致：香港交易及結算所有限公司 公司名稱: 海倫司國際控股有限公司 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7月31日 狀態: 新提交 呈交日期: 2025年8月5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) | 09869 | 說明 | | | | | | | | | | | | 法定/註冊股份數目 | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 500,000,000,000,000 | USD | | 0.0000000001 | USD | | 50,000 | | 增加 / 減少 (-) | | | | | | | USD | | | | 本月底結存 | | | 500,000,000,000,000 | USD | | 0.0000000001 | USD | ...

Industry Overview - The tavern industry has not yet recovered, with competition significantly higher than in 2019. The chain development process is slow. The "Tavern Development Report 2025" indicates that the national tavern market size is projected to reach 112 billion yuan in 2024, a year-on-year increase of 7.7%, but still below the 2019 level. It is expected to grow to 117.5 billion yuan in 2025, with a year-on-year increase of 4.9% [1] - As of March 2025, the number of tavern enterprises in the country exceeds 38,000, a year-on-year increase of 2.6%, and a 139.6% increase compared to 2019, indicating intensified competition amid weak demand [1] - The chain rate of taverns remains low, with most brands having five or fewer stores, accounting for 57.9%, while brands with over 100 stores only account for 5.1% [1] Company Performance - Helen's direct sales have rapidly declined, and the transition to a franchise model is still ongoing. In 2024, the company achieved revenue of 752 million yuan, a year-on-year decrease of 37.76%, and reported a net loss of 77.976 million yuan, reversing from a net profit of 180 million yuan last year. The adjusted net profit was 101 million yuan, down 65.5% year-on-year [2] - The decline in performance is attributed to the platform transformation leading to a drop in direct sales revenue. Since 2023, the company has significantly closed direct stores, with 511 stores shut down by March 19, 2025. The "Hi Beer Partner" franchise model has expanded to 424 stores, with a total of 499 signed agreements, while the number of licensed cooperative stores decreased from 92 to 42, with over 70% of the total 579 stores being franchise stores [2] - The company is in a transitional phase from direct sales to a franchise model, with its profit model still being refined. The rapid reduction of direct stores and the immature franchise system raise concerns about its cyclical resilience. The efficiency of store operations and product structure are still being adjusted, and the ability to enhance single-store repurchase rates and efficiency through multi-scenario combinations and mechanism optimization will be key to long-term performance [2] Profit Forecast and Investment Recommendation - The company forecasts earnings per share for 2025-2027 to be 0.05, 0.06, and 0.09 yuan respectively, down from the previous forecast of 0.21 yuan for 2025, mainly due to the rapid closure of direct stores and the increase in franchise proportion, leading to a decline in overall single-store profit contribution [2] - Based on comparable companies, the reasonable valuation level for the company is set at a 29 times price-to-earnings ratio for 2025, corresponding to a target price of 1.51 HKD (with 1 HKD = 0.9138 RMB), and the rating has been adjusted to "neutral" [2]

Investment Rating - The investment rating for the company is downgraded to "Neutral" [4][7][11] Core Views - The tavern industry is experiencing intensified competition, and the recovery for the company will take time [2][10] - The company is transitioning from a direct sales model to a franchise model, facing challenges during this shift [10] - The company's revenue for 2024 is projected to be 752 million yuan, a decrease of 37.76% year-on-year, with a net loss attributed to the transition [10][11] Financial Forecast and Investment Recommendations - Earnings per share are forecasted to be 0.05, 0.06, and 0.09 yuan for 2025-2027, respectively, down from a previous estimate of 0.21 yuan for 2025 due to rapid closure of direct stores and increased franchise contributions [4][11] - The reasonable valuation level for the company is estimated at a 29 times price-to-earnings ratio for 2025, corresponding to a target price of 1.51 HKD [4][11] Financial Information - The company's revenue is expected to decline from 1,209 million yuan in 2023 to 575 million yuan in 2025, with a projected growth of 8.3% in 2026 and 12.8% in 2027 [6][10] - The gross margin is expected to decrease from 70.2% in 2023 to 45.8% in 2025, while the net margin is projected to recover to 15.5% by 2027 [6][10] - The company’s net profit attributable to the parent company is forecasted to be 60 million yuan in 2025, recovering from a loss of 78 million yuan in 2024 [6][10]

