Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 826,790, a decrease of 6.6% compared to RMB 884,847 in the same period of 2023[1] - Restaurant business sales decreased by 6.0% to RMB 792,194 from RMB 842,594 year-on-year[1] - Gross profit for the period was RMB 636,261, down 4.3% from RMB 664,952 in the previous year[1] - Operating profit significantly dropped to RMB 11,121 from RMB 65,251, indicating a substantial decline in profitability[2] - The company reported a loss attributable to shareholders of RMB 7,157, compared to a profit of RMB 133,095 in the same period last year[3] - The segment profit for restaurant operations was RMB 4,984,000, down from RMB 97,032,000 in the previous year, indicating a significant decrease in profitability[11] - The company reported a loss before tax of RMB 15,566,000 for the six months ended June 30, 2024, compared to a profit before tax of RMB 181,256,000 in the same period of 2023[11] - The company reported a net loss of RMB 4,261,000 for the period, a significant decline from a profit of RMB 139,596,000 in the same period of 2023[11] - The group recorded a net loss of approximately RMB 61,755,000 in other gains and losses, compared to a net gain of RMB 70,077,000 in the same period of 2023, primarily due to a decline in asset valuations[39] - The group reported a pre-tax loss of approximately RMB 15,566,000 for the six months ending June 30, 2024, compared to a profit of RMB 181,256,000 in the same period of 2023[41] - The loss attributable to shareholders for the same period was approximately RMB 7,157,000, down from a profit of RMB 133,095,000 in 2023[42] Assets and Liabilities - Non-current assets totaled RMB 2,066,322, slightly up from RMB 2,059,582 at the end of 2023[4] - Current assets net amount decreased to RMB 1,382,586 from RMB 1,434,727[5] - Total liabilities increased to RMB 537,426 from RMB 467,202, reflecting a rise in financial obligations[4] - The company’s equity attributable to shareholders decreased to RMB 2,909,655 from RMB 3,000,391[5] - Non-current assets as of June 30, 2024, totaled RMB 1,827,644,000, a slight decrease from RMB 1,832,628,000 as of December 31, 2023[12] - Trade receivables from third parties as of June 30, 2024, amounted to RMB 28,932, down from RMB 32,989 as of December 31, 2023[23] - Total trade and other payables as of June 30, 2024, were RMB 214,276, a decrease from RMB 249,488 as of December 31, 2023[26] - The company’s non-listed equity investments and fund investments were valued at RMB 113,463 as of June 30, 2024, down from RMB 125,867 at the end of 2023[22] Revenue Breakdown - Revenue from external customers in mainland China was RMB 728,813,000, down from RMB 781,701,000 in the previous year, while revenue from Hong Kong was RMB 97,977,000, down from RMB 103,146,000[12] - For the six months ended June 30, 2024, the company's revenue was approximately RMB 826.8 million, a decrease of about 6.6% compared to RMB 884.8 million in the same period of 2023[29] - The company's restaurant business revenue recorded approximately RMB 792.2 million, accounting for about 95.8% of total revenue, which is a decrease of approximately 6.0% from RMB 842.6 million in the same period of 2023[30] Expenses and Costs - The cost of inventory for the six months ended June 30, 2024, was approximately RMB 190.5 million, a decrease of about 13.4% from RMB 219.9 million in the same period of 2023, with the inventory cost ratio to revenue at approximately 23.0%, down from 24.9%[33] - Other operating expenses for the same period were approximately RMB 243,710,000, an increase of about 15.1% from RMB 211,704,000 in 2023, primarily due to the recovery of revenue[36] - Financing costs increased by approximately 11.6% to RMB 10,682,000 from RMB 9,570,000 in 2023, driven by an increase in lease liabilities due to the growth in the number of restaurants[40] Taxation - Hong Kong profits tax for the six months ended June 30, 2024, was RMB 1,378, a decrease from RMB 2,283 in the same period of 2023[18] - The corporate income tax in mainland China for the same period was RMB 4,654, down from RMB 6,684 in 2023, reflecting a reduction of approximately 30%[18] - The deferred tax expense for the six months ended June 30, 2024, was RMB 4,777, compared to RMB 6,667 in the previous year, indicating a significant decrease[18] Dividends and Shareholder Information - The declared final dividend for 2023 was RMB 0.08 per share, totaling RMB 87,323, an increase from RMB 65,493 for the previous year's dividend of RMB 0.06 per share[20] - The company did not declare an interim dividend for the six months ended June 30, 2024, compared to no dividend declared for the same period in 2023[57] Employee and Corporate Governance - As of June 30, 2024, the total employee compensation was approximately RMB 224,511,000, a slight decrease from RMB 227,664,000 as of June 30, 2023[56] - The group had 7,790 employees as of June 30, 2024, an increase from 7,746 employees as of June 30, 2023[56] - The audit committee reviewed the company's accounting standards and practices for the six months ended June 30, 2024[54] - The company complied with all applicable provisions of the Corporate Governance Code, except for a deviation regarding the separation of roles between the Chairman and CEO[52] - The company has adopted a code of conduct for directors' securities transactions, which complies with the standards set out in the Listing Rules[53] - The board believes that having the same person serve as both Chairman and CEO provides stable and consistent leadership at this stage of the company's development[52] Strategic Initiatives - The company plans to continue optimizing its marketing strategies and promoting digital transformation to enhance product quality and ensure food safety[28] - The company is focusing on enhancing customer experience by upgrading store designs and introducing new retail packaging products to meet diverse market demands[29] - The company has five production bases in mainland China, ensuring food quality, safety, and stable supply[29] - The competitive landscape in the restaurant industry remains challenging, with a need for balanced development in both online and offline channels to maintain brand influence and market competitiveness[28] - The company aims to respond swiftly to market changes and seek new opportunities for stable and sustainable operations[29] Cash Flow and Capital Expenditures - As of June 30, 2024, the group's cash and bank balances were approximately RMB 1,665,650,000, with a current ratio of 3.6, down from 4.1 at the end of 2023[43] - The group generated a net cash inflow from operating activities of approximately RMB 191,809,000, despite recording a pre-tax loss of RMB 15,566,000, mainly due to non-cash items[49] - Capital expenditures for the six months ending June 30, 2024, were approximately RMB 47,554,000, an increase from RMB 28,034,000 in 2023, as the group plans to expand its restaurant network[50] Stock Options - The company granted a total of 1,000,000 stock options at an exercise price of HKD 1.010, with a vesting period from July 12, 2024, to July 11, 2034[51] Reporting and Future Plans - The company plans to issue its interim report for the six months ended June 30, 2024, to all shareholders in due course[58]
味千(中国)(00538) - 2024 - 中期业绩