion for "Tai Er" and improved profit margins for "Song Hotpot" following optimization adjustments, with earnings forecasts for 2024, 2025, and 2026 at 540 million, 650 million, and 770 million respectively [1]. Summary by Sections Store Performance - "Tai Er" reported a same-store daily sales decline of 13.9% in Q1, with a table turnover rate of 3.9 and an average customer spend of 73 yuan [1]. - "Song Hotpot" experienced a same-store daily sales decline of 34.8% in Q1, with a table turnover rate of 3.0 and an average customer spend of 116 yuan [1]. - "Jiu Mao Jiu" saw a same-store daily sales decline of 4.1% in Q1, with a table turnover rate of 3.0 and an average customer spend of 57 yuan [1]. Share Buyback Decision - The company's board has approved a share buyback of up to 100 million HKD, representing 10% of the total issued shares, indicating confidence in the company's long-term business outlook [1]. Earnings Forecast and Investment Advice - The report maintains a "Buy" rating, with projected earnings for 2024, 2025, and 2026 at 540 million, 650 million, and 770 million respectively, corresponding to PE ratios of 12, 10, and 8 times [1].

Summary of Conference Call Company Overview - The company discussed is 九毛九 (Jiu Mao Jiu), which operates in the restaurant industry, specifically focusing on the hot pot segment. [1] Key Points and Arguments - The company opened a total of 8 new software locations during the quarter, while closing 2, resulting in a net increase of 6 locations. [1] Additional Important Content - The management provided a brief overview of the operational performance during the quarter, indicating a focus on expansion despite some closures. [1]

Financial Data and Key Metrics Changes - The company reported a profit margin of approximately 12% last year, with a target to reach 20% in the future, indicating confidence in cost optimization, particularly in personnel and management areas [2][3] - The average customer spending has decreased compared to last year, primarily due to reduced foot traffic [2][3] Business Line Data and Key Metrics Changes - The company plans to open about 8 new stores in mainland China this year, with approximately 40% located in second-tier and lower cities, maintaining a similar ratio to last year [2][3] - The average revenue per store may be diluted due to the expansion into lower-tier cities, but the expected decrease in revenue per store is not anticipated to be rapid [2][3] Market Data and Key Metrics Changes - Sales in January and February were impacted by high year-on-year comparisons, while March saw a narrowing decline as it entered the off-peak season [2][3] - The company expects the long-term utilization rate of hot pot stores to improve, having reached over 12% last year [2][3] Company Strategy and Development Direction - The company aims to open 1,000 stores in mainland China by the end of 2027, focusing on optimizing service and delivery operations while exploring a franchise model [2][3] - The company is considering adjustments to the average customer spending to enhance cost-effectiveness based on market conditions and competition [2][3] Management's Comments on Operating Environment and Future Outlook - The management expressed confidence in maintaining stable gross margins this year despite the challenges posed by the economic environment [2][3] - The company has increased promotional activities on platforms like Meituan to counteract price pressures and competition [2][3] Other Important Information - The company plans to replace the fish used in delivery with a more cost-effective option to improve repurchase rates [2][3] - The company has not made any salary adjustments this year, following a salary increase in September last year, indicating manageable labor cost pressures [2][3] Q&A Session Summary Question: What pressures might the hot pot industry's turnover rate face this year? - The turnover rate growth faced challenges due to external environmental changes and insufficient product variety, prompting adjustments in product offerings [1] Question: What are the reasons for sales pressure in Q1? - Sales saw a sequential increase but were affected by a high base from the previous year, with a slight decline in per capita consumption due to reduced foot traffic [1] Question: What is the trend of profit margins? - The company is optimistic about achieving a profit margin of 20% in the future, with significant cost optimization potential [1] Question: Can you provide monthly sales data for the first three months? - Sales in January and February were impacted by high year-on-year comparisons, with March showing a narrowing decline [1] Question: How was product sales during the holiday? - Short-term data for the Qingming holiday is not yet available, but sales are expected to be impacted due to people returning home [1] Question: How many new stores are planned to open in mainland China this year? - The company plans to open about 8 new stores, with a focus on second-tier and lower cities [1] Question: Why has the average customer spending decreased from 2019 to 2023? - The decrease is mainly due to promotional activities, with takeaway orders not included in the average spending statistics [1] Question: What is the expected change in average customer spending for 2024? - The company aims to lower the average customer spending, currently considered too high at 116 yuan [2] Question: What is the future development strategy for the company? - The company will continue to optimize services and explore franchise models while aiming for significant store expansion [2] Question: How does the company select franchisees? - The company seeks larger franchisees with independent departments for training and support, ensuring proper management and quality control [2]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has demonstrated confidence in its long-term operations by announcing a share buyback plan of up to HKD 100 million, representing approximately 1.5% of its latest market value [3][4] - The same-store sales growth has been impacted by high base effects from the previous year, with specific brands showing varying performance metrics [3][4] - The company is focusing on enhancing operational efficiency and expanding its market presence in key regions [4] Financial Performance Summary - Total revenue for 2022 was RMB 4,006 million, with a significant increase to RMB 5,986 million in 2023, and projected revenues of RMB 7,547 million in 2024, reflecting a year-on-year growth of 26.1% [2] - The net profit attributable to shareholders was RMB 49 million in 2022, soaring to RMB 453 million in 2023, with an expected net profit of RMB 623 million in 2024, indicating a growth rate of 37.3% [2] - The latest diluted EPS is projected to be RMB 0.43 for 2023, increasing to RMB 0.52 in 2025 and RMB 0.60 in 2026 [2] Operational Insights - As of Q1 2024, the company operates 584 stores for its brand "Tai Er," with a same-store sales growth rate of -13.9% [3] - The "Song Hot Pot" brand has 66 stores, showing a same-store sales decline of -34.8% [3] - The "Jiu Mao Jiu" restaurant brand has 75 stores, with a same-store sales growth of -4.1% [3] Market Position and Strategy - The company plans to focus on existing stores to improve profitability and will introduce diverse marketing strategies to attract a broader customer base [4] - The company is also expanding its presence in the sour soup segment, which has gained popularity in the restaurant industry [4]