Core Viewpoint - The decline of Helen's, once a promising player in the low-cost bar market, highlights the challenges of maintaining a viable business model in a rapidly changing consumer landscape, contrasting sharply with the success of competitors like Mixue Ice Cream. Company Performance - Helen's market value plummeted from 30.2 billion HKD in 2021 to 1.8 billion HKD, a decline of over 94% [2] - In 2024, Helen's revenue dropped by 37.8% to 75.2 million HKD, with a net loss of 7.8 million HKD [4] - The number of Helen's stores decreased from a peak of 782 to 579 [4] Business Strategy - Helen's initially thrived on a low-cost model targeting young consumers, but faced a "scale trap" leading to significant losses [4] - The company closed over 500 stores in two years as part of a survival strategy, which temporarily resulted in a profit of 18 million HKD in 2023 [4] - In contrast, Mixue Ice Cream reported a revenue growth of 22.29% to 24.83 billion HKD in 2024, with a net profit increase of 41.41% to 4.44 billion HKD [8] Market Positioning - Helen's struggles stem from a mismatch between its low-price positioning and the emotional value sought in social spaces by consumers [5] - Only 34% of Helen's customers are willing to bring friends or partners, compared to 68% for competitors like Hu Tao Li [5] - The rise of alternative social venues, such as camping bars and home drinking experiences, has further diluted Helen's customer base [8] Operational Challenges - Helen's faces a heavy cost structure, with initial investments for franchise stores exceeding 600,000 CNY, compared to Mixue's 210,000 CNY [6] - Labor costs for Helen's surged by 72.5% to 1 billion CNY in 2022, adding to operational burdens [6] - The business model relies heavily on evening traffic, requiring high customer volume and turnover to be profitable [6] Competitive Landscape - The high-end market is dominated by craft beer and whiskey bars, while the low-end market is being encroached upon by convenience stores and e-commerce [6] - Mixue's success is attributed to its strategic focus on lower-tier cities and a product-driven approach that emphasizes high turnover and customer engagement [9] Future Directions - Helen's is attempting a difficult transition to a franchise model, with the "Hi Beer Partner" initiative launched in 2023, but faces challenges with declining sales in franchise stores [10] - The company has adjusted its franchise policies, which has raised concerns among franchisees regarding profitability [10] - The emergence of new social consumption spaces poses a significant threat to traditional bar models like Helen's, as consumer preferences evolve [11]

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching HKD 1.2 billion for the fiscal year ending December 31, 2024[9]. - The company provided a positive outlook for 2025, projecting a revenue growth of 10% to 12%[9]. - The company reported revenue of RMB 752 million for the year ended December 31, 2024, a decrease of 37.7% compared to RMB 1,209 million in 2023[20]. - Adjusted net profit for 2024 was RMB 100.6 million, down from RMB 291.1 million in 2023[20]. - The company’s franchise business revenue increased by 85.7% from RMB 105 million in 2023 to RMB 195 million in 2024[20]. - Revenue dropped by 37.8% from RMB 1,208.6 million in 2023 to RMB 752.2 million in 2024, primarily due to a weak consumer market[40]. - The loss before income tax for the year ending December 31, 2024, was RMB 76.6 million, compared to a profit of RMB 152.0 million for the year ended December 31, 2023[71]. - The adjusted net profit for the year ended December 31, 2024, was RMB 100.6 million, a decrease of 65.4% from RMB 291.1 million in 2023[74]. - The company reported a loss of RMB 78.0 million for the year ended December 31, 2024, compared to a profit of RMB 180.5 million in 2023[74]. Market Expansion and Strategy - The company is expanding its market presence in Southeast Asia, targeting a 25% increase in market share by 2026[9]. - New product launches contributed to 30% of total revenue, with three major products introduced in the last quarter[9]. - The company plans to invest HKD 200 million in marketing initiatives to boost brand awareness in new markets[9]. - A new partnership with a leading tech firm is expected to drive additional revenue streams, projected to contribute HKD 100 million in 2025[9]. - The