智通财经APP获悉，2月4日，九毛九(09922)发布公告称，自2月3日起，将逐步开放旗下"太二酸菜鱼"和"山的山外面酸 汤火锅"的加盟与合作业务。太二将开放新疆、西藏、台湾等省份，国内机场高铁等交通枢纽，以及海外澳大利亚、新 西兰等地的加盟业务。山外面则将开放指定商场合作,并于2025年2月3日正式全部放开加盟。 资料显示，九毛九是一家以中式餐饮连锁经营为核心的餐饮集团，旗下创立并运营"九毛九西北菜""太二酸菜鱼""怂重 庆火锅厂""山的山外面酸汤火锅"*赖美丽酸汤烤鱼"五个不同细分领域中式餐饮品牌。截至2024年1月，九毛九集团旗 下各品牌合计运营超过730家餐厅。 将时间点拨回2020年，彼时正处餐饮寒冬，各餐饮品牌被迫实行收缩战略，九毛九也不例外。 2020年，九毛九关闭了客流量相对较少的九毛九餐厅，并且停止广东及海南省以外的九毛九餐厅的经营，门店数由 2019年的143家降至2020年的98家，集团亦将资源集中于新的核心品牌太二酸菜鱼。 在收缩战略下，九毛九收效明显。2021年，九毛九集团营收约41.8亿元，同比增加54.0%，净利润约3.4亿元，同比增 长169.70%。 进入2023年，餐饮行业 ...

智通财经APP获悉，餐饮股延续跌势，截至发稿，九毛九(09922)跌5.18%，报4.58港元；呷哺呷哺 (00520)跌3.88%，报1.98港元；海伦司(09869)跌3.54%，报3港元。 消息面上，野村发布研报称，餐饮业消费情绪去年第四季疲软情况可能延续至今年首季，并认为投资者 短期对内地餐饮股的投资情绪仍然低迷，该行继续偏好展示更精简及灵活业务模式，以及近期营运数据 潜在上升的股份。基于持续推广环境及高基数效应，该行覆盖的股份，其中包括九毛九等企业的盈利率 在今年或持续受压。 ...

Financial Performance - Jiumaojiu International Holdings Limited reported a significant increase in revenue, achieving HKD 1.2 billion for the first half of 2023, representing a 25% year-over-year growth[1]. - The company’s net profit for the same period was HKD 200 million, reflecting a 15% increase compared to the previous year[1]. - The company has set a revenue guidance of HKD 2.5 billion for the full year 2023, projecting a 20% growth[1]. - The company provided a positive outlook for the second half of 2023, expecting revenue growth to accelerate to 25%[8]. - Profit for the period increased by 281.4% from RMB 62.5 million for the six months ended June 30, 2022 to RMB 238.4 million for the same period in 2023[79]. - For the six months ended June 30, 2023, the adjusted net profit was RMB 247.9 million, a significant increase of 258.5% compared to RMB 69.1 million in the same period of 2022[88]. - Total comprehensive income for the period reached RMB 320,934,000, significantly up from RMB 15,061,000 in the same period last year[193]. - Basic earnings per share rose to RMB 0.15, compared to RMB 0.04 in the previous year, marking a 275% increase[191]. Customer Engagement and Market Expansion - User data showed a 30% increase in customer visits across all restaurant brands, indicating strong consumer demand[1]. - The company plans to expand its market presence by opening 15 new locations in key cities by the end of 2024[1]. - The company is expanding its market presence with plans to open 15 new locations in key cities by the end of 2023[10]. - The company aims to expand its market share and maintain its position as a leading Chinese cuisine restaurant brand manager and operator in the PRC[24]. - The company operates Tai Er restaurants in Canada, Singapore, and Malaysia, with plans for further international expansion targeting areas with high Chinese populations[48]. Operational Efficiency and Technology Investment - Jiumaojiu is investing HKD 50 million in new technology for enhancing customer experience and operational efficiency[1]. - The company is investing HKD 50 million in technology upgrades to improve operational efficiency and customer experience[12]. - The company is constructing new supply chain centers in Southern and Northern China to enhance supply chain capabilities[47]. - Plans are underway to identify a suitable location for an additional central kitchen in Eastern China to support regional restaurant expansion[47]. Product Development and Revenue Contribution - New product launches, including a premium menu line, are expected to contribute an additional HKD 100 million in revenue[1]. - New product launches are planned, including a premium dining experience expected to contribute an additional HKD 200 million in revenue[9]. - Revenue contribution from Tai Er, Song Hot Pot, and Lai Mei Li Grilled Fish increased by 47.4%, 331.2%, and 114.0%, respectively, in the first half of 2023[35]. Marketing Strategy - Jiumaojiu has implemented a new marketing strategy focusing on digital channels, aiming for a 40% increase in online orders[1]. - The company has initiated a new marketing strategy focusing on digital channels, aiming to increase brand awareness by 40%[14]. Shareholder Value and Financial Management - The board of directors has approved a share buyback program of up to HKD 100 million to enhance shareholder value[15]. - The company aims to ensure stable supply of key ingredients through partnerships with major suppliers[50]. - The company has set a timeline to fully utilize the remaining proceeds by the end of 2026 for investments in suppliers and general working capital[186]. Restaurant Network and Growth Metrics - The number of restaurants increased to 621 from 475, reflecting a growth of 30.8%[22]. - In the first half of 2023, the company opened 67 new restaurants, including 46 Tai Er, 16 Song Hot Pot, one Jiu Mao Jiu, and four Lai Mei Li Grilled Fish, bringing the total to 621 restaurants across 123 cities in the PRC and other countries[24][28][30]. - The seat turnover rate for Tai Er improved to 3.1 from 2.9, and for Song Hot Pot to 2.8 from 2.4[22]. Financial Position and Liabilities - Total assets increased from RMB5,407.1 million as of December 31, 2022 to RMB6,084.6 million as of June 30, 2023, while total liabilities rose from RMB2,207.9 million to RMB2,582.1 million[101]. - The liabilities-to-assets ratio increased from 40.8% to 42.4% during the same period[101]. - Cash and cash equivalents decreased by 15.6% from RMB1,098.9 million to RMB927.5 million, mainly due to increased fixed deposits and pledged deposits for bank loans[101]. Corporate Governance and Compliance - The Company has complied with all provisions of the Corporate Governance Code during the six months ended June 30, 2023, except for a deviation from code provision C.2.1[169]. - The Audit Committee consists of three independent non-executive Directors, with Mr. Deng Tao as Chairman, ensuring independent review of financial information and internal controls[171]. - All Directors confirmed strict compliance with the Model Code for securities transactions during the six months ended June 30, 2023[170]. Employee and Management Changes - The resignation of Mr. Li Zhuoguang as an executive director and CFO was effective from June 9, 2023[163]. - Mr. Li Zhuoguang resigned as an executive Director and chief financial officer on June 9, 2023, with Mr. Su Danman appointed to the role[172]. - As of June 30, 2023, the Group had a total of 11,107 employees and 9,752 outsourced personnel, primarily based in the PRC[123].

