Summary of the Conference Call for Jiumaojiu Company Overview - **Company**: Jiumaojiu - **Industry**: Restaurant and Food Service Key Points and Arguments Business Model and Performance - Jiumaojiu has launched a new model focusing on fresh ingredients, transitioning from a single dish (sour fish) to three signature dishes with a variety of hot dishes. As of July, 64 new model stores have been established, with a target of over 150 by the end of the year and full implementation by the end of 2026 [2][3][5] - The new model has shown a 10% year-on-year increase in revenue and a 15% increase in dine-in revenue for July and August, significantly outperforming the old model [2][5] - In the first half of 2025, the company reported a net profit of 61 million RMB, maintaining a net profit margin of 2.2%, consistent with the previous year [3][5] Store Optimization and Closure - The company is actively optimizing its store structure, planning to close 68 self-operated stores and 3 franchise stores in the first half of 2025, with an additional 40 to 50 closures expected in the second half [2][3] - These closures are anticipated to impact short-term revenue but are viewed as beneficial for long-term health [2][3] Supply Chain and Cost Management - The introduction of live fish delivery to stores has been implemented, with the supply chain focusing on vegetable cleaning, rough processing, and sauce preparation. The self-supply ratio of bass fish remains below 30% [2][9] - The new model has slightly reduced gross margins by 1-2 percentage points, but future gross margins are expected to stabilize around 64% [7][8] Consumer Trends and Market Positioning - The company has observed a shift in consumer demographics, with a decrease in young customers and an increase in family diners, leading to higher expectations for food quality and dining experience [4][11] - To adapt, Jiumaojiu is enhancing its fresh ingredient offerings and overall dining experience to meet these evolving consumer demands [4][11] Future Plans and Financial Outlook - The company aims to achieve over 18% operating profit margin per store and plans to complete the renovation of all stores by 2026, with a capital expenditure budget exceeding 300 million RMB [7][19][20] - Retail business revenue is projected to grow, with sales contributions expected to reach 110-120 million RMB in the first half of 2025 [16] Challenges and Strategic Adjustments - The company has decided to discontinue pre-packaged sour fish due to negative brand perception, with plans to reintroduce it after establishing a fresh concept across all stores [17][18] - The sour fish category is still expanding, and the company plans to enhance customer retention by diversifying its menu offerings [18] Conclusion - Jiumaojiu is undergoing significant transformation with a focus on fresh ingredients and improved customer experience, while strategically closing underperforming stores to strengthen its market position and profitability in the long term [2][3][4][5][11]

Core Viewpoint - Huachuang Securities maintains a "recommended" rating for Jiumaojiu (09922), projecting net profits of 147 million, 165 million, and 168 million yuan for 2025, 2026, and 2027 respectively, with a target price of 2.65 HKD. The company has a solid supply chain foundation and strong core brands, with the ability to continuously incubate new brands, indicating promising future growth [1]. Brand Performance - For the first half of 2025, Jiumaojiu reported revenue of 2.753 billion yuan, a year-on-year decrease of 10.1%, and a net profit of 61 million yuan, down 16.05% year-on-year. The net profit margin was 2.13%, a decrease of 0.09 percentage points, while the net profit margin attributable to the parent company was 2.2%, down 0.16 percentage points [1]. - By brand, the operating profit margins for the first half of 2025 were as follows: Taier at 13.4% (down 0.4 percentage points), Song Hotpot at 3.6% (down 5.0 percentage points), Jiumaojiu at 12.7% (down 4.2 percentage points), and other brands at 15.9% (up 25.7 percentage points). The company has closed some non-core brands, reducing related expenses [1]. Consumer Metrics - The offline dining sector faced pressure in the first half of 2025, with a decline in turnover rates across brands. Taier's turnover rate dropped significantly to 2.2 from 2.7 in the same period of 2024. The turnover rates for Song Hotpot and Jiumaojiu were 1.7 (down from 2.0) and 1.5 (down from 1.8) respectively [2]. - The per capita consumption for Taier increased slightly to 73 yuan from 71 yuan in 2024, while Song Hotpot's per capita consumption decreased to 99 yuan from 110 yuan, and Jiumaojiu's per capita consumption rose to 57 yuan from 56 yuan [2]. Same Store Sales - Same-store sales for the first half of 2025 showed a decline: Taier at 1.536 billion yuan (down 18.9% year-on-year), Song Hotpot at 288 million yuan (down 20.07%), and Jiumaojiu at 193 million yuan (down 19.85%) [3]. Store Structure Optimization - As of the end of the first half of 2025, the total number of stores, including a few franchised restaurants, was 729, a net decrease of 42 from the end of the first half of 2024. Taier had 566 stores (down 48), with some direct stores converted to franchises, increasing the number of franchised restaurants to 19. Song Hotpot increased its store count to 31 (up 9), while Jiumaojiu had 68 stores (down 4) [4]. Supply Chain and International Expansion - The company is actively optimizing its supply chain and has begun trial operations at the Nansha Supply Chain Center, enhancing its digital capabilities. The Taier brand has expanded operations to multiple countries, including Singapore, Malaysia, Canada, the United States, Thailand, and Indonesia, while Lai Meili has opened one store in Singapore [5].