company plans to continue expanding its "Hi Beer Partner" network and strengthen supply chain management capabilities[21]. - The company aims to further integrate supply chain and market resources, optimize product mix, and upgrade decor styles for differentiated and diversified operations[127]. Operational Metrics - User data showed a growth in active users by 20%, totaling 2 million users as of the end of 2024[9]. - The total number of stores increased from 479 at the end of 2023 to 560 by the end of 2024, with further growth to 579 stores by March 19, 2025[21]. - Total number of bars increased from 479 in 2023 to 579 in 2025, representing a growth of 20.8%[24]. - Average daily sales per bar in first-tier cities rose from RMB 7.5 thousand in 2023 to RMB 8.3 thousand in 2024, an increase of 10.7%[26]. - The average daily sales per "Hi Beer Partner" bar decreased from RMB 7.1 thousand in 2023 to RMB 5.0 thousand in 2024, a decline of 29.6%[26]. Financial Position and Assets - Total assets decreased from RMB 2,164.98 million in 2023 to RMB 1,375.98 million in 2024[15]. - The company’s equity attributable to owners decreased from RMB 1,821.41 million in 2023 to RMB 1,118.79 million in 2024[15]. - Non-current assets dropped significantly from RMB 740.83 million in 2023 to RMB 459.77 million in 2024[19]. - The company’s total liabilities decreased from RMB 343.58 million in 2023 to RMB 257.18 million in 2024[15]. - Cash and bank balances decreased from RMB 1,278.9 million as of December 31, 2023, to RMB 806.4 million as of December 31, 2024, primarily due to dividend payments in 2024[86]. Cost Management and Expenses - Research and development expenses increased by 18%, amounting to HKD 150 million, focusing on innovative technologies[9]. - Employee benefits and human resources expenses decreased by 41.9% from RMB 298.8 million in 2023 to RMB 173.7 million in 2024 due to a reduction in workforce[48]. - The depreciation of right-of-use assets decreased by 44.8% from RMB 110.2 million for the year ended December 31, 2023, to RMB 60.8 million for the year ending December 31, 2024, mainly due to the termination of several direct-operated restaurant lease agreements[49]. - Utility expenses decreased by 44.3% from RMB 34.8 million for the year ended December 31, 2023, to RMB 19.4 million for the year ending December 31, 2024, as a result of the reduction in the number of restaurants[53]. Corporate Governance and Management - The management team includes experienced executives with over 20 years in the tavern operation market and over 12 years in the restaurant service industry[110][111]. - The CFO has a strong background in capital operations and financial management, having previously worked in investment banking[112]. - The independent non-executive directors bring extensive experience in strategic investment, mergers and acquisitions, and corporate governance[116][117]. - The board of directors is committed to high standards of corporate governance and will continue to review and monitor governance practices[199]. - The company has established a remuneration committee to determine the compensation policy for directors and senior management based on their experience and qualifications[141]. Compliance and Risk Management - The company has implemented food safety and quality assurance measures to mitigate risks associated with its industry[105]. - The company emphasizes the importance of employee training and competitive compensation to retain talent, with annual reviews of employee remuneration[188]. - The company has established compliance policies to ensure adherence to applicable laws and regulations, with no significant non-compliance issues reported during the period[186]. - The audit committee reviewed the audited consolidated financial statements for the year ending December 31, 2024, confirming compliance with applicable accounting standards and regulations[193]. Shareholder Information - The board proposed a final dividend of RMB 0.1146 per share for the year ending December 31, 2024, compared to RMB 0.3153 per share in 2023[128]. - The final dividend will be subject to approval at the annual general meeting on May 14, 2025[128]. - The final dividend will be paid in HKD to Hong Kong shareholders and in SGD to Singapore shareholders based on the official exchange rate on May 14, 2025[131]. - As of December 31, 2024, the chairman holds 861 million shares, representing 68.04% of the issued share capital[150]. - The company has no treasury shares as of December 31, 2024[177].