Revenue Growth - Revenue for the six months ended June 30, 2023, was RMB 2,879.4 million, a 51.6% increase from RMB 1,899.0 million for the same period in 2022[2]. - Revenue increased by 51.6% from RMB 1,899.0 million for the six months ended June 30, 2022, to RMB 2,879.4 million for the same period in 2023[17]. - Total revenue for the six months ended June 30, 2023, was RMB 2,879,422 thousand, a 51.7% increase from RMB 1,899,021 thousand for the same period in 2022[85]. - Revenue from restaurant operations reached RMB 2,426,284 thousand, up 58.0% from RMB 1,534,557 thousand in the previous year[85]. - Revenue from takeaway business was RMB 445,818 thousand, representing a 25.1% increase compared to RMB 356,182 thousand in the prior year[85]. Profitability - Adjusted net profit for the six months ended June 30, 2023, was RMB 247.9 million, compared to RMB 69.1 million for the same period in 2022, representing a significant increase of 258.5%[2][3]. - The net profit attributable to equity shareholders for the six months ended June 30, 2023, was RMB 222.2 million, compared to RMB 57.7 million for the same period in 2022, an increase of 285.3%[2]. - The company's profit increased by 281.4% from RMB 62.5 million to RMB 238.4 million for the six months ended June 30, 2023[38]. - Basic earnings per share for the period was RMB 0.15, up from RMB 0.04 in the same period last year[74]. - Total comprehensive income for the period was RMB 320,934 thousand, compared to RMB 15,061 thousand in the previous year[75]. Restaurant Expansion - The number of restaurants increased to 621 as of June 30, 2023, up from 475 in the same period last year, reflecting a growth of 30.8%[5]. - The company opened 67 new restaurants in the first half of 2023, including 46 "Tai Er" restaurants and 16 "Song Huo Guo" restaurants[6]. - The company plans to continue expanding its restaurant network and investing in brands with higher growth potential, such as "Song Huo Guo" and "Lai Mei Li Grilled Fish"[6]. - The company plans to expand its restaurant network in response to post-pandemic consumer trends and preferences[14]. - The company aims to identify and adopt innovative business models to support its multi-brand development strategy[14]. Customer Metrics - Same-store sales for the "Tai Er" brand grew by 16.1%, "Song Huo Guo" by 25.4%, and "Jiu Mao Jiu" by 7.8% during the reporting period[5]. - The average customer spending for "Tai Er" was RMB 75, "Song Huo Guo" RMB 121, and "Jiu Mao Jiu" RMB 59 during the reporting period[5]. - The average customer spending for "Tai Er" decreased to RMB 75 from RMB 78, while "Song Hot Pot" decreased to RMB 121 from RMB 130[9]. - The table turnover rate for "Tai Er" improved to 4.3 from 3.8, and for "Song Hot Pot" to 3.9 from 3.4[9]. - The average table turnover rate for "Lai Mei Li Grilled Fish" increased to 4.7 from 3.0[9]. Financial Position - Total assets grew from RMB 5,407.1 million to RMB 6,084.6 million, while total liabilities increased from RMB 2,207.9 million to RMB 2,582.1 million, resulting in a debt-to-asset ratio rise from 40.8% to 42.4%[48]. - Cash and cash equivalents decreased by 15.6% from RMB 1,098.9 million to RMB 927.5 million, primarily due to increased cash deposits and pledging more deposits as collateral for bank loans[49]. - Inventory increased by 5.0% from RMB 118.1 million as of December 31, 2022, to RMB 124.0 million as of June 30, 2023, primarily due to restaurant network expansion[43]. - Trade receivables increased by 42.7% from RMB 20.6 million to RMB 29.4 million, driven by restaurant network expansion[46]. - Total cash and cash equivalents amounted to RMB 927,533,000 as of June 30, 2023, down from RMB 1,098,872,000 as of December 31, 2022, a decrease of 15.6%[98]. Cost Management - Material and consumables used increased by 57.1% from RMB 663.7 million to RMB 1,042.4 million, aligning with revenue growth[26]. - Employee costs rose by 31.9% from RMB 543.9 million to RMB 717.6 million, while the proportion of employee costs to revenue decreased from 28.6% to 24.9%[27]. - Depreciation of right-of-use assets increased by 18.5% from RMB 191.9 million to RMB 227.4 million, with its proportion to revenue decreasing from 10.1% to 7.9%[28]. - Other rental and related expenses increased by 56.8% from RMB 42.8 million in the six months ended June 30, 2022, to RMB 67.1 million in the same period of 2023, maintaining a stable ratio of 2.3% of revenue[29]. - Utilities expenses increased by 50.6% from RMB 66.8 million to RMB 100.6 million, maintaining a stable ratio of 3.5% of revenue[31]. Strategic Initiatives - The company plans to expand into international markets, focusing on regions with significant Chinese populations, such as North America and Southeast Asia[16]. - The company will continue to conduct comprehensive investigations into potential overseas target markets for prudent expansion[16]. - The company has sold the "Two Eggs Pancake" brand to focus on brands with greater growth potential[14]. - The company has implemented currency forward contracts to hedge foreign exchange risks associated with cash and deposits held in currencies other than RMB[57]. - The group has no significant changes in business since the publication of the annual report on April 27, 2023[62]. Governance and Compliance - The financial report was prepared in accordance with International Financial Reporting Standards, ensuring compliance and transparency[82]. - The company has adhered to all provisions of the Corporate Governance Code, except for a deviation regarding the roles of the Chairman and CEO being held by the same individual[112]. - The Audit Committee, consisting of three independent non-executive directors, has reviewed the financial statements for the six months ending June 30, 2023, ensuring their integrity and accuracy[114]. - The interim results announcement and report for the six months ending June 30, 2023, will be published on the Hong Kong Stock Exchange and the company's website[115]. - The company expresses gratitude to shareholders, suppliers, and customers for their continued support and trust[116].

