Financial Performance - The company's revenue decreased by 15.9% from RMB 2,846.1 million in the first half of 2023 to RMB 2,394.5 million in the reporting period[3]. - The pre-tax loss for the reporting period was RMB 267.0 million, compared to a pre-tax profit of RMB 7.0 million for the same period in 2023[3]. - The total net loss for the period was RMB 273.7 million, primarily due to a weak overall market environment and increased competition in the dining sector[3]. - The total net revenue for the first half of 2024 was RMB 1,254,525,000, a decrease of 11.7% compared to RMB 1,420,948,000 in the same period of 2023[10]. - The total same-store sales for the group decreased by 43.0% to RMB 750.8 million compared to RMB 1,317.8 million in the same period of 2023[17]. - The group reported a consolidated loss before tax of RMB 267,000 thousand for the six months ended June 30, 2024, compared to a profit in the previous period[59]. - The group reported a total revenue of RMB 2,394.5 million for the six months ended June 30, 2024, a decrease of approximately 15.8% compared to RMB 2,846.1 million for the same period in 2023[47]. Restaurant Operations - The company opened 41 new Xiabuxiabu restaurants in mainland China during the first half of 2024, bringing the total to 821 restaurants in 21 provinces and 3 municipalities[3]. - The company closed a total of 48 Xiabuxiabu restaurants and 23 Coucou restaurants during the reporting period due to business reasons[5]. - The company plans to expand its store presence in first-tier and new second-tier cities, leveraging a proven high turnover rate model[20]. - The company is set to open its first store in Taiwan on June 25, 2024, as part of its strategy to enhance international brand exposure[20]. Sales and Customer Engagement - The sales of Xiabuxiabu decreased by 4.6% to RMB 1,313.1 million, while Coucou sales dropped by 28.3% to RMB 1,004.5 million[3]. - Same-store sales in first-tier cities decreased by 12.9%, with revenue of RMB 410.0 million compared to RMB 573.6 million in the previous year[12]. - The average customer spending in first-tier cities increased to RMB 60.0, up from RMB 58.8 in the previous year[10]. - The average customer spending in other markets was RMB 123.4, down from RMB 143.4 in the previous year[10]. - The company implemented various marketing strategies, including promotions for small portion dishes and online marketing activities, to attract customers amid declining consumer spending[16]. Cost Management and Efficiency - The cost of raw materials and consumables as a percentage of total revenue decreased from 37.4% in the first half of 2023 to 34.6% in the reporting period, reflecting effective cost management[27]. - Employee costs decreased by 12.5% from RMB 929.9 million to RMB 814.1 million due to store closures, with a net reduction of 22 stores compared to the previous year[28]. - Property rental and related expenses increased by 15.1% from RMB 138.8 million to RMB 159.7 million, accounting for 6.7% of total revenue, up from 4.9% in the previous year[29]. - Utility expenses decreased by 8.7% from RMB 98.6 million to RMB 90.1 million, representing 3.8% of total revenue[30]. - The company is focusing on optimizing its business model by closing underperforming restaurants to achieve profitability across all stores by the second half of 2024[18]. Membership and Loyalty Programs - In 2024, the company aims to enhance brand loyalty through a four-pronged membership strategy, focusing on paid membership promotion, new member development, existing member engagement, and platform operations[18]. - The company achieved over RMB 1.4 billion in paid membership card sales in the first half of 2024, with daily card sales increasing from 2.9 to 5.2 cards, a rise of 1.8 times[19]. - The average consumption per paid member reached RMB 432, with a frequency of 4.9 visits, which is 2.7 times higher than that of regular members[19]. Financial Position and Liabilities - As of June 30, 2024, cash and cash equivalents totaled RMB 310.0 million, up from RMB 129.4 million at the end of 2023[38]. - The group’s total liabilities as of June 30, 2024, were RMB 1,747.1 million, compared to RMB 1,884.8 million at the end of 2023[48]. - The group had short-term borrowings of RMB 378.7 million as of June 30, 2024, an increase from RMB 248.6 million as of December 31, 2023[41]. - The net asset value of the group decreased to RMB 967.9 million as of June 30, 2024, down from RMB 1,269.9 million at the end of 2023[48]. Corporate Governance - The board of directors consists of one executive director, two non-executive directors, and three independent non-executive directors, ensuring strong independence[100]. - The company has established an audit committee in accordance with corporate governance codes, comprising two independent non-executive directors and one non-executive director[102]. - The company will continue to review and monitor its corporate governance practices to maintain high standards[100].
呷哺呷哺(00520) - 2024 - 中期业绩