Financial Performance - The company's revenue for the year ended December 31, 2024, was RMB 752,206, a decrease of 37.7% compared to RMB 1,208,613 in 2023[4]. - The adjusted net profit for the year was RMB 100,555, down 65.5% from RMB 291,088 in 2023[4]. - Same-store sales for the year 2024 were RMB 527,533.6, representing a decline of 21.3% compared to RMB 670,039.4 in 2023[11]. - In 2024, the company recorded revenue of RMB 752 million, a decrease of 37.8% from RMB 1,209 million in 2023, primarily due to a weak consumer market[14][16]. - Revenue for the year ended December 31, 2024, was RMB 752.2 million, a decrease from RMB 1,208.6 million for the year ended December 31, 2023, reflecting a decline in business performance[67]. - Revenue from self-operated taverns dropped significantly from RMB 1,103,300 thousand in 2023 to RMB 557,513 thousand in 2024, a decrease of about 49.5%[79]. - Revenue from franchise services netted RMB 10,067 thousand in 2024, down from RMB 71,107 thousand in 2023, representing a decline of approximately 85.8%[79]. - The company reported a loss attributable to owners of RMB 77.98 million for the year ended December 31, 2024, compared to a profit of RMB 180.5 million for the year ended December 31, 2023[67]. Assets and Liabilities - Total assets decreased to RMB 1,375,975 in 2024 from RMB 2,164,984 in 2023[5]. - Non-current assets decreased to RMB 459,772 in 2024 from RMB 740,830 in 2023[5]. - The company's total liabilities decreased from RMB 343,577 thousand in 2023 to RMB 257,184 thousand in 2024, a decline of about 25.2%[69]. - Cash and cash equivalents fell sharply from RMB 625,612 thousand in 2023 to RMB 131,802 thousand in 2024, a decrease of approximately 78.9%[68]. - Lease liabilities decreased from RMB 255.7 million as of December 31, 2023, to RMB 145.4 million as of December 31, 2024, due to a reduction in the number of taverns[54]. - Trade payables decreased from RMB 30.7 million as of December 31, 2023, to RMB 28.7 million as of December 31, 2024, attributed to a decline in revenue and procurement[55]. Operational Metrics - The total number of taverns in the global network increased to 579 as of March 19, 2025, up from 560 in 2024 and 479 in 2023[7]. - The average daily sales per tavern in first-tier cities increased to RMB 8.3 in 2024 from RMB 7.5 in 2023[9]. - The number of stores expanded from 479 at the end of 2023 to 560 by the end of 2024, maintaining industry leadership[14][15]. - The gross profit margin for Helen's proprietary beverages improved to 76.6% in 2024 from 75.7% in 2023[13]. - The gross profit margin at the store level remained stable at 69% in 2024, with the gross profit margin for proprietary beverages increasing from 75.7% in 2023 to 76.6% in 2024[14]. Expenses and Cost Management - The cost of materials and consumables decreased by 12.1% to RMB 316.3 million in 2024, down from RMB 359.8 million in 2023, due to lower sales revenue from direct-operated stores[21]. - Employee benefits and human services expenses dropped by 41.9% to RMB 173.7 million in 2024, down from RMB 298.8 million in 2023, due to a reduction in employee numbers[22]. - Depreciation of right-of-use assets decreased by 44.8% to RMB 60.8 million in 2024, down from RMB 110.2 million in 2023, as a result of terminating several lease contracts[23]. - Advertising and promotion expenses decreased by 36.5% to RMB 12.5 million in 2024, down from RMB 19.7 million in 2023, due to refined online promotion management[29]. - Other expenses totaled RMB 70,396,000 in 2024, down from RMB 79,257,000 in 2023, reflecting a decrease of 11.8%[85]. Impairment and Losses - Impairment loss of property, plant, and equipment increased from RMB 11.3 million for the year ended December 31, 2023, to RMB 85.8 million for the year ended December 31, 2024, primarily due to the decline in fair value of office properties amid a sluggish domestic real estate market[32]. - Investment property impairment loss for the year ended December 31, 2024, was RMB 9.5 million, compared to no loss for the year ended December 31, 2023, mainly due to the decline in fair value caused by the domestic real estate market downturn[33]. - Trade receivables impairment loss net amount increased to RMB 16.7 million for the year ended December 31, 2024, from RMB 0.2 million for the year ended December 31, 2023, primarily due to the optimization and adjustment of the tavern network[34]. - The company recognized impairment losses of approximately RMB 11,938,000 and RMB 23,833,000 for property, plant, and equipment, and right-of-use assets respectively, for the year ended December 31, 2024[104]. Future Outlook and Strategy - The company plans to continue expanding its tavern network through the "Hi Beer Partner" program and strengthen supply chain management capabilities[15]. - The company plans to continue seeking new business development opportunities despite not having any major investments or acquisitions during the reporting period[65]. - The company’s revenue projections and cost assumptions were re-evaluated based on past performance and the uncertain recovery of consumer spending in China[103]. - The company’s management identified impairment indicators for several restaurants due to ongoing economic challenges in China, leading to impairment assessments[102]. Corporate Governance and Compliance - The audit committee, consisting of three independent non-executive directors, reviewed the audited consolidated financial statements for the year ended December 31, 2024, confirming compliance with applicable accounting standards[126]. - The company has adopted corporate governance practices in accordance with the relevant listing rules, although it has not separated the roles of the chairman and CEO[118][119]. - There were no significant post-reporting period events identified from December 31, 2024, to the announcement date[128]. - The company has not engaged in any significant litigation or arbitration during the reporting period[125].