Financial Performance - Jiumaojiu International Holdings Limited reported a revenue increase of 15% year-over-year, reaching HK$1.2 billion for the fiscal year 2022[2]. - The company achieved a net profit margin of 12%, translating to a net profit of HK$144 million for the same period[2]. - Revenue for the year ended December 31, 2022, was RMB 4,005,722, a decrease of 4.2% compared to RMB 4,179,704 in 2021[18]. - Profit before income tax for 2022 was RMB 94,331, down 81.4% from RMB 505,920 in 2021[18]. - Profit for the year decreased to RMB 55,610, a decline of 85.1% compared to RMB 372,153 in the previous year[18]. - Total comprehensive income for the year was RMB 142,461, down 66.5% from RMB 425,154 in 2021[18]. - Store level operating profit for 2022 was RMB 516,578, a decrease of 36.2% from RMB 809,297 in 2021[18]. - Adjusted net profit for the year was RMB 69,343, down 81.8% from RMB 380,427 in 2021[18]. - Revenue decreased by 4.2% from RMB4,179.7 million in 2021 to RMB4,005.7 million in 2022[30]. - Profit for the year decreased by 85.1% from RMB372.2 million in 2021 to RMB55.6 million in 2022[30]. Market Expansion and Strategy - The company plans to expand its market presence by opening 30 new locations in the next fiscal year, targeting a 25% increase in overall market share[2]. - Jiumaojiu is investing HK$50 million in new product development, focusing on innovative menu items to attract younger consumers[2]. - The company has set a revenue guidance of HK$1.5 billion for the next fiscal year, representing a projected growth of 25%[2]. - A strategic acquisition of a local restaurant chain was completed, expected to contribute an additional HK$200 million in annual revenue[2]. - The company aims to expand its market share and maintain its position as a leading Chinese cuisine restaurant brand manager in the PRC[30]. - The company plans to continue expanding its restaurant network and has fulfilled its expansion plan for Tai Er as outlined in the Prospectus[52]. Operational Efficiency - The company reported a 10% increase in operational efficiency, attributed to the implementation of new technology in its supply chain[2]. - The company is enhancing its digital marketing strategy, aiming for a 30% increase in online orders through improved customer engagement[2]. - The company is committed to sustainability, with plans to reduce food waste by 15% through better inventory management practices[2]. Customer Insights - User data indicated a growth in customer visits by 20%, with an average spend per visit increasing by 5%[2]. - Average spending per customer for Jiu Mao Jiu decreased from RMB59 to RMB55, and for Tai Er decreased from RMB80 to RMB77[28]. - The seat turnover rate for Tai Er decreased to 2.6 from 3.4 in 2021, indicating a decline in customer traffic[39]. Financial Position and Assets - Total assets as of December 31, 2022, were RMB 5,407,072, an increase of 5.3% from RMB 5,135,096 in 2021[21]. - Total equity attributable to the owners of the Company was RMB 3,174,282, up 3.0% from RMB 3,082,574 in 2021[21]. - Non-current liabilities increased to RMB 1,252,982, up 5.0% from RMB 1,192,955 in 2021[21]. - Current liabilities rose to RMB 954,958, an increase of 18.7% compared to RMB 804,545 in 2021[21]. Corporate Governance - The company has established a nomination committee to oversee governance[7]. - The company has a strong governance structure with independent non-executive directors providing critical oversight and strategic advice[136]. - The board's diverse expertise spans finance, human resources, and marketing, positioning the company for informed decision-making[138]. - The company aims to leverage the expertise of its directors to navigate market challenges and capitalize on new opportunities[136]. Human Resources and Management - As of December 31, 2022, the Group had a total of 9,711 employees and 6,479 outsourced personnel, primarily based in the PRC[117]. - The company has a strong management team with extensive experience in the catering and fast food industries[131][132][133]. - The management team has a diverse background, including experience in international finance and public relations[132][133]. Use of Proceeds from Global Offering - The net proceeds from the Global Offering amounted to approximately HKD 2,372.9 million, with 79.2% utilized as of March 10, 2023[118]. - 77.4% of the proceeds are intended for expanding the restaurant network, with HKD 1,837.9 million allocated for this purpose[119]. - The Group plans to construct a supply chain center in Southern China by 2023, with an allocation of HKD 76.4 million[120]. - The balance of unused proceeds as of March 10, 2023, stands at 20.8%[119]. Challenges and Risks - The pandemic has impacted operations since early 2020, affecting overall performance[8]. - The estimated revenue loss due to the temporary suspension of restaurant operations in 2022 amounted to approximately RMB1,366.6 million[32]. - The company remains cautiously optimistic about future operations as it expects a gradual recovery in the economy and an increase in dining-out activities in 2023[32]. Financial Ratios and Metrics - Adjusted net profit margin fell from 9.1% in 2021 to 1.7% in 2022, reflecting the company's operational challenges[90][91]. - The liquidity position of the company is considered healthy, with sufficient cash and banking facilities to meet commitments and working capital requirements[32]. - The gearing ratio increased from nil as of December 31, 2021 to 0.9% as of December 31, 2022, due to bank loans of RMB 30.0 million obtained in 2022[102].

