Restaurant Expansion and Operations - In the first half of 2021, the company opened 40 new Xiaobuxiang restaurants and 9 new Coucou restaurants, bringing the total to 1,077 Xiaobuxiang and 149 Coucou restaurants across China[7]. - The company closed a total of 24 Xiaobuxiang restaurants during the first half of 2021 for business reasons[9]. - As of June 30, 2021, the company operated 372 restaurants in first-tier cities, 445 in second-tier cities, and 260 in third-tier cities and below[10]. - The company plans to continue expanding its restaurant network and improving operational efficiency to enhance profitability in the future[7]. - The company plans to open 9 new "Coucou" restaurants in the first half of 2021 and aims to expand further into new provinces and cities[26]. - The company is adjusting the "Xiabuxiabu" brand model and pausing new store openings to focus on enhancing brand quality and customer satisfaction[26]. - The company incurred capital expenditures of RMB 216.8 million for new restaurant openings and renovations during the first half of 2021, compared to RMB 152.9 million in the same period of 2020[63]. - The company opened a total of 49 new restaurants in the first half of 2021[63]. Financial Performance - Revenue increased by 58.5% from RMB 1,921.9 million in the first half of 2020 to RMB 3,046.9 million in the first half of 2021[7]. - The net loss narrowed significantly from RMB 252.1 million in the first half of 2020 to RMB 46.9 million in the first half of 2021, although the company still did not achieve profitability[7]. - The company reported a loss before tax of RMB 53,868 thousand, significantly improved from a loss of RMB 311,945 thousand in the prior year[122]. - The net loss for the period was RMB 46,932 thousand, compared to a net loss of RMB 252,105 thousand in the same period last year, indicating a substantial reduction in losses[122]. - Basic and diluted loss per share for the period was RMB 4.64, an improvement from RMB 23.84 in the previous year[122]. - The group reported a pre-tax loss of RMB 49,921,000 for the six months ended June 30, 2021, compared to a loss of RMB 254,942,000 for the same period in 2020, indicating a significant improvement[161]. - The company recognized impairment losses of RMB 87,566,000 on property, plant, and equipment during the reporting period[142]. Sales and Revenue Breakdown - Xiaobuxiang brand sales rose by 50.6% to RMB 1,867.4 million, while Coucou brand sales surged by 90.0% to RMB 1,126.5 million[7]. - Same-store sales for the "Xiabuxiabu" brand reached RMB 1,098.5 million in the first half of 2021, a 29.8% increase compared to RMB 846.4 million in the same period of 2020[19]. - The revenue from the Xiaobai brand increased by 50.6% from RMB 1,240.1 million to RMB 1,867.4 million, while the Coucou brand's revenue rose from RMB 593.0 million to RMB 1,126.5 million[33]. - Revenue from the restaurant business was RMB 2,971,308,000, with contributions of RMB 1,844,945,000 from the "Xiabuxiabu" brand and RMB 1,126,363,000 from the "Coucou" brand[136]. Customer Metrics - The average customer spending in the first half of 2021 was RMB 62.2, slightly down from RMB 63.3 in the same period of 2020, attributed to increased promotional activities[18]. - The average customer spending in first-tier cities decreased slightly to RMB 139.6 in 2021 from RMB 141.4 in 2020, attributed to menu adjustments[21]. - The turnover rate improved from 1.8 times in the first half of 2020 to 2.3 times in the first half of 2021[18]. - The table turnover rate improved significantly from 1.9 times in the first half of 2020 to 2.6 times in the first half of 2021, reflecting increased customer traffic[23]. - The same-store sales growth rate for first-tier cities was 33.7% in the first half of 2021, compared to a decline of 33.4% in the same period of 2020[24]. Cost and Expenses - The cost of raw materials and consumables increased by 48.5% from RMB 764.3 million to RMB 1,134.8 million, but the percentage of these costs relative to total revenue decreased from 39.8% to 37.2%[35]. - Employee costs increased by 45.6% from RMB 636.4 million in the first half of 2020 to RMB 926.7 million in the first half of 2021, while the number of employees rose from 26,797 to 30,087[36]. - Property rental and related expenses rose by 51.1% from RMB 93.1 million in the first half of 2020 to RMB 140.8 million in the first half of 2021, accounting for 4.6% of total revenue, down from 4.8%[39]. - Utility expenses increased by 42.4% from RMB 66.7 million in the first half of 2020 to RMB 94.9 million in the first half of 2021, representing 3.1% of total revenue, down from 3.5%[40]. - Depreciation and amortization rose by 13.8% from RMB 466.4 million in the first half of 2020 to RMB 531.0 million in the first half of 2021, accounting for 17.4% of total revenue, down from 24.3%[40]. Shareholder and Equity Information - The company granted a total of 1,185,601 share options under the pre-IPO share incentive plan, representing about 0.11% of the total issued share capital as of June 30, 2021[70]. - The company also issued a total of 4,177,880 restricted share units, which is approximately 0.38% of the total issued share capital as of June 30, 2021[70]. - Mr. He Guangqi held 450,000,000 shares, representing 41.46% of the company's equity as of June 30, 2021[72]. - Ms. Chen Suying, as the spouse of Mr. He Guangqi, held 453,752,360 shares, representing 41.80% of the company's equity[72]. - The company has a 60% equity interest in its subsidiary, Xia Bo Xia Bo (China) Food Holdings Limited[75]. - The major shareholders include Ying Qi PTC Limited and Ying Qi Investments Limited, each holding 450,000,000 shares, representing 41.46%[76]. - General Atlantic entities collectively hold 147,000,000 shares, representing 13.54% of the company's equity[76]. Cash Flow and Investments - As of June 30, 2021, the company's cash and cash equivalents amounted to RMB 463.7 million, a decrease from RMB 1,097.3 million as of December 31, 2020[53]. - The company held short-term investments totaling RMB 734.1 million as of June 30, 2021, with a significant portion in financial products issued by various banks[54]. - The expected annual yield on financial products purchased ranged from 3.06% to 7.60% during the six months ending June 30, 2021, generating approximately RMB 12.0 million in fair value gains[55]. - The company reported a net cash outflow from investing activities of RMB 928,870,000 for the six months ended June 30, 2021, compared to RMB 867,779,000 in the previous year, indicating a slight increase in investment expenditures[130]. Corporate Governance and Compliance - The company has complied with the corporate governance code, with a strong independent board structure[106][109]. - The company has established an audit committee consisting of two independent non-executive directors and one non-executive director to oversee financial reporting[112]. - The company has complied with the standard code for securities transactions by directors, confirming no breaches by employees with insider information[111]. Future Outlook and Strategy - The company aims to accelerate its international expansion and enhance brand exposure through collaborations and pop-up stores[1]. - The company is implementing a profit-sharing mechanism to motivate operational staff and ensure a stable supply of quality talent for future growth[26]. - The company continues to focus on enhancing operational efficiency and exploring market expansion opportunities[116].
呷哺呷哺(00520) - 2021 - 中期财报