Company and Industry Summary Company Overview - The company is expanding its product offerings in community stores, including a wider range of beverages and food items such as coffee, burgers, pizzas, and pasta, as well as non-alcoholic drinks [1][2] Key Points and Arguments - **Product Expansion**: The company plans to broaden its product structure, moving beyond just alcoholic beverages to include snacks and soft drinks, with future plans for campus stores [1] - **New Product Popularity**: New products launched during the day, such as coffee and light meals, are performing well, while evening offerings include specialty cocktails [2] - **Promotional Strategies**: Future promotions will be tailored to the specific demographics of each community store, rather than a one-size-fits-all approach. The company aims to maintain stable profit margins despite promotional activities [3] - **Operational Hours**: The operational hours are from 11 AM to 2-3 AM, with a structured product offering based on time of day, including coffee and light meals during the day and alcoholic beverages at night [5] - **Profitability Concerns**: While the company is expanding its product range, profitability from new items like coffee and light meals is uncertain, with alcohol and snacks expected to remain the primary revenue drivers [6] - **Social Experience Focus**: The company emphasizes creating a social atmosphere in its stores, differentiating itself from quick-service competitors by encouraging customers to stay and socialize [7][8] - **Community Store Strategy**: The community stores are intended to serve as a hub for local businesses within a three-kilometer radius, leveraging self-developed products and partnerships to enhance competitive pricing [10][11] - **Cost Management**: The company has achieved a 20% reduction in procurement costs, particularly in renovations, by adopting a market-oriented approach [11] - **Team Structure**: The company maintains its existing team structure while forming specialized project groups to manage new product lines and expansions without increasing overall headcount [12][13] - **Market Expansion Plans**: Future expansion plans are contingent on market conditions and consumer spending trends, with potential adjustments based on economic recovery [14] Additional Important Information - **Employee Incentives**: The company has implemented incentive programs for frontline employees, which have shown positive results in enhancing productivity and engagement [9] - **Product Development**: The company is focused on developing a diverse range of products while ensuring that the existing team can manage the increased complexity without significant structural changes [13]

Summary of the Conference Call Company Overview - The conference call involved Helens, a company operating in the bar and restaurant industry, focusing on both direct-operated and franchise models. The current operational status includes approximately 200 direct-operated stores and over 380 franchise stores, totaling around 600 locations [1][6][7]. Key Points and Arguments Direct-Operated Stores - Helens has optimized its direct-operated stores, currently maintaining around 200 locations. The strategy focuses on enhancing the performance of these stores and providing better benefits and incentives for staff [1][6]. - The company aims to transform these stores into advanced models that can adapt to market changes and improve operational efficiency [1][2]. Franchise Model - The franchise model includes over 380 stores, with new policies introduced to attract franchise partners, such as reduced franchise fees for different store types [2][6]. - The company plans to expand its franchise network, particularly in underdeveloped markets, by offering attractive partnership incentives [2][3]. Community Stores - Helens is testing a new community store model, with eight pilot locations in cities like Wuhan, Tianjin, and Shenzhen. These stores aim to serve a diverse customer base throughout the day, offering coffee, meals, and evening drinks [3][4][18]. - The investment for these community stores is estimated to be between 300,000 to 400,000 RMB, with a focus on creating a flexible space that caters to various customer needs [3][18]. International Expansion - Helens has begun expanding internationally, with successful openings in Singapore and Japan. The Singapore locations have shown promising performance, while the company is still refining its approach in other markets [4][5][6]. - The strategy for international markets involves adapting to local conditions and collaborating with local partners to navigate regulatory challenges [5][6][34]. Market