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 4,005.7 million, a decrease of 4.2% from RMB 4,179.7 million in 2021[2] - The annual profit for 2022 was RMB 55.6 million, down 85.1% from RMB 372.2 million in 2021[2] - The operating profit at the store level for 2022 was RMB 516.6 million, down from RMB 809.3 million in 2021[2] - Total revenue for 2022 was RMB 4,059,000, compared to RMB 4,200,000 in 2021, representing a decrease of approximately 3.4%[10] - The company’s total operating profit for the year ended December 31, 2022, was RMB 516.6 million, with an operating profit margin of 12.9%, down from RMB 809.3 million and 19.4% in 2021[40] - Adjusted net profit for 2022 was RMB 69.3 million, with an adjusted net profit margin of 1.7%, compared to RMB 380.4 million and 9.1% in 2021[42] - The total comprehensive income for the year was RMB 142,461, down from RMB 425,154 in 2021, reflecting a decline of 66.5%[76] - The company reported a net loss from equity investments of RMB 126,444 for the year, compared to a gain of RMB 132,771 in 2021[76] - The company reported a pre-tax profit of RMB 94,331 thousand in 2022, a significant decrease from RMB 505,920 thousand in 2021[92] Revenue Breakdown - Same-store sales for the Jiumaojiu brand decreased by 11.0%, while the Taier brand saw a decline of 22.3%[5] - Revenue from the brand "九毛九" was RMB 604,752, down from RMB 758,756 in 2021, a decline of about 20.3%[10] - The brand "太二" generated revenue of RMB 3,098,041, a decrease of 5.7% from RMB 3,285,180 in 2021[10] - The self-operated "2顆雞蛋煎餅" brand reported revenue of RMB 3,826, down from RMB 12,608 in 2021, a decline of 69.7%[10] - The franchise "2顆雞蛋煎餅" brand generated RMB 4,963, down from RMB 16,399 in 2021, a decrease of 69.7%[10] - Revenue from the brand Jiu Mao Jiu fell by 20.4% from RMB 760.5 million in 2021 to RMB 605.5 million in 2022, accounting for 15.1% of total revenue[18] - Revenue from the brand Tai Er decreased by 5.6% from RMB 3,292.2 million in 2021 to RMB 3,108.3 million in 2022, representing 77.6% of total revenue[19] - Revenue from other brands increased by 129.7% from RMB 127.1 million in 2021 to RMB 291.9 million in 2022, accounting for 7.3% of total revenue[19] Operational Changes - The number of restaurants increased to 556 in 2022 from 470 in 2021, with 120 new restaurants opened during the year[5] - The company plans to focus resources on the Shong Hotpot and Lai Mei Li Grilled Fish brands after selling the 2 Eggs Pancake brand in June 2022[6] - The company aims to adapt to post-pandemic consumer behavior changes and expects an increase in dining out activities in 2023[7] - The company plans to expand its restaurant network and enhance brand image, particularly for Tai Er, which has a higher operating profit level[15] - The company is exploring potential overseas markets for expansion, prioritizing regions with significant Chinese populations such as North America and Southeast Asia[15] - The company has initiated the construction of new supply chain centers in South and North China to enhance supply chain capabilities[15] - The company sold the brand "Two Eggs Pancake" in the first half of 2022 to focus on brands with greater growth potential[15] Cost and Expenses - Employee costs rose by 7.3% from RMB 1,056.9 million in the year ended December 31, 2021, to RMB 1,133.9 million in the same period of 2022, attributed to an increase in staff due to restaurant network expansion[25] - Depreciation of right-of-use assets increased by 17.7% from RMB 342.5 million in the year ended December 31, 2021, to RMB 403.0 million in the same period of 2022, mainly due to an increase in the number of restaurants[26] - Other expenses rose by 21.7% from RMB 259.8 million in the year ended December 31, 2021, to RMB 316.1 million in the same period of 2022, driven by increased delivery service fees and transportation costs due to restaurant network expansion[32] - Total expenses increased to RMB 316,124,000 in 2022 from RMB 259,814,000 in 2021, representing a rise of approximately 21.6%[94] Liquidity and Financial Position - The company maintained a strong liquidity position with sufficient cash and bank financing to meet operational needs[7] - The company's cash and cash equivalents decreased by 18.1% from RMB 1,342.1 million in 2021 to RMB 1,098.9 million in 2022, mainly due to reduced operating cash flow from pandemic impacts[49] - The company's total liabilities increased from RMB 1,997.5 million in 2021 to RMB 2,207.9 million in 2022, with a debt-to-asset ratio rising from 38.9% to 40.8%[48] - The actual tax rate increased from 26.4% in the year ended December 31, 2021, to 41.0% in the same period of 2022, primarily due to pre-tax losses calculated at a zero tax rate[36] Shareholder Returns - The board proposed a final dividend of HKD 0.01 per share for the year ended December 31, 2022, down from HKD 0.06 per share for the previous year[58] - The proposed final dividend for 2022 is RMB 12,795,000, down from RMB 70,968,000 for 2021[119] Corporate Governance - The company has complied with all provisions of the Corporate Governance Code during the year ended December 31, 2022, except for a deviation regarding the roles of the Chairman and CEO[127] - The Audit Committee, consisting of three independent non-executive directors, has reviewed the audited consolidated financial statements for the year ended December 31, 2022, ensuring their integrity and accuracy[129] - The auditor, KPMG, confirmed that the financial data disclosed in the preliminary announcement is consistent with the audited consolidated financial statements[130]

Financial Performance - Jiumaojiu International Holdings Limited reported a revenue of HK$1.2 billion for the first half of 2022, representing a year-on-year increase of 15%[4]. - The company achieved a net profit of HK$200 million, which is a 10% increase compared to the same period last year[4]. - The company provided a positive outlook for the second half of 2022, projecting a revenue growth of 10% to 15%[10]. - Revenue for the six months ended June 30, 2022, was RMB 1,899,021, a decrease of 6.0% from RMB 2,021,485 in the same period of 2021[21]. - Profit for the period attributable to equity shareholders of the Company was RMB 57,700, a decline of 69.0% compared to RMB 186,038 in 2021[21]. - Profit for the period decreased to RMB 62,503,000 in 2022 from RMB 205,158,000 in 2021, representing a decline of approximately 69.5%[166]. - Total comprehensive income for the period was RMB 15,061,000, down from RMB 320,549,000 in the previous year, indicating a decrease of about 95.3%[166]. Customer and Market Growth - User data indicates that the number of customers served increased by 20% year-on-year, reaching 5 million[4]. - User data indicated a growth in active users, reaching 2.5 million, which is a 20% increase compared to the previous year[9]. - The company plans to expand its market presence in Southeast Asia, targeting a 25% increase in market share by 2023[12]. - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share by the end of 2023[199]. - Customer retention rate reached 85%, indicating strong user satisfaction and loyalty[199]. Strategic Initiatives - The company plans to open 30 new restaurants in 2023, expanding its market presence significantly[4]. - Jiumaojiu is investing HK$50 million in new product development, focusing on innovative menu items to attract younger consumers[4]. - The company is exploring potential acquisitions to enhance its market share and operational capabilities[4]. - The company plans to pursue strategic acquisitions to enhance its product portfolio, with a budget of up to HKD 500 million allocated for this purpose[14]. - A strategic acquisition was completed, enhancing the company's capabilities in AI technology, expected to contribute an additional RMB 200 million in revenue[200]. Operational Efficiency - The gross profit margin improved to 45%, up from 40% in the previous year, indicating better cost management[15]. - The company aims to reduce operational costs by 10% through efficiency improvements in the supply chain[16]. - Research and development expenses increased by 30% to HKD 150 million, focusing on innovative technologies[13]. - The company is committed to enhancing its digital presence, aiming for a 30% increase in online sales by the end of 2023[4]. Challenges and Risks - The estimated loss of revenue due to temporary suspension of restaurant operations in the first half of 2022 was approximately RMB590.9 million[26]. - Over 60% of the company's restaurants experienced temporary suspension or restriction of dine-in services for an average of approximately 32 days in the first half of 2022 due to COVID-19 outbreaks[26]. - The future impact of the Pandemic on the company's operations remains uncertain, depending on developments in COVID-19 cases and government measures[27]. Financial Position and Investments - Cash and cash equivalents increased by 37.5% from RMB1,342.1 million as of December 31, 2021 to RMB1,845.2 million as of June 30, 2022[101]. - The company reported a net current assets position of RMB 1,762,728,000 as of June 30, 2022, compared to RMB 1,754,885,000 at the end of 2021, reflecting a slight increase of about 0.4%[177]. - The company plans to invest 55% of the proceeds (approximately HKD 456.5 million) in suppliers for key raw materials by the end of 2026[160]. - The company has completed its restaurant network expansion plan for the Tai Er brand as outlined in the Prospectus[43]. Corporate Governance - The company emphasizes effective internal control measures and high standards of ethics and transparency in its operations[141]. - The Audit Committee consists of three independent non-executive Directors, ensuring the integrity and accuracy of financial information[147]. - The company has established guidelines for securities transactions to ensure compliance and prevent insider trading[144].

