Financial Performance - For the six months ended June 30, 2024, revenue was RMB 2,665.0 million, a decrease of 3.5% year-on-year[4] - Gross profit for the same period was RMB 608.9 million, an increase of 5.3%, with a gross margin of 22.8%, up from 20.9% in the previous year[4] - Net profit for the six months ended June 30, 2024, was RMB 85.5 million, a decrease of 26.7% year-on-year[4] - Core operating profit (non-IFRS measure) was RMB 124.9 million, an increase of 4.9% year-on-year[4] - Revenue for the six months ended June 30, 2024, was RMB 2,664,999 thousand, a decrease from RMB 2,760,906 thousand for the same period in 2023, representing a decline of approximately 3.5%[23] - Gross profit increased to RMB 608,920 thousand for the six months ended June 30, 2024, compared to RMB 578,144 thousand in 2023, reflecting a growth of about 5.3%[23] - The company achieved a net profit of RMB 85,508 thousand for the six months ended June 30, 2024, down from RMB 116,570 thousand in 2023, indicating a decrease of approximately 26.7%[23] - Profit before tax decreased by approximately 28.6% from RMB 162.2 million to RMB 115.8 million[32] - Net profit declined by approximately 26.7% from RMB 116.6 million to RMB 85.5 million, with net profit margin decreasing from 4.2% to 3.2%[35] - Adjusted net profit for the six months ended June 30, 2024, was RMB 85.5 million, compared to RMB 133.5 million in the prior period, with adjusted net profit margin at 3.2%[39] Sales and Revenue Sources - Sales to franchisees contributed RMB 2,338.2 million, accounting for 90.4% of total sales, while other sales channels contributed RMB 248.99 million, or 9.6%[9] - Revenue from home meal products accounted for 97.1% of total revenue in the six months ended June 30, 2024, down from 97.3% in the prior period, with a decrease in sales from RMB 2,686.3 million to RMB 2,587.2 million, a decline of about 3.7%[27] - Revenue from home meal delivery and other food-related products was RMB 2,587,178 thousand, down 3.7% from RMB 2,686,319 thousand in the previous year[81] Store and Membership Growth - The total number of retail stores as of June 30, 2024, was 9,660, covering 31 provinces, autonomous regions, and municipalities[7] - As of June 30, 2024, the registered member count reached approximately 30.9 million, enhancing consumer loyalty[12] - Prepaid card deposits amounted to approximately RMB 430 million, an increase of 57.8% year-on-year[12] Product Development and Marketing - The company launched 248 new SKUs of hot pot and barbecue products during the reporting period to meet changing consumer preferences[13] - The "99 Yuan Free Hot Pot Set" launched in late May 2024 generated over RMB 130 million in sales through Douyin in June, representing a 24.9% increase compared to the total sales of all products on Douyin in the same period last year[12] - The company intends to strengthen its R&D capabilities to diversify product offerings and maintain competitive advantages in core products[20] - The company aims to enhance its brand image and marketing efforts to increase consumer reach and loyalty through various advertising channels[22] Cost Management and Expenses - Selling and distribution expenses increased by 14.0% from RMB 265.0 million to RMB 302.0 million, driven by increased investment in brand building and new sales channels[30] - Administrative expenses slightly increased by 2.2% from RMB 216.3 million to RMB 221.0 million[31] - Other income and net gains decreased by 60.1% from RMB 78.7 million to RMB 31.4 million, primarily due to unrealized losses on non-listed convertible redeemable preferred shares[29] Financial Position and Assets - Cash and bank deposits as of June 30, 2024, amounted to RMB 2,053.0 million, a 6.1% increase from RMB 1,935.7 million as of December 31, 2023[43] - Interest-bearing bank and other borrowings decreased by 13.8% to RMB 69.2 million from RMB 80.3 million as of December 31, 2023[43] - Inventory decreased by 39.6% to RMB 434.3 million from RMB 719.5 million as of December 31, 2023, with inventory turnover days improving from 68.0 days to 51.2 days[48] - Trade receivables decreased to RMB 48.6 million from RMB 54.3 million, with turnover days improving from 6.0 days to 3.5 days[49] - Trade payables decreased to RMB 314.8 million from RMB 457.3 million, with turnover days slightly decreasing from 39.8 days to 34.3 days[51] - The company's net asset value as of June 30, 2024, was RMB 3,238.4 million, down from RMB 3,378.8 million as of December 31, 2023[46] - The debt-to-asset ratio improved from 3.3% as of December 31, 2023, to 3.0% as of June 30, 2024[46] Governance and Compliance - The company has complied with all applicable corporate governance codes during the reporting period, except for a specific deviation noted[99] - The roles of the chairman and the CEO are held by the same individual, which the board believes enhances leadership and strategic decision-making efficiency[100] - The audit committee has reviewed the unaudited interim results for the six months ended June 30, 2024, confirming compliance with applicable accounting principles[106] - The company has adhered to all relevant Chinese laws and regulations that significantly impact its operations[104] Other Information - The company did not declare an interim dividend for the six months ended June 30, 2024[69] - The company reported a basic and diluted earnings per share of RMB 3.13 for the six months ended June 30, 2024, compared to RMB 4.03 for the same period in 2023[70] - The company has not reported any sales to a single customer accounting for 10% or more of total revenue during the reporting period[80] - The group has received several government subsidies related to production facility investments, which will be recognized in the income statement over the useful life of the related assets[24]
锅圈(02517) - 2024 - 中期业绩