Core Viewpoint - Huachuang Securities maintains a "Buy" rating for Jiumaojiu (09922), projecting net profit for 2025/26/27 to be 1.47/1.65/1.68 billion yuan, with a target price of 2.65 HKD. The company has a solid supply chain foundation and strong core brands, with potential for continuous new brand incubation [1] Financial Performance - In the first half of 2025, Jiumaojiu reported revenue of 2.753 billion yuan, a year-on-year decrease of 10.1%, and a net profit attributable to shareholders of 61 million yuan, down 16.05%. The company's net profit margin was 2.13%, a decrease of 0.09 percentage points year-on-year [1] - By brand, the operating profit margins for the first half of 2025 were as follows: Taier at 13.4% (down 0.4 percentage points), Song Hotpot at 3.6% (down 5.0 percentage points), Jiumaojiu at 12.7% (down 4.2 percentage points), and other brands at 15.9% (up 25.7 percentage points) [1] Customer Metrics - In the first half of 2025, the turnover rates for each brand decreased: Taier at 2.2 (down from 2.7 in the same period of 2024), Song Hotpot at 1.7 (down from 2.0), and Jiumaojiu at 1.5 (down from 1.8) [2] - The table turnover rates were also down: Taier at 3.1 (down from 3.8), Song Hotpot at 2.5 (down from 2.9), and Jiumaojiu at 2.5 (down from 2.8) [2] - Average customer spending showed slight increases for Taier (73 yuan, up from 71 yuan) and Jiumaojiu (57 yuan, up from 56 yuan), while Song Hotpot saw a decline (99 yuan, down from 110 yuan) [2] Same-store Sales - Same-store sales for the first half of 2025 were as follows: Taier at 1.536 billion yuan (down 18.9%), Song Hotpot at 288 million yuan (down 20.07%), and Jiumaojiu at 193 million yuan (down 19.85%) [3] Store Optimization - As of the end of the first half of 2025, the total number of stores, including a few franchise restaurants, was 729, a net decrease of 42 from the end of the first half of 2024. Taier had 566 stores (down 48), Song Hotpot had 31 stores (up 9), and Jiumaojiu had 68 stores (down 4) [4] Supply Chain and International Expansion - The company is actively optimizing its store structure and has closed underperforming stores. The Nansha supply chain center has begun trial operations, enhancing its digital capabilities. Taier has expanded operations in multiple countries, including Singapore, Malaysia, Canada, the United States, Thailand, and Indonesia [5]