Financial Performance - The company reported a revenue of HKD 1.2 billion for the fiscal year, representing a year-over-year increase of 15%[5] - The company expects a revenue guidance of HKD 1.5 billion for the next fiscal year, indicating a projected growth of 25%[5] - The company provided a positive outlook, projecting a revenue growth of 10-12% for the next fiscal year[9] - Revenue for the year ended December 31, 2021, was RMB 4,179,704,000, representing a 54.0% increase from RMB 2,714,830,000 in 2020[19] - Profit for the year increased to RMB 372,153,000, a 169.0% rise compared to RMB 138,006,000 in 2020[19] - Total comprehensive income for the year was RMB 425,154,000, significantly higher than RMB 5,858,000 in 2020[19] - Adjusted net profit for 2021 was RMB 380,427,000, compared to RMB 116,141,000 in 2020, marking a 227.0% increase[19] - Revenue for Jiu Mao Jiu restaurant in 2021 was RMB 758.8 million, up from RMB 698.3 million in 2020, representing an increase of approximately 8.5%[43] - Tai Er restaurant revenue surged to RMB 3.29 billion in 2021, compared to RMB 1.96 billion in 2020, marking a growth of approximately 67.5%[43] Customer Engagement and Market Expansion - User data showed a growth in active customers to 3 million, up 20% compared to the previous year[5] - The company is expanding its market presence with plans to open 50 new locations across China in the next year[5] - The company aims to enhance customer engagement through a new loyalty program, projected to increase repeat visits by 15%[9] - The company is exploring international markets, with a focus on countries with significant Chinese populations, such as Singapore, the United States, and Canada[53] Strategic Initiatives - New product launches contributed to a 30% increase in sales during the last quarter, with the introduction of two new menu items[5] - Research and development expenses increased by 10% to HKD 100 million, focusing on new technology for food delivery[5] - The company completed a strategic acquisition of a local competitor, enhancing its market share by 5%[5] - The company plans to invest HKD 200 million in sustainability initiatives over the next three years[5] - The company aims to enhance its supply chain capabilities by constructing a new supply chain center in Southern China[53] Operational Efficiency - The gross profit margin improved to 35%, up from 30% in the previous year, due to cost control measures[5] - Operational efficiency initiatives are expected to reduce costs by 8% over the next year[8] - The company maintains a healthy liquidity position with sufficient cash and banking facilities to meet commitments and working capital requirements[38] Human Resources and Management - The management team includes experienced executives, with Mr. Guan Yihong serving as Chairman and CEO[12] - The company has a significant presence in the PRC market, which is crucial for its growth strategy[10] - The company has a strong focus on independent advice and judgment from its board members to enhance governance[131] - The management team is composed of individuals with significant experience in their respective fields, contributing to the company's growth and innovation[137] Corporate Governance - The Company has complied with all applicable code provisions of the CG Code for the year ended December 31, 2021, except for deviations from code provision C.2.1[141] - The Board is responsible for the direction and control of the Company's business, establishing policies, strategies, and plans for development[141] - The Company has established risk management and internal control systems to manage risks associated with achieving business objectives[183] - The Audit Committee assists the Board in overseeing the design and implementation of risk management and internal control systems[183] Shareholder Communication and Policies - The Company maintains a website for transparent communication with shareholders and investors, providing updates on business operations and financial information[194] - The Company has established a Shareholders' Communication Policy to ensure that Shareholders' views and concerns are appropriately addressed[196] - The Company has adopted a Dividend Policy without a pre-determined dividend payout ratio, allowing the Board to propose dividends based on financial conditions[196]

Definitions and Corporate Information [Definitions](index=3&type=section&id=Definitions) This chapter defines specific terms used in the report, including company entities, associated brands, and financial and legal terminology, providing a foundation for understanding the report content - The report defines the Group's main restaurant brands, including **Jiu Mao Jiu**, **Tai Er**, **Double Eggs**, **Song**, and **Uncle Chef**[3](index=3&type=chunk)[4](index=4&type=chunk)[6](index=6&type=chunk)[9](index=9&type=chunk) [Corporate Information](index=7&type=section&id=Corporate%20Information) This chapter provides core corporate governance and operational support information, including basic registration details, headquarters, board members, committee structures, legal advisors, independent auditors, and principal bankers - The Chairman of the Board and Chief Executive Officer is **Mr. Guan Yihong**[10](index=10&type=chunk) - The company's independent auditor is **KPMG**[15](index=15&type=chunk) Chairman's Statement [Financial and Operational Highlights](index=11&type=section&id=Financial%20and%20Operational%20Highlights) In the first half of 2021, the company achieved a strong performance rebound, turning losses into profits with total revenue growing by **112.9%** to **RMB 2.02 billion**, driven by the strong performance of its core brand Tai Er Key Financial Data for H1 2021 | Indicator | H1 2021 (RMB in thousands) | H1 2020 (RMB in thousands) | | :--- | :--- | :--- | | Revenue | 2,021,485 | 949,507 | | Store-level Operating Profit | 404,762 | 23,448 | | Profit/(Loss) for the Period | 205,158 | (88,696) | | Adjusted Net Profit/(Loss) | 208,352 | (114,840) | Key Operational Data for H1 2021 | Indicator | June 30, 2021 | June 30, 2020 | | :--- | :--- | :--- | | **Number of Restaurants** | 419 | 321 | | **Table Turnover Rate (Tai Er)** | 3.7 | 3.4 | | **Table Turnover Rate (Jiu Mao Jiu)** | 1.8 | 1.3 | | **Average Spending Per Customer (Tai Er, RMB)** | 79 | 77 | | **Average Spending Per Customer (Jiu Mao Jiu, RMB)** | 59 | 61 | [Business Review and Outlook](index=12&type=section&id=Business%20Review%20and%20Outlook) In H1 2021, the company recovered from the pandemic, accelerating expansion to **419** restaurants