Investment Rating - The report maintains an "Add" rating for the company, indicating an expected price increase of 5% to 15% over the next 6 to 12 months [2][7]. Core Views - The company reported a decline in same-store sales for its brands in Q1 2024, with Taier, Songhuo, and Jiumaoji experiencing year-on-year decreases of -13.9%, -34.8%, and -4.1% respectively. This decline is attributed to significant industry pressures and high comparative bases from the previous year [2]. - The company is actively adjusting its strategies to enhance product cost-effectiveness and has plans to accelerate store openings in Q2 2024, following a slower pace in Q1 due to the Spring Festival [2]. - A share repurchase plan of up to HKD 100 million reflects management's confidence in the company's long-term business prospects [2]. Financial Summary - The company’s revenue is projected to grow from CNY 5,986 million in 2023 to CNY 7,259 million in 2024, representing a growth rate of 21.26% [5]. - The net profit attributable to the parent company is expected to increase from CNY 453 million in 2023 to CNY 570 million in 2024, with a growth rate of 25.69% [5]. - The company’s P/E ratio is projected to decrease from 17.51 in 2023 to 10.97 in 2024, indicating improved valuation metrics over the forecast period [5].

Core Viewpoint - Jiumaojiu (09922) reported a total of 736 restaurants as of March 31, 2024, with brand distribution as follows: 584 for Taier, 66 for Song Hotpot, and 75 for Jiumaojiu [1] Group 1: Restaurant Performance - In Q1 2024, the table turnover rates for Taier, Song Hotpot, and Jiumaojiu were 3.9, 3, and 3 respectively [1] - Average customer spending per visit was 73 yuan for Taier, 116 yuan for Song Hotpot, and 57 yuan for Jiumaojiu [1] - Same-store daily sales decreased year-on-year by 13.9% for Taier, 34.8% for Song Hotpot, and 4.1% for Jiumaojiu [1] Group 2: Factors Influencing Performance - The decline in average customer spending for Taier and Song Hotpot in mainland China was attributed to changes in the external environment and adjustments in brand development strategies, including menu structure and pricing [1] - Increased promotional activities and a higher proportion of Taier restaurants located in lower-tier cities contributed to the decrease in average customer spending in mainland China [1] - The decline in same-store daily sales for Taier and Song Hotpot was mainly due to the base effect from the reopening and economic activity recovery in Q1 2023 [1]