Core Viewpoint - The company is experiencing short-term pressure on performance, with both revenue and profit declining due to factors such as decreased table turnover rates, concentrated store closures, and pressure on same-store sales [1][2] Group 1: Financial Performance - In H1 2025, the company achieved operating revenue of 2.753 billion yuan, a year-on-year decrease of 10.1% [1] - The net profit attributable to shareholders was 61 million yuan, down 31.3% year-on-year [1] - Revenue from key brands such as Tai Er, Song Huo Guo, and Jiu Mao Jiu was 1.946 billion, 416 million, and 226 million yuan respectively, with year-on-year declines of 13%, 3%, and 22% [1] Group 2: Same-Store Performance - Same-store sales for Tai Er, Song Huo Guo, and Jiu Mao Jiu decreased by 19.0%, 20.1%, and 19.8% respectively, primarily due to lower table turnover rates [1] - The average daily sales for same-store in Q2 showed a smaller decline compared to Q1, indicating initial positive effects from new store formats and menu optimization [1] Group 3: Strategic Initiatives - The company strategically closed 88 underperforming stores in H1 2025, resulting in a net reduction of 78 stores, bringing the total to 729 [2] - As of July 31, 2025, Tai Er completed the upgrade of 64 stores to the "5.0 Fresh Model," focusing on core ingredients and enhancing customer experience [2] - The Guangzhou Nansha supply chain center has begun trial operations, supporting cross-regional expansion and quick meal services [2] Group 4: Future Projections - The company forecasts earnings per share of 0.10, 0.16, and 0.20 yuan for 2025, 2026, and 2027 respectively, with a downward adjustment in previous estimates due to slower-than-expected same-store recovery and significant direct store reductions [2] - The reasonable valuation level for the company is projected at a 24 times price-to-earnings ratio for 2025, corresponding to a target price of 2.61 HKD [2]

FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年8月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 九毛九国际控股有限公司 (於開曼群島註冊成立的有限公司) 呈交日期: 2025年9月4日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 09922 | 說明 | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000,000 | USD | 0.0000001 | USD | | 50,000 | | 增加 / 減少 (-) | | | | | | USD | | | | 本月底結存 | | | 500,000,000,000 | USD | 0.0000001 | USD | | 50,000 ...

Core Insights - The company reported a revenue of 2.753 billion yuan for the first half of 2025, representing a year-on-year decline of 10.1% [1] - Profit for the same period was 58.71 million yuan, down 13.7% year-on-year [1] Brand Performance - The core brands, including Tai Er, Song Hotpot, and Jiu Mao Jiu, are all facing performance declines [1] - Tai Er's revenue decreased by 13.3%, Song Hotpot's by 3.5%, and Jiu Mao Jiu's by 22.6% [1] Store Closures - The company closed 88 stores in the first half of the year, primarily due to expired lease agreements and unsatisfactory performance [1] - Tai Er brand saw the closure of 71 stores, marking the first contraction in its store count [1] Strategic Challenges - The multi-brand strategy of the company is facing challenges, as the sub-brands have not been able to sustain growth [1] - Same-store sales and table turnover rates have both declined, indicating ongoing weakness in individual store performance [1]

Core Viewpoint - The company experienced a decline in revenue and net profit in the first half of 2025, attributed to external environmental factors affecting customer flow and same-store sales performance [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved operating revenue of 2.753 billion yuan, a year-on-year decrease of 10.1%, and net profit attributable to shareholders of 61 million yuan, down 16.05% year-on-year [1]. - The same-store sales for the company's brands, including Tai Er, Song Hotpot, and Jiumaojiu, fell by 19%, 20.1%, and 19.8% respectively [1]. Group 2: Store Operations - The company opened 10 new restaurants in the first half of 2025, while closing 88 underperforming locations, resulting in a total of 729 restaurants as of June 30, 2025 [2]. - The brand distribution includes 566 Tai Er restaurants, 76 Song Hotpot, and 68 Jiumaojiu, with a focus on optimizing store models and concentrating resources on high-quality restaurants [2]. Group 3: Cost Structure and Profitability - The cost of raw materials and consumables accounted for 35.6% of total revenue, while employee costs represented 30.1%, reflecting a slight increase due to reduced revenue [3]. - The restaurant-level profit margin and core operating profit margin were 11.8% and 3.6% respectively, both showing a year-on-year decline of 1.2 percentage points and 1.5 percentage points [3]. Group 4: Future Outlook - The company plans to continue optimizing its store layout and expanding into global markets, particularly in regions with significant Chinese populations [3]. - Revenue projections for 2025, 2026, and 2027 are estimated at 6.289 billion, 6.763 billion, and 7.398 billion yuan, with net profits of 153 million, 240 million, and 294 million yuan respectively [3].

