Retail Store Operations - As of June 30, 2024, the Group had a total of 3,456 retail stores, comprising 1,735 self-operated and 1,721 franchised stores, covering 323 cities across 28 provinces in China[8]. - The number of retail stores in Central China was 1,566, accounting for 45.3% of the total, while Southern China had 572 stores, representing 16.6%[9]. - The total number of retail stores decreased from 3,706 in 2023 to 3,456 in 2024, reflecting a reduction of approximately 6.7%[9]. - The number of retail stores in Northern China decreased from 542 in 2023 to 443 in 2024, a decline of 18.3%[9]. - The company aims to increase its market share in Western China, where the number of stores was 351, accounting for 10.1% of the total[9]. - The Group launched 127 "two-in-one retail stores" in Wuhan and surrounding areas to meet diversified consumer demands as of June 30, 2024[20]. Financial Performance - Total revenue for the first half of 2024 was RMB 1,024,333,000, a decrease of 11.6% compared to RMB 1,159,401,000 in the same period of 2023[13]. - Revenue for the six months ended June 30, 2024, was RMB 1,259,511,000, a decrease of 10.9% compared to RMB 1,414,764,000 for the same period in 2023[116]. - The company's net profit for the period was RMB 32,913, reflecting a significant decline of 67.7% from RMB 101,742 in the previous year[31]. - The Group's net profit decreased by 67.6% from RMB 101.7 million for the six months ended June 30, 2023, to RMB 32.9 million for the six months ended June 30, 2024, with a net profit margin decreasing from 7.2% to 2.6%[33]. - The Group's total comprehensive income for the six months ended June 30, 2024, was RMB 37.7 million, a decrease of 68.1% from RMB 118.2 million for the same period in 2023[35][39]. Cost Management - Cost of sales decreased by approximately 16.4% from RMB672.0 million for the six months ended June 30, 2023, to RMB561.9 million for the six months ended June 30, 2024, attributed to a drop in production and sales of products and a decrease in raw material prices[32]. - Selling and distribution expenses decreased by 55.7% to RMB 504,977 compared to RMB 474,075 in the previous year[31]. - Administrative expenses decreased by approximately 25.1% from RMB160.1 million for the six months ended June 30, 2023, to RMB119.9 million for the six months ended June 30, 2024, due to the lapse of certain restricted share units[33]. Strategic Initiatives - The Group's strategic focus includes expanding its presence in underrepresented regions while optimizing the performance of existing stores[8]. - The management plans to enhance product offerings and invest in new technology to improve operational efficiency and customer experience[8]. - Future outlook includes exploring potential mergers and acquisitions to accelerate growth and market penetration[8]. - The Group is committed to maintaining a strong financial position while pursuing sustainable growth strategies in the competitive market[8]. Employee and Labor Costs - As of June 30, 2024, the Group had a total of 4,297 employees, with approximately 60.7% in retail operations and sales[72]. - Total labor costs for the six months ended June 30, 2024, amounted to RMB271.6 million, representing approximately 21.6% of total revenue[74]. Shareholder Information - The Group repurchased a total of 81,580,000 shares at an aggregate consideration of HK$ 147,687,203 during the six months ended June 30, 2024[36][40]. - The remaining balance of net proceeds from the IPO as of June 30, 2024, was RMB 189.8 million, down from RMB 199.8 million as of December 31, 2023[44][48]. - The Group's reserves available for distribution to shareholders amounted to approximately RMB1,140.6 million[76]. Governance and Compliance - The Company has complied with the applicable code provisions in part 2 of the Corporate Governance Code, except for a deviation regarding the separation of roles between the Chairman and CEO[101]. - The Board believes that combining the roles of Chairman and CEO will enhance strategic implementation and operational efficiency during a critical period of change[103]. - The Company will continue to improve its corporate governance practices in line with its business growth[103].
周黑鸭(01458) - 2024 - 中期财报