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].

Financial Performance - The company reported a revenue of HK$1.2 billion for the first half of the year, representing a 15% increase year-over-year[6]. - Revenue for the six months ended June 30, 2020, was RMB 949,507,000, a decrease of 23.3% from RMB 1,237,138,000 in the same period of 2019[24]. - The company reported a loss before taxation of RMB 128,858,000 compared to a profit of RMB 138,546,000 in the previous year[24]. - Adjusted net loss for the period was RMB 114,840,000 compared to a profit of RMB 116,341,000 in the same period of 2019[24]. - The company reported a significant increase in finance costs, totaling RMB 33.8 million, compared to RMB 29.1 million in the previous year[163]. - The company recorded a loss of RMB 88,696,000 for the six months ended June 30, 2020, compared to a profit of RMB 102,037,000 for the same period in 2019[166]. - Total comprehensive income for the period was RMB (21,890,000), a significant decrease from RMB 102,037,000 in the previous year[166]. Customer and Market Growth - User data showed a 20% growth in active customers, reaching 1.5 million by the end of the reporting period[6]. - The company is expanding its market presence with plans to open 30 new locations in the next year, targeting key urban areas[6]. - The company is focused on expanding its Jiu Mao Jiu brand and enhancing its market presence in the PRC[9]. - The company plans to continue its restaurant network expansion plan for Tai Er while adopting a moderate approach for other brands due to uncertainties caused by the Epidemic[44]. Operational Changes and Challenges - The financial results were impacted by the ongoing epidemic, affecting restaurant operations and customer traffic[28]. - The company continues to focus on expanding its restaurant network and enhancing customer experience despite the challenging environment[28]. - A total of 48 self-operated restaurants were closed, resulting in asset disposal losses of approximately RMB27.8 million[32]. - The company permanently closed 43 Jiu Mao Jiu restaurants during the six months ended June 30, 2020, due to the epidemic[62]. Revenue Streams - Revenue from restaurant operations decreased by 35.8% from RMB1,117.1 million in the first half of 2019 to RMB717.5 million for the comparative period in 2020[44]. - Revenue from Tai Er increased by 24.8% from RMB537.2 million for the six months ended June 30, 2019 to RMB670.5 million for the comparative period in 2020[44]. - Revenue from delivery business increased by 107.3% from RMB106.0 million to RMB219.8 million, significantly increasing its share of total revenue from 8.6% to 23.1%[62]. Cost Management and Efficiency - The gross profit margin improved to 35%, up from 32% in the previous year, indicating better cost management[6]. - The company aims to reduce operational costs by 10% through process optimization and supply chain improvements[6]. - Staff costs as a percentage of revenue increased from 25.9% for the six months ended June 30, 2019 to 34.5% for the same period in 2020[66]. - Other rentals and related expenses decreased by 34.9% from RMB21.5 million for the six months ended June 30, 2019 to RMB14.0 million for the same period in 2020[69]. Future Outlook and Strategies - The company provided a positive outlook, projecting a revenue growth of 10-15% for the next fiscal year[6]. - Future strategies include diversifying the menu offerings and enhancing delivery services to capture a larger market segment[6]. - The company plans to expand into global markets, prioritizing locations with high populations of Chinese people such as Hong Kong, Macau, Singapore, the United States, and Canada[46]. Shareholder Information and Corporate Governance - Guan Yihong holds 614,445,000 shares, representing approximately 44.42% of the Company's shareholding as of June 30, 2020[117]. - The Board did not recommend the payment of an interim dividend for the six months ended June 30, 2020, compared to Nil for the same period in 2019[114]. - The company has complied with the Model Code for securities transactions by directors since the Listing Date[144]. Capital and Financing Activities - The company completed a subscription on July 30, 2020, receiving net proceeds of approximately HKD829.5 million[108]. - The company raised RMB 2,135,929,000 from the issuance of ordinary shares during the IPO and over-allotment, net of issuance costs[178]. - The company plans to use the net proceeds from the subscription for investments in other companies in the catering industry and for general working capital[161].