Investment Rating - The report maintains a "Buy" rating for the company [2][9]. Core Views - In the first half of 2025, the company achieved revenue of 2.753 billion, a year-on-year decline of 10.1%, and a net profit attributable to shareholders of 61 million, down 16.05% year-on-year. The company plans to optimize its store layout, adjust store types, and expand into global markets, focusing on countries and cities with a significant Chinese population to capture international market share. Additionally, the company is advancing its supply chain center construction, with the Guangzhou Nansha supply chain center having begun trial operations in the first half of 2025, effectively reducing existing supply chain capacity pressure. Revenue projections for 2025-2027 are 6.289 billion, 6.763 billion, and 7.398 billion, with net profits of 153 million, 240 million, and 294 million respectively [2][6][9]. Summary by Sections Financial Performance - In the first half of 2025, the company reported revenue of 2.753 billion, a decrease of 10.1% year-on-year, and a net profit of 61 million, down 16.05% year-on-year [2][6]. Store Expansion and Management - The company opened 10 new restaurants in the first half of 2025, while closing 88 underperforming locations. As of June 30, 2025, the company operated 729 restaurants, with a focus on optimizing store models and concentrating resources on core quality restaurants [2][9]. Cost Structure and Profitability - The cost of raw materials and consumables accounted for 35.6% of total revenue, while employee costs represented 30.1%. The company experienced a decline in restaurant-level profit margins to 11.8% and core operating profit margins to 3.6% due to revenue decreases and cost pressures [2][9].

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

Core Insights - The core focus of the article is on the transformation of the brand Tai Er, which is undergoing a significant upgrade to its business model and store design to enhance customer experience and address previous challenges in the competitive market [1][6]. Company Overview - Tai Er, under the parent company Jiu Mao Jiu Group, is launching a new store model called "Fresh Active Mode" to revitalize its brand image and product offerings, with plans to expand from 64 to over 150 new stores by the end of the year [1][3]. - The new store model shifts from a focus on the signature dish of sauerkraut fish to a broader menu that includes live fish, fresh chicken, and beef, along with a more diverse range of hot dishes [1][3]. Financial Performance - As of the first half of 2025, Jiu Mao Jiu Group reported a revenue of 2.753 billion yuan, a decline of 10.1% year-on-year, with Tai Er's revenue dropping by 13.3% to 1.949 billion yuan [6][9]. - The average daily dining revenue of the new store model has increased by approximately 15% compared to the conventional model, with an average increase in customer spending of around 4 yuan [3][9]. Market Challenges - The company faces significant challenges, including a saturated market for sauerkraut fish, with a reported total of 25,781 stores nationwide and a net decrease of 3,164 stores in the past year [9][10]. - The rise of pre-packaged food options is also impacting Tai Er's market share, with the pre-packaged sauerkraut fish market expected to reach 20.47 billion yuan this year [10]. Store Operations - The new store design features a fresh ingredient display area and aims to attract young families by increasing seating capacity from 2-4 to 2-6 people [3][4]. - The renovation costs for larger stores are estimated between 1.8 million to 2 million yuan, while smaller stores cost around 200,000 to 300,000 yuan, with expectations that a 12% increase in sales will cover the additional costs [4][6]. Competitive Landscape - Competitors in the sauerkraut fish segment are also diversifying their menus to enhance competitiveness, with brands like "Fish You Together" and "Yu Shi Hu" introducing new dishes [9][10]. - Despite the challenges, Tai Er's operational profit margin remains relatively stable at 13.4%, indicating some resilience in its business model [9].