Revenue Performance - The group's revenue decreased by 29.1% from RMB 2,712.5 million in the first half of 2019 to RMB 1,921.9 million in the same period of 2020, primarily due to the impact of COVID-19 outbreaks [27]. - Total revenue for the first half of 2020 decreased to RMB 1,222.7 million from RMB 2,198.7 million in the same period of 2019, representing a decline of approximately 44.4% [36]. - Total revenue for the six months ended June 30, 2020, was RMB 1,921,876 thousand, a decrease of 29.2% compared to RMB 2,712,521 thousand in the same period of 2019 [104]. - The revenue breakdown shows that sales from the restaurant business contributed RMB 1,240,140,000, while the "CuoCuo" segment generated RMB 593,039,000, and other sales amounted to RMB 88,697,000 [120]. Restaurant Operations - The number of restaurants operated by the group reached 1,010 for the "Xiabuxiabu" brand and 107 for the "CouCou" brand as of June 30, 2020, following the opening of 31 and 5 new locations respectively [27]. - The group closed a total of 43 "Xiabuxiabu" restaurants in the first half of 2020 for commercial reasons, while continuing to focus on quality over quantity in its expansion strategy [32]. - The total number of restaurants increased to 107 in the first half of 2020, compared to 61 in the same period of 2019, marking a growth of 75.4% [34]. - The company opened 31 new Xiaobuxiang restaurants and 5 new Coucou restaurants in the first half of 2020, enhancing its restaurant network [48]. Financial Performance - The pre-tax loss for the first half of 2020 was RMB 311.9 million, compared to a profit of RMB 225.2 million in the same period of 2019, reflecting a significant decline in profitability [48]. - The basic and diluted loss per share for the first half of 2020 was RMB 23.84, compared to earnings of RMB 15.41 in the same period of 2019 [48]. - The company reported a loss before tax of RMB 254,942,000 for the first half of 2020, compared to a profit of RMB 164,040,000 in the same period of 2019 [121]. - The net loss attributable to owners of the company for the period was RMB 252,105 thousand, compared to a profit of RMB 162,189 thousand in the same period of 2019 [104]. Cost Management - The group implemented cost optimization measures during the pandemic, including talent sharing and negotiating lower rents, which positively impacted the income statement for the first half of 2020 [29]. - Employee costs decreased by 11.6% from RMB 719.5 million in the first half of 2019 to RMB 636.4 million in the same period of 2020, with the employee count dropping from 27,401 to 26,797 [51]. - Property rental and related expenses fell by 26.2% from RMB 126.3 million in the first half of 2019 to RMB 93.1 million in the same period of 2020, accounting for 4.8% of total revenue [52]. - Utility expenses decreased by 26.9% from RMB 91.2 million in the first half of 2019 to RMB 66.7 million in the same period of 2020, maintaining a stable percentage of 3.5% of total revenue [53]. Customer Insights - The average customer spending increased by 10.3% to RMB 63.3 in the first half of 2020, compared to RMB 57.4 in the same period of 2019, attributed to product optimization and new menu items [36]. - The average customer spending in first-tier cities for the "Coucou" brand rose to RMB 104.6, up from RMB 92.0 in the first half of 2019, reflecting a growth of 13.9% [39]. - The average customer spending in second-tier cities increased to RMB 61.2, compared to RMB 55.1 in the first half of 2019, reflecting an increase of 18.1% [36]. Market Expansion - The group plans to continue expanding the "CouCou" brand and enhance its market share while laying a solid foundation for future business development [28]. - The company plans to maintain its expansion pace while ensuring quality store openings, with a focus on optimizing site selection using big data and improving rental negotiations [41]. - The company is committed to penetrating all market segments, with its high-end brand "Cou Cou" expanding its presence and aiming for international growth [42]. Government Support and Assistance - The company received government assistance related to COVID-19, which included rent concessions from landlords [111]. - The company recognized a total of RMB 22,332,000 in rental payment changes due to COVID-19 related rent concessions during the reporting period [116]. - The company received government subsidies totaling RMB 12,512,000 during the first half of 2020, compared to RMB 4,485,000 in the same period of 2019 [125]. Shareholder Information - The company plans to distribute an interim dividend of RMB 0.028 per share, totaling approximately RMB 30 million for the six months ended June 30, 2020 [95]. - The company confirmed dividends distributed during the period amounted to RMB 49,624,000, down from RMB 101,248,000 in 2019, reflecting a decrease of approximately 51.0% [132]. - The company has granted a total of 5,296,769 share options under the pre-IPO share incentive plan, equivalent to about 0.49% of the total issued share capital [73]. Asset Management - As of June 30, 2020, the company's cash and cash equivalents amounted to RMB 254.0 million, a decrease from RMB 785.2 million as of December 31, 2019 [66]. - The company incurred capital expenditures of RMB 152.9 million for new restaurant openings and renovations in the first half of 2020, compared to RMB 252.6 million in the same period of 2019 [71]. - The company utilized approximately 85.81% of the net proceeds from the global offering, totaling RMB 895.4 million, with RMB 666.6 million allocated for new store openings and renovations [66]. Impairment and Losses - The company reported a loss of RMB 33,498,000 related to impairment losses on right-of-use assets, compared to RMB 5,147,000 in the previous year, indicating a significant increase in impairment [128]. - The group incurred impairment losses of RMB 17,254,000 and RMB 33,498,000 for leasehold improvements and right-of-use assets, respectively, compared to RMB 2,199,000 and RMB 5,147,000 in the same period last year [137].
呷哺呷哺(00520) - 2020 - 中期财报