Financial Performance - Jiumaojiu International Holdings Limited reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a year-on-year growth of 25%[2]. - The company reported a net profit of HKD 250 million, marking a 35% increase from the previous year[2]. - Revenue for the year ended December 31, 2019, was RMB 2,687,287, an increase of 42% from RMB 1,892,821 in 2018[17]. - Operating profit for 2019 was RMB 504,957, up 59% from RMB 317,709 in 2018[22]. - Profit for the year reached RMB 185,770, a significant increase from RMB 73,848 in 2018, marking a growth of 151%[22]. - Adjusted net profit for 2019 was RMB 216,600, compared to RMB 78,638 in 2018, reflecting a growth of 175%[22]. - Revenue for the year was RMB 2,687.3 million, up from RMB 1,892.8 million in 2018, indicating strong growth[79]. - Profit for the year surged by 151.6% from RMB 73.8 million in 2018 to RMB 185.8 million in 2019[72]. Customer and Market Expansion - The company expanded its user base, with a total of 1.5 million active customers, reflecting a 30% increase compared to the previous year[2]. - Jiumaojiu plans to open 50 new restaurant locations across China in the upcoming year, targeting key urban areas to increase market penetration[2]. - Future outlook indicates a projected revenue growth of 20% for the next fiscal year, driven by new product launches and market expansion strategies[2]. - The company is actively exploring potential mergers and acquisitions to strengthen its market position and diversify its offerings[5]. - The company has a clear strategy for market expansion, focusing on establishing new restaurant locations and enhancing brand presence in the PRC[5]. Brand Development - The introduction of a new brand, "Double Eggs," is anticipated to attract a younger demographic, with initial sales projections of HKD 100 million in the first year[2]. - Revenue from Tai Er surged by 136.4% to RMB 1,277.0 million, with its percentage of total revenue rising from 28.5% to 47.5%[48]. - Revenue from other brands increased by 107.9% to RMB 38.6 million, contributing 1.4% to total revenue[48]. Operational Efficiency and Technology - The company is investing in the development of new technologies, including a digital ordering system aimed at enhancing customer experience and operational efficiency[2]. - The company has plans for future product development and technological advancements to improve operational efficiency and customer experience[5]. - A new central kitchen will be opened in Foshan to enhance supply chain capabilities for future expansion[39]. Corporate Governance - The company emphasizes compliance with the Listing Rules of the Hong Kong Stock Exchange to maintain its corporate governance standards[7]. - The Company has adopted the principles and code provisions of the CG Code for corporate governance practices[133]. - The Board is responsible for all major matters, including policy approval, overall strategies, and risk management[136]. - The Company has established a corporate governance framework that aligns with its operational needs[134]. Financial Position and Assets - Total assets as of December 31, 2019, amounted to RMB 1,654,351, an increase from RMB 1,186,969 in 2018[19]. - Total liabilities increased to RMB 1,483,675 from RMB 983,400 in 2018, representing a growth of 51%[19]. - Cash and cash equivalents increased by 112.8% from RMB 59.8 million as of December 31, 2018, to RMB 127.2 million as of December 31, 2019[86]. Employee and Management Structure - The company has a total of 27 shareholders, all of whom are employees or former employees, indicating strong internal ownership[7]. - As of December 31, 2019, the Group employed a total of 12,314 employees, primarily based in China[99]. - The company has a strong management team with diverse backgrounds in finance, technology, and engineering[125][126][127]. Future Plans and Investments - The company plans to expand its restaurant network, with 77.4% of intended proceeds (approximately HKD 1,837.9 million) allocated for this purpose by the end of 2022[105]. - The company aims to strengthen its multi-brand and multi-concept strategy to capture more market opportunities and increase market share[38]. - The Group will continue to identify new opportunities for business development despite the lack of specific plans for major investments[98]. Risk Management - The Audit Committee assists the Board in overseeing the design and implementation of risk management and internal control systems[174]. - The Company conducted an annual review of its risk management and internal control systems, covering financial, operational, and compliance controls for the year ended December 31, 2019[177].