Revenue and Profitability - Revenue for the first half of 2024 decreased by 1.9% to RMB 2,544.4 million compared to RMB 2,593.8 million in the same period of 2023[2] - Adjusted net loss for the first half of 2024 was RMB 437.7 million, compared to a profit of RMB 70.2 million in the same period of 2023[2] - Total revenue for the reporting period was RMB 2,544.4 million, a decrease of 1.9% compared to the same period in 2023[18] - Net loss for the six months ended June 30, 2024, was RMB 440 million, compared to a net profit of RMB 64.8 million in the same period in 2023[34] - Adjusted net loss (non-IFRS) for the six months ended June 30, 2024, was RMB 437.7 million, with an adjusted net loss margin of 17.2%[34] - Revenue for the six months ended June 30, 2024, was RMB 2,544,352 thousand, a decrease of 1.9% compared to RMB 2,593,846 thousand in the same period in 2023[55] - Net loss for the period was RMB 440,000 thousand, compared to a net profit of RMB 64,846 thousand in the same period in 2023[55] - Total comprehensive loss for the period was RMB 424,984 thousand, compared to a total comprehensive income of RMB 161,177 thousand in the same period in 2023[56] - Revenue from ready-made tea drinks decreased to RMB 1,721,809 thousand in 2024 from RMB 1,904,535 thousand in 2023, a decline of 9.6%[64] - Revenue from bottled beverages increased to RMB 172,220 thousand in 2024 from RMB 156,848 thousand in 2023, a growth of 9.8%[64] - Revenue from baked goods and other products increased to RMB 650,323 thousand in 2024 from RMB 532,463 thousand in 2023, a growth of 22.1%[64] - Total revenue for the six months ended June 30, 2024, was RMB 2,544,352 thousand, a slight decrease from RMB 2,593,846 thousand in 2023[64] - Operating profit for the ready-made tea drinks and franchise operations segment decreased to RMB 147,125 thousand in 2024 from RMB 429,899 thousand in 2023[67] - Operating profit for the bottled beverages segment increased to RMB 12,695 thousand in 2024 from RMB 11,628 thousand in 2023[67] - Total operating profit for the six months ended June 30, 2024, was RMB 159,820 thousand, a significant decrease from RMB 441,527 thousand in 2023[67] - Pre-tax loss for the six months ended June 30, 2024, was RMB 392,613 thousand, compared to a pre-tax profit of RMB 78,557 thousand in 2023[68] - Revenue for the twelve months ended June 30, 2024, was RMB 5,114,562 thousand, an increase from RMB 4,840,485 thousand in 2023[70] - The company reported a basic and diluted loss per share of RMB 0.25 for the six months ended June 30, 2024, compared to a profit per share of RMB 0.04 in the same period in 2023[55] - The company reported a basic loss per share of RMB 0.25 in H1 2024, compared to a profit of RMB 0.04 in H1 2023[77] Store Operations and Performance - Operating profit margin for directly-operated stores dropped to 7.8% in the first half of 2024, down 12.3 percentage points from 20.1% in the same period of 2023[2] - The company had 297 franchise stores as of June 30, 2024, with plans to provide more performance information in the future[2] - Average daily orders per store decreased to 265.9 in the first half of 2024 from 363.4 in the same period of 2023[4] - The company operated 1,597 directly-operated stores in 114 cities as of June 30, 2024, with a net addition of 23 stores in the first half of 2024[10] - Total number of Nayuki's directly operated stores increased to 1,597 as of June 30, 2024, up from 1,574 as of December 31, 2023[11] - Average daily sales per store in Shenzhen reached RMB 10.4k, with a store operating profit margin of 14.7%[12] - Store operating profit margin for directly operated stores in first-tier cities was 13.8%, while in new first-tier cities it was 10.7%[13] - Same-store sales in Shenzhen increased to RMB 11.8k per day, with a store operating profit margin of 15.9%[14] - The company plans to increase marketing efforts and maintain R&D intensity to improve store revenue performance[17] - The flagship store in Thailand achieved record daily sales, boosting confidence in overseas business expansion[17] - Impairment losses on cash-generating units (tea stores) reached RMB 129,540 thousand in H1 2024, a significant jump from RMB 4,877 thousand in H1 2023[82] Costs and Expenses - Labor costs as a percentage of revenue increased to 24.6% in 2024, up from 19.6% in 2023[16] - Material costs accounted for 36.7% of total revenue, up from 31.8% in the same period last year[20] - Employee costs increased to RMB 746.7 million, accounting for 29.3% of total revenue, up from RMB 685.6 million (26.4% of total revenue) in the same period last year, primarily due to lower-than-expected single-store revenue and an increase in store count[21] - Depreciation of right-of-use assets rose to RMB 233.8 million, representing 9.2% of total revenue, compared to RMB 200.4 million (7.7% of total revenue) in the previous period, driven by an increase in the number of directly operated