and achieving profitability, primarily driven by the **Tai Er** brand's growth and increased operating days, while maintaining robust liquidity and planning future expansion - The company's performance shifted from a **loss of RMB 88.7 million** in H1 2020 to a **profit of RMB 205.2 million**, primarily due to the continuous expansion of the **Tai Er** restaurant network from **161** to **286** stores and increased total restaurant operating days post-pandemic recovery[33](index=33&type=chunk) - In H1 2021, the company opened **58** new restaurants, with **55** under the **Tai Er** brand, while closing **13** underperforming self-operated restaurants[37](index=37&type=chunk) - Future development strategies include continuous expansion focusing on the **Tai Er** brand network, adhering to a multi-brand strategy, enhancing supply chain capabilities with a planned South China center, and exploring global markets, prioritizing regions with large Chinese populations like Singapore, the US, and Canada[45](index=45&type=chunk)[47](index=47&type=chunk) Management Discussion and Analysis [Revenue Analysis](index=19&type=section&id=Revenue%20Analysis) Total revenue increased by **112.9%** to **RMB 2.02 billion** in H1 2021, primarily driven by **Tai Er**'s **138.6%** revenue growth to **RMB 1.60 billion**, increasing its contribution to **79.3%** of total revenue, while restaurant operations revenue grew **137.5%** to **84.3%** of total Revenue by Brand (RMB in thousands) | Brand | H1 2021 | % of Total | H1 2020 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Jiu Mao Jiu | 381,687 | 18.9% | 266,828 | 28.1% | | Tai Er | 1,602,726 | 79.3% | 671,718 | 70.7% | | Others | 37,072 | 1.8% | 10,961 | 1.2% | | **Total** | **2,021,485** | **100.0%** | **949,507** | **100.0%** | Revenue by Service Type (RMB in thousands) | Service Type | H1 2021 | % of Total | H1 2020 | % of Total | | :--- | :--- | :--- | :--- | :--- | | Restaurant Operations | 1,703,797 | 84.3% | 717,510 | 75.6% | | Takeaway Business | 302,489 | 15.0% | 219,778 | 23.1% | | Specialty Product Sales | 5,408 | 0.3% | 1,273 | 0.1% | | Others | 9,791 | 0.4% | 10,946 | 1.2% | | **Total** | **2,021,485** | **100.0%** | **949,507** | **100.0%** | [Cost and Expense Analysis](index=23&type=section&id=Cost%20and%20Expense%20Analysis) In H1 2021, key cost and expense ratios significantly decreased, reflecting operating leverage, with raw materials and staff costs declining as a percentage of revenue, while other rental expenses increased due to reduced pandemic-related rent concessions - Raw materials and consumables costs as a percentage of revenue decreased from **39.2%** to **37.2%**, primarily due to lower procurement costs for key ingredients like perch and pickled vegetables[66](index=66&type=chunk) - Staff costs as a percentage of revenue significantly decreased from **34.5%** to **25.1%**, mainly due to expanded revenue base as restaurant operations recovered from the pandemic[66](index=66&type=chunk) - Other rental and related expenses as a percentage of revenue increased from **1.5%** to **2.5%**, primarily due to reduced pandemic-related rental concessions[67](index=67&type=chunk)[68](index=68&type=chunk) [Profitability Analysis (Non-IFRS)](index=26&type=section&id=Profitability%20Analysis%20%28Non-IFRS%29) The company uses Non-IFRS metrics to assess core operating performance, with store-level operating profit margin significantly improving to **20.0%** and adjusted net profit turning positive at **RMB 208 million**, demonstrating strong profitability recovery Store-level Operating Profit and Margin by Brand | Brand | H1 2021 Operating Profit (RMB in thousands) | H1 2021 Margin | H1 2020 Operating Profit (RMB in thousands) | H1 2020 Margin | | :--- | :--- | :--- | :--- | :--- | | Jiu Mao Jiu | 29,627 | 7.8% | (46,016) | (17.2)% | | Tai Er | 375,445 | 23.4% | 75,626 | 11.3% | | Other Brands | (310) | (0.8)% | (6,162) | (56.2)% | | **Total** | **404,762** | **20.0%** | **23,448** | **2.5%** | Reconciliation of Adjusted Net Profit/(Loss) (RMB in thousands) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Profit/(Loss) for the Period | 205,158 | (88,696) | | Add: Equity-settled share-based payment expenses | 3,194 | 2,961 | | Add: Listing expenses | – | 7,344 | | Less: Interest income from IPO proceeds | – | (36,449) | | **Adjusted Net Profit/(Loss)** | **208,352** | **(114,840)** | | **Adjusted Net Profit/(Loss) Margin** | **10.3%** | **(12.1)%** | [Financial Position and Liquidity](index=29&type=section&id=Financial%20Position%20and%20Liquidity) As of June 30, 2021, the company maintained a robust financial position with total assets increasing to **RMB 5.21 billion**, a stable debt-to-asset ratio of **36.2%**, improved inventory turnover, and a zero capital gearing ratio after repaying all bank loans - Inventory turnover days decreased from **22.0** days at the end of 2020 to **13.8** days in H1 2021, primarily due to accelerated ingredient consumption as restaurant operations recovered post-pandemic[87](index=87&type=chunk) - The capital gearing ratio decreased from **1.4%** at the end of 2020 to **zero**, as the company repaid all outstanding bank loans in H1 2021[92](index=92&type=chunk)[93](index=93&type=chunk) - Total capital expenditure increased from **RMB 69.3 million** in the prior period to **RMB 160.2 million**, a **131.3%** year-on-year increase, primarily for opening new restaurants and purchasing related equipment[92](index=92&type=chunk) Other Information [Directors' and Substantial Shareholders' Interests](index=35&type=section&id=Directors%27%20and%20Substantial%20Shareholders%27%20Interests) This chapter discloses the interests of directors, senior management, and substantial shareholders in the company's shares, with Chairman Mr. Guan Yihong holding approximately **40.66%** through GYH BVI, and BlackRock, Inc. holding approximately **6.82%** - Company Chairman **Mr. Guan Yihong** holds **590,945,000** shares, representing **40.66%** of the company's issued shares, through his controlled corporation **GYH BVI**[98](index=98&type=chunk)[102](index=102&type=chunk) - **BlackRock, Inc.