Dynamics - The competitive landscape in China is intense, with price wars affecting profitability. In contrast, the international markets, particularly in Southeast Asia, present a more stable environment for growth [5][6]. - The company is observing a trend where lower-tier cities are showing better growth potential compared to first-tier cities, where operational costs are significantly higher [10][11][12]. Financial Performance - The average customer spending remains stable, with no significant downward trend observed. The company continues to focus on maintaining a balance between quality and affordability [28][29]. - The introduction of new menu items, particularly snacks, is seen as a way to enhance customer spending and attract a broader audience [30]. Supply Chain and Operational Challenges - Helens is working on optimizing its supply chain to reduce costs and improve efficiency, particularly for the community store model, which requires a different approach compared to traditional bar operations [37][38]. - The company acknowledges the need for flexible management practices to adapt to varying customer demands across different store formats [38]. Additional Important Insights - The community store model is designed to be a "third space" for consumers, providing a casual environment for socializing and dining, which differs from the more purpose-driven visits to traditional bars [20][25]. - The company is exploring opportunities in the campus market, recognizing the potential for growth in student-oriented offerings [15][16]. - Helens is also considering the development of proprietary brands to differentiate its offerings in the competitive beverage market [27]. This summary encapsulates the key discussions and strategic directions outlined during the conference call, highlighting Helens' operational strategies, market positioning, and future growth plans.

Revenue Performance - The total revenue for the first half of 2024 was RMB 441,294 thousand, compared to RMB 709,992 thousand for the same period in 2023, indicating a decrease of 37.9%[3] - The revenue from franchise operations was RMB 130,360 thousand, representing 29.5% of total revenue in 2024, compared to 5.5% in 2023[3] - The total revenue from direct-operated businesses was RMB 310,934 thousand, accounting for 70.5% of total revenue in 2024[3] Proprietary Beverages Performance - For the six months ended June 30, 2024, the contribution gross profit from all of Helen's proprietary beverages was RMB 124,458 thousand, down from RMB 317,795 thousand in the same period of 2023, representing a decrease of 60.9%[2] - The contribution gross profit margin for Helen's proprietary beverages was 78.3%, a slight decline from 79.4% in the previous year[2] - The revenue from Helen's proprietary products accounted for 50.4% of total revenue in 2024, down from 76.3% in 2023[3] Beverage Alcohol Products - The share of beverage alcohol products in Helen's proprietary products increased from 55.6% in the first half of 2023 to 58.1% in the first half of 2024[4] - The company launched new proprietary beverages such as "Lemon Big Cup" and "Rose Big Cup," which were well-received by consumers, contributing to the increase in beverage alcohol product share[4] Third-Party Brand Beverages - The revenue from third-party brand beverages was RMB 42,773 thousand, down from RMB 66,801 thousand in the previous year, with a gross profit margin of 53.7% compared to 55.6%[2] Direct-Operated Taverns - The overall gross profit margin for direct-operated taverns remained stable at 70% despite a slight decline in contribution gross profit rates due to promotional activities[1]

Financial Performance - The company reported a revenue of HKD 500 million for the first half of 2024, representing a 15% increase compared to the same period last year[16]. - The company expects a revenue guidance of HKD 1.2 billion for the full year 2024, indicating a projected growth of 10%[16]. - Revenue for the six months ended June 30, 2024, was RMB 441.3 million, a decrease of 37.9% compared to RMB 710.0 million for the same period in 2023[26]. - Adjusted net profit for the same period was RMB 90.3 million, down 51.9% from RMB 187.7 million in 2023[27]. - The company reported a net profit attributable to owners of RMB 69.7 million for the six months ended June 30, 2024, down 55.8% from RMB 157.5 million in the same period last year[120]. - The company reported a total comprehensive income of RMB 74.9 million for the six months ended June 30, 2024, compared to RMB 175.6 million for the same period in 2023[120]. - The net cash flow from operating activities for the six months ended June 30, 2024, is