stores[23] - Advertising and promotion expenses increased to RMB 112.7 million, accounting for 4.4% of total revenue, up from RMB 74.1 million (2.9% of total revenue) in the same period last year, due to intensified marketing efforts such as increased delivery promotion activities[26] - Delivery service fees decreased to RMB 170.1 million, representing 6.7% of total revenue, down from RMB 191.2 million (7.4% of total revenue) in the previous period[27] - Logistics and warehousing expenses rose to RMB 80.1 million, accounting for 3.1% of total revenue, compared to RMB 68.6 million (2.6% of total revenue) in the same period last year[28] - Other expenses increased significantly to RMB 248.4 million, representing 9.8% of total revenue, up from RMB 117.3 million (4.5% of total revenue) in the previous period, primarily due to higher impairment losses on property and equipment[30] - Depreciation and amortization of other assets increased to RMB 174.4 million, accounting for 6.9% of total revenue, compared to RMB 142.9 million (5.5% of total revenue) in the same period last year, driven by an increase in the number of directly operated stores[25] - Other rental and related expenses decreased to RMB 140.4 million, representing 5.5% of total revenue, down from RMB 162.4 million (6.3% of total revenue) in the previous period, mainly due to a decline in variable rental payments resulting from lower store revenue[24] - Income tax expenses rose to RMB 47.4 million, compared to RMB 13.7 million in the same period last year[32] - Administrative expenses increased to RMB 56,503 thousand in H1 2024, up from RMB 45,678 thousand in H1 2023, reflecting a 23.7% year-over-year growth[73] - Impairment losses on property and equipment surged to RMB 101,441 thousand in H1 2024, compared to RMB 2,676 thousand in H1 2023, indicating a significant increase in asset write-downs[73] - Depreciation expenses for property and equipment rose to RMB 174,314 thousand in H1 2024, up from RMB 142,864 thousand in H1 2023, a 22.0% increase[75] - Total lease payments for tea stores and offices amounted to RMB 310,536 thousand in H1 2024, compared to RMB 295,702 thousand in H1 2023, showing a 5.0% increase[80] - The company recognized a loss of RMB 31,568 thousand from the sale of non-current assets in H1 2024, up from RMB 18,306 thousand in H1 2023[75] - Total tax expenses increased to RMB 47,387 thousand in H1 2024, up from RMB 13,711 thousand in H1 2023, reflecting higher tax liabilities[76] Cash Flow and Financial Position - Net cash generated from operating activities decreased by 73.3% to RMB 103.8 million in the first half of 2024 from RMB 388.1 million in the same period of 2023[2] - Cash and cash equivalents totaled RMB 374.1 million as of June 30, 2024, down from RMB 444.3 million as of December 31, 2023[36] - Total fixed deposits and certificates of deposit amounted to RMB 2,298.6 million as of June 30, 2024, compared to RMB 2,539.1 million as of December 31, 2023[36] - Right-of-use assets decreased to RMB 1,199.4 million as of June 30, 2024, from RMB 1,609.2 million as of December 31, 2023, due to impairment and depreciation[37] - Property and equipment decreased to RMB 1,240.7 million as of June 30, 2024, from RMB 1,419.2 million as of December 31, 2023, primarily due to impairment and depreciation[38] - Inventory turnover days were 28.7 days for the six months ended June 30, 2024, compared to 28.6 days for the same period in 2023[39] - Trade and other receivables increased to RMB 274.2 million as of June 30, 2024, from RMB 250.4 million as of December 31, 2023, driven by growth in deposits and receivables[40] - Capital expenditure during the reporting period was RMB 217.3 million, mainly related to equipment purchases and leasehold improvements[46] - The capital-to-debt ratio was 33.8% as of June 30, 2024, compared to 36.0% as of December 31, 2023[42] - Property, plant, and equipment decreased to RMB 1,240,748 thousand as of June 30, 2024, from RMB 1,419,221 thousand as of December 31, 2023[57] - Cash and cash equivalents decreased to RMB 374,088 thousand as of June 30, 2024, from RMB 444,346 thousand as of December 31, 2023[58] - Total assets decreased to RMB 5,248,004 thousand as of June 30, 2024, from RMB 6,189,318 thousand as of December 31, 2023[58] - Total equity attributable to the company's shareholders decreased to RMB 4,389,362 thousand as of June 30, 2024, from RMB 4,824,977 thousand as of December 31, 2023[60] - Non-current liabilities decreased to RMB 866,645 thousand as of June 30, 2024, from RMB 1,367,546 thousand as of December 31, 2023[59] - The company's total equity decreased to RMB 4,381,359 thousand as of June 30, 2024, from RMB 4,821,772 thousand as of December 31, 2023[60] - The company added RMB 44,019 thousand in right-of-use assets in H1 2024, down from RMB 351,616 thousand in H1 2023, indicating a slowdown in new lease agreements[79] - The company's large-denomination certificates