Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 527,309,000, a decrease of 10.4% compared to RMB 588,305,000 for the same period in 2023[1] - Gross profit for the same period was RMB 349,196,000, down 10.6% from RMB 390,443,000, with a gross margin of 66.2%[1] - Profit attributable to owners of the company was RMB 3,379,000, significantly lower than RMB 41,564,000 in the previous year[2] - Basic earnings per share decreased to RMB 0.31 from RMB 3.86 year-on-year[2] - Total comprehensive income for the period was RMB 3,890,000, compared to RMB 43,093,000 in the same period last year[3] - The company reported a decrease in other income to RMB 11,799,000 from RMB 16,946,000 year-on-year[2] - The pre-tax profit for the six months ended June 30, 2024, was RMB 8,878 thousand, a decrease of 80.7% from RMB 45,871 thousand in 2023[10] - The group’s overall revenue decreased by 10.4% to approximately RMB 527.3 million, with a stable overall gross margin of 66.2% compared to 66.4% in the previous year[32] - The group's profit attributable to owners was approximately RMB 3.4 million, a significant decrease from RMB 41.6 million in the previous year[33] Assets and Liabilities - Non-current assets totaled RMB 388,327,000, down from RMB 415,460,000 at the end of 2023[4] - Current assets increased slightly to RMB 390,651,000 from RMB 390,277,000 at the end of 2023[4] - Total equity attributable to owners of the company was RMB 243,205,000, up from RMB 239,584,000 at the end of 2023[5] - Trade receivables at the end of the reporting period were RMB 8,412 thousand, down from RMB 13,270 thousand at the end of December 31, 2023[23] - Trade payables at the end of the reporting period were RMB 42,365 thousand, down from RMB 52,255 thousand at the end of December 31, 2023[26] - Cash and cash equivalents decreased by approximately RMB 5 million, from RMB 321.4 million at the end of 2023 to RMB 316.4 million by June 30, 2024[34] - The total assets, net current assets, and net assets as of June 30, 2024, were approximately RMB 779.0 million, RMB 3.5 million, and RMB 244.8 million, respectively[35] - The company maintained a current ratio of 1.0 as of June 30, 2024, consistent with the ratio as of December 31, 2023[35] - The company had no bank borrowings as of June 30, 2024, resulting in a capital debt ratio of zero[35] Operational Metrics - The number of self-operated restaurants decreased to 33 from 37 in the previous year, while the number of joint venture restaurants remained stable at 17[1] - The operating profit for the northern region was RMB 14,178 thousand for the six months ended June 30, 2024, down from RMB 25,264 thousand in 2023, representing a decline of 43.9%[10] - The total employee costs amounted to RMB 216,109 thousand for the six months ended June 30, 2024, slightly increasing from RMB 216,004 thousand in 2023[17] - The group has over 1.4 million members in mainland China and Hong Kong as of June 30, 2024, focusing on enhancing member benefits and promotional activities to encourage repeat purchases[31] - The group’s employee cost as a percentage of revenue increased to 40.6% from 36.7% in the previous year, influenced by a new share-based payment expense of approximately RMB 1.8 million[33] - The company employed over 2,700 staff as of June 30, 2024, with competitive compensation and performance-based bonuses[37] Marketing and Customer Engagement - The company faced challenges in customer traffic and average spending in its restaurants due to economic slowdown and other factors[28] - The company is actively implementing marketing strategies to adapt to market changes, including optimizing online platform promotions and strengthening member loyalty[28] - The group generated over RMB 21 million in revenue from live marketing campaigns within a few months, significantly increasing customer traffic and demonstrating the effectiveness of this new marketing model[31] - The group plans to deepen the management of live marketing in the second half of 2024, optimizing various aspects such as package combinations and promotional models to increase sales[31] - The group expects continued challenges in the restaurant market in mainland China and Hong Kong due to weak consumer spending and high costs, and will adjust operational strategies accordingly[31] Dividends and Capital Commitments - The company did not declare any interim dividend for the six months ended June 30, 2024, compared to an interim special dividend of RMB 24,480 thousand for the same period in 2023[20] - The company did not declare any interim dividends for the six months ended June 30, 2024, compared to a special interim dividend of HKD 0.025 per share for the same period in 2023[43] - The company's capital commitments were approximately RMB 1.4 million as of June 30, 2024, down from RMB 5.9 million as of December 31, 2023[38] - There were no significant acquisitions or disposals of subsidiaries, associates, or joint ventures during the period[39]
唐宫中国(01181) - 2024 - 中期业绩