**, through its controlled corporations, collectively holds **99,157,818** shares, representing **6.82%** of the company's issued shares[112](index=112&type=chunk)[113](index=113&type=chunk) [Share Incentive Schemes](index=39&type=section&id=Share%20Incentive%20Schemes) The company operates Restricted Share Unit (RSU) and Share Option schemes to incentivize and retain key employees, with **7,248,603** RSUs outstanding and **1,694,600** share options granted in 2020 yet to be exercised as of June 30, 2021 - As of June 30, 2021, **7,248,603** shares remained unvested under the Restricted Share Unit (RSU) scheme, with **1,571,000** RSUs vested during the period[118](index=118&type=chunk) - As of June 30, 2021, **1,694,600** share options granted under the share option scheme remained unexercised, representing **0.12%** of total issued shares, with an exercise price of **HKD 17.98** per share[125](index=125&type=chunk) [Corporate Governance](index=43&type=section&id=Corporate%20Governance) The company maintains high corporate governance standards, complying with most code provisions, with the only deviation being the combined roles of Chairman and CEO, which the Board believes benefits group management without compromising accountability - The company complied with all applicable provisions of the Corporate Governance Code, with one deviation: the roles of Chairman and Chief Executive Officer are held by the same individual, **Mr. Guan Yihong**[129](index=129&type=chunk)[130](index=130&type=chunk) - The Board believes that the combined roles of Chairman and Chief Executive Officer, supported by the Board's collective decision-making and composition, do not impair the balance of power and accountability and benefit the Group's management[130](index=130&type=chunk) [Use of Proceeds](index=45&type=section&id=Use%20of%20Proceeds) This chapter details the use of net proceeds from the global offering and subscription, with **HKD 2.37 billion** from the global offering **46.5%** utilized for restaurant network expansion, and **HKD 830 million** from the subscription **48.6%** used for supplier investments and working capital Status of Use of Proceeds from Global Offering (As of August 15, 2021) | Intended Use | Intended Amount (HKD in millions) | % Utilized | % Unutilized Balance | | :--- | :--- | :--- | :--- | | Expansion of Restaurant Network | 1,837.9 | 34.5% | 65.5% | | Enhancement of Supply and Support Capabilities | 133.7 | 51.0% | 49.0% | | Repayment of Part of Bank Loans | 210.2 | 100.0% | – | | Working Capital and General Corporate Purposes | 191.1 | 100.0% | – | | **Total** | **2,372.9** | **46.5%** | **53.5%** | Status of Use of Proceeds from Subscription (As of August 15, 2021) | Intended Use | Intended Amount (HKD in millions) | % Utilized | % Unutilized Balance | | :--- | :--- | :--- | :--- | | Investment in Key Raw Material Suppliers | 456.5 | 15.2% | 84.8% | | General Working Capital | 249.0 | 100.0% | – | | Investment in Other Companies in the Restaurant Industry | 124.5 | 68.6% | 31.4% | | **Total** | **830.0** | **48.6%** | **51.4%** | Consolidated Financial Statements [Consolidated Statement of Profit or Loss](index=47&type=section&id=Consolidated%20Statement%20of%20Profit%20or%20Loss) In H1 2021, the Group achieved a significant performance turnaround, with revenue growing **112.9%** to **RMB 2.02 billion**, resulting in a pre-tax profit of **RMB 277 million** and a profit for the period of **RMB 205 million**, demonstrating strong recovery Summary of Consolidated Statement of Profit or Loss (RMB in thousands) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Revenue | 2,021,485 | 949,507 | | Profit/(Loss) Before Tax | 276,755 | (128,858) | | Income Tax | (71,597) | 40,162 | | **Profit/(Loss) for the Period** | **205,158** | **(88,696)** | | Profit/(Loss) Attributable to Equity Holders of the Company | 186,038 | (85,902) | | **Basic Earnings/(Loss) Per Share (RMB)** | **0.13** | **(0.06)** | [Consolidated Statement of Financial Position](index=50&type=section&id=Consolidated%20Statement%20of%20Financial%20Position) As of June 30, 2021, the Group's financial position remained robust, with total assets increasing to **RMB 5.21 billion**, total equity growing to **RMB 3.33 billion**, and a strong current ratio of **3.70**, indicating solid short-term solvency Summary of Consolidated Statement of Financial Position (RMB in thousands) | Item | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Non-current Assets** | 2,471,135 | 1,944,741 | | **Current Assets** | 2,741,615 | 2,861,710 | | **Total Assets** | **5,212,750** | **4,806,451** | | **Current Liabilities** | 740,038 | 748,945 | | **Non-current Liabilities** | 1,144,801 | 997,104 | | **Total Liabilities** | **1,884,839** | **1,746,049** | | **Total Equity** | **3,327,911** | **3,060,402** | [Condensed Consolidated Cash Flow Statement](index=55&type=section&id=Condensed%20Consolidated%20Cash%20Flow%20Statement) In H1 2021, the Group demonstrated healthy cash flow, with net cash from operating activities significantly increasing to **RMB 378 million**, net cash from investing activities at **RMB 421 million**, and cash and cash equivalents reaching **RMB 2.33 billion** at period-end Summary of Condensed Consolidated Cash Flow Statement (RMB in thousands) | Item | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 377,650 | 172,092 | | Net Cash from/(used in) Investing Activities | 421,302 | (989,706) | | Net Cash (used in)/from Financing Activities | (284,113) | 1,804,455 | | **Net Increase in Cash and Cash Equivalents** | **514,839** | **986,841** | | Cash and Cash Equivalents at Beginning of Period | 1,843,903 | 127,170 | | **Cash and Cash Equivalents at End of Period** | **2,333,419** | **1,170,411** | Notes to the Unaudited Interim Financial Report [Note 3: Revenue and Segment Reporting](index=61&type=section&id=Note%203%20REVENUE%20AND%20SEGMENT%20REPORTING) This note details revenue sources and segment performance, with **Tai Er** being the primary contributor to revenue and profit, achieving **RMB 358 million** in segment profit in H1 2021, and over **90%** of operating profit originating from the China market - The Group manages its business by restaurant brand, categorized into three reportable segments: **Jiu Mao Jiu**, **Tai Er**, and **Others**, with segment profit measured using **Non-GAAP Operating Profit**[206](index=206&type=chunk) Segment Profit/(Loss) (Non-GAAP Operating Profit, RMB in thousands) | Segment | H1 2021 | H1 2020 | | :--- | :--- | :--- | | Jiu Mao Jiu | 13,515 | (45,174) | | Tai Er | 358,135 | 46,088 | | Others | (2,983) | (2,160) | | **Total** | **368,667** | **(1,246)** | [Note 15: Equity Settled Share-Based Payments](index=79&type=section&id=Note%2015%20EQUITY%20SETTLED%20SHARE-BASED%20PAYMENTS) This note details the company's share incentive plans, including Restricted Share Unit (RSU) and employee share option schemes, with **RMB 431 thousand** and **RMB 2.76 million** in related expenses recognized for H1 2021, respectively, reflecting