RMB 39,271,000, a significant decrease of 81.8% compared to RMB 215,846,000 for the same period in 2023[123]. User Growth and Market Expansion - User data showed a growth of 20% in active users, reaching 1.2 million by June 30, 2024[16]. - Market expansion plans include entering two new regions by the end of 2024, targeting a 25% increase in market share[16]. - Total number of taverns increased from 479 at the beginning of 2024 to 581 by August 26, 2024, with 415 signed under the "Hi Beer Partner" program[31]. - The number of "Hi Beer Partner" taverns opened reached 327, covering 204 cities, including 107 in existing markets and 97 in new markets[31]. Cost Management and Efficiency - The company has reduced operational costs by 5% through efficiency improvements in the supply chain[16]. - The cost of raw materials and consumables decreased by 19.0% from RMB 196.6 million in the first half of 2023 to RMB 159.3 million in the first half of 2024[50]. - Employee benefits and human resources expenses decreased by 43.1% from RMB 169.5 million in the first half of 2023 to RMB 96.5 million in the first half of 2024[51]. - Depreciation of right-of-use assets decreased by 48.0% from RMB 61.0 million in the first half of 2023 to RMB 31.7 million in the first half of 2024[52]. - Depreciation of property, plant, and equipment decreased by 45.1% from RMB 58.6 million in the first half of 2023 to RMB 32.2 million in the first half of 2024[53]. - Short-term rental and related expenses decreased by 53.3% from RMB 39.6 million in the first half of 2023 to RMB 18.5 million in the first half of 2024[54]. Strategic Initiatives - New product launches are anticipated to contribute an additional HKD 100 million in revenue by Q4 2024[16]. - A new marketing strategy focusing on digital channels is projected to increase customer engagement by 30%[16]. - The company is investing HKD 50 million in R&D for new technologies aimed at enhancing user experience[16]. - The company is focusing on a platform-based development strategy, enhancing supply chain management and space design capabilities to improve competitiveness[45]. - The "Community Space" business model was introduced in July 2024 to connect local communities with diverse revenue streams, including in-store sales and new retail opportunities[45]. Shareholder and Governance Matters - The board has approved a share buyback program worth HKD 100 million to enhance shareholder value[16]. - The company has proposed an interim dividend of RMB 0.1573 per share for the six months ended June 30, 2024, with the total amount to be determined based on the number of qualifying shareholders[113]. - The company’s governance structure is under continuous review to assess the necessity of separating the roles of Chairman and CEO[107]. - The company has adopted corporate governance practices in accordance with the principles and code provisions set out in the corporate governance code, ensuring compliance during the reporting period[106]. Financial Position and Assets - Total assets as of June 30, 2024, were RMB 1,804.0 million, down from RMB 2,165.0 million at the end of 2023[28]. - Total equity decreased to RMB 1,498.9 million as of June 30, 2024, from RMB 1,821.4 million at the end of 2023[28]. - Non-current assets decreased to RMB 643.9 million as of June 30, 2024, from RMB 740.8 million at the end of 2023[28]. - Cash and bank balances decreased from RMB 1,278.9 million to RMB 934.2 million, mainly due to the payment of dividends at the end of 2023[73]. - The company has no bank borrowings as of June 30, 2024, making the capital debt ratio not applicable[79]. Employee and Compensation Policies - As of June 30, 2024, the company has 745 employees and 1,733 outsourced personnel, with total employee benefits and human resource expenses amounting to RMB 96.5 million for the six-month period[84]. - The company provides competitive salaries and performance bonuses to employees, with a focus on career development and training systems[84]. - The company has established a comprehensive career development path and talent training system to promote employee self-growth[84]. Other Financial Metrics - The company reported a basic and diluted earnings per share of RMB 0.055 for the six months ended June 30, 2024, compared to RMB 0.124 for the same period in 2023[120]. - The company’s total liabilities decreased to RMB 305.1 million as of June 30, 2024, from RMB 343.6 million as of December 31, 2023[121]. - The company’s investment activities resulted in a net cash outflow of RMB 88,580,000 for the six months ended June 30, 2024, compared to a net cash outflow of RMB 417,536,000 for the same period in 2023[123].