of deposit increased to RMB 70,000 thousand in current assets and decreased to RMB 340,000 thousand in non-current assets as of June 30, 2024, compared to RMB 410,000 thousand in non-current assets as of December 31, 2023[86] - The fair value of listed equity investments decreased to RMB 104,330 thousand as of June 30, 2024, from RMB 130,833 thousand as of December 31, 2023[87] - Inventory increased to RMB 150,394 thousand as of June 30, 2024, from RMB 147,208 thousand as of December 31, 2023, with raw materials decreasing to RMB 85,520 thousand from RMB 98,145 thousand[88] - Trade receivables increased to RMB 34,045 thousand as of June 30, 2024, from RMB 17,374 thousand as of December 31, 2023, with a significant increase in receivables within one month to RMB 15,458 thousand from RMB 7,884 thousand[89] - Cash and cash equivalents decreased to RMB 374,088 thousand as of June 30, 2024, from RMB 444,346 thousand as of December 31, 2023, with a reduction in time deposits and large-denomination certificates of deposit[90] - The company held RMB 266,493 thousand in cash and cash equivalents in mainland China banks as of June 30, 2024, down from RMB 366,794 thousand as of December 31, 2023[90] - Trade payables remained stable at RMB 275,312 thousand as of June 30, 2024, compared to RMB 274,969 thousand as of December 31, 2023[93] - The company's time deposits in USD increased to RMB 1,888,602 thousand as of June 30, 2024, from RMB 1,855,667 thousand as of December 31, 2023[92] Investments and Capital Allocation - The company holds a 43.64% equity stake in Shanghai Tea Field (Lele Tea Investment), with a book value of approximately RMB 479.8 million, accounting for about 7.3% of the company's total assets. The investment recorded an unrealized loss of approximately RMB 34.6 million during the reporting period[48] - The company has no other significant investment or capital asset plans beyond those disclosed in the announcement as of June 30, 2024[49] - The company raised approximately HKD 4,842.4 million from its global offering, with 70% (HKD 3,389.8 million) allocated for expanding the tea store network and increasing market penetration[52] - As of June 30, 2024, HKD 2,146.5 million of the HKD 3,389.8 million allocated for tea store network expansion has been utilized, with the remaining HKD 1,243.3 million expected to be fully utilized by December 2025[53] - The company has utilized HKD 464.0 million out of the HKD 484.2 million allocated for enhancing overall operations and supply chain capabilities, with the remaining HKD 20.2 million expected to be fully utilized by December 2024[53] - The company has fully utilized the HKD 484.2 million allocated for working capital and general corporate purposes as of June 30, 2024[53] - The company has utilized HKD 381.0 million out of the HKD 484.2 million allocated for general corporate purposes, with the remaining HKD 103.2 million expected to be fully utilized by June 2025[53] - The company repurchased 7,538,000 shares during the six months ended June 30, 2024, at a total cost of HKD 19,937,000 (approximately RMB 18,166,000)[96] Corporate Governance and Compliance - The company's corporate governance practices are in compliance with the Corporate Governance Code, except for the dual role of Chairman and CEO held by Mr. Zhao Lin[100] - The company has adopted the Standard Code for Securities Transactions by Directors of Listed Companies, and all directors confirmed compliance during the reporting period[101] - The Audit Committee, consisting of three independent non-executive directors, reviewed the unaudited interim results and confirmed compliance with applicable accounting standards[102] - The company's interim report for the reporting period will be published on its website and the Hong Kong Stock Exchange website[103] - The reporting period covers the six months ending June 30, 2024[106] - The company's shares are listed and traded on the Hong Kong Stock Exchange under the stock code 2150[105] - The company's independent auditor, KPMG, conducted an independent review of the interim financial report in accordance with Hong Kong Standard on Review Engagements 2410[102] - The company's board includes executive directors Zhao Lin, Peng Xin, and Deng Bin, non-executive directors Wei Guoxing and Ma Yanjun, and independent non-executive directors Liu Yiwei, Zhang Rui, and Xie Yongming[106] Other Income and Expenses - Other income increased to RMB 95.6 million, primarily due to higher government subsidies[19] - Other income increased to RMB 95,615 thousand in 2024 from RMB 87,601 thousand in 2023, with government grants contributing RMB 32,213 thousand[71] - The company's share of losses from associates was RMB 35,285 thousand in H1 2024, compared to a profit of RMB 55 thousand in H1 2023[85] - No interim dividend was declared or paid for the six months ended June 30, 2024, consistent with the same period in 2023[94]
奈雪的茶(02150) - 2024 - 中期业绩