non-cash employee incentives - For the six months ended June 30, 2021, the Group recognized **RMB 431 thousand** in expenses for the Restricted Share Unit (RSU) scheme and **RMB 2.76 million** for the employee share option scheme[272](index=272&type=chunk)[274](index=274&type=chunk) [Note 19: Material Related Party Transactions](index=87&type=section&id=Note%2019%20MATERIAL%20RELATED%20PARTY%20TRANSACTIONS) This note discloses significant related party transactions, including the purchase of **RMB 81.09 million** in materials from associate company Guangdong Tai Er Agriculture, sales to the ultimate controlling shareholder's restaurant, and variable lease payments to Mr. Guan - In H1 2021, the Group purchased **RMB 81,086 thousand** in materials from its associate company, **Guangdong Tai Er Agriculture**[305](index=305&type=chunk) - As of June 30, 2021, amounts due from related parties totaled **RMB 51,520 thousand**, primarily advances to an associate company, while amounts due to related parties were **RMB 6,017 thousand**[311](index=311&type=chunk)[315](index=315&type=chunk) Review Report [Auditor's Conclusion](index=91&type=section&id=Auditor%27s%20Conclusion) KPMG, the independent auditor, reviewed the interim financial report and found no material non-compliance with International Accounting Standard 34, providing assurance on its reliability, though the review scope is less than a full audit - Independent auditor **KPMG** reviewed the interim financial report and concluded that they found no material non-compliance with **International Accounting Standard 34, Interim Financial Reporting**[326](index=326&type=chunk) - The scope of the review is substantially less than an audit conducted in accordance with Hong Kong Standards on Auditing, thus the auditor does not express an audit opinion[323](index=323&type=chunk)[324](index=324&type=chunk)

Company Overview - Jiumaojiu International Holdings Limited was incorporated in the Cayman Islands on February 1, 2019[4]. - The company operates through its subsidiary, Guangzhou Jiumaojiu Catering Chain Co., Ltd., established in the PRC on August 30, 2005[4]. - The company is listed under stock code 9922[1]. - The company is listed on the Main Board of the Stock Exchange since January 15, 2020, enhancing its market visibility and access to capital[5]. - The registered office is located in Grand Cayman, while the headquarters is in Guangzhou, PRC[18]. - The company has undergone a reorganization in preparation for its listing, as detailed in the prospectus[17]. - The company operates multiple brands including Song, Tai Er, and Uncle Chef, focusing on cold pot skewers and Chongqing hot pot[8][12][14]. Financial Performance - Revenue for the year ended December 31, 2020, was RMB 2,714,830,000, representing an increase from RMB 2,687,287,000 in 2019[27]. - Profit for the year was RMB 138,006,000, compared to RMB 185,770,000 in 2019, reflecting a decline of about 25.7%[27]. - Total comprehensive income for the year was RMB 5,858,000, significantly lower than RMB 185,479,000 in 2019[27]. - Operating profit for 2020 was RMB 348,165,000, down from RMB 481,599,000 in 2019, a decrease of approximately 27.7%[27]. - Adjusted net profit for the year was RMB 116,141,000, compared to RMB 216,600,000 in 2019, a decline of about 46.3%[27]. - Total assets as of December 31, 2020, were RMB 4,806,451,000, an increase from RMB 1,654,351,000 in 2019[33]. - Total equity attributable to the owners of the Company rose to RMB 3,016,555,000 in 2020 from RMB 133,088,000 in 2019, a significant increase[33]. - Total liabilities decreased to RMB 1,746,049,000 in 2020 from RMB 1,483,675,000 in 2019, indicating a reduction of about 17.7%[33]. Market Strategy and Expansion - The company aims to expand its market presence through strategic initiatives and product offerings[2]. - The company has a strategic focus on expanding its restaurant operations, particularly in the PRC market[5]. - The company plans to expand its restaurant network, particularly for Tai Er, while adopting a moderate approach for other brands due to the pandemic[63]. - Future expansion will focus on regions with high Chinese populations, including Hong Kong, Macau, Singapore, the United States, and Canada[63]. - The company aims to strengthen its supply chain by establishing a new warehouse and food processing center near its central kitchen in Foshan[71]. - The multi-brand and multi-concept strategy is intended to capture more market opportunities and increase market share[63]. Corporate Governance - The company is audited by KPMG[3]. - The corporate governance report is included in the annual report[2]. - The company has established a nomination committee to oversee the nomination process for directors, ensuring governance standards are met[6]. - The company is committed to adhering to the Listing Rules, ensuring compliance with regulatory requirements[6]. - The Board composition includes 4 executive directors, 1 non-executive director, and 3 independent non-executive directors, ensuring a strong independence element[152]. - The Company has complied with all applicable code provisions of the CG Code during the reporting period, except for deviations from code provision A.2.1[149]. Operational Challenges - The pandemic led to a temporary suspension of restaurant operations in the first half of 2020, adversely affecting overall performance[41]. - The company incurred expenses of approximately RMB3.1 million on COVID-19 prevention and control measures to safeguard health and safety[44]. - The overall decline in revenue was primarily due to the temporary suspension of restaurant operations and reduced customer traffic amid the Pandemic[55]. Shareholder Communication - The Company emphasizes the importance of effective communication with shareholders to enhance investor relations and understanding of business performance[188]. - The Company maintains a website for public access to information and updates on business operations and financial information[188]. - A Shareholders' Communication Policy is in place to ensure that shareholders' views and concerns are appropriately addressed[190]. Future Outlook - The Group aims to replicate its success through further expansion in the year ending December 31, 2021[199]. - The Company plans to pursue a multi-brand and multi-concept strategy to expand into more market segments[199]. - Strengthening supply and support capabilities is a key focus for the Group in the upcoming year[199]. - The Group intends to expand into global markets to gain international presence[199].